Posting general business expenses are written off at the end of the month. Working with general production expenses
General production expenses are accumulated, which at the end of each month are distributed by postings to the expenses of the main, auxiliary and service industries and to certain types products. the account is active-passive and usually does not have sub-accounts.
What is taken into account on the 25th account
General production costs include:
1. All production management costs:
- remuneration of employees involved in the management of workshops, sections;
- accruals of a social nature on their wages;
- business trips of heads and workers of shops and sites;
- other expenses, which include expenses for stationery, communication services, purchase of periodicals, participation in conferences, trainings, seminars, etc.
2. Depreciation of fixed assets and intangible assets, directly used in shops and on sites.
3. Expenses for the maintenance, operation and repair of fixed assets and intangible assets for general production purposes, rent, insurance, including:
- the cost of fuels and lubricants, cleaning and other auxiliary materials;
- salary of auxiliary workers (locksmiths, electricians, adjusters, repairmen, oilers, etc.) with accruals;
- the cost of energy consumed (electricity, water, steam, etc.) to ensure the operation of production mechanisms;
- the cost of services for the operation and maintenance of machinery and equipment provided by auxiliary industries and;
- the cost of used fixtures and tools;
- expenses for the maintenance of industrial premises;
- expenses for security and fire safety;
- the cost of repairing fixed assets, including those leased;
4. Costs for improving technologies and organizing production.
5. Costs for technological control, safety and labor protection.
6. Costs for environmental protection.
Typical postings for writing off overhead costs
Items of overhead costs are accumulated in the debit of the account, write-off to, occurs at the end of each month.
Wiring:
Account Dt | Account Kt | Wiring Description | Posting amount | A document base |
in workshops (on sites) | 300 | Limit-fence card M-8 and / or requirement-waybill M-11 | ||
Accrued wage employees involved in the management and maintenance of workshops and sites | 500 | Payroll T-49 | ||
69 | Accrued social payments employees involved in the management and maintenance of workshops and sites | 130 | Help-calculation, UST declaration, calculation of advance payments for UST | |
, | Depreciation of fixed assets and intangible assets for general production purposes was accrued | Help-calculation | ||
Accounting for the costs of production is regulated by the Regulation on Accounting "Expenses of the Organization" (PBU 10/99), approved by order of the Ministry of Finance of Russia dated 06.05.99 No. ЗЗ n.
Synthetic cost accounting for production is carried out on account 20 "Main production" according to a scheme consisting of five stages.
First, the direct costs of the main production for the manufacture of products are reflected in the debit of account 20 "Main production" in correspondence with accounting accounts production stocks, settlements with employees for wages.
Similarly, the debit of account 23 “Auxiliary production” reflects the direct costs of auxiliary production.
The costs associated with the maintenance and management of production at the level of production units are reflected in the debit of account 25 "General production costs", and those associated with the management of the organization as a whole are reflected in the debit of account 26 "General business expenses".
Expenses incurred from the created reserves upcoming expenses(to pay for vacations of employees, to repair fixed assets, etc.), reflect the debit of account 96 “Reserves for future expenses”.
Deferred expenses incurred in reporting period, reflect the debit of account 97 "Deferred expenses".
At the second stage, the costs of auxiliary production are distributed between the main production and the servicing and management services of the organization and the costs of future periods.
At the third stage, the indirect costs collected on accounts 25 "General production expenses" and 26 "General expenses" are distributed. The distribution of these costs is carried out by types of products of the main production.
At the fourth stage, according to account 28 “Rejection in production”, the final losses from the reject are determined, which are written off to the costs of the main production.
As a result of the successive implementation of these four stages, on account 20 “Main production”, all direct and indirect costs for the production of products for the month are collected.
At the fifth, final stage, according to account 20 "Main production", the actual production cost is determined finished products produced per month and transferred from production to warehouse.
8.1. Accounting for the costs of the main production
Accounting for the costs of the main production is carried out on the active costing account 20 "Main production". Analytical accounting on account 20 "Main production" is carried out by types of costs and types of products (works, services).
The peculiarity of cost accounting on account 20 "Main production" is that immediately at the time of occurrence on the basis of primary documents the debit of the account reflects only direct costs directly related to the manufacture of products, the performance of work or the provision of services. Indirect costs on account 20 “Main production” are reflected only at the end of the month after determining their total amount for the month and distributing it by type of product (work, service).
The balance of account 20 "Main production" at the end of the month shows the value of the balance of work in progress.
According to account 20 "Main production", the actual cost of manufactured products (works, services) is calculated.
The actual production cost of completed production and transferred to the warehouse of finished products is determined on the basis of data on the balance of work in progress at the beginning and end of the month.
Task 8.1.1
The cost of the organization in the production of product A for the month amounted to:
- direct: material - 72,000 rubles, for wages - 80,000 rubles;
- indirect costs attributable according to the distribution for products A: general production costs - 124,000 rubles, general business - 160,000 rubles.
