This process tracks construction as a project, allocating all costs via Project dimension and forming a Fixed Asset (FA).

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1.1. Project Setup #

• “Projects” → Add new (e.g., “Construction of Building X”).
• Fixed Asset (FA) → Create a card for the future building (e.g., “Building X”, depreciation method, useful life) will be in Initial Recognition.

1.2. Inventory and Materials #

• In “Items”, add:
  • Construction materials (bricks, concrete, etc.).
  • Prefabricated components (windows, doors) for Assembly/Disassembly.

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2.1. Material Procurement (Bill) #

Document: Bill

• Location (Warehouse): Construction Site
• Items: Bricks, cement, etc.
• GL Account: 13200 Raw Materials
• Analytics: Project = “Construction of Building X”

(If materials go directly to construction, use Bill G/L tab to allocate to FA immediately on 18300 Acquisition and Creation of Fixed Assets.)

2.2. Direct Cost Allocation to FA (Bill G/L Tab) #

Document: “Bill” → “GL Accounting” tab

• Debit Account: 18300 Acquisition and Creation of Fixed Assets
• Extra Dimension (Asset): “Building X”
• Analytics: Project = “Construction of Building X”

(Used if materials/services are directly expensed to construction, bypassing inventory.)

2.3. Material Write-Off for Construction (Inventory Adjustment) #

Document: Inventory Adjustment

• Operation Type: “Withdrawal”
• Warehouse: Construction Site
• Items: Bricks, rebar, etc.
• Expense Account: 18300 Acquisition and Creation of Fixed Assets
• Extra Dimension (Asset): “Building X”
• Analytics: Project = “Construction of Building X”

(If materials were first stocked and later used in construction.)

2.4. Component Manufacturing (Assembly/Disassembly) #

Document: Assembly or Disassembly

• Input Materials: Concrete + Rebar → Precast Slab (new item).
• Output Location: “Finished Components” Warehouse.
• Analytics: Project = “Construction of Building X”.

(Later, precast slabs are written off via Inventory Adjustment to FA.)

2.5. Commissioning the Building #

Document: Initial Recognition

• Asset: “Building X”
• Debit Account: 18100 Fixed Assets in Operations
• Credit Account: 18300 Acquisition and Creation of Fixed Assets
• Amount: Total project costs accumulated.

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3. Project Cost Monitoring #

• Report: General Journal  → Filter by Project “Construction of Building X”.
• FA Card → All costs auto-aggregated under account 18300 Acquisition and Creation of Fixed Assets.