Time Billing

To adjust your books for work in progress

  1. Create two new accounts in your accounts list: an income account called "Work in Progress - Income,' and an asset account called "Work in Progress - Accrued' (Creating accounts)


  2. At the end of every month, print an Activity Slip [Activity Summary] report. Using report customizations, be sure to include all activities on the report and enter the dates of the first and last day of the current month in the Dated From and To fields. (Choosing what to do with the report)


    When you print the report with this information, the total in the Balance $ column is your month-end work in progress amount.
  1. Create a general journal entry to enter the value of this month's work in progress in your books:


  1. Enter the date of the last day of the current month in the Date field.
  2. Enter the month-end work in progress amount from the report you printed in step 2 as a credit to the Work in Progress - Income account.
  3. On the next line, balance the transaction by entering the same amount as a debit to the Work in Progress - Accrued account.
  4. Record the transaction.
    This entry increases your income on your profit & loss statement and increases the value of your assets on your balance sheet to reflect the month-end value of your work in progress. (Creating General Journal entries)
    Hint:  Save the WIP general journal entry as a recurring transaction
  1. At the end of the next month, create another general journal entry to reverse the first one:


  1. Enter the date of the first day of the current month in the Date field.
  2. Enter the month-end work in progress amount from the report you printed in step 2 as a debit to the Work in Progress - Income account.
  3. On the next line, balance the transaction by entering the same amount as a credit to the Work in Progress - Accrued account.
  4. Record the transaction.
  1. Follow steps 2 through 4 every month. Your books will show the value of your work in progress.


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