Driving Construction Financial Management Best Practices for Contractors with General Ledger Software
The heart of PENTA construction financial management software is the General Ledger, a fluid structure defined by the combination of two entities: Organization Unit ID and Chart of Account #.
- The Organization Unit is a user-defined hierarchical structure offering an unlimited number of entities comprising an unlimited number of levels that are used to describe your business units in the system.
- The Chart of Accounts is a user-defined set of accounts that applies across all organization units, with the ability to restrict the use of individual accounts for a subset of organization units.
PENTA general ledger software automatically accrues revenue and posts transactions to the ledger for active jobs, work orders and maintenance contracts. Earned revenue calculations differ based on the type of contract items:
- Lump sum
- Cost plus
- Time & Material
- Unit Price
Revenue recognition calculations may be run on a user defined frequency.
Accounting Period Reporting Processes
There are several processes that help expedite the issuance of a financial report package for a specific reporting period:
- Revenue recognition
- Recurring journal entries
- Fixed asset depreciation calculations
- Currency translation
- Period close
Foreign Currency Accounting
PENTA construction financial management software provides for accounting of transactions where the transaction’s currency is different than the base reporting currency. Foreign currency transaction values are automatically converted to a base currency equivalent using current exchanges rates.
Complete Construction Financial Management Reporting
Financial reporting may be accomplished using standard PENTA reports or via user defined reports developed in PENTA Role-Based Workbenches. Standard PENTA reports include:
- General Ledger
- Accounting journals
- Trial Balance reports
- Work in Process Subledger
- Contracts in Progress reports
- Accounts Payable Aging reports
- Accounts Receivable reports
- Financial statements
- Balance Sheet reports
- Profit & Loss reports
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Penta Technologies develops enterprise software that helps construction, service, and engineering enterprises improve business performance.
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