How to Record a Progress Billing Invoice to the Client
Issuing a monthly progress certificate invoice to the client based on work completed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Progress Billing) | Asset (+) | 200,000.00 | - |
| Billings on Contracts (Contra-WIP) | Liability (+) | - | 200,000.00 |
💡 Accountant's Note
Progress billing creates a receivable from the client. The 'Billings on Contracts' account is a contra account used to track the cumulative amount billed versus revenue earned under the percentage of completion method.
Practitioner & Systems Framework
💻 ERP Architecture
The ERP generates this entry when the AR invoice is posted. The credit side MUST go to the 'Billings on Contracts' liability/contra account, NOT to Revenue. Revenue is calculated separately based on Percentage of Completion (POC).
⚠️ Audit Flags
Auditors tie AR balances directly to signed, approved Progress Certificates. Uncertified applications for payment should NOT be recorded as AR. The cutoff between uncertified claims and certified invoices is heavily scrutinized.
📄 Required Documentation
Consultant-certified Progress Payment Certificate, tax invoice issued to client, and project billing summary.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.