What Is Construction Accounting?

The subject setting of construction accounting is different from industrial accounting, because the construction industry generally engages in longer construction periods and costs more. It needs to set up engineering construction subjects. Generally, this subject is divided into engineering construction-direct costs, engineering construction-indirect costs and Engineering construction-engineering gross profit, and engineering settlement subjects.

Construction accounting

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Construction accounting

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Instructions for use of accounting titles of construction enterprises

I. General description

(I) In order to uniformly standardize the accounting of construction enterprises, in accordance with the Accounting Law of the People's Republic of China, the Regulations on Financial Accounting Reports of Enterprises, the Enterprise Accounting System and relevant national laws and regulations, and in combination with the actual conditions of construction enterprises, Formulate the "Accounting Measures for Construction Enterprises" (hereinafter referred to as the "Measures").

(2) Construction enterprises in the People's Republic of China shall implement these Measures while implementing the Enterprise Accounting System.

Instructions for the use of supplementary accounting subjects

(I) Setting of accounting subjects

1. These Measures have added revolving materials, temporary facilities, amortization of temporary facilities, temporary facility cleanup, project settlement, project construction and mechanical operations on the basis of the Enterprise Accounting System. subject.

2. According to the "Enterprise Accounting System", the construction contract revenue and construction contract costs confirmed by the construction enterprise are calculated through the "main business income" and "main business cost" subjects respectively, and these measures supplement their accounting content. The estimated loss provision for engineering construction contracts is calculated by adding the "Contract Estimated Loss Provision" detail item under the "Inventory Depreciation Provision" account.

3 Construction enterprises can set up subjects such as "appropriate funds to belong to", "incoming funds from superiors" and "internal transactions".

(2) Instructions for using supplementary accounting subjects

1233 turnover materials

1. The actual cost or planned cost of the construction company's inventory and various revolving materials in use is calculated under this account.

Reusable materials refer to materials that can be used repeatedly by the construction enterprise during the construction process and can basically retain their original form and gradually transfer their value. They mainly include steel formwork, wood formwork, scaffolding and other revolving materials.

Second, the undergraduate subjects should set up three detailed subjects of "returning materials in the warehouse", "returning materials in use" and "amortization of revolving materials", and set up detailed accounts for the types of turnover materials for detailed accounting.

If the one-off resale method is adopted, the above three detailed subjects may not be set.

3. Turnover materials purchased, self-made, and commissioned by an external unit to process and have been checked into the income bank, turnover materials obtained by the debtor accepted by the construction company as non-cash assets to settle debts, turnover materials obtained through non-monetary transactions, etc., and turnover The inventory of materials shall be handled in accordance with the relevant provisions of the "raw materials" account.

4. The construction enterprise shall adopt the method of one-off write-off, installment amortization, installment amortization or fixed amount amortization of the turnover materials according to the specific circumstances.

(1) One-off resale law. Generally, it should be limited to perishable and fragile revolving materials, which are included in costs and expenses at the time of receipt.

(2) Amortization method. Costs and expenses shall be amortized according to the expected useful life of the turnover materials.

(3) The amortization method. Costs and expenses are amortized based on the expected number of uses of the turnover material.

(4) The fixed amortization method. Calculate and confirm the amount of the amortized cost and expense in the current period based on the actual physical work done and the turnover material consumption quota specified in the budget quota.

5. When receiving, amortizing and returning the turnover materials, the accounts shall be handled as follows:

(1) If the one-off resale method is adopted, when it is received, its full value shall be included in the relevant costs and expenses, and the subjects such as "engineering construction" shall be debited, and the undergraduate subjects shall be credited.

(2) If other amortization methods are adopted, debit the undergraduate items (in-use turnover materials) and credit the undergraduate items (in-store turnover materials) at the full value at the time of receipt; Debit subjects such as "Engineering Construction" and credit undergraduate subjects (amortization of turnover materials); when returning to the warehouse, debit the subjects (returnable materials in the warehouse) and credit undergraduates (returning materials in use) at their full value. .

6. When the turnover materials are scrapped, they should be accounted for as follows:

(1) If the one-off write-off method is adopted, the value of scrap materials of scrap turnover materials will be used to reduce the resale amount of turnover materials in the current month, offset related costs and expenses, debit subjects such as "raw materials", and credit "project construction", etc. subject.

