Learn about the criteria's book of condition in contracting accounting

In contracting accounting, as we mentioned before. Knowledge of government or private processes or abstracts is through direct order or tenders. In all cases, certain conditions, procedures and accounting standards must exist to complete the contract or agreement. Among these criteria are the conditions books. And a letter of guarantee construction contracts to ensure the seriousness and commitment of the contractor

Criteria's of the conditions book in contracting accounting

It is a book which is purchased upon entering the tender, in which it includes all the technical and financial specifications of the project and the percentage of the initial contracting contract guarantee letter until the tender fee is on the company, all of this according to very accurate accounting standards, and the two possibilities will be subjected to accounting entry for the contracting company

Proof of purchasing the condition book

From general account / expenses

 To an account / bank or fund
 

The price of purchasing the book

When the tender fees for the contracting company, the accounting entry for the contracting is:

From the account / expenses of the operation or project

    To account / general expenses

   The price for buying a brochure

And it is considered one of the project costs

* In the event that the tender is not awarded to the company, it shall be considered among the general and administrative expenses of the company

A book within the Contracting contracts and their drafting

It is a form of a letter of guarantee for contracting contracts issued by the bank to the first beneficiary in a specified amount or percentage until the completion of the contracting extract, where the beneficiary has the right to liquidate the contracting contract guarantee letter in the event that the extract is not completed in the fullest and in accordance with the agreed accounting standards

Types of letters of guarantee construction contracts

Initial contracting contract guarantee letter and its drafting

It is a form of a letter of guarantee for contracting contracts issued by the bank to the first beneficiary of a certain amount of the bid submitted according to the terms of reference before the contracting company is awarded.

And here we will have 3 possibilities

Letter of guarantee contracts without cover

In this case, the bank deducts the amount of expenses for the letter of guarantee in favor of the beneficiary only
 

 The accounting entry for the contracting company consists

From general and administrative expenses / account

     To / the bank

Proof of commission issuance and bank expenses

Letter of guarantee contracts with a certain percentage

In this case, the bank deducts the amount of the letter of guarantee in addition to the bank charges and the issuance commission

 The accounting entry for the contracting company consists
 

Of those mentioned

Account / general and administrative expenses

Account / amount of the letter of guarantee agreed for the designated proportion

   To an account / bank
 

Proof of the contracting contract cover letter amount in addition to bank expenses and issuance commission

Full cover contracts letter of guarantee

The accounting entry is for contracting accounting

Of those mentioned

Account / general and administrative expenses

Account / amount of the agreed letter of guarantee

   To an account / bank

Proof of the contracting contract cover letter amount in addition to bank expenses and issuance commission

Final contracting contract guarantee letter and its format

It is a form of a letter of guarantee for contracting contracts issued by the bank to the first beneficiary in a specific amount of the bid submitted according to the contracting company. In some cases, the contracting company transfers the contracting contract guarantee letter from primary to final after increasing the agreed percentage. The value of the amount of a letter of guarantee construction contracts after the exchange fully extracts and ensures the implementation of accounting standards for the project with accuracy

In the end, there are some accounting programs for contracting to implement and calculate each of the costs and a guide of accounts for contracting abstracts models with accuracy