Account 154 - Work in progress

 

1. Rules for accounting

a) This account is used to record general operating costs to calculate prime costs of products or services in enterprises applying perpetual inventory system. In the enterprises applying perpetual inventory system, the account 154 is used to record actual costs of ending work in progress.

b) Account 154 ―Work in progress‖ records operating costs incurred in an accounting period; operating costs of finished goods in an accounting period; beginning or ending work in progress of the main or secondary operation and outsourcing processing provided by manufacturers or service providers. This account also records operating costs of processing operation, or services rendered by commercial enterprises (if any).

c) The operating costs recorded to 154 shall be clarified according to places in which the costs incurred (workshops, production divisions, production groups, construction sites, etc); types, groups of products, or product parts; types of services or service stages.

d) Operating costs recorded to account 154 shall include following costs:

- Direct raw materials cost;

- Direct labor cost;

- Costs of construction machinery (construction contracts);

- Factory overhead.

dd) The raw materials or labor costs exceed the normal rate and non-allocated fixed operating cost shall not be recorded to inventory cost but recorded to costs of goods sold of an accounting period.

e) At the end of the accounting period, it is required to distribute and transfer fixed factory overhead to processing cost for each product unit under common capacity (Cr 627, Dr 154). If actual capacity is smaller than common capacity, the fixed factory overhead shall be allocated to processing costs for each product unit under common capacity. The non-allocated fixed factory overhead (not included in prime cost) shall be recorded to costs of goods sold in an accounting period (Cr 627, Dr 632). All variable factories overhead shall be allocated to processing costs for each product unit according to actual costs incurred.

g) The following costs shall not be recorded to account 154:

- Selling expenses;

- General administration expenses;

- Financial expenses;

- Other expenses;

- Corporate income tax;

- Non-business expenses, project expenses;

- Capital expenditure;

- Other expenses covered by other sources

 

2. Method for applying account 154 in industry

a) Account 154 - ―Work in progress‖ applying to industry is used to collect production costs and calculate prime cost of workshops, production divisions. Regarding manufacturers using outsourcing for processing, labor, services or manufacturing, those costs are also recorded to account 154.

b) Only following costs shall be recorded to account 154:

- Direct raw materials cost for manufacture of products;

- Direct labor cost for manufacture of products;

- Factory overhead for direct manufacture of products.

c) In industrial enterprises, the account 154 shall be specifically recorded according to places in which the costs incurred (workshops, the production divisions), types or groups of products, products, or product parts.

d) Regarding manufacturers using outsourcing for processing, labor, services or manufacturing, those costs shall be recorded to account 154.

 

3. Method for applying account 154 in agriculture

a) Account 154 - ―Work in progress‖ applying to industry is used to collect total production costs and calculate prime cost of cultivation, processing of agricultural products or services. This account shall be specifically recorded according to agricultural lines of business (cultivation, animal husbandry, processing, etc), places in which costs incurred (workshops, production divisions, etc), kinds of sapling and products or services.

b) Actual prime cost of agricultural products shall be determined at the end of the crop year or at the end of the year. The prime cost shall be calculated in the year when the products are harvested. Hence, if the costs incur in this year, but products are harvested in the succeeding year, the prime cost shall be calculated in the latter year.

c) In cultivation, the costs shall be recorded according to 3 following plants:

- Short-day crops (rice, potatoes, cassava, etc);

- Multi-harvesting single plant (pineapples, bananas, etc);

- Perennial plants (teas, coffees, rubbers, peppers, fruit plants, etc).

For crops harvested two or three times in a year, or harvested one time in two years, or crops having both new planting and plant care in the same year,...the costs between two continuous crops, two areas, two continuous years,…shall be recorded according to actual condition,...

d) The expenses incurred from land reclamation, planting and caring of perennial plants under capital investment, selling expenses, administrative expenses, financial activities or other expenses.

dd) In principle, production costs of agriculture shall be recorded to Dr 154 ―Work in progress‖ according to every expense object. Regarding the costs related to multiple recording entities, multiple crops or multiple periods, it shall be recorded to separate accounts, then recorded to prime cost of relevant products: cost of irrigation water, the cost of land preparation and planting of crops harvested several times (this cost does not belong to capital expenditure), etc.

