Can you Filter Balance sheet report by Project in the same way P+L can be filtered?
Question asked by Alistair Wood 10 years ago
I am running a property development company and I believe the correct way to account for Work in progress over the year end is to keep it building up in the BS until a sale is made and then release it to the P+L in the financial year of the sale. How I have gone about this was to look at the P+L filtered by project (I create a project for each development) and then using a journal move items to an equivalent WIP account in the Balance sheet on a project basis. i.e. If I had a new gas connection installed costing £3000 initially it was in P+L against Utilities due to how I had entered the purchase invoice but I moved this to the BS using Journal under WIP - Utilities (I created equivalent WIP accounts in BS) at year end as this is the way my accountant wanted it held until property sold. The problem I am having is in the Profit and Loss report you can filter by Project but not in the Balance Sheet it appears. This being the case how can I see how much is sitting on the Balance sheet on a project basis so I can release that amount on the sale of a property?
Also should there be a better way to go about accounting for this type of scenario I would be happy to hear anyone's advice.