The costs of the executed works and their application in the real estate investment companies accounting program
Through our article today, we will talk about a very important topic in a series of articles explaining in detail "the accounting treatment of the real estate investment cycle" with its application to the real estate investment companies accounting program, Accflex, the best integrated real estate investment accounting program in Egypt
Our topic is about business costs, the item of raw materials and the stages of tracking them through the procurement cycle in the real estate investment accounting program, which it will lead us at the end to an accurate cost of the projects executed by the real estate investment company.
What are the business costs in real estate investment companies?
Like what we agreed in the previous article, a business account in progress is a very important account that is used in the real estate investment accounts program. On the project, in addition to the indirect costs of various types, which they imply on the projects in general, and our article today will focus on the part of the costs of raw materials and in the next articles we will talk about the rest of the cost elements of each element in detail.
Business costs in the Real Estate Investment Accounts program
In order to be able to track the cost of raw materials in detail, it is necessary in principle to talk a little about the procurement cycle, and as we still know that the procurement cycle is a set of stages that we carry out, so that in the end we translate it into a purchase invoice that is transferred to stores, and if you want to know detailed information about the procurement cycle as a first step so I can track the cost of raw materials and their stages, which may differ from one company to another, whether this company is operating Manuel or through an accounts program.
The cost of the raw materials that we bought from the supplier at the purchase price plus other costs such as transportation ,tips and others, and in all cases the record will be as follow:
From the stock of raw materials account
To those mentioned
Ores supplier account
A resource account for services such as "transportation".
Mostly the procurement cycle in the field of real estate investment begins with a supply order, and after that, a receipt permit and, at the end, a purchase invoice:
Supply order in the warehouse management program (a subsystem of the integrated real estate investment companies accounts program)
Advantages of the real estate investment companies accounting program
After the supply order stage, the receiving permission stage comes, through which the warehouse keeper proves that he has received the required raw materials and conforms to the specifications. Let us review the form of the receipt permission report that is similar to what we extract from the warehouse accounts program
Finally, we reach the stage of proof of the purchase invoice under the receipt of permission or the collection of receipt permits that were made during the period.
In the Accflex system for managing real estate investment accounts, we appreciate setting up the combined purchase step of more than one receipt permit.
Purchase Movement :
Do not forget that the purchase cost is not limited to the purchase price, but it is possible to include items such as tips, transportation costs and any other costs related to the acquisition of various materials and supplies, and of course we need to prove the eligibility of the invoice or the purchase movement and in order to prove on the other hand the entitlements of the suppliers
Either those who brought in raw materials or those who returned other services, such as transportation, and so on
In order for us to apply this statement to a program of accounts and warehouses by entering into the purchase movement and starting to prove the entitlement of the cost of the items to the original supplier, as well as services and other suppliers, and the form of the purchase movement in the warehouse management program as one of the subsystems of the integrated real estate investment companies accounts program
Of course, as soon as the purchase transaction is saved with all its details, I can print it for the purpose of archiving
Recording of proof of purchase movement in the real estate investment companies accounting program
After we finish the procurement cycle, let's track the cost of raw materials spent for different projects in the Real Estate Investment Companies Accounting Program.
Exchange of different materials for projects
It is normal that the project that is being built requires different materials needed for construction operations and a warehouse cycle. A direct transfer or direct disbursement from the materials store to the project is possible, or the site accountant and the responsible engineer begins to request a disbursement request that contains my entire need of various raw materials and supplies, and after what the specialist agrees upon, a disbursement permit is issued and with the raw materials leaving the store, a record is recorded in which we confirm the exit of raw materials at a certain cost based on the pricing policy of the expended from the stock and the entry will be in this way
From construction work expense project cost centers.
To the stock of raw materials account.
This is an application form for disbursement in the Real Estate Investment Companies Accounts Program
After this, the exchange permission is transferred from the store as this:
The journal entry in the general accounts program
We conclude from this that it will initially be with us an account in the chart of accounts that expresses the cost of the raw materials spent from the stock, and this account will be a terminal account from among the accounts that fall under the item of work in progress, and also this account will be linked to one or more cost centers of the cost center which is About projects, and of course I can work on this manual or sheet excel or on the real estate investment companies accounts program
In order to track the cost of materials accurately, we can review detailed reports on the cost centers "projects" in the real estate investment companies accounts program in the form
We would like to talk about the cycle of purchases and the cost of work in progress, the item of raw materials in the accounts of real estate investment companies, the best accounting program specialized in managing real estate investment activities, and through the following article we will explain the cost of the factories
Request for Quotation