e) On the same acreage, if two or more short-term crops are intercropped, the costs incurred directly related to (such as seeds, cost of planting, harvesting, ...), costs incurred for several crops (cost plowing, irrigation, ...) shall be separately collected and allocated to every kind of plant according to their planting area or appropriate criteria.

d) Regarding perennial plants, the progress from tillage, sowing, plant care to the onset of production (harvesting or bearing) shall be recorded to account 241 ―Construction in progress‖ similarly to capital investment in requisition of fixed asset. Expenses incurred from perennial gardens during the operation shall include expenses incurred from plant care or harvesting process.

h) When recording expenses of animal husbandry on the account 154, the following notes must be taken:

- The expenses incurred from animal husbandry must be kept records in details for every type of husbandry (cattle farming, pig farming, etc), for every group or every type of livestock and poultry;

- Young animals of basic livestock herd after maternal separation shall be kept records in details according to actual price; - Basic animals which are eliminated to be converted into large livestock, fattening animal shall be recorded to account 154 according to the remaining value of basic livestock;

- Cost prices in the animal husbandry are: 1 kg of milk, 1 standard calf, 1 kg of meat prices, the price of 1 kg of meat, the price of 1 day/ animal husbandry, etc.

i) The direct material costs, labor costs in excess of normal rate, and fixed factory overheads which are unallocated, shall not be charged to product cost, but be charged to cost of goods sold of the accounting period.

4. Method for applying account 154 in services

a) Account 154 ―Work in progress‖ shall apply to service providers, such as: transport, post office, tourism, services, etc. This account is used to record total cost (direct raw materials, direct labor, and factory overheads) and prime cost of the service rendered.

b) Regarding transport industry, this account is used to record cost related to road transport (motorcars, trams, other non-motorized vehicle, etc. rail transport, waterway, aerial transport, pipeline transport, etc. Account 154 applying to transport sector must be kept records in details for every operation (passenger transport, freight transport, etc) Regarding every enterprise or service division.

c) During transport progress, the tires shall be replaced several times because they are worn out more quickly than the depreciation of the car, however, the value of the tires shall be depreciated steadily in every month instead of including in the cost of transport at once. Therefore, the vehicular transport enterprise may appropriate cost of tires to transport cost (payables) as prescribed in financial regime in force every month.

d) The direct material costs, labor costs in excess of normal rate, and fixed factory overheads which are unallocated, shall not be charged to product cost, but be charged to cost of goods sold of the accounting period.

dd) Regarding tourism industry, this account is used to record every activity, such as: guided tours, hotel, tourism transport, etc.

e) In the hotel business, the account 154 is used to record every type of service, such as: eating, drinking, accommodation, entertainment, other services (laundry, haircuts, telegram, sports, etc).

 

5. Method for applying account 154 in construction industry

a) Because the construction business only applies perpetual inventory system, not periodic inventory system, so that the account 154 is only used to record operating expenses used for determination of products or services of the construction enterprise.

b) The direct material costs, labor costs in excess of normal rate, and fixed factory overheads which are unallocated, shall not be charged to cost of building work, but be charged to cost of goods sold of the accounting period.

c) This account (in the construction industry) comprises 4 sub-accounts:

- Account 1541 – Construction: records costs, prime cost of construction products and value of construction in progress at the end of the period;

- Account 1542 – Other products: records costs, prime cost of other products and record value of other products in progress at the end of the period (finished goods, structural elements, etc);

- Account 1543 – Services: records costs, prime cost of services and record cost of service in progress at the end of the period;

- Account 1544 – Construction warranty costs: records expenses incurred from construction warranty and actual installation arising in the period and the value of construction in progress under warranty at the end of the period.

d) The production cost, prime cost of the installation product must be recorded according to every building work, work item and cost item specified in the estimated construction price, including:

- Materials cost;

- Labor cost;

- Costs of construction machinery;

- Overheads.

The factory overheads shall be recorded to Dr 1541 ―Construction‖: only include general costs incurred from the construction contractor or construction site. And the general administration cost of construction enterprise (as a part of overheads) shall be recorded to Dr 642 "General administration expenses ". Those expenses shall be transferred to Dr 911 ―Income statement‖ and included in the prime cost of the construction product and sold during a period.

dd) The investor of the property construction shall use this account to record expenses incurred from construction of finished property. If the property is constructed for multiple purposes (office, lease or sale, for example mix-used buildings), it is required to follow rules below:

- If there are sufficient evidence for separate accounting or the portion of expenses incurred from property construction for sale (finished property) and expenses incurred from property construction for lease or office (fixed assets or investment property), the expenses incurred from construction of finished property shall be separately recorded to the account 154. The expenses incurred from construction of fixed assets or investment property shall be separately recorded to account 241 – Construction in progress.

