By comparing the sum total of all of your projects and stages in the Development Ledger with the total inventories (less costs recouped to cost of goods sold) in the general ledger you can confirm that your balance sheet in the General Ledger matches the total of your project’s inventories.
Your inventory account(s) are defined against the cost centres in the maintenance menu of the Development Ledger; each cost written against a cost centre uses the Debit account to create a debit against the correct General Ledger account(s).
The Cost recouped accounts are held against a special Cost of Sale cost centre in the Development Ledger but then this special cost centre is linked to Stock and Improvement types in the Development Ledger.
When a sale is made the stock/improvement type is read, the Cost of Sale account read and then the necessary Debit and Credit accounts in the General Ledger derived.
Because the Development Ledger works on a cost recouped basis at the point of processing the sale, and because we do not advise that you net off the value of your inventories in either module (we advise that all inventories show as an ever growing value for the life of the project and that the costs recouped to cost of sales are placed in a further ‘costs recouped account’), you will need to know both your inventory account(s) and cost centres in the General Ledger and Development Ledger and your Cost Recouped account(s) and cost centres in the General Ledger and Development Ledger respectively.
1. Enter all your final transactions in the Development Ledger, Cash Book and other integrated ledgers.
2. Do a General Ledger Post Journals to update your trial balance.
3. Print a General Ledger system trial balance
4. Print a consolidated Trading Summary or consolidated performance analysis report from your Power writer for ALL Estates in your development ledger.
5. Compare the (‘costs to date’ value of all of your estates less the costs recouped i.e. the balance of inventories, in the Development Ledger report) to the (Inventories Account less the Costs Recouped account in your General Ledger).