(2) If other amortization methods are adopted, the amortization amount will be replenished and debited for "construction construction" and other subjects, and credited to the undergraduate course (amortization of weekly turnover materials); the residual value of scrap turnover materials will be used as the turnover Decrease in material amortization amount, offset related costs and expenses, debit subjects such as "raw materials", credit related subjects such as "engineering construction", meanwhile, deduct the amortized amount and debit the undergraduate subjects (amortization of working materials) ), Credit to the undergraduate course (revolving materials in use).

VII. Construction companies that use planned cost accounting shall end the month and shall carry forward the difference in costs that should be allocated to the used turnover materials in the month, and record them in the relevant cost and expense account through the "Material Cost Difference" account.

8. The circulating materials in use and the circulating materials returned to the warehouse by the user department shall strengthen physical management and register in the reference books.

IX. The balance of the debit at the end of the course reflects the actual cost or planned cost of the turnover material of the construction enterprise in the warehouse, and the amortized value of the turnover material in use.

1281 Inventory depreciation reserve

I. Accounting for falling prices of inventories drawn by construction enterprises.

2. Set up a detailed account of "Estimated Loss Provisions for Contracts" under this account to account for loss provisions provided for construction contracts.

3. If the estimated total cost of the contract will exceed the estimated total revenue of the contract, the estimated loss should be immediately recognized as the current expense, debit the "Management Expenses" account, and credit the "Inventory Depreciation Provisions-Contract Estimated Loss Provisions" account.

When the completion of the contract confirms the revenue and expenses of the project contract, it shall resell the provision for the estimated loss of the contract, debit the "main business cost" account according to the confirmed project contract cost, and credit the "main business income" according to the confirmed project contract revenue. Subjects, according to the difference, debit or credit the subject of "Project Construction-Contract Gross Profit". At the same time, according to the estimated loss provision of the relevant engineering construction contract, debit the account of "inventory depreciation provision-contract estimated loss provision" and credit the "management cost" account.

4. The "Provision for Inventory Depreciation-Provision for Loss Predicted in Contracts" account shall set up a detailed account according to the construction contract for detailed accounting.

V. The balance of credit at the end of the "Provision for inventory depreciation-provision for contract estimated loss" account reflects the loss provision that has been accrued for construction contracts for projects not yet completed.

1506 Temporary Facilities

1. The actual cost of various temporary facilities purchased and constructed by construction enterprises to ensure the normal progress of construction and management.

2. The expenditures incurred by the construction enterprise in purchasing temporary facilities shall be debited to the undergraduate subjects and credited to "bank deposits" and other subjects. For temporary facilities that need to be completed through construction and installation, all relevant costs incurred shall first be approved through "projects under construction" Subject accounting, when the project reaches the intended usable status, it will be transferred from the "under construction" subject to the undergraduate subject.

3. Temporary facilities sold, demolished, scrapped and damaged that are not needed or can no longer be used are accounted for through the "temporary facility cleanup" account, deducted from the "temporary facility cleanup" account, based on the amortized amount , Debit the "temporary facility amortization" account, and credit the undergraduate account at its original book value. The variable income and the value of the residual materials recovered, debit the "bank deposit", "raw materials" and other subjects, and credit the "temporary facility" "Clearing" subjects. The expenses incurred for cleaning up are debited for "temporary facility cleanup" subjects and credited for "bank deposits" and other subjects. After the temporary facilities are cleaned up, if you want to clear the net loss, debit the "Non-operating Expenditure" account, and then credit the "Temporary Facilities Cleanup" account; if you want to clear the net income, debit the "Temporary Facilities Cleanup" account, and credit "Non-operating Income "subjects.

4. A detailed account shall be set up and accounted for according to the type of temporary facilities and the department of use.

5. The debit balance at the end of the course reflects the original book value of temporary facilities at the end of the period for the construction enterprise.

1507 Amortization of temporary facilities

I. This account calculates the accumulated amortization of various temporary facilities of the construction enterprise.

2. Various temporary facilities of the construction enterprise shall be amortized on a monthly basis during the construction period of the project. The amortization method may adopt the workload method or the construction period method. Temporary facilities added in the current month will not be amortized in that month and will be amortized from next month; temporary facilities reduced in the current month will continue to be amortized in the same month and amortization will be stopped from next month. For amortization, debit subjects such as "construction construction" and credit undergraduates according to the amortization amount.

3. Undergraduate subjects only perform general classification accounting, not detailed classification accounting. It is necessary to find out the accumulated amortization amount of a temporary facility, which can be calculated based on the original price, amortization rate and actual service life of the temporary facility recorded on the temporary facility card.

