Have a construction deal where we were supposed to be doing a look back analysis: after talking with mgt it seems like there may be no need for one. Revenue and cogs for each project are no more than a month apart. Say I wanted to “test” that out, what would be the best way to go about that? We’d be using the GL detail. They don’t have wip reports or anything.

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Does the monthly gm% support your initial assumption that it’s about a month off at the moment?

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Do jobs have a unique memo/description/num in the GL? Would just run an xlookup to see if the COGS entry is in the same month as each revenue entry

Then like SA1 said you need to look at margin on a monthly basis and see if it looks normal/reflects managements expectation.

Test your two cut off months at the beginning of the TTM. Two birds one stone

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