Price returnable waste credited to the warehouse - 4,000 rubles.
The balance of work in progress in the manufacture of product A amounted to: at the beginning of the month - 16,000 rubles, at the end of the month - 22,000 rubles.
Let's compose accounting entries according to the specified costs:
No. p / p | Account correspondence | Amount, rub. | ||
---|---|---|---|---|
Debit |
Credit |
|||
Released from the warehouse and spent materials for the manufacture of products A |
||||
Wages accrued to production workers for the manufacture of products A |
||||
Accrued insurance premiums in off-budget funds from wages of production workers (26%) |
||||
Accrued insurance payments to the FSS against accidents and occupational diseases (2% of the wages of production workers) |
||||
Returnable waste received during the production of product A was credited to the warehouse |
||||
Write off the overhead costs attributable to the production of product A |
||||
Write off general business expenses attributable to the production of products A |
||||
Finished goods A were credited to the warehouse at the actual production cost (16,000 + 72,000 + 80,000 + 20,800 + 1,600 - 4,000 - 22,000) |
8.2. Auxiliary Production Cost Accounting
Accounting for the costs of auxiliary production is carried out on the active costing account 23 "Auxiliary production". Analytical accounting on account 23 "Auxiliary production" is carried out by type of production.
According to account 23 “Auxiliary production”, the actual cost of products (works, services) of auxiliary production is calculated.
The procedure for accounting for costs on account 23 "Auxiliary production" is similar to the procedure for accounting for costs on account 20 "Main production".
The actual costs of auxiliary production are distributed among the main production, service and management services of the organization in proportion to the number of services consumed or products produced in the appropriate units of measurement.
The balance of account 23 "Auxiliary production" at the end of the month shows the value of work in progress.
Task 8.2.1
Part industrial enterprise includes production workshops, administration, a canteen and auxiliary production - a transport workshop, the services of which are used by all structural divisions of this enterprise. In the reporting period, the costs of the transport department amounted to 640,000 rubles. To distribute the costs of ancillary production between structural divisions data of transportation orders and road transport waybills are used.
The total volume of services rendered by the transport department is 2472 ton-kilometers, including: production shops - 2374 t-km or 96%; administration - 24 t-km or 1%; canteen - 74 t-km or 3%.
The distribution of costs is carried out based on the share of transport services provided to each unit in the total volume of services, and is reflected in the accounting for the credit of account 23 "Auxiliary production" with the following accounting entries:
No. p / p | Content of business transactions | Account correspondence | Amount, rub. | |
---|---|---|---|---|
Debit |
Credit |
|||
The cost of services of auxiliary production is written off to the costs of the main production (640,000 rubles x 0.96) |
||||
The cost of services of auxiliary production is written off to general business expenses (320,000 rubles x 0.01) |
||||
The cost of auxiliary production services provided by the canteen of the enterprise is written off (320,000 rubles x 0.03) |
8.3. Accounting for overhead costs
General production expenses of the organization are recorded on the active account 25 "General production expenses".
All general production expenses during the month are collected on the debit of account 25 “General production expenses” from the credit of different accounts.
At the end of each month, the amount of overhead costs for the month, reflected in the debit of account 25 “General production costs”, is determined, distributed by type of product (work, service) and written off to the costs of the main and auxiliary production.
The distribution of overhead costs by types of products (works, services) is carried out in proportion to any distribution base.
Task 8.3.1
General production expenses of the organization for the month amounted to 858,800 rubles, including:
- wages of workers servicing the fixed assets of production shops - 110,000 rubles;
- wages of managerial personnel of production shops - 150,000 rubles;
- deductions for social needs - 72,800 rubles;
- depreciation of fixed assets of production workshops - 180,000 rubles;
- the cost of materials used for the current repair of fixed assets - 46,000 rubles;
- rent for the use of production facilities - 300,000 rubles.
The organization produces three types of products. According to accounting policy the organization distributes overhead costs by type of product in proportion to the wages accrued by production workers for the manufacture of products. According to the accounting data, the workers were accrued wages for the month:
- for the manufacture of products No. 1 - 100,000 rubles;
- for the manufacture of products No. 2 - 60,000 rubles;
- for the manufacture of products No. 3 - 40,000 rubles.
Let's distribute general production costs for the month by type of product:
Product type |
Wages of production workers |
ODA distribution ratio |
|
No. p / p | Content of business transactions | Account correspondence | Amount, rub. | |
---|---|---|---|---|
Debit |
Credit |
|||
Wages accrued to workers for maintenance of fixed assets of production shops |
||||
Salaries of the management personnel of the production departments |
||||
Insurance contributions to off-budget funds were accrued from the wages of workers for the maintenance of fixed assets of production shops and from the wages of managerial personnel of production shops (26%) |
||||
Accrued insurance payments to the FSS against accidents and occupational diseases (2% of wages) |
||||
Accrued depreciation of fixed assets of production shops |
||||
Released from the warehouse and spent materials for the current repair of fixed assets of production shops |
||||
Rent paid for the use of production space |
||||
At the end of the month, they are distributed by type of product and general production costs for the month are written off |
||||
8.4. Accounting for general expenses
General business expenses of the organization are taken into account on the active account 26 "General business expenses". Analytical accounting on account 26 "General business expenses" is carried out by items and cost centers.
