Hi,
I am pleased to introduce myself as construction industry experienced senior accountant. I was part of management team of a real estate developers.
Billings to buyers were based on construction agreements, listing % of payments due at every stage.
The company used to account revenues based on partial completion method. They recognized revenues every year at a predetermined rate. The amounts extra received than the accumulated revenue recognized will be considered as advance and amount received less will be considered as receivable to that extent.
The company had different types of projects , We had detailed store issue records and based on those records every month the project costing will be done. Some project specific purchases will be directly debited to those projects, without routing through stock.
As a freelancer I had worked for an Australian construction company. They were doing small contracts which mostly got finished in a month or two. revenues were recognized as per stage billings and during year end work done will be transferred to closing work in progress a/c to arrive at the results of the current year.
Thanks