Construction
Subcontractor Invoice Accrual
Accruing the cost of work completed by a specialist subcontractor before their invoice is received.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Work-in-Progress (WIP — Subcontract) | Asset (+) | 120,000.00 | - |
| Accrued Subcontract Costs | Liability (+) | - | 120,000.00 |
💡 Accountant's Note
To accurately report project costs at month-end, subcontractor costs must be accrued based on work certified, even if the invoice has not yet been received. This is critical for correct percentage-of-completion calculations.
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