How to Record Contract Progress Billings
Records the invoice sent to a customer for work performed on a long-term contract before the final performance obligation is fully met.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable | Asset | 10,000.00 | - |
| Progress Billings (Contra Contract Asset) | Liability/Contra-Asset | - | 10,000.00 |
💡 Accountant's Note
Progress billings are not revenue. They represent amounts invoiced to the customer. This account is typically netted against 'Costs in Excess of Billings' or 'Contract Assets' on the balance sheet.
Practitioner & Systems Framework
💻 ERP Architecture
Usually triggered by the Project Accounting module when a milestone or percentage of completion billing is generated.
⚠️ Audit Flags
Large debit balances in the progress billings account or lack of reconciliation with project milestones.
📄 Required Documentation
Executed contract, project manager certification of completion, and the customer invoice.
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