Financial Significance of Refund and Reduction of Project Funds

All expenses that are not directly related to the production and operation of enterprises should be accounted for.

When the funds of the restoration project are returned, the financial department needs to account for all expenses that are not directly related to the production and operation of the enterprise, such as fines, liquidated damages, inventory losses of fixed assets, net losses of fixed assets, extraordinary losses, etc.

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Deduction refers to the project settlement submitted by the contractor. After examination, if the audited project settlement is less than the project settlement submitted by the contractor, it is subtraction, and the amount of subtraction is subtraction, and vice versa.