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On the Ledger report, Unbilled Revenue shows a debit balance.
Resolution: - When Billable Time or Expenses are entered to a Project, WIP is debited and Unbilled Revenue is credited.
- When the WIP is billed, the WIP account is credited and Unbilled Revenue is debited.
- Unbilled revenue is a Temporary account and clears out at the end of the year. Any balance in this account at Year End is transferred to Retained Earnings. Whereas WIP is an Asset account and the balance at the end of the year gets carried forward to the next year.
- If WIP generated in a previous year is billed in the next year, and the amount of the prior year WIP that is billed is greater than the amount of WIP generated in the current year, it is expected that the Unbilled Revenue account will carry a debit balance in the current year.
Knowledge Base Reference Number: KBA #89451
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