General business expenses are reflected in the debit of account 26 “General business expenses” in correspondence with different accounts.
All general business expenses during the month are collected in the debit of account 26 “General business expenses”. At the end of the month, their total value for the month is determined, which is completely written off from the credit of the account. In this case, two options are possible.
In the first, traditional, variant, general business expenses are distributed by types of products (works, services) in proportion to the selected distribution base and written off to the costs of the main production.
In the second option, general business expenses are not attributed to the costs of the main production, but written off to the cost of goods sold.
Task 8.4.1
The organization carries out the production of two types of products: No. 1 and No. 2.
General business expenses of the organization for the month amounted to 838,750 rubles, including:
- wages of workers performing general economic work - 75,000 rubles;
- salary of the management personnel of the organization - 250,000 rubles;
- deductions for social needs - 87,750 rubles;
- depreciation of fixed assets for general purposes - 160,000 rubles;
- the cost of materials used for the current repair of fixed assets for general economic purposes - 66,000 rubles;
- rent for the use of fixed assets for general economic purposes - 200,000 rubles.
According to the accounting policy, the organization distributes general business expenses by type of product in proportion to the wages accrued by production workers for the manufacture of products. According to the accounting data, the workers were accrued wages for the month:
- for the manufacture of products No. 1 - 360,000 rubles;
- for the manufacture of products No. 2 - 240,000 rubles;
Let's distribute general business expenses for the month by type of product:
Let's make accounting entries:
No. p / p | Content of business transactions | Account correspondence | Amount, rub. | |
---|---|---|---|---|
Debit |
Credit |
|||
Wages accrued to workers performing general economic work |
||||
The salaries of the management personnel of the organization are accrued |
||||
Insurance contributions to off-budget funds were accrued from the wages of workers performing general economic work and the wages of the organization's management personnel (26%) |
||||
Released from the warehouse and spent materials for the current repair of fixed assets for general business purposes |
||||
Accrued rent for the use of fixed assets for general purposes |
||||
At the end of the month, they are distributed by type of product and general business expenses for the month are written off |
||||
Task 8.4.2
General business expenses of the organization for the month amounted to 1,488,400 rubles, including:
- salary of employees of the organization's management apparatus - 440,000 rubles;
- wages accrued to workers for the current repair of fixed assets for general economic purposes - 90,000 rubles;
- deductions for social needs - 148,400 rubles;
- depreciation of fixed assets for general purposes - 260,000 rubles;
- the cost of materials used for the current repair of fixed assets for general economic purposes - 110,000 rubles;
- the cost of heating, lighting the premises of management units - 34,400 rubles;
- compensation for the use of personal cars for official purposes - 24,000 rubles;
- travel expenses - 76,000 rubles;
- rent for fixed assets for general economic purposes - 300,000 rubles;
- the cost of used stationery is 5,600 rubles.
According to the accounting policy, the organization does not allocate general business expenses by type of product, but writes them off at the end of the month to the cost of goods sold.
Let's make accounting entries:
No. p / p | Content of business transactions | Account correspondence | Amount, rub. | |
---|---|---|---|---|
Debit |
Credit |
|||
Wages accrued to employees of the organization's management apparatus |
||||
Wages accrued to workers for the current repair of fixed assets of general economic purpose |
||||
Insurance contributions accrued to off-budget funds from wages (26%) |
||||
Accrued insurance payments to the FSS from accidents and occupational diseases (2% of wages) |
||||
Accrued depreciation of fixed assets of general economic purpose |
||||
Materials released and spent for the current repair of fixed assets of general economic purpose |
||||
Accrued for heating, lighting of premises of administrative divisions |
||||
Compensation was accrued to employees of the organization for the use of personal cars for business purposes |
||||
Based advance reports the actual travel expenses of employees of the organization's management apparatus are written off |
||||
Accrued rent for fixed assets of general economic purpose |
||||
Write off the cost of used office supplies |
||||
General expenses are written off at the end of the month. |
8.5. Accounting for losses from marriage
Accounting for losses from marriage in production is kept on the active account 28 "Marriage in production". Analytical accounting on account 28 "Marriage in production" is carried out for individual divisions of the organization, types of products, items of expenditure, reasons and perpetrators of the marriage.
According to the debit of account 28 "Marriage in production", the costs of the identified internal and external marriage are collected (the cost of an irreparable, i.e. final, marriage, the cost of correcting the marriage, etc.).
