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Your accounting software records AccountRight records work in progress but does not automatically adjust your books to accounts to reflect the value of your work any work in progress. Rather, the software waits AccountRight waits until the work is billed before making accounting entries. This support note provides a method that enables you to reflect has a workaround to show your work in progress in the meantime. What is work in progress?Work in progress are the activities that have been performed by a business that are yet to be billed. From an accounting perspective, this should be recognised in the financial statements at the end of the month, as the activities conducted should result in future cash flow. How do I adjust my general ledger to reflect work in progress?financial reports. This is achieved by setting up an income and an accrual account, then posting your work in progress to these accounts each month. You should check with your accounting advisor about the suitability of this workaround for your needs. | UI Expand |
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| title | To show work in progress on reports |
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| - Create a new Income account called 'Work In Progress - Income'. To do this: Go to the Accounts command centre and click Accounts List then click New.
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See Income account below.- :
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- Create a new Asset account called 'Work In Progress - Accrual'.
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See Asset account below.- :
 Image Modified - At the end of every month, run the Activity
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Slip [Activity Detail] report. - Slip Detail report (Reports > Index to Reports > Time Billing > Activity Slip Detail).
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be sure to select - select a date in the From field that will include all open activities.
- Enter the last day of the current month as the To field.
- The grand total of the Balance column is your month end work in progress amount.
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See report below. - :
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Create a general journal entry at - At the end of the current month
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for . A credit should be applied to Work - (as determined in the previous step).
- Credit the Work in Progress - Income
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and a debit should be applied to Work - account
- Debit the Work in Progress - Accrual
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. We have assumed the amount in this example is $1,470. Record the transaction. See our example transaction below.
 Image RemovedCreate a general journal entry for - account. Here's our example:
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- On the first day of the following month
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for - , create a general journal entry for the value of the work in progress amount.
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This transaction - This transaction will clear out the prior month's work in progress amounts. If you don't enter this reversing entry, the work in progress will be double counted when entering this month's work in progress amount in to the general ledger.
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A credit should be applied to Work - Credit the Work in Progress - Accrual
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and a debit should be applied to Work - account
- Debit the Work in Progress - Income
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. Record the transaction. See our example transaction below.  Image Removed
Hint: You may want to save the two general - account
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| Save time! Save these general journal entries as recurring transactions. You can then use |
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the these recurring transactions |
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every month each month and only the amounts will need to be changed. |
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Our support note Recurring transactions has more information on this | 
