Hi Evan, quick question. Why not just use items to tag each expense (items allow for more detail of course)? Then, have all items tagged to construction in progress directly on the balance sheet. This way, the numbers are already on the balance sheet, and if you want to check detailed costs at any time, you can just run an item report.
Then you will be looking at a very long balance sheet where as if you just do the JE, you can look at your PnL prior to JE date to see how your job was doing.
I really like this method. The only I thing I noticed is that this entry adds a line for the sales tax code that has to be adjusted from the actual revenue declared (Canadian tax code).Any suggestions ?Thank you.
Thank you so much for this
Hi Evan, quick question. Why not just use items to tag each expense (items allow for more detail of course)? Then, have all items tagged to construction in progress directly on the balance sheet. This way, the numbers are already on the balance sheet, and if you want to check detailed costs at any time, you can just run an item report.
Raymond, can you explain more?
Then you will be looking at a very long balance sheet where as if you just do the JE, you can look at your PnL prior to JE date to see how your job was doing.
I really like this method. The only I thing I noticed is that this entry adds a line for the sales tax code that has to be adjusted from the actual revenue declared (Canadian tax code).Any suggestions ?Thank you.
DomDom, It's not about a preferred method or one you like; it's about following accounting rules that provide the most accurate financial statements.