Basic Concepts
This section discusses progress payments and delivery invoices, in general. The concept of liquidation and some accounting issues are also discussed.
- Related Topics:
- Progress Payments and Delivery Invoices
Progress payment bills are sometimes used for fixed-price projects that require a long lead time before deliveries under the contract can be made, or where substantial amounts of money must be expended before the contractor becomes eligible for partial payments on deliveries. - Liquidation
When the customer pays progress payment bills, these payments represent a liability by your company because no delivery was made. - Accounting Issues
Unliquidated progress payments are frequently shown on the balance sheet as a liability rather than as a negative receivable.
Parent Topic: Progress Payment Bills