I am wanting to get some feedback on A/R related to pre-contract jobs. Essentially an A/R invoice for jobs that didnt become real jobs and we are being reimbursed for job costs.

Typically this is related to design work we are willing to incur and help a client with and hopefully a job comes from it. The issue is that we dont really want to setup the job in Procore/Sage100C, and all of that since the job may die out and not become a real job. However, we need to properly account and track these costs because most of the time we will be reimbursed all or some by the client if the job does not take off. I do not want these costs to hit the WIP until we actually have a signed contract and budget in Sage.

I know that i can use an asset account and have sub accounts for these jobs. Then when the job starts, do an AJE to move these from the asset account to direct job cost. 

My real issue is that if the job does not start, we typically will invoice the client for the cost incurred. The problem is that I have to include a Job with any A/R. So i feel like there are two options:

A) record A/R receivable as a journal entry in "other A/R". The issue with this is that it does not hit the A/R aging and could be forgotten about.

B) Setup a Default job in Sage ("PRECON JOB COSTS") and use memo receivables to record the A/R invoices. These would show on the A/R aging but not change anything on the WIP. The job on the WIP would have "0s" all the way across. The other side of the A/R entry would be to the Precon Asset account.

Any thoughts or suggestions?

Thank you!

-Ralls