Quote Originally Posted by Snoopy View Post
It is strange the moderators deleted it, rather than just sending you a note to change the formatting if indeed that really was the problem.
Agree 100%. I won't lie but I'm pretty miffed about that given the effort that went into it plus it was all my own work, not copied from anywhere else. And I no longer have the supplementary notes that supported that post.

Anyhoo, here is the table:

A B C = A - B D = C / A E F = E / B G H = C x F I = E + G + H
Project Contract Estimated Estimated Contract Costs Percent Invoiced Profit Contract WIP
Revenue Total Costs Profit Margin % To Date Complete To Date Recognised* Balance
1 $1,000 $750 $250 25% $750 100% -$1,000 $250 $0
2 $2,000 $1,900 $100 5% $950 50% -$2,000 $50 -$1,000
3 $3,000 $3,200 -$200 -7% $3,100 97% -$1,000 -$200 $1,900
4 $4,000 $3,000 $1,000 25% $0 0% -$400 $0 -$400
5 $5,000 $4,000 $1,000 20% $3,500 88% -$3,000 $875 $1,375
6 $6,000 $5,500 $500 8% $2,000 36% $0 $182 $2,182
TOTAL $21,000 $18,350 $2,650 13% $10,300 -$7,400 $1,157 $4,057
OBS OBS OBS Calc. J1 Calc. J2 J3 BS
CONTRACT WIP -> DEBIT CREDIT DEBIT NETT
Balance Sheet:
Contract Asset $5,457
Contract Liability -$1,400
Nett Contract WIP $4,057

Notes:
Calc. = calculated field
OBS = Off Balance Sheet, no journals needed
J1 = Debit Contract WIP, Credit Payables
J2 = Debit Receivables, Credit Contract WIP
J3 = Debit Contract WIP, Credit P&L (profit contracts) - using % of completion method
or Debit P&L, Credit Contract WIP (loss contracts, 100% of loss)
BS = Balance Sheet Value
* The year on year movement in this value is what ends up in the annual P&L.

FERG