We are contractors and doing construction projects for different clients. Usually we give advances to project in-charge posted at different projects and who then spend on projects.
We have created advances accounts for project in-charges and we record entry through cash in hand or bank once we give advances.
For project accounting, we have created different project current assets accounts and then transfer advance amount to construction account when our in-charge spend money on project.
We need report that if we have given 100,000 advance to Mr. A (Project In-charge), how he spend that money on which project. Any clue?
Thank you Tut for your reply. In our case we are just transferring one asset (advances) to other asset (project). Tracking codes do not work on balance sheet items.
Instead of creating advance accounts for the project in-charges, create Cash Accounts, as though they are Petty Cash tins (accounts). This way you would use “Inter Account Transfer” to set up the Petty Cash tin and additional advances. Then you would use Spend Money to transfer the advance to the construction account as it was spent. Now the individual Petty Cash tin (account) can be produced as a report by exporting the data
I assumed (always a risky thing ) that you had set up cash or bank accounts for each project. As the in-charge person receives or spends into or out of the project account, tracking codes can be used to associate transactions with the profits.
The cash/bank account is, in effect, the balance sheet for the project. The tracking-code-specific P&L is its P&L.
I did not say that it was. I said “The cash/bank account is, in effect, the balance sheet for the project.” Presumably, the person in charge is not taking out loans, sending invoices, or buying fixed assets. You only mentioned handing cash and bank transactions. In that situation, the only balance sheet account would be the cash or bank account that person is responsible for. Thus, it is effectively the project’s balance sheet.
Create Tracking Codes for each project settings → Tracking codes
Actually I am not using Manager software.
But I go through the software
Its not possible (Means I did not found) to separate tracking codes in the balance sheet
But its possible in profit and loss account
You can make report unlinked with tracking Report → Tracking Exception report
) that you had set up cash or bank accounts for each project. As the in-charge person receives or spends into or out of the project account, tracking codes can be used to associate transactions with the profits.