Articles on: Accounting & Bookkeeping

How to Record Journal Entries for Project-wise/Product-wise Income & Expenses?

If you want to maintain journal entries for different products or projects separately, you can do that with the help of Account Groups.

Let’s say you are running two different projects - Project A and Project B, and you want to maintain separate income/expense records for each as detailed below:

Project A Income

Service Sales
Product Sales
Other Income

Project A Expenses

Installation Charges
Transportation Expense
Raw Material Purchase

Project B Income

Service Sales
Product Sales
Other Income

Project B Expense

Installation Charges
Transportation Expense
Raw Material Purchase

For this, you will have to create different Account Groups such as -

Project A Income
Project A Expenses
Project B Income
Project B Expenses

For example, to record my Project A Income, I have created an Account Group named Project A under Account Type “Income”:

Similarly, I will create a different Account Group for Expenses.

Once the Account Groups are created, you will need to create separate Accounts under each Account Group, such as -

Service Sales Account
Product Sales Account
Other Income Account

For example. I have created a new Account for Service Sales under Project A Income Account Group:

Similarly, you can start creating different Accounts linked to a particular Account Group.

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