I need information on how to use "Work in Process" from the chart of accounts, contractors edition.
Our firm is HVAC Manufacturer Reps. Our customers are contractors. We constantly have submittals that will invoice out. However sometime this takes 3, 6 or 9 months before equipment is shipped to a job site. However I need to show this on my balance sheet as work in process. I'm not sure where the other entry comes in at. Should I create another account on my income statement? I also have quoted cost against these "works in process".
I'm not sure that progress invoicing is the function I want to use. Please advise.
Thanks
Rae

As you pay for the equipment and charge it to your Work in process account, it will show up on your reports. It's not booked till you pay for it. Work In Process means the job is not finished. It doesn't mean that you might have costs sometime in the future. You will have to keep track of those types of things somewhere outside of the QB program. Qb is only a bookkeeping program, nothing more. Once you pay for something it will show up in that account.