4. The credit balance at the end of the period reflects the accumulated amortization of temporary facilities of construction enterprises.

17021 Temporary facility cleanup

I. The account of this project accounts for the value of the temporary facilities transferred by the construction enterprise to the clean-up due to sales, demolition, scrapping and damage, as well as the clean-up costs and income during the clean-up process.

2. For temporary facilities that are sold, dismantled, scrapped or damaged and are no longer needed or cannot be used anymore, deduct the accounts of the temporary facilities based on the book value of the temporary facilities, deduct the amortized amount, and debit the "amortization of temporary facilities" subjects according to their The original book price is credited to the "Temporary Facilities" account. The variable income obtained and the value of the remnants recovered shall be debited to subjects such as "bank deposits" and "raw materials" and credited to the undergraduate subjects. Incurred cleaning expenses, debiting undergraduates, crediting "bank deposits" and other subjects. After the temporary facilities are cleaned up, if you want to clear the net loss, debit the "Non-operating Expenditure" account and credit it to the undergraduate account; if you want to clear the net income, debit the accountant and credit it to the "Non-operating Income" account.

3. A detailed account shall be set up for the accounts of the temporary facilities to be cleared for detailed accounting.

4. The balance at the end of the course reflects the value of temporary facilities that have not yet been cleaned up and the net income from liquidation (cleaning income minus cleaning costs).

2123 Engineering settlement

I. Accounting of the undergraduate project The construction enterprise shall issue the construction price settlement slip to the owner for settlement according to the completion progress of the construction contract.

2. When issuing the construction price settlement slip to the owner for settlement, debit the account receivable according to the amount listed in the settlement slip and credit the undergraduate account. After the completion of the engineering construction contract, the balance of the subject is hedged with the "engineering construction" subject of the relevant engineering construction contract, the subject is debited, and the "engineering construction" subject is credited.

3. A detailed account shall be set up and accounted for according to the project construction contract.

4. The credit balance at the end of the period of the undergraduate project reflects the settlement price of the project price settlement slip for projects that have not yet been completed.

4104 Engineering Construction

I. This account calculates the actual contract cost and gross contract profit of the construction company.

2. The following two detailed subjects should be set up in the subject:

The actual cost incurred for each project construction contract is calculated in this course, and generally includes labor costs, material costs, machinery use costs, other direct costs, and indirect costs incurred by the construction enterprise during the construction process. The subjects should be grouped according to costing objects and cost items.

Cost items generally include labor, material, machinery, other direct and indirect costs. Other direct costs include related design and technical assistance costs, secondary handling costs for construction site materials, production tools and utensils use fees, inspection and test costs, project positioning retesting costs, project site payment costs, site cleaning costs, and temporary facility amortization. Expenses, utilities, etc. Indirect costs are expenses incurred by various construction units under the enterprise to organize and manage construction and production activities, including construction, production unit management staff salaries, bonuses, employee welfare fees, labor protection fees, fixed asset depreciation and repair fees, material consumption, Amortization of low-value consumables, heating expenses, office expenses, travel expenses, property insurance costs, engineering warranty costs, sewage charges, etc.

Among them, they are direct costs such as labor costs, material costs, machinery use costs, and other direct costs, which are directly included in the relevant engineering costs. Indirect costs can be set up under the heading (contract costs) for a detailed account. At the end of the month, the allocation will be included in the relevant engineering costs according to a certain allocation standard.

(II) Contract gross profit

This account calculates the contract gross profit recognized in each project construction contract.

3. The expenses incurred by the construction enterprise in carrying out the construction shall be debited for the subjects (contract costs), and credited to the subjects such as "wages payable" and "raw materials". When confirming project contract revenue and expenses in accordance with regulations, debit the "main business cost" subject, credit the "main business revenue" subject, and debit or credit the undergraduate (contract gross) subject based on the difference.

Fourth, when the contract is completed and the "construction works" and "engineering settlement" accounts are cleared, the "engineering settlement" subjects are debited and the undergraduate subjects are credited.

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

4110 Mechanical operations

I. Accounting for various expenses incurred by the construction enterprise and its internally-accounted construction units, machinery stations and transport teams using its own construction machinery and transportation equipment for mechanical operations (including mechanized construction and transportation operations).

The construction enterprise and its internally-accounted construction unit rent construction machinery from external units or other internally-accounted machinery stations, and the machinery rental fee paid in accordance with the prescribed fixed shift fee is directly recorded in the "construction engineering" subject , Does not pass the accounting of the subject.

