Work in Progress

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
OK Im finialising some year end accounts and need to do the WIP....I have calculated how much labour relates to WIP. I am having a bad day and really cannot remember what applies to WIP....anyone help arghhhh...

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Work in Progress

    What constitutes WIP is the value of 'work carried out' up until a given date but not invoiced till after that time.

    WIP is normally valued at 'cost to you' but I have a feeling that new rules have come in and they now expect you to provide for the sales value "Revenue Recognition" and all that!

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Work in Progress

    My WIP includes materials sub-contract labour etc too. I also add a mark-up for a proportion of overheads. Not sure about any changes, mine has been approved by HMRC.

    We build houses - so it's a mix of things.

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