Sales

DanBol

I am working as a a bookkeeper in a home improvement firm.
We are usually paid when we fit the bathrooms/kirchens etc is usually done by contract.
Would Sales be classed as when we gain the contract or when we finish the contract? I am doing the profit and loss you see and its getting confusing.

blobbyh

P&L sales generally come from when you invoice and I would say for your industry you can only invoice once you've delivered the kitchen i.e. when it's offered complete and in a usable condition (unless staged payments have been agreed). As a supplier of a tangible product, I don't think you could win an argument that the date of supply is when you win an order as actual completion could be weeks or months away. Up to that point it exists only in your order/WIP book.

I work for a recruitment firm - service industry - and our date of supply can either be once we've placed a candidate under the argument that they've been sourced and are deliverable at that point even if the client doesn't want them for another six months - or when the candidate actually starts (which is what we actually do).

Andypandy

I agree that it's point of invoice.

DanBol

As it happens thats what i did...
The thing is trying to separate in the contract list what has been fitted and what hasn't...
I will work on this.

blobbyh

For kitchen fitters, don't you have a client/customer signature form as evidence of completion and initial acceptance? Once completed, that should trigger your invoice process.