I regularly work on jobs that span two financial years, and every February–April I run into the same issue: I can't get an accurate Job Profit & Loss report. For example, a client might pay a deposi...
Hi Verdant,
If you receive a deposit that isn't classed as income until the work is complete, Once the job is complete you will create the invoice and apply the deposit.
With the purchases a way around this is to create inventory in MYOB and use the perpetual method, this way when you invoice out the materials the cost of these materials will only show when you have invoiced the job and when it is complete. When you first purchase these materials, it will sit in your stock on hand account on the balance sheet.
So on completion date and when the invoice is created you will show Total Income less Cogs ( Materials ) which will give you an accurate P&L figure.
With the deposits idea that isn't too hard it may take 15 minutes a month to reconcile the deposits.
With the inventory this can be complicated depending on how many items you have and also if this works with your invoicing.
Thanks,
Matthew Powell
Clients Needs Bookkeeping - get the books done the right way
Hi Matthew,
Thanks for your reply. I am not really following though. I already use Inventory stock.
Client jobs consist of Inventory items and non -inventory special order items. We use Item codes for all our stock and special order items. Just not all of them have the box Inventoried ticked. If start inventory-ing absolutely everything it will get very complicated very quickly. AnySpecial Order items could be in the tens of thousands - hence why we don't inventory them.
Surely this should be a very simple fix in MYOB coding somewhere! Obviously I am not the only one here given the votes.
Yes sorry it does look like that maybe inventory isn't a good option then so back to square one