Required GL Accounts: Contract Control

The Contract Control account is used in conjunction with the contract processing within Eralis Job. The fundamental concept behind the contract processing is to separate invoicing from revenue recognition in situations where the invoices are not necessarily based on work that has been completed. This may be for upfront deposits on a job or where a predefined billing schedule has been agreed upon that does not necessarily reflect the work carried out on the job. When the account has a credit balance, the value reflects the unrecognized revenue associated to jobs. This implies that invoices have been reflected in the income statement as part of revenue. When the account has a debit balance, this reflects revenue that has been recognized on a job based on work carried out, but no invoice has yet been raised to the customer for that work.