On the credit of account 28 "Marriage in production", the amounts attributable to the reduction of losses from marriage are reflected:
Comparing the debit and credit entries of account 28 "Marriage in production", determine the losses from the marriage, which are monthly written off to the costs of the main or auxiliary production.
Task 8.5.1
According to notices of marriage in the machine shop of the organization, parts were rejected. Part of the rejected parts was recognized as correctable, and part - irreparable (final) marriage. The production cost of an irreparable (final) marriage amounted to 34,600 rubles. An irreparable (final) marriage was put into storage at the price of scrap in the amount of 1400 rubles. The culprits of the marriage are the workers of the machine shop. From their wages, deductions were made for an admitted marriage in the amount of 12,400 rubles. For the correction of the marriage, other workers of the shop were paid wages in the amount of 6,000 rubles. Materials were used to correct the marriage, the actual cost of which amounted to 3400 rubles.
Let's make accounting entries:
No. p / p | Content of business transactions | Account correspondence | Amount, rub. | |
---|---|---|---|---|
Debit |
Credit |
|||
Reflected the production cost of the resulting final marriage |
||||
Irrecoverable (final) marriage is credited to the warehouse at the price of scrap |
||||
Withheld from the accrued wages of the perpetrators of the marriage for the admitted marriage |
||||
Released from the warehouse and spent materials to correct the marriage |
||||
Wages accrued to workers of the machine shop for work on the correction of defects |
||||
Insurance premiums were accrued to the Pension Fund, the FSS, the Compulsory Health Insurance Fund from wages for the correction of marriage (26%) |
||||
Accrued insurance payments to the FSS from accidents and occupational diseases (1% of wages) |
||||
Losses from marriage are determined and written off |
8.6. Accounting for deferred expenses
The actual expenses of the organization that took place in this reporting period, but related to products (works, services) that will be produced in the coming, future reporting periods, are accounted for on account 97 “Deferred expenses”.
Accounted for on account 97 "Expenses of future periods" costs in deadlines debited from the credit of this account to the debit of the accounts of accounting for production costs.
Task 8.6.1
The organization received a certificate of conformity for its products for a period of 1 year. The costs of conducting mandatory certification amounted to:
- the cost of services of a third-party organization for carrying out certification work - 35,400 rubles, including VAT - 5,400 rubles;
- the cost of products transferred for certification - 6000 rubles.
No. p / p | Content of business transactions | Account correspondence | Amount, rub. | |
---|---|---|---|---|
Debit |
Credit |
|||
Reflected the debt for the work on the mandatory certification of products (excluding VAT) |
||||
Reflected the amount of VAT presented by a third-party organization for the work carried out on product certification |
||||
Paid for the work of a third-party organization for the certification of products |
||||
Written off the cost of products submitted for certification |
||||
Presented to the budget for VAT deduction on work on product certification |
||||
Part of the costs of mandatory certification of products was written off to production costs (36,000 rubles: 12 months) |
Control tasks
Situation 1
In the reporting month, the organization manufactured two types of products: A and B. The organization's costs for the month amounted to:
- cost of materials used: for the manufacture of products A - 42,000 rubles; for the manufacture of products B - 58,000 rubles; for maintenance of production equipment - 7000 rubles; for general business needs - 3000 rubles;
- the amount of accrued wages: for workers for the manufacture of products A - 136,000 rubles; workers for the manufacture of products B - 164,000 rubles; specialists and employees of the main production - 33,000 rubles; administrative and managerial personnel - 67,000 rubles;
- insurance contributions to off-budget funds - 26% of the accrued wages; deductions for insurance against accidents and occupational diseases 0.5%;
- the amount of accrued depreciation: for fixed assets for production purposes - 14,000 rubles; for fixed assets of general economic purpose - 6000 rubles.
According to the accounting policy, the organization distributes general production and general business expenses by type of product in proportion to total amount direct costs.
Situation 2
Formulate business transactions and make accounting entries to reflect the following business situation.
The organization in the reporting month produced three types of products: No. 1, No. 2, No. 3.
The direct costs of the organization for the manufacture of products for the month amounted to:
- products No. 1 -120,000 rubles;
- products No. 2 - 180,000 rubles;
- products No. 3 - 300,000 rubles.
Indirect costs of the organization for the month amounted to:
- general production - 180,000 rubles;
- general business - 240,000 rubles.
According to the accounting policy, the organization distributes overhead costs by type of product in proportion to the total amount of direct costs, and the organization does not allocate general business expenses by type of product, but writes them off at the end of the month to the cost of goods sold.
print version
There are costs that go directly to production, such costs are direct and also directly affect the cost. But there are other costs that are not directly related to production, however, they are necessary in order to manage all economic activity as a system. Such expenses indirectly affect the cost and are called General Business Expenses, in order to track the movement of such expenses in accounting, account 26 of the same name is intended.
Which costs will be related to general business, the organization sets depending on the industry in which it operates. There are many such expenses, but we can list them in a general way:
- Administrative and management expenses are always classified as general business expenses, since they are not directly related to production in any industry (for example, the salary of company management, accounting, HR, etc., business trips, security services, office, mail, communications).
