Why should the account be allocated when the project is settled?

Project settlement. This is an account that only exists when you settle accounts with the other party.

At the time of settlement of the current period.

Debit: Accounts receivable.

Credit: Project settlement.

When you pay for those engineering projects, such as workers' wages, material costs, etc.

Borrow: engineering construction.

Contract costs. Credit: Wages payable.

Raw materials and other subjects.

If the project needs to be completed across years, you need to follow the percentage of completion method.

to recognize revenues and costs.

Borrow: Cost of main business.

Construction - Contract Gross Margin.

Credit: main business income.

If there is no New Year's Eve that starts in the current year and is completed in this year, of course, there is no need to recognize revenue according to the percentage of completion method.

And then after you finish the final project.

Borrow: Project settlement.

Credit: Construction - Contract Cost.

Contract Māori Ministry of Finance.

The Measures for Accounting for Construction Enterprises (hereinafter referred to as the "Measures") stipulate that the construction contract income and construction contract expenses recognized by the construction enterprise shall be accounted for through the accounts of "main business income" and "main business cost" respectively, and the "project settlement income" and "project settlement cost" accounts will no longer be used. Four new accounting subjects are added in the measures: "project settlement", "engineering construction", "main business income" and "main business cost".

It includes the main accounting business of the construction company, and has undergone a major change compared with the original treatment. It is mainly reflected in the following aspects:

Increasing the record of expenses and allocating them to various expenses is to avoid taxes.

According to historical records, many troops crossed the bridge in formation, because of the neat pace, causing the bridge deck to break, drowning many horses, why is this? It turns out that this is related to resonance, any object will vibrate itself after being acted on by an external force, and when the frequency of the external force is about the same as its own natural frequency, it will make the vibration maximum, that is, cause resonance. The bridge deck broke because the pace of the army was the same as the natural frequency of the bridge itself, causing resonance and causing the collapse.

So when you line up to cross the bridge, you must take a short walk.

This can be consulted by the bidding agency, in fact, as long as you discuss it with the owner. As for that agreement, that's the necessary process. For the settlement of the provisional amount, if it is exceeded, the construction unit shall report to the competent department at a higher level, and it can be resolved in the form of meeting minutes.

According to the list pricing specification, the provisional valuation is the time of bidding, due to the design reasons or the construction of the project is unclear, can not be accurate, but this project will definitely be implemented, so the provisional valuation is used. The specific construction is decided by the owner; The construction party can be notified of the organization and implementation in the form of meeting minutes, work contact sheets, and supplementary agreements.

In view of your specific situation, you can re-sign (on the implementation of the supplementary agreement on the provisional valuation project), 1. Work content, 2. Working hours, 3. Quality, 4. Acceptance, pricing and settlement methods, 6. Others, etc.

Provisional valuation"It refers to the amount provided by the employer in the bill of quantities or budget for the payment of materials, engineering equipment, professional engineering and service work that must occur but cannot be determined for the time being. The provisional valuation in the bidding and bidding refers to the amount of the project, goods and services that cannot be determined during the general contracting bidding and is tentatively assessed by the tenderer in the bidding documents.

Situation 1: The tentative valuation of a distribution box is 10,000, but the actual price is only 5,000, how to settle? Scenario 2:

The tentative estimate of a distribution box is 10,000, but the actual price is only 15,000, how to settle? Answer: According to the actual ** into the settlement, in the first case, reduce **5000-10000=-5000 In the second case, increase **15000-10000=5000

The construction party organizes the financial, audit and other departments to inquire about the price. Or find the same project as a reference, and the ** obtained is used as the basis for settlement, which generally does not exceed the provisional valuation of the control price.