- If the account is not recorded separately or the proportion of construction costs for components of finished property, fixed assets or property investments are determined, the costs incurred directly related to the investment construction shall be recorded to account 241. When the project is completed and put into use, the costs of construction investment shall be transferred in conformity with the nature of each asset according to the method of use of the asset.

 

6. Structure and contents of account 154 - Work in progress

Debit:

- Direct raw materials costs, direct labor costs, costs of construction machinery, factory overheads incurred in an accounting period which is related to manufacture of products and costs of services rendered;

- Direct raw materials costs, direct labor costs, costs of construction machinery, factory overheads incurred in an accounting period which is related to prime cost of internal fixed price;

- Transfer of ending work in progress (if the enterprise uses periodic inventory system).

Credit:

- Actual costs of manufactured products which are stocked transferred for sale, internal use or immediate use in capital investment;

- Cost prices of construction products finished and partially or completely transferred which are consumed during a period, or transferred to main construction contract unit (superior or internal contract unit), or cost price of finished construction products to be consumed.

- Actual expenses of services finished and provided for customers;

- Value of returned scraps, value of damaged products which are not repairable;

- Value of raw materials, materials, goods which are completely processed and returned to warehouse;

- Recording direct material costs, labor costs in excess of normal rate, and fixed factory overheads which are unallocated, will not be charged to inventory value, but must be charged to cost of goods sold of the accounting period. For enterprises manufacturing according to orders, or enterprises having long production cycle, fixed factory overheads are transferred to account 154 every accounting period. When products are finished then fixed factory overheads will be identified and not charged to value of inventory, but to costs of goods sold (Cr 154, Dr 632);

- Transferring work in process at beginning of period (in case business applies periodical inventory).

Debit balance: Ending work in progress.

 

7. Method of accounting for several major transactions in Industry sector

7.1. Accounting for inventory using perpetual inventory system

a) At the end of period, when transferring direct raw material expenses according to every expense object, the following accounts shall be recorded:

Dr 154 – Work in progress

Dr 632 - Costs of goods sold (portion of direct material costs in excess of normal rate)

Cr 621 – Direct raw materials.

b) At the end of period, when transferring direct labor costs according to every expense object, the following accounts shall be recorded:

Dr 154 – Work in progress

Dr 632 - Costs of goods sold (portion of direct labor costs in excess of normal rate)

Cr 622 – Direct labor costs.

c) In case actual product capacity is higher than or equal to normal capacity, at end of accounting period, computed, total factory overheads (including variable factory overheads and fixed factory overheads) shall be calculated, allocated and transferred according to every expense object, and the following accounts shall be recorded:

Dr 154 – Work in progress

Cr 627 – Factory overheads.

d) In case actual product capacity is lower than normal capacity, fixed factory overheads shall be calculated and allocated to processing cost per unit of product at the normal capacity. Unallocated factory overheads (positive deference between actual fixed factory overheads and fixed factory overheads charged to prime cost of product shall not be charged to prime cost of product) shall be recorded to costs of goods sold during a period as follows:

Dr 154 – Work in progress

Dr 632 – Costs of goods sold (portion of fixed factory overheads unallocated to prime cost of product)

Cr 627- – Factory overheads.

dd) Value of raw materials, materials outsourced for processing and returned to warehouse, the following accounts shall be recorded:

Dr 152 – Raw materials

Cr 154 – Work in progress

e) Value of unrepairable damaged products which was compensated by offender, the following accounts shall be recorded:

Dr 138 – Other receivables (1388)

Dr 334 – Payables to employees.

