Based on the parameters Assessment principle, Matching principle, and On-account invoicingin the Project groupsform, transactions are posted to General ledgerin eight different ways. In the ledger, posting examples that can be accessed from here show how the following business example is realized with each of the eight setup combinations.

Assumptions

A company wins a fixed-price contract of USD 200,000 based on the following milestone invoicing plan (on-account).

Action	Time	Amount
40% Prepayment on signature	July	80,000
25% on First delivery	September	50,000
35% on Final delivery	November	70,000

The work goes on from July to November, where the following costs are consumed:

Time	Amount
July	12,000
August	30,000
September	24,000
October	36,000
November	18,000

Estimates are posted each month from July to November.

The elimination is posted in December.

Business example

	Per month	Consumption cost	Degree of completion	Invoiced on account	Completed percentage	Completed percentage	Completed contract	Completed contract
					Cost	Revenue	Cost	Revenue
Estimate	July	12,000	10	80,000	12,000	20,000	0	0
Estimate	August	30,000	25	0	30,000	50,000	0	0
Estimate	September	24,000	20	50,000	24,000	40,000	0	0
Estimate	October	36,000	30	0	36,000	60,000	0	0
Estimate	November	18,000	15	70,000	18,000	30,000	0	0
Elimination	December	0	0	0	0	0	120,000	200,000
Total		120,000	100	200,000	120,000	200,000	120,000	200,000

Note
When the cost of hour, expenses, and items is posted in journals, it is always posted directly to a Profit & Loss account on fixed-price projects.

Ledger posting examples

Click the following links to see the various posting examples:

	Assessment principle	Matching principle	On-account invoicing
Posting example 1 - Fixed-price project	Completed percentage	Sales value	Balance
Posting example 2 - Fixed-price project	Completed percentage	Sales value	Profit and loss
Posting example 3 - Fixed-price project	Completed percentage	Production + Profit	Balance
Posting example 4 - Fixed-price project	Completed Percentage	Production + Profit	Profit and loss
Posting example 5 - Fixed-price project	Completed contract	Sales value	Balance
Posting example 6 - Fixed-price project	Completed contract	Sales value	Profit & loss
Posting example 7 - Fixed-price project	Completed contract	Production + Profit	Balance
Posting example 8 - Fixed-price project	Completed contract	Production + Profit	Profit & loss

Topics about posting fixed-price projects

Topic	Description
Posting example 1 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.
Posting example 2 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.
Posting example 3 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.
Posting example 4 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.
Posting example 5 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.
Posting example 6 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.
Posting example 7 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.
Posting example 8 - Fixed-price project	Provides a conceptual example of posting a fixed-price project.

English-to-Russian translation