Can construction enterprises do without the three subjects of project settlement, contract cost and

The project settlement cannot be dispensed without. Contract cost and contract gross profit are the second-level subjects under the engineering construction subject, which are of course useful if there is a business, and of course not used if it does not occur.

The three accounts of project settlement, contract cost and contract gross profit will be used.

In Construction: Engineering Construction - What is Contract Gross Profit?

The most common introduction: the gross profit of the contract refers to the difference between the settlement of the project and the construction of the project - the contract cost. The specific meaning is:

In the detailed account of engineering construction, it is specifically divided into "engineering construction - contract cost" and "engineering construction - contract gross profit", both of which are cost accounts and can have a balance at the end of the period. The debit balance at the end of the period of the construction account reflects the unfinished construction contract cost and contract gross profit of the enterprise. Other Features:

When the cost of various expenses of the project is incurred, the "Construction - Contract Cost" is debited, and the accounts such as "Wages Payable" and "Raw Materials" are credited. When the cost of revenue is recognized according to the completion schedule, the cost of the main business is borrowed, and the cost of the main business is credited

The main business income, the gross profit of the project construction - contract (the difference is included), and the balance at the end of the project construction period reflects the cost of the construction contract and the gross profit of the project that has not yet been completed. After the completion of the project, the "project construction" and "project settlement" will be hedged. (Total project settlement = contract cost + contract gross profit) project settlement account, according to the project loan settlement statement, debit the "accounts receivable" account, credit the "project settlement", after the completion of the project, the "project construction" and "project settlement" hedge.

Extended information: How to close the "Engineering Construction - Contract Gross Profit" account on the project ** register the contract key and make trouble:

Borrow: engineering construction; Credit: Raw materials, employee salaries payable, machinery operations, etc

Debit: accounts receivable; Credit: The contract price actually received in the project settlement registration:

Borrow: bank deposit; Credit: Accounts receivable calculates current project revenue, cost and gross profit:

Borrow: engineering construction - gross profit main business costs; Credit: Estimated loss of main business income contract:

Borrow: asset impairment loss, contract projected loss; Credit: Provision for decline in value of inventories Estimated loss provision at the time of completion:

Borrow: project settlement; Credit: Engineering Construction.

The project costs of construction enterprises include: labor costs, material costs, machinery use costs, other direct costs, wages, bonuses, allowances, and employee welfare expenses among the managers of the construction unit.

Administrative expenses, depreciation of fixed assets.

and repair costs, material consumption, amortization of low-value consumables, water and electricity charges for management, etc.

The project cost refers to the expenses incurred by the contractor in terms of labor, materials, engineering equipment, construction machinery shifts and their management that must be consumed or used in order to achieve the quality standards of the contract project, as well as the fees and taxes paid according to the regulations.

The project cost is divided into direct and indirect aspects.

Direct costs are made up of labor, materials, machinery usage, and other direct costs.

The contents of each of them are:

Labor costs refer to the construction of projects included in the budget quota.

Salaries, bonuses, wage surcharges, allowances in the nature of wages, and labor protection fees for personnel.

Wait. Material costs refer to the raw materials, components and semi-finished products, auxiliary materials and turnover materials that constitute the engineering entity included in the budget quota.

amortization and lease expenses.

Machinery usage fee refers to the machinery usage fee incurred in the use of self-owned construction machinery in the construction process and the lease fee and installation, dismantling and entry and exit fees of construction machinery from other units included in the budget quota.

Indirect costs refer to the expenses incurred in the construction process by the units directly engaged in construction for the organization and management.

Including wages, bonuses, allowances, employee welfare expenses, administrative expenses, depreciation and repair costs of fixed assets, material consumption, amortization of low-value consumables, water and electricity expenses for management, office expenses, and travel expenses among the managers of the construction unit.

Inspection fees, project warranty fees, labor protection fees and other expenses.

Can construction enterprises not use the three subjects of "project settlement", "engineering construction - contract cost" and "engineering construction - contract gross profit"?

Construction enterprises are not allowed to do without the three subjects of "project settlement", "engineering construction - contract cost" and "engineering construction - contract gross profit". These three subjects or slip with the construction unit are closely combined with group training, and cannot be used.

The construction subject of engineering transportation and filial piety accounts for the actual construction contract cost and contract gross profit of the construction enterprise.

1. Contract cost:

1. This subject accounts for the actual costs incurred in various construction contracts, generally including labor costs, material costs, machinery use costs, other direct costs, indirect costs, etc. incurred by the construction enterprise in the construction process. The accounts should be grouped by costing object and cost item.

2. Gross profit of the contract.

1. This subject accounts for the gross profit of the contract confirmed by the construction contract of various projects.

