Enterprises will gain profits through processing and cutting. How should enterprises write accounting entries for businesses or revenues generated from processing and cutting of raw materials?
Accounting entry of processing and cutting expenses
Debit: manufacturing expenses
Tax payable - VAT payable (input tax)
Credit: bank deposit, etc
How to make accounting entries of processing fees?
1. In case of subcontracting, when processing fees and freight and miscellaneous fees are paid:
Debit: outsourced processing materials
Credit: bank deposit
2. If it is OEM, when the processing fee is collected for settlement:
Debit: bank deposits/accounts receivable
Credit: main business income
Tax payable - VAT payable (output tax)
What is the overhead?
The enterprise should set up a "manufacturing expense" account for general classification accounting. The account shall set up a subsidiary account according to different production units, and a column or special account shall be set up in the account according to the expense items to reflect the occurrence of various manufacturing expenses of the production unit. If the auxiliary production workshop only produces a single variety or provides only one kind of labor service and the amount of manufacturing expenses is small, in order to reduce the transfer procedures, various manufacturing expenses incurred can also be directly recorded into the "auxiliary production cost" account without accounting through the "manufacturing expense" account. The "overhead" account belongs to the cost expense account. The debit registers and collects the overhead incurred, and the credit reflects the allocation of the overhead. There is no balance at the end of the month.
What is bank deposit?
Bank deposits are a part of monetary funds. According to the provisions of China's cash management system, every enterprise must open a deposit account with the People's Bank of China or a professional bank to handle deposits, withdrawals and transfer settlements. In addition to keeping a small amount of cash within the specified limit, the enterprise's monetary funds must be deposited in the bank, Bank deposits of enterprises mainly include: settlement account deposits, L/C deposits, deposits in other cities, etc. In accounting entries, debit indicates increase. The lender indicated a decrease.
How to make accounting entries for processing expenses
1. If it belongs to subcontracting, the processing fees paid should be recorded in the "Subcontracting Materials" account.
The following accounting entries are prepared when processing fees and freight and miscellaneous expenses are paid:
Debit: outsourced processing materials.
Credit: bank deposit.
2. If it is OEM, the processing fees collected will be included in the "main business income" account.
Settlement of processing fee entries:
Debit: bank deposits (accounts receivable).
Credit: main business income.
3. Semi products are outsourced, and the expenses incurred are recorded in the cost of outsourced products. This type of business is accounted by the subcontracting material account. Accounting treatment:
(1) . Send processing materials:
Debit: outsourced processing materials.
Credit: raw materials.
(2) Processing fee:
Debit: outsourced processing materials.
Credit: Accounts payable.
Extended data
If the processing fee occurs frequently and accounts for a large proportion in the cost, an independent external processing fee cost item can be set up for presentation; If they are petite, they can be treated as workshop expenses.
If the external processing cost is listed as an independent cost item, it will be debited (or added) to the "basic production" account when incurred; If it is not an independent cost item, the expense will be debited (or added) to the "workshop expense" account when incurred.
For the business of outsourced processing products, a special record is generally set up to record the main terms of the processing contract and the delivery, recovery, processing expenses and payment of processed products, so as to facilitate reference and supervision.
In actual work, there is also the balance of the factory cost of products minus the cost of raw materials, which is called labor payment.
When processing services are provided in the production workshops of some industrial enterprises in China, the processing costs are usually calculated and settled according to the specified unit price of the processing cost quota. The unit price of this processing cost quota is called "work payment quota", and the processing cost calculated according to the work payment quota is called "work payment quota".
Accounting entry of wire cutting processing fee
Generally, wire cutting processing cost=cutting perimeter * material thickness * unit price. It can not be generalized, but also depends on the scale of output. It can also be calculated by cutting area. Fast wire cutting is about 0.004 yuan per square millimeter. Classification of WEDM 1) Fast wire WEDM has a wire speed of 6-12 m/s, and the electrode wire moves back and forth at high speed, resulting in poor cutting accuracy. 2）.
How to write processing fee entries
For subcontracting, refer to:
Assume that the entrusting party is A and the entrusted party is B. Accounting of A:
1. Issued materials:
Debit: outsourced processing materials.
Credit: raw materials, etc;
2. Pay processing fees, VAT, etc.
(1) If A's processed materials are used for the continuous production of taxable consumer goods:
Debit: outsourced processing materials.
Tax payable - VAT payable (input tax).
Tax payable - consumption tax payable.
Credit: bank deposit.
(2) If A's processed materials are directly used for sales, then:
Debit: outsourced processing materials (including consumption tax).
Tax payable - VAT payable (input tax).
Credit: bank deposit.
3. Recycle after processing.
Debit: raw materials.
Credit: Consigned processing materials (the amount used for continuous production and direct sales is different);
The accounting of B is OEM accounting, which is only for reference registration, and generally only for quantity accounting.
When receiving incoming materials, accounting entries are not prepared, and only the amount of the corresponding material sub ledger in the "OEM incoming materials" memo account is registered.
Processing cost and labor cost of entrusted products:
Debit: main business costs, other business expenses.
Credit: Payroll related taxes payable on bank deposits.
Time of receiving processing fee:
Debit: bank deposit.
Credit: main business income, other business income.
Taxes payable - VAT payable (output), small-scale taxes payable - VAT payable.
