Construction ERP for Germany

Accounting for German construction companies follows HGB requirements with specific considerations for long-term contracts. The percentage-of-completion method is permitted under certain conditions but the completed contract method remains more common in German GAAP. VAT on construction services is subject to the reverse charge mechanism (Paragraph 13b UStG) when both parties are construction businesses, requiring the recipient rather than the supplier to account for the 19% VAT. This applies to most subcontractor relationships and significantly affects invoice formats and VAT reporting.

German construction must comply with the Arbeitnehmer-Entsendegesetz (Posted Workers Act) for foreign workers on German construction sites, the minimum wage requirements of the Mindestlohngesetz, and the construction industry collective bargaining agreements (BRTV) that establish higher minimum wages and holiday pay schemes through SOKA-BAU. Employers must register workers with SOKA-BAU and make monthly contributions for vacation pay and supplementary pension benefits.

Yukti provides German construction companies with project accounting that supports both VOB/B and BGB contract types, tracking warranty periods of four or five years respectively. The invoicing module generates VAT reverse charge invoices for Paragraph 13b construction services and handles the monthly advance VAT return calculations correctly. SOKA-BAU contribution management calculates employer obligations for vacation pay (Urlaubskasse) and supplementary pension (Zusatzversorgungskasse) and generates the monthly reports required for submission. The procurement module handles VOB/A public procurement requirements with submission management and bid evaluation documentation. Cost tracking follows DIN 276 cost group structures for building construction projects.