How to make accounting entries for commissioned processing, and how to account for the processing fe

1. When sending raw materials:

Borrow: Commissioned processing materials.

Credit: raw materials.

2. When paying the processing fee:

Borrow: Commissioned processing materials.

Debit: Tax Payable VAT Payable (Input Tax).

Credit: Bank deposits.

3. Recovery, processing and warehousing:

Borrow: Finished products.

Credit: Commissioned processing materials.

4. Refund should be the opposite accounting entry;

Borrow: Finished products.

Credit: Commissioned processing materials ( ) hereby!

In the entrusted processing materials, the entrusted party makes accounting entries

1. When issuing commissioned processing materials:

Borrow: commissioned processing materials - xx units.

Credit: Raw Materials-xx Materials.

2. When paying processing fees and transportation and miscellaneous expenses:

When returning: debit: accounts receivable - xx units.

Or a bank deposit.

Credit: Inventory Commodities - XX Products.

Borrow: commissioned processing materials - xx units.

Tax Payable - VAT Payable (Input).

Credit: Bank deposits.

3. When the processing is completed, the raw materials entrusted for processing are recovered

Borrow: Raw Materials - XX Materials.

Credit: Entrusted processing materials - xx enterprises.

Raw material procurement.

Borrow: raw materials.

Debit: Tax Payable - VAT Payable - Input Tax.

Credit: Accounts payable.

Dispatch of materials for processing.

Borrow: commissioned processing materials.

Credit: raw materials.

Pay the processing fee.

Borrow: commissioned processing materials.

Debit: Tax Payable - VAT Payable - Input Tax.

Credit: Bank Deposits Accounts Payable.

Take back the finished product.

Borrow: Finished products.

Credit: Commissioned processing materials.

Sales (17% output tax is levied on the actual transaction amount excluding tax.) Debit: Accounts receivable.

Credit: main business income.

Credit: Tax Payable - VAT Payable - Output Tax.

Borrow: Cost of main business.

Credit: Finished products.

The processing fee of entrusted processing is generally added to the entrusted processing material account, that is, included in the processing cost.

When paying the processing fee:

Borrow: commissioned processing materials.

Debit: Tax Payable – VAT Payable (Input Tax) Payable

Credit: Bank deposits.

Or. When the processed material is issued:

Borrow: commissioned processing materials.

Credit: raw materials.

When paying the processing fee:

Borrow: commissioned processing materials.

Debit: Tax Payable – VAT Payable (Input Tax) Payable

Credit: Bank deposits.

When the processing is completed and retracted:

Borrow: Inventory of goods.

Credit: Commissioned processing materials.

Method 1: According to the provisions of the Accounting Standards for Business Enterprises and the Accounting System for Business Enterprises:

1.When receiving the materials entrusted to be processed:

It shall not be accounted for, but the entrusted processing materials received shall be registered in the reference book.

2.When it comes to actual processing:

Borrow: production costs.

Credit: manufacturing expenses, etc.

3.When Finished Put-away:

Borrow: Inventory Commodities - Commissioned Processed Finished Commodities.

Credit: Production costs.

4.When the finished materials are delivered:

Debit: Accounts receivable, etc.

Credit: main business income, etc.

Credit: Tax Payable – VAT Payable (Output Tax) Payable

Credit: Tax Payable - Excise Tax Payable.

At the same time, carry forward the inventory of goods:

Borrow: main business costs, etc.

Credit: Inventory Commodities - Commodities Entrusted with Processing.

In addition, the entrusted processing materials returned shall be registered in the reference book.

Method 2: The first method.

When you receive the documents provided by the other party?

Borrow: 10,000 commissioned processing materials

Goods: accounts payable 10,000 for entrusted processing materials

Picking and carrying labor, manufacturing time-consuming:

Borrow: production costs - labor.

Manufacturing costs. - Excipients (purchased by our company).

Consignment processing materials.

Credit: manufacturing expenses, wages.

Credit: Raw materials - x auxiliary materials.

Credit: Entrusted processing materials.

Details are not given.

At completion: borrowed: finished product.

Credit: Production Costs - Labor.

Manufacturing costs. — Excipients.

Consignment processing materials.

At the time of sale: borrow: bank deposit 11360

Credit: main business income - processing fee 8000

Tax payable - excise tax payable 2000

VAT 1360 is due

When carrying forward the cost of sales:

Borrow: main business cost - processing cost.

Debit: Accounts payable - entrusted processing materials.

Credit: Finished products.

The second method.

If it is treated as labor income, then the account will not be registered for future reference when the materials are received, and the "labor cost" account will be set up when the processing is organized.

Borrow: Labor costs.

Credit: Bank deposits.

Wages payable. Raw material manufacturing costs.

If the revenue is directly recognized for the completion of the current year, the revenue for the unfinished in the current year is recognized according to the percentage of completion method, and the warehousing is not accounted for when the processing is completed.

Borrow: bank deposit 11360

Credit: main business income - processing fee 8000

Tax payable - excise tax payable 2000

VAT 1360 is due

Borrow: Cost of main business.

Credit: Labor costs.

Accounting treatment of both parties to the processed materials.

1. Trustee:

The unit is a processing enterprise with supplied materials, and all raw materials are provided by the customers who place orders, and only the processing fee is charged, and the account is processed.

As follows. The processing fee obtained by the entrusted party shall be included in the "main business income" account. The accounting of the trustee is generally as follows:

1. When receiving the materials entrusted to be processed, the contract price (or the actual amount is not recorded) shall be registered in the memorandum book, and the "entrusted processing materials" company "" (indicating the quantity of materials) shall be debited, and the corresponding notes shall be made when receiving.

2. For the production costs incurred in the processing process:

Borrow: production costs.

