Contractor signs contract for $50,000. Need to bill percentage of that each month what was completed.
I need to show the entire contract amount on the balance sheet so I created an item "Proposal" going to "Unearned Revenue" - other current liability. I have setup QB to do estimates and progress billing.
Can someone give me exact details on how to do that from start to finish?
For Customers, you use Estimate to show the Plan or Scope and Price agreed to, and expectation that the fulfillment will result in actual Charges to them = invoices or sales receipts.
For Vendors, you use Purchase Orders to show the Plan or Scope and Price agreed to, and expectation that the fulfillment will result in actual Charges to you = Bills or Checks or Credit Card Charge entries.
You don't list Deferrals under these conditions. That's why PO and Estimates are Non-posting.
An Accrual basis reporting entity might have work in process; that is Deferrals, later, for the Work. Not for the signing of Contracts.