Cr 154 – Work in progress

g) In an enterprise having long production and trade cycle, and direct material costs, direct labor costs, and factory overheads were transferred to Account 154 during an accounting period, then, the portion of direct material costs of direct labor costs in excess of normal rates, and portion of fixed factory overheads not charged to prime cost of product (not charged to value of inventory) shall be determined and recorded to costs of goods sold in the accounting period as follows:

Dr 632 - Costs of goods sold

Cr 154 – Work in progress (when expenses are transferred from accounts 621, 622, 627 to account 154).

h) When delivering goods to inventory during a period, the prime costs of goods shall be recorded as follows:

Dr 155 – Finished goods

Cr 154 – Work in progress

i) In case finished goods are not stored but delivered for internal use or capital investment, the following accounts shall be recorded:

Dr 641, 642, 241

Cr 154 – Work in progress

k) After dispatching raw materials to production, if any trade discount or sales rebate (including fines for violations against business contracts leading a decrease in payment of the purchaser) on such raw materials is received, a decrease in work in progress pertaining to trade discount or sales rebate corresponding to dispatched raw materials shall be recorded as follows:

Dr 111, 112, 331, etc.

Cr 154 – Work in progress (trade discounts or sales obtained equivalently to dispatched raw materials)

Cr 133 – Deductible VAT (1331) (if any).

l) Accounting for experimental products:

- Production cost of experimental products shall be recorded to account 154 similarly to other products. When recovering (sale or liquidation) experimental products, the following accounts shall be recorded:

Dr 111, 112, 131

Cr 154 – Work in progress

Cr 3331 – VAT payables (if any).

- Transferring difference between experimental production cost and amounts collected from sale or liquidation of experimental products:

+ If the experimental production cost is greater than the amounts collected from sale or liquidation of experimental products, an increase in value of construction asset shall be recorded as follows:

Dr 241 – Construction in progress

Cr 154 – Work in progress

+ If the experimental production cost is smaller than the amounts collected from sale or liquidation of experimental products, a decrease in value of construction asset shall be recorded as follows:

Dr 154 – Work in progress

Cr 241 – Construction in progress

m) In case finished goods are not stored but delivered directly to purchaser (water, electricity products), the following accounts shall be recorded:

Dr 632 - Costs of goods sold

Cr 154 – Work in progress

7.2. Accounting for inventory using periodic inventory system:

a) At the end of the accounting period, according to the actual physical inventory count, the actual value of work in progress shall be determined and transferred as follows:

Dr 154 – Work in progress

Cr 631 – Production costs

b) At the beginning of accounting period, when transferring actual work in progress, the following accounts shall be recorded:

Dr 631 – Production costs

Cr 154 – Work in progress

 

8. Method of accounting for several major transactions in Agriculture sector

8.1. Accounting for inventory using perpetual inventory system

a) At the end of accounting period, direct material costs shall be calculated and transferred according to operating expense object as follows:

Dr 154 – Work in progress

Dr 632 - Costs of goods sold (portion of direct material costs in excess of normal rate)

Cr 621 – Direct raw materials.

b) At the end of accounting period, direct labor costs shall be calculated and transferred according to expense object as follows:

Dr 154 – Work in progress

Dr 632 - Costs of goods sold (portion of direct labor costs in excess of normal rate)

Cr 622 – Direct labor costs.

c) At the end of accounting period, factory overheads shall be calculated and transferred according to expense object as follows:

Dr 154 – Work in progress

Dr 632 – Costs of goods sold (portion of fixed factory overheads unallocated to prime cost of product)

Cr 627 – Factory overheads.

d) Value of returned subsidiary products shall be recorded as follows:

Dr 152 – Raw materials

Cr 154 – Work in progress

dd) Value of returned scraps, of raw materials and trade expenses outsourcing, and have been completely processed, returned to storehouse shall be recorded as follows:

Dr 152 – Raw materials

Cr 154 – Work in progress

e) Value of young domestic animals and raised domestic animals transferred to working animals or reproductive animals shall be recorded as follows:

Dr 211 – Tangible fixed asset (2116)

Cr 154 – Work in progress

g) Actual production cost of output products, stored or immediately consumed shall be recorded as follows:

Dr 155 – Finished goods

Dr 632 - Costs of goods sold

Cr 154 – Work in progress

h) Output products which are internally consumed without inventory shall be recorded as follows:

Dr 641, 642, 241

Cr 154 – Work in progress

8.2. Accounting for inventory using periodic inventory system:

Accounting method for severed major trade activities at Account 154 in Agriculture is similar to that of Industry.

 

9. Method of accounting for several major transactions in Services sector

Accounting method for severed major trade activities at Account 154 in Services is similar to that of Industry. Notes:

a) Actual cost of service which is completed, transferred to purchased and determined as sale during a period shall be transferred as follows:

Dr 632 - Costs of goods sold

Cr 154 – Work in progress

b) When using internal consumes service, the following accounts shall be recorded:

Dr 641, 642.

