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Completed Contract A/R QuickBooks

Stephanie Young's Profile

We use the Completed Contract Method for a small construction company in QuickBooks. We have A/R from completed contracts from last year that were just paid this week. I made a journal entry to move the amounts from A/R to A/R completed contract for taxes. What account do I move the A/R completed contract amounts after payment? I'm assuming I need to do a journal entry because of how QB posts payments.


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

I'm not sure why you are moving A/R's, but I'll assume that QB is putting the cash receipt into Cash and A/R. If that's the case, move the Cash Receipt that is for the A/R Completed from A/R to A/R Completed.

Rationale: When you moved the A/R for $100 to A/R Complete, you issued a credit to A/R for $100 (making it zero) and a debit to A/R Complete.

The Cash Receipt would put a credit into A/R, and when you move it, that is a debit (brings to zero) and a credit to A/R Complete (also bringing that A/R Complete to zero).

While the accounting is "sound" it sounds like you aren't using QB correctly (your setup is probably wrong). You'll find that auditing your work will get extremely difficult.

Find a QB Consultant who knows Construction.


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