- Depreciation of fixed assets that do not have a production purpose, as well as their repair.
- Services of auditors and consultants.
- Mandatory payments to the state budget (taxes, fees, penalties, fines).
- Other
For general business expenses, both synthetic and analytical accounting are necessarily kept. On account 26 "General expenses" synthetic accounting is kept, and analytics details by expense items or places of occurrence general expenses.
As an example, consider typical business transactions on account 26 “General business expenses”
Debit | Credit | Operation |
26 | 02 | Depreciation of fixed assets that do not have a production purpose. |
26 | 10 | Write-off of materials for general business needs |
26 | 70, 69 | Calculation of wages and insurance premiums for employees who are not engaged in production (management and maintenance personnel) |
26 | 60 | Debts to third parties for services provided for general business needs. |
26 | 97 | Write-off of deferred expenses |
26 | 68 | Tax accrual |
26 | 68 | Write-off of accountable funds |
23 | 26 | Write-off of general business expenses for auxiliary production |
29 | 26 | Write-off of general business expenses servicing production |
20 | 26 | Write-off of general business expenses for the product of the main production |
To account for general business expenses, you can use the full or partial journal-order form. If the company uses the full one, then it uses statement 15 for analytics to account for the expenses of interest to us, and for synthetic accounting, journal-order 10 (or 10/1). In order journal 05, both analytics and synthetic accounting are maintained, if a partial form is used.
The information that is reflected in these registers is formed on the basis of tables on the distribution of wages and materials, the amount of depreciation of fixed assets, transcript sheets for various types of cash expenses, which are reflected in other order journals, etc.
Methods of write-off from account 26 "General business expenses"
Russian accountants write off from account 26 “General expenses” the expenses attributed to it. They have the right to do this in two ways (the method that the organization has chosen must be fixed in the accounting policy).
Using the first method, accountants write off each month to account 20 "Main production", then the full cost is formed, already taking into account these costs. In addition, the amount of general business expenses is sometimes transferred by debit to account 29 “Serving production” and to account 23 “Auxiliary production” (if goods were sold at these sites). If general business expenses are directed to the main production, then they should be distributed in accordance with the type of product, and in proportion to the indicator that was chosen in advance (salaries of production workers, direct costs, production volumes, revenue, etc.). This indicator must be reflected in the accounting policy of the company.
In the second way, the amounts on account 26 are written off to the debit of account 90 “Sales”, subaccount 90-2 “Cost of sales”, based on this, a reduced cost of goods produced is formed, but the cost of products that we are going to sell is growing. When the month comes to an end, the costs charged to the account of general business expenses are written off as follows: Dt 90 Kt 26. It follows that general business expenses are added to the cost of products that the organization sold during the reporting period.
Methodology for the distribution of general business (indirect) costs
After selecting a cost allocation approach based on specific characteristics economic activity organization, as well as accounting policy, it is necessary to form a methodology for their distribution.
Consider the main stages of the methodology, which is most widely used among domestic organizations.
First, indirect costs are allocated between the service and production divisions of the firm's responsibility centers.
Then indirect costs are redistributed from service units to production units. After that, shop rates are calculated, according to which indirect costs are distributed for all production units.
The organization independently chooses the basis for the distribution of indirect costs, based on the specific features of its activities, reflects the base in the accounting policy of the company. The base is fixed and remains unchanged throughout the year.
Widespread methods of distribution are based on accounting: the basic salary, standard hours worked by the main production workers, the amount of time the machines work.
The procedure for the distribution of general business expenses
a) the amount of general business expenses incurred in a certain reporting period is verified from the accounting registers;
b) based on the distribution base of general business expenses, fixed in the accounting policy, it is necessary to sum up the elements that are included in this base in terms of money;
c) the distribution coefficient is calculated by dividing the results of point "a" by the result of point "b";
d) the amount of general business expenses that fall on each element of the base is calculated by multiplying each of the elements by a coefficient.
26 account accounting- these are general business expenses or indirect costs, used in almost every enterprise, with the exception of state budget and credit organizations. In this article, we will consider the main nuances of this account, its properties, typical wiring and examples of use in accounting.
Definition of General Business Costs
General business expenses include all costs for management needs that are not directly related to production, the provision of services or the performance of work, but are related to the main activity.
The list of general business expenses depends on the profile of the organization and is not closed, according to the recommendations for using the chart of accounts.
The main overhead costs can be identified:
- Administrative and management expenses
- Business trips;
- Salaries of administration, accounting, management personnel, marketing, etc.;
- Representation expenses;
- Security services, communications;
- Consultations of third-party specialists (IT, auditors, etc.);
- Postal services and office.
- Repair and depreciation non-production fixed assets;
- Rent of non-industrial premises;
- Budget payments (taxes, fines, penalties);
- Others:
Organizations not related to production (dealers, agents, etc.) collect all costs on account 26 and subsequently write them off to the sales account (account 90).