2. The expenses incurred by the construction enterprise in the construction shall be debited (contract cost) and credited to the accounts of "wages payable" and "raw materials". When the income and expenses of the contract next to the project are confirmed according to the regulations, the "main business cost" account shall be debited, the "main business income" account shall be credited, and the account (contract gross profit) shall be debited or credited according to the difference.

3. When the "engineering construction" and "engineering settlement" accounts are settled after the completion of the contract, the "engineering settlement" account shall be debited and this account shall be credited.

4. The debit balance at the end of the period of this account reflects the cost of the construction contract and the gross profit of the contract for the unfinished project.

It is a cost account. It is used to collect the actual costs incurred in various construction contracts, generally including labor costs, material costs, machinery use costs, other direct costs, indirect costs, etc. incurred by the construction enterprise in the construction process. Reflected on the balance sheet.

The construction of the project consists of four details: labor costs, material costs, machinery costs, and other direct costs. Among them, the labor surplus cost accounts for the wages, allowances, food, and subsidies of front-line workers, but does not include insurance, and the insurance of front-line workers is accounted for in indirect expenses.

The material cost accounting constitutes the material consumption of the engineering entity, including the rental fee of quick-release components, the rental fee of scaffolding pipes and other leased materials, as well as the accounting of subcontracted parts, such as slope protection, precipitation, waterproofing, etc.

The main accounting of other direct costs cannot distinguish the expenditure of the above three types of expenses, but the expenses that constitute the entity of the project, such as: the secondary transportation fee of the earthwork, the water cost of the project, the electricity fee, etc.

The construction of the project is carried forward according to the progress of the image, and the debit balance of the construction of the project is the unfinished construction, which indicates the cost of not having the corresponding income for the time being. If the construction of the project is carried forward in its entirety, the balance is zero. The balance of the construction of the project cannot be on the credit side.

Guide to the Application of Accounting Standard for Business Enterprises No. 15 - Construction Contracts:

3. The main accounting subjects involved and the instructions for use.

1. Set up the "Engineering Construction" account (used by construction and installation enterprises) or the "Production Cost" account (used by manufacturing enterprises such as ships) to calculate the actual contract cost and contract gross profit. The actual contract cost and the recognized contract gross profit are debited to the undergraduate section, and the recognized contract loss is credited to the undergraduate segment.

2. Set up the "Project Settlement" account to calculate the price that has been settled according to the progress of the completion of the contract. This account is a provision account for the "Engineering Construction" or "Production Cost" account, and the amount of the settlement of the project price settlement bill has been issued to the customer and credited to the purpose of this section, and after the completion of the contract, this account is hedged with the "Engineering Construction" or "Production Cost" account and settled.

3. Set up the "Accounts Receivable" account to account for the progress payments receivable and the actual receipts, and the pre-received preparation payments are also accounted for in this account. The project price settlement bill has been issued to the customer, the project progress payment receivable is credited to the purpose of this section, and the payment for the preparation of materials received in advance and the actual progress payment received are credited to the purpose of this section.

4. Set up the "Operating Income" account to account for the contract revenue recognized in the current period. The contract income recognized in the current period shall be credited to the subject of this subject, and at the end of the period, the balance of the subject shall be transferred to the account of "profit of the year", and after the carryover, there shall be no balance in this account.

5 Set up the "Cost of Sales" account to account for the contract expenses recognized in the current period. The contract expenses recognized in the current period shall be debited to the undergraduate project, and at the end of the period, all the balance of the undergraduate program shall be transferred to the "current year's profit" account, and after the carryover, there shall be no balance in this account.

6 Set up the Contract Estimated Loss account. Accounting for the estimated loss of the contract recognized in the current period. The estimated loss of the contract recognized in the current period shall be debited to the purpose of this section, and at the end of the period, the balance of this section shall be transferred to the account of "profit of the current year", and after the carryover, there shall be no balance in this account.

7. Set up the "Estimated Loss Provision" account to account for the loss provision for the construction contract. The provision for losses accrued in contracts under construction shall be credited to the section and the balance of the section shall be adjusted to the "operating costs" account after the completion of the contract in progress.

In practice, it is possible to set up and use common ledger accounts.

1. According to the judgment of the subjects used, you use the "Accounting System for Construction Enterprises".

2. "Project settlement", "engineering construction - contract cost" and "engineering construction - contract gross profit" are used in the "Accounting Standards for Business Enterprises" and its application guide.

3. Enterprises can choose relevant accounting systems and standards according to actual needs and policy regulations.

Of course not, this is required by the infrastructure accounting system. Its system regulates the accounting rules for infrastructure construction. As an accountant, you should comply.