Hi All
Can you explain me why we are using the WIP ledger accounts in Fixed Price Percentage completion project. As at the time of invoicing "WIP-On Account" get credited and at the time of Estimation another "WIP-Sales Value" ledger account debited. As my understanding is "WIP-On Account" tell us how much we invoice and "WIP - Sales Value" tell us how much we have to invoice, for the matching we are using these account.
That will be good if anyone can explain me how to explain this to the finance department as i am not from the finance background.
Please advise, thanks in advance.