Answer to Question #79327 in Finance for Hugh Heron

Question

You have been asked to provide an accurate and up-to-date profit and loss report on work in process for a particular job. What data might you draw on, what reports might you need to access and how would you ensure that the information you provide is error free and comprehensive?

Answer 1

Work in process is shown as inventory under the head current assets. In order to evaluate the profit or loss from work in process we should consider the estimated cost for that particular work which has been assigned. If you’ve sent Invoices in multiple currencies, the P&L Report will break down your Sales by currency, automatically applying an Exchange Rate. That Exchange rate is an average for the report period. Because Deposits are made to our prior to the delivery of goods/services (in most cases), they are not initially recorded as Income. When a Deposit is paid (or additional payments are made), only the paid amount will appear on both Collected and Billed settings.