Posting Accounts Used for a Project Fee on Cost Plus or Fixed Price Projects

Work anywhere from any device with Microsoft 365

Upgrade to Microsoft 365 to work anywhere with the latest features and updates.

Upgrade now

TechKnowledge Content


What accounts are posted to when I use a Retention fee on a Cost Plus or Fixed Price project?


Upon Billing the Project fee:
Debit - Accounts Receivable
Credit - Project Billing

Upon doing Revenue Recognition:
Debit - Project Work in Progress
Credit - Project Revenue

Note - The Earnings in Excess of Billings account could be used if the Revenue Recognition process is done before or in a higher dollar value than the Billings. If this is done, Earning in Excess of Billings will be debited during Revenue Recognition and then credited to be brought back down to a $0 balance during the final Revenue Recognition.

This article was TechKnowledge Document ID: 30792

Need more help?

Expand your skills
Explore Training
Get new features first
Join Microsoft Insiders

Was this information helpful?

Thank you for your feedback!

Thank you for your feedback! It sounds like it might be helpful to connect you to one of our Office support agents.