DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Advances Reports


#1

We are construction company and has created projects accounts in assets. To control project expenses we have also created special accounts which are linked to projects. We usually give advances to our staff to incur expenditures on these projects, who are mostly supervisors who control cash on different project.

Supervisors at a time may be controlling multiple projects and we have created account for each supervisor in current asset for the sum given to them. Once we give advance to them, we debit supervisor and credit bank. Then supervisor spend money on different project and we record them project wise expense through special account. For example Rs. 5,000 fuel expense on project 1.

We want report of supervisor wise spending on different project. For example we have advanced Rs. 500,000 to supervisor A, who is in-charge of project 1, 2 and 3. Is it possible to get report of Rs. 500,000 that how the supervisor spent money advanced to him and on which project?

Currently we can able to generate report on total project cost through GL transaction Summary and the same for supervisors as whole, not a project wise. The ledger report of one of the supervisors is enclosed. We require the enclosed report project wise.

Regards
Yameen


#2

Your description reveals several problems. Special accounts are not for recording expenses. Journal entries should not be used to record payments or receipts. Most of what you apparently want could have been done more easily with tracking codes. But your workflow and accounting structure are not clear, so I may misunderstand what you are explaining.


#3

Since we have constructions projects, which takes time to complete usually more than a financial year. Therefore we can’t charge out expense till the project is get completed. If we charge expense in profit & loss account than we will unable to see the complete cost of project up to date. For example if the project is in third year, the cost incurred on the project is our asset till the completion of the project. Since, manager.io is not supporting tracking codes in balance sheet therefore we are using special accounts to control specific cost on each project.

Regards


#4

You may advise us the other way if we can do construction accounting in this software in a better way.

Thanks


#5

You can generate profit and loss statements by tracking code for any time period, not just your current financial year. This is one of the advantages of perpetual accounting systems like Manager.


#6

@yameen101 - your initial post was about advances to supervisors which you appear to be operating via “we have created account for each supervisor in current asset for the sum given to them”. Can it be suggested that those current asset accounts should actually be “Cash on hand” petty cash accounts.

Therefore, when you give an advance you are in effect transferring money from being stored at the bank to being stored in the supervisors pocket (Petty Cash Tin). Then any expenditure is entered via New Payment (Spend Money).

Creating a “payment or receipt” custom field may then allow the entry of a project name which a report can then show how the advances have been spent.

Also, your project special accounts are in effect “work-in-progress” accounts and its very appropriate to record project expenses that way for later transfer (on completion) to the P&L By giving each project its own special account is a form of tracking code.

The alternate is to post all expenses (project and operating) to the P&L with the use of tracking codes and then at each year end, do a journal to transfer the project WIP to the balance sheet - more messy but workable.


#7

Thank you very much brucanna. It sounds good.

Regards
Yameen