Second, the undergraduate subjects should set up two detailed subjects of "contracted engineering" and "mechanical operations", and set up a detailed account according to the cost accounting objects such as the type of construction machinery or transportation equipment, and set up columns according to the prescribed cost items for detailed accounting.

3. The various expenses incurred by the machinery construction and transportation units that carry out their own internal construction machinery or transportation equipment to carry out mechanical operations independently calculated by the construction enterprise shall be grouped according to the cost accounting objects and cost items. The costing object should generally be determined by the type of construction machinery and transportation equipment. Cost items are generally divided into: labor costs, fuel and power costs, depreciation and repair costs, other direct costs, and indirect costs (expenses incurred for organizing and managing the production of machinery operations).

4. Expenditures for machinery operations should be debited for undergraduate subjects and credited for subjects such as "raw materials", "wages payable" and "accumulated depreciation". At the end of the month, distributions and carry-overs were made in the following situations:

(1) The cost of the mechanized construction and transportation of the project contracted by the construction company, its internally-constructed construction unit, machinery station and transport team for the project contracted by the unit shall be transferred to the cost of the contracted project and debited for the "Construction of Construction" account. Credit to the subject.

(2) The cost of providing mechanical operations (including transportation equipment) to external units, other internal independent accounting units of the enterprise, and special projects, debiting "other business expenditures" and other subjects, and crediting undergraduate subjects.

5. At the end of the month, there should generally be no balance in the subject.

5101 Main business income

5401 Main business costs

1. These two subjects account separately for the engineering contract revenue and engineering contract costs of the construction enterprise.

2. If the result of the construction contract can be estimated reliably, the enterprise shall confirm the revenue and cost of the construction contract on the balance sheet date according to the percentage of completion method. If the result of a construction contract cannot be estimated reliably, it should be treated differently: if the contract costs can be recovered, the contract revenue is recognized based on the actual contract costs that can be recovered, and the contract costs are recognized as construction contract costs in the period in which they are incurred; If the contract cost cannot be recovered, the unrecoverable amount shall be immediately used as the contract cost of the project and no revenue shall be recognized.

3. When the engineering contract revenue and engineering contract costs are confirmed in accordance with the regulations, the "main business cost" account is debited according to the project contract costs recognized in the current period, and the "main business income" account is credited according to the project contract income recognized in the current period. Based on the difference, debit or credit the account of "Project Construction-Contract Gross Profit". When the contract completion confirms the revenue and expenses of the project contract, the estimated loss provision for the contract should be written off, and the balance of the actual contract costs incurred after deducting the accumulated project contract costs accrued in the previous fiscal year should be debited to the "main business cost" account Based on the actual contract revenue minus the accumulated contract revenue from the previous fiscal year, credit the "Local Business Revenue" account and debit or credit "Project Construction Contract Gross Profit" based on the difference. subject. At the same time, according to the estimated loss provision that has been accrued according to the relevant engineering construction contract, debit the item "Inventory depreciation reserve-contract estimated loss provision" account, and credit the "management cost" account.

4. These two subjects should set up detailed accounts according to the construction contract for detailed accounting.

5. At the end of the period, the balance of these two subjects should be transferred to the "profit of the year" subject, and there should be no balance between the two subjects after the transfer. 3. Supplementary statement items and preparation instructions

Six, supplementary statement items and preparation instructions

(1) The balance of the "Working materials" account should be included in the "Inventory" item in the balance sheet, and the amortization method of the working materials should be explained in the notes to the accounting statements.

(2) Under the "Inventory" item in the balance sheet, the item "Among which: completed and unsettled" is added to reflect the price of the completed part of the construction contract under construction of the construction enterprise that has not yet been settled. This project is based on the difference between the balance of the "Construction" subjects of the construction contract in progress minus the balance of the "Project settlement" subjects. The following information is disclosed in the notes to the accounting statements: the cumulative costs incurred for the construction in progress contract, the cumulative confirmed gross profit, and the cumulative settlement price.

(3) Under the "Other Long-term Assets" item on the balance sheet, an "Among them: temporary facilities" item is added to reflect the amortized value of temporary facilities, the value of temporary facilities that have not yet been cleaned up, and the net income from clean-up. This item is based on the sum of the balances of the "temporary facilities" and "temporary facility cleanup" subjects minus the balance of the "temporary facility amortization" subjects. The amortization method of the temporary facilities, the original price of the temporary facilities, the accumulated amortization amount and the liquidation situation are explained in the notes to the accounting statements.

