Generally independent of the project contract for the cost of the project as the object of accounting; in the same construction site, the same project management, project start, completion time is not much difference in the conditions, but also two or more projects can be combined to determine the cost of the object of accounting. Cost items mainly include: labor, materials, machinery, other direct costs, overhead, subcontracting costs.
The indirect costs incurred during the construction of the project are accounted for through the "construction overhead" account. If there are multiple projects, they should be allocated among the projects.
Major accounting entries:
1. Material costs
Self-purchased materials used, according to the purchase order or warehouse receipts and other documents, the cost of materials in the contract cost
Borrow: construction-contract cost-materials
credit: raw materials
Credit: Raw materials
2. Labor costs
According to the payroll list, the incurred wages and accrued benefits and other expenses are included in the labor costs in the contract cost
Borrow: Engineering and Construction - Contract Costs - Labor Costs
Credit: Payables Employee Compensation
3. Subcontracting Costs
(1) Prepayment for Construction Work
The prepayment paid under the contractual agreement shall be credited to "Accounts Payable - Payable for Subcontracting"
Borrow: Accounts Payable - Subcontract Payable
Credit: Bank Deposits
(2) Settlement of Project Payment
Confirm the project payment payable based on the settlement notice confirmed with the subcontracting company
Borrow: Construction - Contract Cost - Subcontracting Work -Contract Costs - Subcontracting Costs
Loan: Accounts Payable - Payable for Subcontracts
(3) Payment of Progress Payment:
When paying the payment that has been processed for settlement, < /p>
Borrow: Accounts Payable - Subcontract Payable
Loan: Bank Deposit
4. Mechanical Work and Machinery Use Fee
(1) Labor cost, fuel and power cost, depreciation and repair cost, other direct cost, overhead cost, etc., incurred by using the self-owned construction machinery and transportation equipment to carry out mechanical work for the contracted works. Other direct costs, overheads and other costs are included in the line item "Mechanical Work - Contracted Work". Mechanical operations account should follow the "construction - contract cost" accounting principles.
Borrow: Mechanical Work - Contracted Work
Credit: Bank Deposits
Accumulated Depreciation
Accumulated Depreciation
End of the month, the allocation of the project construction account
Borrow: Engineering Construction - Contract Costs
Credit: Machinery Operation - Contracted Works
(2) If the amount of each of the above machinery operation costs incurred for the unit's contracted works is relatively small, it can also be directly credited to the Machinery Operation Costs account in the Engineering and Construction account.
Borrow: Engineering Construction-Contract Cost-Machinery Use Fee
Credit: Bank Deposit
Accounts Payable
Employee Compensation Payable
Accumulated Depreciation
(3) Renting in the construction machinery from outside units or other internal independent accounting machinery stations in the enterprise. (3) Machinery leased from outside organizations or other internal independent accounting machinery station of the enterprise, the machinery rental fees paid or borne by the enterprise are directly credited to the "construction" account.
Borrow: construction - contract cost - machinery use fee
Credit: bank deposits
Accounts payable (with external units)
Other receivables - intra-company transactions (business settlements) (with the independent accounting unit of the business with)
5. Other direct costs
Other direct costs
such as design and technical assistance costs, secondary handling costs of construction site materials, production tools and appliances, amortization of temporary facilities, inspection and testing costs, project positioning and re-testing costs, project delivery costs, site clean-up costs, utility costs, etc. are included in the other direct costs account.
Borrow: construction-contract cost-other direct costs
Credit: bank deposits
Accounts payable-accounts payable for work, accounts payable for purchases, etc.
Amortization of temporary facilities
6. Construction overheads
(1) The project department's management personnel salaries, bonuses, employee benefits, labor protection, depreciation and repair of fixed assets, material consumption, amortization of low-value consumables, heating costs, office expenses, travel expenses, property insurance, construction warranty, sewage charges and other costs should first be included in the "construction overhead" account
Borrow: Construction overhead costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs, construction costs and other costs.
Borrow: construction overhead expenses
Credit: bank deposits
Accumulated depreciation
Compensation payable
2) At the end of the month, the construction overhead expenses should be transferred to the overhead account in the construction cost, and if it is for more than one project, it should be allocated according to a certain proportion.
Borrow: construction-contract cost-construction overhead
Credit: construction overhead
(4) Operating revenues, costs and taxes
Revenue is recognized each month based on the recognized production value, and annual revenue is recognized at the end of the year based on the recognized amount, and other months of the year are made with appropriate adjustments. After the production value is recognized, the gross profit of the contract is recognized and credited to the account of "Engineering Construction - Gross Profit of Contracts", and the "Revenue from Main Business" and
1. Revenue is recognized and costs are carried forward every month based on the recognized production value.
Borrow: Main Business Costs
Engineering Construction - Contract Gross Profit
Loan: Main Business Revenue
2. Adjustment of revenues and costs according to the projects verified by the Engineering Department at the end of the year (reduction is made with a negative figure)
Borrow: Main Business Costs
Construction - contract gross profit
Loan: main business income
3. Upon completion of the project, the current revenue and cost should be recognized based on the final account documents, deducting the revenue and cost recognized in previous years
Borrow: main business cost
Construction --Contract Gross Profit
Credit: Revenue from Main Business
4. Calculate the taxes and surcharges payable for each period
Borrow: Taxes and surcharges on main business
Credit: Taxes and charges payable -- Business tax payable, Urban Construction Tax Payable, etc.
Other Payables--Education Surcharge Payable, etc.
(E) Project Settlement Refer to the new "Accounting Methods for Construction Enterprises"
(F) Project Settlement
After the project is completed and finalized, the Project Settlement account should be offset against the Project Construction account, and after offsetting, the Project Construction account and the Project Settlement account should be offset against the Project Construction account. After offsetting, the balance of both the project construction account and the project settlement account will be zero.
Borrow: project settlement
Credit: engineering construction - contract cost
Engineering construction - contract gross profit