Professional Services
WIP Converted to Accounts Receivable on Invoicing
Reclassifying the WIP contract asset to a trade receivable when the client invoice is issued.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Client Invoice) | Asset (+) | 8,500.00 | - |
| Unbilled Receivables / Contract Asset (WIP) | Asset (−) | - | 8,500.00 |
💡 Accountant's Note
Issuing the invoice makes the right to payment unconditional. The contract asset (conditional right) is reclassified to a trade receivable (unconditional right). No revenue is recognized at this point — it was already booked when the work was performed.
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