0
I am not an accountant; but I work with Billings in excess of costs.
Billings in excess of cost is a product of estimating allocated cost and direct cost of a construction contract. This is used in Percentage of Completion basis of financial statement preperation. Billings in excess is liability; Cost in excess of Billings is an asset. An example:
Total Contract: $1,000,000. Estimated Cost is $900,000; Estimated Profit is $100,000. You start working the job, at year end you have the following
Contract $1,000,000; Total Estimated cost: $900,000; Actual Cost to Date: $450,000; Billings to Date are $600,000; so: 450/900=50% X $1,000,000= $500,000 Earned to date; $500,000 Earned to date - $600,000 Billings to date = $100,000 Billings in Excess of Cost. If you only had $400,000 in Billings to date it would be: $500,000 - $400,000= $100,000 Cost is excess of Billling .
Actual Cost to Date / Estimated Cost X Contract Amount = Earned to Date - Billed to Date = (if negative number = Billings in Excess of Costs) (if positive number = Cost in Excess of Billings)
Billings in Excess of Costs is a balance sheet liability
Cost in Excess of Billings is a balance sheet asset
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Is billings in excess of cost reported in current asset side is your inventory?
No, billings in excess of costs are a current liability.
What is the difference between unbilled receivables and cost in excess of billings?
Unbilled receivables represent costs in excess of billings on incomplete contracts and, where applicable, accrued profit related to government long-term contracts on which revenue has been recognized, but for which the customer has not yet been billed.
Are billings in excess of cost a current liability or long term liability?
Yes it is a current liability
What is the cost in excess of billing in long term construction contracts?
Cost in Excess of Billing is an Asset Account that means the contract is under-billed. Actual billings are less than Revenue Earned.
Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
Which basic production strategy will build inventory and avoid the costs of excess capacity
Are refinancing proceeds in excess of costs taxable?
Never subject to income tax
How much keg costs?
The deposit on a keg can be in excess of $60 , and a deposit on the tap, and then the beer is extra. The whole initial outlay can be in excess of $135 .
Where is the Parmly Billings Library in Billings located?
The address of the Parmly Billings Library is: 510 North Broadway, Billings, 59101 1196
Where is the Billings Depot in Billings Montana located?
The address of the Billings Depot is: 2310 Montana Ave, Billings, MT 59101-2420
What are the advantages of excess of loss reinsurance?
- Simplified accounting procedures - Low administrative costs
What is the birth name of Eric Billings?
Eric Billings's birth name is Billings, Eric Scott.
What is the birth name of Jeff Billings?
Jeff Billings's birth name is Jeffrey David Billings.
