Due to new guidelines, the work in progress method 3, Based on progress rate, has been changed. It is no longer enough to account only for the interim result. Therefore, in the profit and loss account, net sales and expenses are now recorded, which accounts for the interim result per period in the reporting for each balance.
This has the added advantage of avoiding surprises and making better adjustments in the interim. You must configure this first.
In addition, this method now allows you to enter provisions for projects with an expected negative end result.
Construction
Finally, the Project forecast Construction functionality now aligns with the interim result, eliminating the need for additional operations and making this method ideally suited for companies in the Construction industry.
Note:
If you want to start using this functionality, test it in a test environment first.
If you switch to the updated Method 3, Profit will journalise projects with this method immediately after setting up according to the new settings. After acceptance, we therefore advise you to switch to the updated method as from the new financial year.