Conversion Issues for Contracts-in-Progress
Most contractors have multiple jobs in progress at the time of conversion from the prior accounting system to Spectrum. Several options are available for recording billings-to-date on open contracts, and different methods can be used for jobs-in-progress depending on how far along the job is and needs of the contract and individual owner. Consult your Spectrum trainer or conversion consultant for additional information.
Accounts Receivable Conversion Decision
Do you have open contract invoices at the conversion date?
No – Enter open invoices in Invoice Entry and update using Sales Journal/Update.
Yes – Enter the total amount billed YTD/JTD in Invoice Entry and Job Cost Billing Entry. Record the cash receipts to date, bringing the balance due in Accounts Receivable to the correct amount. Make sure the Accounts Receivable Installation is set to Yes, and update Job Cost from Accounts Receivable.
Do these billings come from progress billings or draw requests?
No – You are done.
Yes – Will any of the contracts have less than three months left to bill, or do you have an adequate prior entry system like LOTUS 1-2-3 or Excel you can continue to use?
No – For those contracts which have more than three months to bill, create a draw request in Draw Request Entry where the application number is equal to the last draw application number is equal to the last draw application billed. The "this period" column will be equal to the JTD billed. Update through to Accounts Receivable, which will create an invoice in Invoice Entry to be updated through Sales Journal/Update, and a new application (draw) which now shows the previous application column equal to the amount billed to date. This then gives you the ability to bill this contract via draw request until the end of the contract.Note:
You have can have the Create invoice from draw request checkbox deselected in Accounts Receivable Installation if you want to create your own Invoice Entry invoice, but it is easier if you let the software create it. Now all you have to do is enter a cash receipt for the amount paid to date.
Yes – Continue with your old system for recording the draw detail, and create invoices in Spectrum through Invoice Entry for update.