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Janyce67
November 1, 2019
Question

WIP account and Inventory - Property Developers

  • November 1, 2019
  • 1 reply
  • 0 views

Our company a property developer. Our costs come from consulting fee, construction fee, acquisitions and so on. I've allocated all the costs to a Construction WIP account (in BS).

 

Now we have finished our development and got a lot of finished houses. We want to do inventory management. So the cost should be reallocated to P&L accordingly.

 

If a client enters into a contract, we should invoice to him and the inventory amount should decrease, but we won't receive money (because all the deposits should be hold in trust account). And we will receive money when settlement, but inventory amount should remain the same and we won't invoice to him.

 

It will be very easy if I solve problems by journals. But we want to use inventory management.

Cant's seem to find anything that tells me how to do this.

 

 

 

1 reply

Bonny_
Bonny_
November 5, 2019

Hi Janyce67,

 

Our inventory management feature in QuickBooks Online would not be complex enough for this scenario, but I would recommend trying out the Progress Invoicing feature.

 

Progress invoicing could help with keeping track of the inventory amount and how much you have "invoiced" the customer so far. 

 

Here's more information about it: Set up and send progress invoices in QuickBooks Online 

 

Bonny

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