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What are the accounting entries to prove the cycle of real estate investment and how can it apply to the program accounting and management of real estate investment companies Real Estate Software ?
What are the accounts used in the accounting cycle, and does the use of the real estate investment program and the installment of units affect in one way or another the shape and composition of the accounts in the accounting guide ?
When we admit the revenue in real estate investment accounting?
Is it upon booking of units, upon contracting, or upon delivery of units to the customer?
Let's get more information about the accounting cycle for real estate management activity through the daily restrictions, and how we can record the restrictions on the accounting and management program of real estate investment companies and installment of residential units.
Stages of accounting treatment for real estate investment
Accounting Program Management Companies Real Estate Investment
First, proof of the cost of business and its application to the real estate investment accounting and management program and the installment of units. To view a detailed article of the real estate investment course and its application in the real estate investment accounting program
In principle, it should be known that every possible cost we may incur in the real estate investment activity is closed to a work-in-progress account, which is one of the current assets account, and is similar to the stock account in the commercial activity, and this makes us ask about the types of costs that can be incurred in the real estate investment activity?
The real estate investment activity is an activity that requires building units and thus the same cost that would be cost if I am a contracting company, and this is a model for some types of cost that can be charged and the accounting treatment for it on AccFlex ERP Systems
1)The cost of materials and their tracking in the real estate investment companies accounting program and units installment
And we had talked in a detailed article about the cost of raw materials and how it can be tracked from the first purchases, from different raw materials to the goal of reaching the cost of one unit in the projects that we own, and in general the project cost of raw materials is tracked based on the values of the exchange permits that were made during the period of this project And if we are working on a system, we can review how the movement of the exchange permission resulting from it takes place in this way
Learn about the advantages of the best accounting software for small and medium companies in Egypt and the Middle East from Accflex
_ The movement of a payment permit from the warehouse management program is an important system among the subsystems of the real estate investment companies accounting program and unit installments:
Accounting program for real estate investment companies and installment units
Report permission exchange in the accounts and stores Accflex program
Real estate investment program and installment units_
A daily entry resulting from a permission to spend in the general accounts program and a charge on a specific project
Real estate investment program and installment units
2)The cost of the manufactures is mostly based on the items of the extracts of the subcontractors that agree with them, the uniform of the installation contractors responsible for ceramic installations, for example, and the cost of the extract is directed to the account of works in progress with the information of a specific project.
Accounting program for real estate investment companies and installment units
Report of the extracts of the work of the subcontractor_
Accounting program for real estate investment companies and installment units
Daily entry resulting from extracts of the subcontractor_
Accounting program for real estate investment companies and installment units
3)indirect costs charged
similar to the administrative costs that it carries on the account of work in progress and is in proportions for each project to benefit from these costs. This is a daily entry model for loading the project with a share of the costs of the administration’s salaries
Accounting program for real estate investment companies and reservation of units
Second, the accounting treatment of revenue and contracts in the program of accounting and management of real estate investment companies. Revenue recognition in real estate investment activity
1) When booking units
The accounting aspect in the revenue recognition part starts when the customer goes to the real estate investment companies and asks to reserve a specific unit of the units available for reservation, and most often the customer pays a reservation deposit "or a deposit" in preparation for the contracting process, and after that the negotiation of unit prices and payment plans varies from one company to the other. Or according to the company's policy, and the customer proceeds to the payment plan and receives a copy of it for review
_ A template for a payment plan in the real estate investment companies accounting program and in installments of units
booking form in the real estate investment accounting program, unit installments, and the payment report that the client signs in preparation for the contracting process
_ A template for a payment plan in the real estate investment companies accounting program and in installments of units
Real estate investment accounting program and units installment
Application Form booking in the real estate investment accounting program, units installments, and the payment report that the client signs in preparation for the contracting process:
Real estate investment accounting program and units installment
2) contracting stage
This is the second stage of the accounting cycle in the real estate investment companies accounting program and the installment of units. The customer agrees to the agreed rates and payment plan, the contract signing phase begins, and here there will be no accounting effect other than the part of the sales commissions due, whether they are owed to the company’s employees or to the real estate broker. This is because the broker or seller is entitled to the sale commission for what is contracted for, and the commissions here will be considered among the costs of the project or unit sold, and the commission is recorded with this accounting entry
From H sale commissions
To those mentioned:
H.Other credit accounts _ the employee.
H Other credit accounts _ the broker.
The proven form of recording sales commissions in the general accounts program Which is done automatically when the contract is proven in the real estate investment accounting program and units installment
Real estate investment accounting program and units installment
3) Collection of installments in the real estate investment companies accounting program
These installments are agreed based on the agreement that was made between me and the customer, and here we must pay attention to a very important issue, which is that any cash operations that take place with the customer, whether they are cash collections or cash payments made on the account of advances to clients, and this is one of the current liability accounts "accounts payable. Others "and you can read a full article that talks about the accounting treatment for real estate investment and the most important accounts used in the accounting system for real estate investment and it is applied to the real estate investment accounting program And installment units
Receipts in the accounting and cash management program Monitor
Real estate investment accounting program and units installment
Cash receipt form
Out of the original and a photo
Of the treasury and bank accounts program, one of the parts of the real estate investment companies accounting program and integrated unit installment.
Real estate investment accounting program and units installment
The journal entry resulting from the collection in the general accounts management program
Accounting program for real estate investment companies and installment units
4) The delivery stage
This is the last stage of the accounting treatment for real estate investment and it is considered one of the most important stages of the accounting treatment for real estate investment activity. Once the delivery is completed, the following entries are recorded:
First, pending closure of down payments in the customer's account.: _
Real estate investment accounting program and units installment
And this entry is pending through the advance payments account with a "debtor cell" to appear at zero and by transferring the balance to the customer's account.
From h prepayments
To the customer h
Second: Cost proof entry: the one through which we prove the cost of the unit sold to the customer in the form
From h the cost of sales of completed units.
To h, works in progress.
Accounting program for real estate investment companies and reservation of units
proving restriction revenue third,
This is a constraint of proving the revenue of the sold unit based on the sale price found in the contract, and in the event that there are maintenance payments in the contract, it is recognized as a commitment:
From H the customer.
To H total sales revenue
To H commitments to complete
Accounting program for real estate investment companies and installment units
In the end, we are able to review all the movements that took place on the project or unit in the real estate investment companies accounting program and install units through the report of an assistant professor at a cost center
Real estate investment accounting program and units installment
Thus, we have presented a detailed explanation of the accounting treatment of the real estate investment cycle through the daily restrictions, and the possibility of applying by using the best real estate investment accounting program and installment units