Credit: Raw Materials, Auxiliary Materials.

Credit: Employee Compensation Payable.

Credit: Manufacturing expenses.

3. When the processing is completed and sent to the entrusting party according to the provisions of the contract:

1) Recognize sales revenue.

Debit: Accounts receivable (or bank deposits).

Credit: main business income (processing fee income).

Credit: Tax Payable VAT Payable (Output Tax).

2) Carry forward the cost of sales at the same time:

Borrow: Cost of main business.

Credit: Production costs.

3) In the reference book, the entrusted processing materials will be written off, and the "entrusted processing materials - a company" (indicating the number of materials).

2. Commissioned processing.

The accounting entries of the trustee are as follows:

1. Allocate entrusted processing materials.

Borrow: commissioned processing materials.

Credit: raw materials.

2. Pay processing fees and value-added tax.

Borrow: commissioned processing materials.

Debit: Tax Payable – VAT Payable (Input Tax).

Credit: Bank deposits.

3. Take back the processing materials.

Borrow: Inventory of goods.

Credit: Commissioned processing materials.

How to carry out the relevant accounting treatment when an enterprise has a commissioned processing business?

Accounting of consignment processing materials.

1. When sending out processed materials:

Borrow: commissioned processing materials.

Credit: raw materials.

2. When paying the processing fee:

Borrow: commissioned processing materials.

Debit: Tax Payable – VAT Payable (Input Tax) Payable

Credit: Bank deposits.

3. When the processing is completed, it is recovered

Borrow: Inventory of goods.

Credit: Commissioned processing materials.

It should be put into the consignment processing material...

Accounting of consignment processing materials.

1. When issuing processing materials, borrow: entrust and transfer envy materials, loan: raw materials, and open and wide shooting.

2. When paying the processing fee, borrow: entrust the processing materials, borrow: the tax payable - the value-added tax payable (input tax), credit: bank deposit, 3. When the processing is completed, borrow: inventory goods, credit: entrusted processing materials.

Entrusted processing refers to the economic business in which the enterprise provides the main materials to the entrusted party and pays a certain processing fee to the other party after the processing is completed.

1. The materials issued by the enterprise to other units for processing shall be accounted for according to the actual cost.

Borrow: commissioned processing materials.

Credit: raw materials.

Inventory items. Material cost variances (or debits).

2. The enterprise shall pay the processing costs and the transportation and miscellaneous expenses that should be borne by the enterprise.

Borrow: commissioned processing materials.

Tax Payable – VAT payable (input tax).

Credit: bank deposits, etc.

3. If the consumption tax is paid for direct sales after recovery, the consumption tax collected and paid by the entrusted party shall be included in the cost of entrusted processing materials.

Borrow: commissioned processing materials.

Credit: bank deposits, etc.

4. If it is used for the continuous production of taxable consumer goods after recovery, and the deduction is allowed according to the regulations, the consumption tax shall be withheld and paid by the entrusted party.

Borrow: Tax Payable - Excise Tax Payable.

Credit: Bank deposits.

5. The materials and remaining materials from the collection of leakage to the completion of processing and inspection of the warehouse shall be accounted for according to the actual cost.

Borrow: raw materials.

Inventory items. Credit: Commissioned processing materials.

Material cost variances (or debits).

What is a consignment material?

Entrusted processing materials refer to the processing of new materials or packaging, low-value consumables and other materials by external units entrusted by enterprises. The cost of processing materials entrusted by the enterprise includes the cost of the materials actually consumed in the processing, the processing expenses paid, the transportation and miscellaneous expenses to be borne by the enterprise, and the taxes and fees paid. If the entrusted processing materials are recovered for the continuous production of taxable consumer goods, the consumption tax withheld and paid by the other party that is allowed to be deducted by the enterprise in accordance with the regulations shall be included in the "tax payable - consumption tax payable"; If the materials entrusted for processing are recovered directly, the enterprise shall include the consumption tax collected and paid by the other party into the cost of the entrusted processing materials.

Some enterprises can take the form of commissioned processing for production due to their own inability to meet the production or other reasons, and the enterprise can entrust external processing through the entrusted processing materials and other accounts for accounting, what are the specific accounting entries?

Accounting entries for commissioned processing.

1) The seepage materials sent to other units for processing shall be entered according to the actual cost

Borrow: commissioned processing materials.

Credit: raw materials.

Inventory items. Material cost variances (or debits).

2) Accounting entries for the payment of processing costs and transportation and miscellaneous expenses to be borne by:

Borrow: commissioned processing materials.

Tax Payable – VAT payable (input tax).

Credit: Bank Deposits Cash on hand.

3) If the consignment processing materials that need to pay consumption tax are directly used for sale after recovery, the consumption tax collected and paid by the entrusted party shall be included in the cost of the entrusted processing materials

Borrow: commissioned processing materials.

Credit: Bank Deposits Cash on hand.

4) If it is used for the continuous production of taxable consumer goods after recovery, the accounting entries when the consumption tax collected and paid by the entrusted party is allowed to be deducted according to the provisions are as follows:

Borrow: Tax Payable - Excise Tax Payable.

Credit: Bank Deposits Cash on hand.

5) When receiving the materials and remaining materials in the warehouse after the processing is completed, make accounting entries according to the actual cost

Borrow: raw materials.

Inventory items. Credit: Commissioned processing materials.

Material cost variances (or debits).

What is a consignment material?

Entrusted processing materials refer to the processing of new materials or packaging materials, low-value consumables and other materials by enterprises entrusted by external units. The cost of processing materials by the enterprise includes the processing costs paid and the transportation and miscellaneous expenses that should be borne by the external units, the cost of the materials actually consumed in the processing, and the taxes and fees paid.