How to record loans for projects?

Question

Hello all,How can we record loan (liability) against a project in acumatica? So the project will first start with construction which will be funded from loan - as a liability and not income. Then once the project is about to be closed, it is open to be sold out - so the interested prospect pays the deposit for the project which is also a liability and when the prospect signs off the deal, he’s converted to the customer and then the invoice is generated for that project.How can we handle the same in Acumatica? Since its project with 2 accounts - Loan & customer.

Vard03 · Answer

Hello ​@Harry,I think this will be help you!Use Project Accounting to track the construction costs, commitments, budgets, and profitability of the project.The construction loan should normally be recorded through the financial modules as a liability—for example, debit the bank/cash account and credit a Loan Payable liability account. If project-level reporting of the loan is required, the transaction may also be assigned to the project, subject to the appropriate GL account and Project Account Group configuration.The buyer’s deposit should not be recorded as project income. Once the prospect has been converted or extended to a customer, the deposit can be entered as an AR prepayment and later applied to the final project invoice when the sale is completed.The lender and the buyer are separate accounting parties. The lender would normally be maintained as a vendor or financial counterparty, while the buyer is maintained as a customer. They should not be treated simply as two customer accounts assigned to the same project.The specific Loan Payable, Customer Deposit, AR, Revenue, WIP, and Project Account Group mappings should be reviewed with the company’s accountant or Acumatica implementation consultant.

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