Job costing Line of Credit Interest to multiple jobs

USA Discussion in 'Businesses / Corporations' started by phillrachel, Jan 25, 2019.

  1. phillrachel

    phillrachel

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    Hello. We are a homebuilder and we have a line of credit we use to finance the build of new homes. Each month we pay interest on our line of credit which has a variable rate. We have multiple projects using the one line of credit. How to I take the monthly interest expense and divide it between each job to job cost the interest expense to that job. We use Sage Contractor 100 for accounting software.
     
    phillrachel, Jan 25, 2019
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  2. phillrachel

    bklynboy VIP Member

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    Why not base on how much the LOC was used for each home? For instance if you have drawn 100 and home A took 25 and home B 75 - ratio the interest 25% to home A.
     
    bklynboy, Jan 26, 2019
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