Sub Contractors are managed specifically by BOQ, Advances, Retentions and Contra Charges while linked to the Candy BOQ integrated to BuildSmart Accounts for the complete control down to activity or task level. Labour and Manpower costs are tracked again to Contract, Cost Code and Activity, through the Payroll where each and every employee is costed to a Cost Centre at Activity or Task based costing level.
Plant and Equipment is managed by the Plant and Equipment module costing the Plant to the Contract, Cost Code and Activity or Task by item.
Materials are managed through the procurement system with the unique link to the Candy resource.
Preliminaries & General or Indirect costs.īuildSmart tracks each one of these cost elements in its own unique way but at the same time at the same level and in one system. The type of cost types that require tracking, management and reporting on normally fall under: To this end BuildSmart has created a separate ledger - the 'Cost Ledger' to clearly identify and track all the Revenue and Cost elements associated with each project. In Construction (assuming the organisation's main activity is restricted to normal construction) the Sales figures relate mainly to Project Revenue, and the Cost of Sales figures would relate to the cost of all resources utilised in the course of construction. Therefore the structure of the Income Statement and the method of reporting needs to take into account the nature of construction projects and standard accounting reports do not suffice. Construction projects extend over financial years and these figures cannot be cleared without noting the position (profit/loss) of each of the projects still under construction. At the end of each and every financial year, the Net Profit figure is transferred to the Balance Sheet and the Income Statement figures are zeroed, ready for the subsequent year's figures. Traditional accounting systems consist of a statement of Income and Expenditure, made up of and the Balance Sheet is used to balance out all Income Statement accounts (trading accounts). A number of issues ensure that adjustments need to be made to standard accounting practice, in order to report on the financial position of the organisation accurately. The preparation and management of Construction Accounting is unique.
0 kommentar(er)
