Handling of engineering construction accounting accounts related issues.

The most basic points of project accounting treatment are as follows:

1) Engineering costs incurred:

Borrow: engineering construction - contract costs, credit: raw materials, employee remuneration payable, etc., (2) accounting treatment of settlement amounts

Debit: accounts receivable, credit: project settlement, (3) accounting treatment of the actual receipt of project money:

Debit: bank deposits, credit: accounts receivable, (4) Revenue and carry-forward costs are recognized according to the percentage of completion method

Borrow: Cost of Main Business, Gross Profit of Construction - Contract (Usually on the Debit Side), Credit: Income from Main Business, (5) Hedging Project Settlement with Engineering Construction:

Borrow: Project Settlement, Credit: Project Construction - Contract Cost, Engineering Construction - Contract Gross Profit, If the estimated total cost of the contract in a certain year exceeds the amount of the total contract revenue, the entry of the revenue recognized in the current year is:

Borrow: main business cost, credit: main business income, gross profit of engineering construction contract, and make another entry for inventory price decline

Loan: asset impairment loss, Credit: provision for inventory decline.

Engineering construction is the construction of new construction, expansion, reconstruction activities, generally will be the construction business, set up engineering construction subjects, accounts receivable accounting, the relevant accounts office argument digging reason?

Accounting entries for engineering construction.

The actual contract costs incurred.

Borrow: engineering construction.

Credit: Payable employee remuneration and other checks.

The price of the project that has been settled.

Debit: Accounts receivable.

Credit: Project settlement.

The price of the training project has been collected.

Borrow: Bank deposit.

Credit: Accounts receivable.

Recognized revenue, expenses, and gross profit.

Borrow: Engineering Construction - Gross Profit.

Cost of Principal Operations.

Credit: main business income.

When the project is completed, the balance of the Engineering Construction account is offset with the balance of the Construction Settlement account.

Borrow: Project settlement.

Credit: Engineering Construction.

What is Engineering Construction?

Engineering construction is a special accounting subject for construction and installation enterprises to collect and calculate the cost of the project, and it is the activity of new construction, expansion and reconstruction of the construction project according to the requirements of the construction project design documents. The construction of the project consists of four details: labor costs, material costs, machinery costs, and other direct costs.

What is Project Settlement?

The project settlement account is a special accounting account for the construction contractor, which is generally used to calculate the cumulative amount of settlement between the enterprise (construction contractor) and the owner according to the construction contract. This account shall be accounted for in detail in accordance with the construction contract. When the enterprise settles the project price with the owner, it shall debit the account of "accounts receivable" and credit this account according to the amount that should be settled.

When the contract is completed, the balance of this account is hedged against the "Engineering Construction" account of the relevant engineering construction contract, and this account is debited and the "Engineering Construction" account is credited. The credit balance at the end of the period of this account reflects the accumulated amount of the settlement of the unfinished construction contract of the enterprise.

Dear users, the accounting treatment of engineering construction and project settlement is the basic work in the construction industry. Generally speaking, the construction unit needs to calculate various expenses in a timely manner during the construction process, including material procurement, labor wages, machinery and equipment leasing, etc., and register them in the project payment in a timely manner. The settlement work needs to review and accept the construction logs, bills, invoices, etc. submitted by the construction unit after the completion of each project, and carry out comprehensive calculations to do a good job in the settlement of relevant projects.

In the specific operation, the construction unit needs to record and register the construction items and expenses in a timely manner, and accurately calculate the cost and expenses of each step to ensure the rationality and economy of the project. At the same time, in the settlement work, it is also necessary to strictly follow the regulations for review and acceptance to avoid financial losses and disputes. In short, the accounting treatment of engineering construction and project settlement is of great significance to enterprises in the construction industry, and it is necessary to pay attention to the details of all aspects to ensure the standardization and efficiency of financial management.

Hope mine is helpful to you. If you have any further questions or need help, please feel free to let me know and I will do my best to provide you with the most accurate and helpful answers. Have a great life with your judges!