How to record architectural design fees
Recording the capitalization of professional design fees directly attributable to a construction project.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Construction in Progress | Asset | 15,000.00 | - |
| Accounts Payable | Liability | - | 15,000.00 |
💡 Accountant's Note
Professional fees, such as architectural and engineering services, are capitalized as part of the asset cost because they are necessary to bring the asset to its intended use.
Practitioner & Systems Framework
💻 ERP Architecture
Use a project code or WBS element to aggregate these costs before final capitalization.
⚠️ Audit Flags
Verification of service dates to ensure they align with the construction period.
📄 Required Documentation
Signed contract, architectural drawings, and detailed invoices specifying project scope.
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