Important! Trade organizations may not use account 26, and allocate all expenses to account 44 "Sales expenses".
Basic properties of 26 accounts
Consider the main properties of account 26 "General expenses":
- Refers to active accounts, therefore, it cannot have a negative result (credit balance);
- It is a transaction account and does not appear on the balance sheet. At the end of each reporting period, it must be closed (there should be no balance at the end of the month);
- Analytical accounting is carried out according to cost items (budget items), place of origin (divisions) and other features.
Typical wiring
Account 26 "General expenses" corresponds with the following accounts:
Table 1. For the debit of account 26:
Dt | ct | Wiring Description |
26 | 02 | Depreciation for non-production fixed assets |
26 | 05 | Depreciation for non-production intangible assets |
26 | 10 | Write-off of materials, inventory, overalls for general business needs |
26 | 16 | Deviation of the cost of written-off general business materials |
26 | 21 | Write-off of semi-finished products for general business purposes |
26 | 20 | Attribution of costs (works, services) of the main production to general business needs |
26 | 23 | Attribution of costs (works, services) of auxiliary production to general business needs |
26 | 29 | Attribution of costs (works, services) of servicing production to general business needs |
26 | 43 | Write-off of finished products for general business purposes (experiments, research, analyzes) |
26 | 50 | Write-off of postage stamps |
26 | 55 | Payment of expenses (small works, services) from special bank accounts |
26 | 60 | Payment for works, services of third-party organizations for general business needs |
26 | 68 | Calculation of amounts of payments of taxes, fees, penalties |
26 | 69 | Deductions for social needs |
26 | 70 | Calculation of wages of administrative and managerial and general economic personnel |
26 | 71 | accrual travel expenses, as well as accountable expenses for small household needs |
26 | 76 | General business expenses related to other creditors |
26 | 79 | General business expenses associated with the divisions of the organization on a separate balance sheet |
26 | 94 | Write-off of shortages without guilty persons, except for natural disasters |
26 | 96 | Attribution of general expenses to the reserve for future expenses and payments |
26 | 97 | Write-off of a share of future expenses for general expenses |
Table 2. According to the credit of account 26:
Dt | ct | Wiring Description |
08 | 26 | Attribution of general business expenses to capital construction |
10 | 26 | Posting of returnable waste and unused materials written off for general expenses |
Write-off of general business expenses at the close of the month, that is, where the 26th account is debited | ||
20 | 26 | For main production |
21 | 26 | For the production of semi-finished products |
29 | 26 | For service industries |
90.02 | 26 | Performed works and services for third parties |
90.08 | 26 | Cost of sales when using the direct costing method |
Closing 26 accounts
Closing account 26, that is, writing off all general business expenses, is performed in several ways:
- Included in the cost of production through production accounts, if products are produced;
- Relate to the cost of sales in the provision of services or works;
- Attributed to the current expenses of the reporting month using the direct costing method:
Important! The write-off method, as well as the basis for the distribution of general business expenses, must be fixed in the accounting policy of the organization.
Write-off to the cost of production
In this case, general business costs are written off in shares, taking into account the distribution base, to production accounts and may remain on the accounts of the cost of production (for example, when products are released on account 43 “Finished products”) or production accounts (for example, unfinished production on account 20 "Main production") at the end of the reporting period.
The main types of cost distribution bases:
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- Revenue
- Output volume
- Planned production cost
- Material costs
- Direct costs
- Payroll and so on
At the end of the month, the following postings are generated, for example:
General business expenses are allocated to the cost of production (production accounts) according to the specified distribution and analytical accounting base:
Therefore, the write-off of general business expenses is made:
- In full - if one product is produced (no analytics);
- It is distributed among all types of products in proportion to the selected base - if several types of products are produced and is calculated in the context of analytics.
Example
Horns and Hooves LLC produces headwear and footwear, which are produced at the planned cost price. In the organization, direct costs are reflected in account 20 "Main production", and indirect costs in account 26 "General expenses".
- Distribution base - material costs.
In November 2016, direct expenses amounted to RUB 51,040.00:
- For headwear - 28,020.00 rubles. of them:
- Material expenses - 15,000.00 rubles.
- For the production of shoes - 23,020.00 rubles. of them:
- Material expenses - 10,000.00 rubles.
indirect costs - 18,020 rubles.
- 3 / p administrative staff - 10,000.00 rubles.
- Insurance premiums - 3,020.00 rubles.
- Premises rental - 5,000.00 rubles.
According to the distribution base for material costs:
Postings when closing 26 accounts
Important! Also, in the accounting policy, you can specify non-distributable general business expenses, which will be written off immediately to current expenses in Dt of account 90.08.
Write-off to cost of sales
If the accounting policy specifies the write-off method “to cost of sales”, then the following transactions are taken into account when closing the period:
In this case, the costs can also be taken into account in the context of analytics.
