Work in Progress - movement affecting Profit and Loss Statement

Help! I am trying to prepare my taxes!

As I was preparing my profit and loss statement for the last financial year to give to my tax accountant, I noticed a new Income category “Work in Progress - Movement” appearing in both my Summary (Income) and my Profit and Loss Statement. I have no idea where this category came from as I didn’t create it myself, but it appears to be referencing work which has been entered into the system as billable time but not yet invoiced.

When I inspected the 30 entries categorised as Work in Progress - Movement, 28 of the entries have in fact been invoiced and payment received. Only 2 entries were actually awaiting issuing.

When I looked back at my Billable Time, I found that entries which has on previous days been showing as Invoiced were suddenly showing as Un-invoiced? This is not something I have actioned (to my knowledge). I attempted to edit each listing to Invoiced, but Manager would not allow this; it would only allow me to Write Off. I wrote off the 28 entries which I know have been billed.

My current Summary page now correctly shows the right balance for work in progress - unbilled, but my P/L statement for the 14/15 financial year has not altered. This creates a serious issue for me as it inflates/misrepresents my earnings, essentially representing those 28 entires of billable time in both the Work In Progress - movement category as well as the correct category that were assigned to!

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When it comes to marking billable time as invoiced, you can’t just select Invoiced, you also need to specify which invoice has been invoicing the billable time entry. This is usually done automatically when creating billable time from invoices but if you want to associate billable time with invoice manually, then invoice must be selected to when setting status to Invoiced.

As for the balance in Work in Progress - Movement account, this account is not income tax assessable so when your tax accountant is calculating your profit for tax purposes, he is (hopefully) not going to include balance of this account.

Thanks for your response.

When I try to list as invoiced, the field is populated with invoice info; customer name and invoice number, but the text is grey and not black. When I make the amendement and hit update, it doesn’t work and goes back to showing as uninvoiced.

Am I doing something fundamentally wrong when I create the billable time entries to begin with? Why did they suddenly all show as uninvoiced when before they were not? Do I need to change the way I use Manager moving forwards?