Cr 154 – Work in progress

 

10. Method of accounting for several major transactions in Construction sector

 

10.1. Accounting method for collecting construction expenses (Dr 1541 ―Construction‖):

a) Accounting for items of direct raw materials:

- Items of direct raw materials consist of: Actual value of main materials, subsidiary materials, component parts on dismantled parts, circulating materials participating in formation of construction product substances, or support for implementation and performance of construction volume (not including subsidiary materials for machinery and operation facilities, and main materials expenses included in factory overheads).

- Accounting rules for items of direct raw materials: Raw materials or materials used for some work items must be charged directly to those work items according to original documents with actual volume of used materials, and with actual delivery price (weighted average price, FIFO price, and specific identification).

- At the end of accounting period or when construction is completed, residual materials inventory at production site (if any) shall be undergone physical inventory count to record as a decrease in costs of direct materials delivered for use in construction.

- If direct material costs for each building work or work item is not feasible to calculate in actual conditions, then the enterprise may apply material allocation method for consumed objects with reasonable criteria for (in proportion to consume quota on raw materials, etc).

- According to Table of materials allocated for each building work or work item, the following accounts shall be recorded:

Dr 154 – Work in progress (material costs)

Dr 632 - Costs of goods sold (direct material costs in excess of normal rate)

Cr 621 – Direct raw materials.

b) Accounting for direct labor costs: similar to Industry sector

c) Accounting for costs of construction machinery

- Costs of construction machinery shall include: Expenses incurred from machinery operation to perform construction volume by machine. Operating machinery is a kind of machine served directly for construction. Such as, machinery operated by hydro steam engine, diesel, and petrol and by electricity, etc. (including kinds of machine served for construction and assembly).

- Expenses of machinery operation consist of permanent expenses and temporary expenses. Permanent expenses for operation of machinery consist of: Expenses of labor handling machine, serving machine, etc; expenses of materials, of instruments and tools; depreciation expenses of fixed assets, expenses of outsourced services (small repairs, electricity and water expenses, trucks and machine expenses, etc); other expenses in cash.

- Temporary expenses for operation of machinery consist of: Expenses for great repairs of operating machine (maintenance overhaul, repairs of medium importance, etc) which are not eligible for recording as an increase in historical cost of operating machine; expenses for temporary works for operating machine (huts, sheds, platform, railway for machines). Temporary expenses of machine may incur in advance (debited Account 142 or Account 242), and they will be deferred to Account 623 ―Operating machine expenses‖, or incurred later, but they must be charged in advance to construction expenses during a period (because they relate to actual use of operating machines during the period). In this case it is necessary to accrue expenses, Cr 332 ―Provisions‖, Dr 623 ―Costs of construction machinery‖.

- Expenses summary and calculation of costs of construction machinery must be separately recorded for each operating machine (see guidance on Account 623 ―Costs of construction machinery‖).

- According to Table of costs of construction machinery (actual expenses of machine shift) for every building work or work item, the following accounts shall be recorded:

Dr 154 – Work in progress

Dr 632 - Costs of goods sold (costs in excess of normal rate)

Cr 623 – Costs of construction machinery.

d) Accounting for factory overheads:

- Factory overheads record production costs of construction team or work sites, including: salaries of factory management staff, of construction teams and groups, social insurance and health insurance appropriation and trade union fees appropriation will be computed with regulated proportion on salaries payables for construction direct workers, operating machine operators, and management staffs of factories, teams and groups; fixed assets depreciation used for total activities of teams, and other related expenses of team activities, etc.

When these expenses incur during a period, the following accounts shall be recorded:

Dr 627 – Factory overheads.

Dr 133 – Deductible VAT (if any).

Cr 111, 112, 152, 153, 214, 242, 334, 338, etc.

- When determining provisions for construction warranty, the following accounts shall be recorded:

Dr 627 – Factory overheads.

Cr 352 – Provisions.

- When incurring expenses incurred from repair and warranty of the construction, such as expenses incurred from direct raw materials, direct labor costs, costs of construction machinery, factory overheads, these expenses shall be recorded to relevant accounts, the following accounts shall be recorded:

Dr 621 – Direct raw materials.