(4) Under the "Accounts Received in Advance" item in the balance sheet, the item "Among which has been settled and not yet completed" is added to reflect the settlement price of the unfinished part of the construction contract under construction of the construction enterprise. This project is based on the balance of the "Project Settlement" account balance of the "Construction Construction" account related to the construction contract in progress. The following information is disclosed in the notes to the accounting statements: the settlement price of the construction in progress contract, the accumulated costs incurred and the accumulated recognized gross profit.

Setting and accounting content of accounting subjects for construction enterprises

Building construction enterprises have certain characteristics, which are very different from the majority of production-oriented enterprises. Especially in cost accounting and revenue recognition, it is very different from product sales companies. This post only discusses the accounting business treatment of construction enterprises stipulated in the construction contract law guidelines, and the same accounting as the production enterprises is not discussed here.

(I) Project Construction

Corresponds to the "Production Cost" account of the manufacturing company. Mainly calculate the cost and gross profit of each project. Let's set up two sub-accounts of "Contract Cost" and "Gross Profit".

1. Engineering construction-contract costs, accounting for engineering contract costs

Under Contract Cost, set the following detailed accounts

(1) Labor costs (project / department accounting)

(2) Material cost (project / department accounting)

(3) Machinery usage fee (project / department accounting)

(4) Other direct costs (project / department accounting)

(5) Subcontracting cost (project / department accounting)

(6) Indirect costs

The following detailed subjects are set up under overhead

Management staff salary (project / department accounting)

Staff welfare expenses (project / department accounting)

Fixed asset use fee (project / department accounting)

Amortization of low-value consumables (project / department accounting)

Office expenses (project / department accounting)

Travel expenses (project / department accounting)

Property insurance premium (project / department accounting)

Engineering warranty fee (project / department accounting)

Sewage charges (project / department accounting)

Labor protection fee (project / department accounting)

Inspection and test fee (project / department accounting)

Management fee of external unit (project / department accounting)

Material arrangement and sporadic freight (project / department accounting)

Material inventory loss and damage (project / department accounting)

Heating costs (project / department accounting)

Other expenses (project / department accounting)

2. Engineering construction-gross profit

The specific settings are selected according to the needs of the enterprise, and it is not necessary to set these accounting subjects. In particular, indirect costs may not be set if they are not needed.

(Two) mechanical operations

This subject is mainly for the accounting of construction companies that have a separate equipment management department to provide equipment for each project and the internal settlement of the shift. It is equivalent to the "Auxiliary Production Cost" subject of Manufacturing Unemployment. Units with conditions can set up single-machine accounting for the company's equipment, and accurately calculate the consumption cost of each large or major equipment per shift.

In general, the following detailed accounts should be set up:

Salary and surcharges (department / equipment accounting)

Fuel and Power (Department / Equipment Accounting)

Depreciation expenses (department / equipment accounting)

Parts and repair costs (department / equipment accounting)

Indirect costs (department / equipment accounting)

(3) Accounts receivable

1. Accounts receivable (accounting by current units) Accounts receivable based on the project progress report or settlement

2. Sales receivables (accounting by current units) Accounting for sales sales receivables of construction enterprises

3. Warranty receivables (accounting by the transaction unit) According to the contract and settlement of the project's temporary hold by the owner, it is best to set an expiration date.

(D) Accounts payable

1. Payable purchases (accounting by the transaction unit) Calculate payable purchases, equipment, etc.

2. Payable for subcontracting (accounting by current units)

3. Provisional estimates payable (accounting by intermediary units). Accounts for provisional estimates (including provisional estimates for materials and provisional estimates for subcontracted projects).

4. Warranty payable (accounting for current units) To calculate the warranty payable for subcontracting units, it is best to set a due date.

(V) Project Settlement (Accounting with Units / Projects)

Calculate the amount based on the owner's progress report visa information or project settlement.

(VI) Main business income (manual accounts can be used without the following detailed accounts, just set detailed accounts by project)

1. Target cost

Set the following detailed accounts under the target cost

(1) Labor costs (project / department accounting)

(2) Material cost (project / department accounting)

(3) Machinery usage fee (project / department accounting)

(4) Other direct costs (project / department accounting)

(5) Indirect costs (project / department accounting)

2. Taxes (project / department accounting)