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Experienced Member

I can't figure out how to pull an accrual basis job P&L and/or WIP

On project P&L's and WIP's, labor shows up when a check is cut, but I wish to report it according to when the expense was delivered/revenue was earned. How can I get these reports to accurately reflect how I wish to report?

 

Edit: Ideally, I'd like for the reports to derive their labor cost from time-entries instead of when checks are created for my employees.

2 Comments
QuickBooks Team

Re: I can't figure out how to pull an accrual basis job P&L and/or WIP

Hello there, Jeffaic.

 

WIP is an accumulating cost in an asset account. When a project is completed, the cost from the asset account will move to Profit and Loss as an expense.

 

Time entry is not a posting transaction. You're unable to calculate expenses from there. Expenses will be calculated once it's converted as a transaction (paycheck, check, and bills). Having said that, it will only show once you cut a check. 

 

We're here if you have more questions about WIP. Have a great day!

 

 

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Re: I can't figure out how to pull an accrual basis job P&L and/or WIP

Here are some other helpful tips:

 

"On project P&L's and WIP's, labor shows up when a check is cut,"

 

Are you using Items linked to WIP? If so, the Job Reporting needs you to remove the Account Filter. Now you have WIP reporting. There is no Project P&L, because WIP means there is no Expense entry. Not until it sells.

 

"but I wish to report it according to when the expense was delivered/revenue was earned."

 

You get from the reporting what you do for the Accounting Entries. Revenue is from Sales. If you need to show you Accrued Earned Revenue, that can be invoices with that specific date, and you set the due date relative to when you expect the Payment. Or, you want to show Earned Revenue is accrued, and the Invoicing is done with an item linked linked to the Accrued Asset account and not to income, because you already parked the income into income. Of course, this is only done because your Accounting Requirement includes these accrual entries. Otherwise, in QB, you have Job Reporting that will show your info. Example: Estimates vs Actuals allows you to project and see Revenue and Expense against Actuals. This works for WIP, as well.

 

"How can I get these reports to accurately reflect how I wish to report?"

They report Your data. You need to use methods that make the data available.

 

"Edit: Ideally, I'd like for the reports to derive their labor cost from time-entries"

 

There is a Projected Cost report, in the Payroll reports, More Reports in Excel, the Employee Time & Costs report. Actual Expense comes from Paychecks, or Buying that service. And the Estimates vs Actuals reports would work for you, as long as you set up your Service items as two sided and put a Cost Rate on it = the projected amount that is seen from your use of the Service on an Estimate = Scope of Work as the project plan or project budget.

 

 

"instead of when checks are created for my employees."

 

Then you can run Estimate vs Actuals and see Cost. You also run Time reports, to compare Est Time to Actual Time, from Timesheets. It isn't only Cost that matters; inhouse, you want to manage Tasks, too.