Write-off by direct costing
If the accounting policy specifies the write-off method "direct costing", then general business expenses are accounted for as conditionally fixed and at the end of the period are reflected in the following entries:
Dt | ct | Wiring Description |
90.08 | 26 | General business expenses written off to cost of sales |
In this case, the amount of expenses is written off in full in each reporting period.
Examples of using account 26 "General expenses"
Consider the above postings with examples.
Example 1. Closing an account for the cost of production at the planned cost, one type of product
LLC "Horns and Hooves" manufactures products, the release of which is carried out at the planned cost. In the organization, direct costs are reflected in account 20 "Main production", and indirect costs in account 26 "General expenses".
The accounting policy states:
- Write-off of general business expenses is carried out on the cost of production.
- The distribution base is the planned cost.
- 3 / p for production workers - 20,000.00 rubles.
- Insurance premiums - 6,040.00 rubles.
date of | Account Dt | Account Kt | Amount, rub. | Wiring Description | A document base |
Output | |||||
16.11.2016 | 43 | 40 | 85 000 | ||
16.11.2016 | 20 | 10 | 62 000 | Write-off of materials | Invoice claim |
30.11.2016 | 20 | 70 | 20 000 | Salary accrued | |
30.11.2016 | 70 | 68 | 2 600 | Withheld personal income tax | |
30.11.2016 | 20 | 69 | 6 040 | Insurance premiums paid | |
30.11.2016 | 26 | 70 | 10 000 | Salary accrued | timesheet, payroll |
30.11.2016 | 70 | 68 | 1 300 | Withheld personal income tax | |
30.11.2016 | 26 | 69 | 3 020 | Insurance premiums paid | |
Closing the month | |||||
30.11.2016 | 20 | 26 | 10 000 | ||
30.11.2016 | 20 | 26 | 3 020 | ||
30.11.2016 | 40 | 20 | 101 060 | ||
30.11.2016 | 43 | 40 | 16 060 |
Important! If PBU is used, and general business expenses in tax accounting are accounted for as indirect costs (established in the accounting policy), then there are also temporary differences (VR):
VR/NU | Account Dt | Account Kt | Amount, rub. | Wiring Description |
VR | 20 | 26 | 10 000 | Closing account 26 (wages) |
WELL | 90.08 | 26 | 10 000 | |
VR | 90.08 | 26 | -10 000 | |
VR | 20 | 26 | 3 020 | Closing account 26 (insurance premiums) |
WELL | 90.08 | 26 | 3 020 | |
VR | 90.08 | 26 | -3 020 | |
WELL | 40 | 20 | 88 040 | Write-off actual cost for release |
VR | 40 | 20 | 13 020 | |
WELL | 43 | 40 | 3 040 | Adjustment of the cost of production to the actual |
VR | 43 | 40 | 13 020 |
Example 2. Closing an account for the cost of sales in the provision of services
Horns and Hooves LLC provides security services. General expenses are written off directly to the cost of security services.
In November 2016, general business expenses amounted to 23,020 rubles.
- 3/p personnel - 10,000.00 rubles;
- Insurance premiums - 3,020.00 rubles;
- Premises rental - 10,000.00 rubles:
date of | Account Dt | Account Kt | Amount, rub. | Wiring Description | A document base |
24.11.2016 | 26 | 60 | 10 000 | Rent accrued | The act of providing services |
26.11.2016 | 62 | 90.01 | 30 000 | Revenue accounting | The act of providing services |
90.03 | 68 | 5 400 | VAT charged | ||
30.11.2016 | 26 | 70 | 10 000 | Salary accrued | timesheet, payroll |
30.11.2016 | 70 | 68 | 1 300 | Withheld personal income tax | |
30.11.2016 | 26 | 69 | 3 020 | Insurance premiums paid | |
Closing the month | |||||
30.11.2016 | 90.02 | 26 | 23 020 | Write-off of general business expenses to cost of sales |
Example 3. Closing an account using the direct costing method
LLC "Horns and Hooves" manufactures products. In the organization, direct costs are reflected in account 20 "Main production", and indirect costs in account 26 "General expenses".
The accounting policy states:
- General business expenses are written off using the direct costing method.
In November 2016, direct expenses amounted to RUB 88,040:
- 3 / p for production workers - 20,000.00 rubles;
- Insurance premiums - 6,040.00 rubles;
- Material expenses - 62,000.00 rubles.
