Good morning! I work for a small builder that normally does spec homes with construction loans, however, I currently have two custom homes going that are COST PLUS contracts. I need help recording the draw payments because we pay all of the invoices from our end and then have the customer pay us twice monthly by draws which essentially is just the reimbursement of the invoices I paid PLUS our builder fee. I feel like everything I do, is skewing the balance sheet and/or P&L. Do I create an AR invoice and then apply payment, which puts it into undeposited funds, then do the bank deposit from there? Or since I operate on a cash basis, isn't there an account that I can put these payments to that will essentially "credit the job" and not throw everything out of whack? Help! Thank you!!
