Historical Fixed Fee Billed Not Correct General Accounting>General Journal

Question:

I have at least one project here that does not have a correct historic billed fixed fee amount. How do we correct this issue?

Answer:

Make a general journal entry in a prior period. The general journal entry should contain one line that credits the fixed fee revenue account and cites the project, then the second line should debit the fixed fee revenue account (no project is cited). This will adjust the project without changing the G/L balances. Please note, go to the appropriate level of the WBS for the invoice style. In other words, if this is a phase fixed fee project, the general journal line should specify the phase.