Invoice, Invoice in Advance and Invoice in Arrears - T&M

 

Scenario 1 - Rev rec at Invoicing

Fee Journal

DR Project WIP Sale Value (B/S) – 1000

                             CR Project Accrued Revenue - Sale value (P&L) – 1000

              Expense Journal – Consumption

              Dr Cost – 500

                             Cr – B/S – 500

Dr Project WIP Sale Value (B/S) – 500

                             CR Project Accrued Revenue - Sale value (P&L) – 500

Invoice

Dr Project Accrued Revenue - Sale value (P&L) - 1000

              Cr Project WIP Sale Value (B/S) – 1000

Dr Project Accrued Revenue - Sale value (P&L) - 500

              Cr Project WIP Sale Value (B/S) – 500

DR Accounts Receivable (B/S) – 1500

              Cr Project Invoiced revenue (P&L) - 1500

 

Scenario 2 - Advance Invoice

Invoice in advance

DR Accounts Receivable (B/S) – 12000 – Accounts receivable

                             CR WIP Invoiced – On account (B/S) – 12000 – Deferred Income

Fee Journal

DR Project WIP- Sale Value (B/S) – 1000

                             CR Project Accrued Revenue - Sale value (P&L) – 1000

              Expense Journal – Consumption

              Dr Cost – 500

                             Cr – B/S – 500

Dr Project WIP - Sale Value (B/S) – 500

                             CR Project Accrued Revenue - Sale value (P&L) – 500

 

Invoice month end – month one – Invoice value - 500

                            Dr Project Accrued Revenue - Sale value (P&L) - 1000

              Cr Project WIP - Sale Value (B/S) – 1000

Dr Project Accrued Revenue - Sale value (P&L) - 500

              Cr Project WIP - Sale Value (B/S) – 500

DR WIP Invoiced – On account (B/S) – 1000

Dr AR - 500

CR Project Invoiced revenue (P&L) - 1500

On-account Advance invoice voucher

Fee posting voucher

Matching the fee with advance (rev rec) – Zero value Invoice

Zero value invoice document

 

Scenario 3 – Invoice in arrears

Fee Journal – to recognise the revenue

DR Project WIP Sale Value (B/S) – 1000

                             CR Project Accrued Revenue - Sale value (P&L) – 1000

Expense Journal – Consumption

              Dr Cost – 500

                             Cr – B/S – 500

Dr Project WIP Sale Value (B/S) – 500

                             CR Project Accrued Revenue - Sale value (P&L) – 500

Invoicing quarterly (Invoice Value – 3,500)

Dr Project Accrued Revenue - Sale value (P&L) – 3,000

              Cr Project WIP Sale Value (B/S) – 3,000

Dr Project Accrued Revenue - Sale value (P&L) - 500

              Cr Project WIP Sale Value (B/S) – 500

DR Accounts Receivable (B/S) – 3,500

              Cr Project Invoiced revenue (P&L) – 3,500