This is why WIP calculations for jobs in progress may be needed.
If you do not do that, your nominal ledger (and that means the bottom line of the profit and loss you record) may not reflect committed costs or revenue when it should. it is in progress, it may be necessary to adjust the costs and/or revenues to reflect the progress on the job and the revenues and costs posted against it so far. However, while a job has started but not finished i.e. (This assumes that the Applied Job Cost and Sales accounts are the same as the Sales and Staff Salaries accounts but they do not have to be.)
This would produce the following postings:-Ĭredit – Staff Salaries £100, Debit – Job Costs £100 Ĭredit – Job Sales £200, Debit – Sales £200. When the job is complete, the costs and revenues are moved to a separate area of the accounts, a process known as job recognition. So these costs and revenues are “lost” in the normal company transactions. These are the sort of accounting transactions you might see in the course of a job:-ĭebit – Staff Salaries £100, Credit - Bank Account £100 ĭebit - Trade Debtors £200, Credit – Sales £200. Before going into detail about it, what is WIP anyway? One of the purposes of Jobs in NAV is to record the costs and revenues of a job and post them to defined G/L accounts.
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