Work in Progress A/R Account Question

[mrselise]

We are a General Contractor's Business. We normally have one invoice with many payments done in phases.

When we recieve a payment I enter into the A/R account "WIP" (Work in Progress).

Do I need to convert it over to Sales Residental when we have recieved final payment? Or, it is ok to keep it in the "WIP" A/R account?

The money is being deposited into the same bank account regardless.


Thanks, Elise

[Deborah Bean]

You are a little unclear in your explanation. When the receipt is entered, are you applying it to the invoice or are you applying it as a line item with the G/L account set to a "WIP" general ledger account?