How to Record Change Order Revenue
Recognizing revenue for unpriced change orders when the scope is defined but price is not yet negotiated.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unbilled Receivables | Asset | 18,000.00 | - |
| Contract Revenue | Revenue | - | 18,000.00 |
💡 Accountant's Note
Revenue is recognized for work performed under a directed change order, even if the final price adjustment has not been executed.
Practitioner & Systems Framework
💻 ERP Architecture
Link the unbilled entry to the specific modification ID in the project management module.
⚠️ Audit Flags
Contract modifications that are not signed by the CO but have work performed.
📄 Required Documentation
Written direction from the CO and cost estimates for the change in scope.
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Discussion & Community Questions
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