Accounting Definitions in Project Management

Unit of Work completed:-

Unit of work completed can be measured with the actual proportion of completed work

Incremental Milestones:-

The entire work can be sub divided into milestones and the milestones can be used to indicate the percentage of work completed.

Account Payable:- The account payable is intended to provide records of bills received from vendors , material suppliers, subcontractors and other outside parties.


Account receivable journals:- Account receivable journals are those journals in which billing to clients are recorded as well as receipts.

Job cost ledgers :- Job ledger summarizes the charges associated with particular projects.

Inventory:- Inventory records are maintained to identify the amount of materials available at site at any particular point of time.


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Control of Project Cash Flow


Cost:-  This is the summary of charges including expenditures & estimated costs.

Billings: It is the amount billed to client.

Payable:- It is the amount owed by the contractor to material suppliers.

Receivables:- It is the amount to be received from client.

Cash:- It is the cash position of the project.