Indirect costs - 13,020 rubles:
- 3 / p administrative staff - 10,000.00 rubles;
- Insurance premiums - 3,020.00 rubles:
date of | Account Dt | Account Kt | Amount, rub. | Wiring Description | A document base |
Output | |||||
16.11.2016 | 43 | 40 | 85 000 | Release of finished products (at planned cost) | Report on production, invoice on acceptance of products to the warehouse |
16.11.2016 | 20 | 10 | 62 000 | Write-off of materials | Invoice claim |
Payroll for production workers | |||||
30.11.2016 | 20 | 70 | 20 000 | Salary accrued | timesheet, payroll |
30.11.2016 | 70 | 68 | 2 600 | Withheld personal income tax | |
30.11.2016 | 20 | 69 | 6 040 | Insurance premiums paid | |
Payroll for administrative and managerial personnel | |||||
30.11.2016 | 26 | 70 | 10 000 | Salary accrued | timesheet, payroll |
30.11.2016 | 70 | 68 | 1 300 | Withheld personal income tax | |
30.11.2016 | 26 | 69 | 3 020 | Insurance premiums paid | |
Closing the month | |||||
30.11.2016 | 90.08 | 26 | 10 000 | Closing account 26 (wages) | |
30.11.2016 | 90.08 | 26 | 3 020 | Closing account 26 (insurance premiums) | |
30.11.2016 | 40 | 20 | 88 040 | Write-off of the actual production cost (26,040.00 (Payment) + 62,000.00 (Material costs) + 13,020.00 (General expenses)) | |
30.11.2016 | 43 | 40 | 3 040 | Adjustment of the cost of production to the actual |
Such costs, in turn, can be allocated to general production and general business expenses.
Methods of distribution of overhead and general business expenses
The presence of the specifics of the production process for each individual organization does not imply a universal and strictly fixed division of costs into general business and general production. Each company independently chooses methods for allocating overhead costs and general business costs. The principle of correlating expenses in accounting to a particular category is fixed in the accounting policy. However, there is some general approach which must be adhered to by all companies without exception. General production costs include costs in the ordinary course of business that the enterprise has in connection with the need to service the main and auxiliary industries. General business expenses include costs associated with the management of the organization, which are not directly related to the production process. However, they are also involved in the formation of the cost of goods or services produced.
More specifically, general production costs are the costs of maintaining machinery and equipment, deductions for depreciation and repair costs of fixed assets, the costs of various public Utilities, the acquisition of which is necessary as part of the production process, the rent of premises, machinery, equipment and other objects used in production, the wages of technical personnel, and so on. In a word, these are all those costs that a company can accurately correlate with the production of a particular product.
General business expenses include the costs of maintaining administrative and managerial personnel not related to the production process, depreciation and other expenses for the maintenance of fixed assets and the rental and maintenance of premises related specifically to this structure of the company, the costs of paying for information, auditing, consulting services, and others. similar administrative expenses. Such costs are important for the functioning of the company as a whole, but they cannot be attributed to a specific production process.
How exactly are general production and general business expenses distributed in accounting? Let's try to figure it out.
Accounting for overhead costs
To reflect the costs that are directly related to the production of any product, the Chart of Accounts of Accounts provides account 25 "General production costs". Postings on it are reflected taking into account information on the costs of servicing the main and auxiliary production of the organization. The debit of this account accumulates data on the composition of costs, which are also reflected in the credit of the accounts of settlement with personnel, inventory accounting, rental deductions, etc. Simply put, analytical accounting on account 25 can be carried out in the context of various items of expenditure. If the company has many divisions, workshops or similar separate structures, then it is also advisable to carry out analytics on account 25 “General production costs” taking into account this factor, using an additional division. Overhead costs are written off by posting from the credit of account 25 to the debit of accounts 20 “Main production”, 23 “Auxiliary production”, 29 “Serving production and farms”. Such a record is made at the end of the month, thus the accumulated data on costs on account 25 are reset to zero.
Example of reflection of general business expenses, postings:
Materials written off for general production purposes |
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Accrued depreciation of general production equipment |
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Wages paid to workers employed in production |
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Insurance premiums are accrued on the wages of workers employed in production. |
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Third party works/services purchased for general production purposes accepted |
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Written off general production expenses by posting to becoming the cost of the main production |
Accounting for general expenses
To summarize information on expenses for management needs that are not directly related to the production process, the account “General business expenses” is intended. In contrast to the distribution of overhead costs, general business costs on account 26 in most cases are not divided in terms of analytical accounting across different organizational structures. After all, as a rule, there is only one administrative and management unit in a company that oversees its work as a whole. However, if accounting tasks require it, then the organization can maintain additional parameters for reflecting data.
At the same time, the reflection of the costs themselves in various areas (wages, materials, rent, depreciation, etc.) will be similar to the design of postings on account 25 “General production expenses”. That is, the postings in this case will be formed exactly according to the same principle: from the credit of accounts for accounting for production inventories, settlements with employees for wages, settlements with other organizations (persons) to the debit of account 26. At the end of the month, as well as general production, general business expenses written off by posting to the debit of accounts 20, 23 or 29.
If we are talking about companies that do not carry out production activities, but, say, are engaged in the provision of services, then such organizations can use account 26 to summarize information on expenses for all their activities. In this case, the expenses reflected on it will be written off at the end of the month not through account 20, but immediately to the debit of account 90 “Sales”.