Dr 622 – Direct labor costs.

Dr 623 – Costs of construction machinery.

Dr 627 – Factory overheads.

Dr 133 – Deductible VAT (if any).

Cr 111, 112, 152, 153, 214, 242, 334, 338, etc.

- At the end of the period, actual expenses incurred from direct raw materials, direct labor costs, costs of construction machinery, factory overheads related to repair and warranty of construction to record expenses incurred from repair and warranty and calculate prime cost of warranty, the following accounts shall be recorded:

Dr 154 – Work in progress

Cr 621 – Direct raw materials.

Cr 622 – Direct labor costs.

Cr 623 – Costs of construction machinery.

Cr 627 – Factory overheads.

- When finishing repair or warranty of the construction and transferring them to customers, the following accounts shall be recorded:

Dr 352 – Provisions.

Cr 154 – Work in progress

- When warranty on construction works expires, if the works are not warranted or the provisions for construction work warranty are greater than the actual costs incurred, the difference must be reverted, and then the following accounts shall be recorded:

Dr 352 – Provisions.

Cr 711 – Other income.

- At the end of the accounting period, according to the Table of factory overheads allocation, the factory overheads shall be allocated and transferred to relevant building works or work items (equivalent to labor costs); the following accounts shall be recorded:

Dr 154 – Work in progress

Dr 632 – Costs of goods sold (portion of fixed factory overheads unallocated to prime cost of construction)

Cr 627 – Factory overheads.

10.2. Method of accounting for and transferring construction expenses (Cr 1541 ―Construction‖):

a) Unrecoverable cost of the contract cannot be recovered (e.g., not enough legal enforcement such as there is doubts about its validity, or the contract that the customers cannot fulfill their obligations ...) must be recorded to expenses during the period as follows:

Dr 632 - Costs of goods sold

Cr 154 – Work in progress

b) Expenses directly related to every contract may be eligible for deduction if other receipts not including in the revenue of the contract. For example: receipts from sale of raw materials in surplus and disposal of machinery or equipment when terminating the construction contract:

- When delivering raw materials in surplus to inventory at the expiration of the construction contract, the following accounts shall be recorded:

Dr 152 – Direct raw materials (according to original cost)

Cr 154 – Work in progress.

- When recovering scrap then delivering them to inventory, the following accounts shall be recorded:

Dr 152 – Direct raw materials (according to recoverable cost)

Cr 154 – Work in progress.

- If the materials in surplus and recovered scrap which are sold without delivered to inventory, receipts from materials in surplus and scrap and a decrease in expenses shall be recorded as follows:

Dr 111, 112, 131, etc. (total payment)

Cr 3331 – VAT payable (33311)

Cr 154 – Work in progress.

- Accounting for disposal of machinery or equipment specially used for construction contract and these fixed assets are depreciated fully on the expiry date of the construction contract:

+ The receipts from disposal of machinery or equipment shall be recorded as follows:

Dr 111, 112, 131, etc.

Cr 3331 – VAT payable (33311)

Cr 154 – Work in progress.

+ The expenses incurred from disposal of machinery or equipment (if any) shall be recorded as follows:

Dr 154 – Work in progress

Dr 133 – Deductible VAT (1331).

Cr 111, 112, etc.

+ A decrease in fully depreciated fixed assets which are special machinery or equipment shall be recorded as follows:

Dr 214 – Depreciation of fixed assets

Cr 211 – Tangible fixed asset.

c) At the end of the accounting period, according to cost price of construction product actually finished and identified to be sold (partly transfer or completely transfer to project management board - Party A), or transferred to internal main contract business:

- In case transferring to Party A (including transfer of finished construction volume according to internal contract, if contract unit has separate account division), the following accounts shall be recorded:

Dr 632 - Costs of goods sold

Cr 154 – Work in progress (1541).

- In case construction product is finished to be sold (constructing houses for sales,...), or construction products finished but are not yet transferred, according to cost price of finished construction product to be sold, the following accounts shall be recorded:

Dr 155 – Finished goods

Cr 154 – Work in progress (1541).

- In case transferring finished construction product to main construction contract unit (superior, or internal unit - when implementing internal construction contract, contract unit has separate account division but only adjust account up to costs of construction production), the following accounts shall be recorded:

Dr 352 – Intra-company receivables (3368)

Cr 154 – Work in progress (1541).

Source: Circular 200