How to do the month end accounting entries for low value consumables

It is not processed at the end of the month, if it needs to be amortized.

Borrow: Administrative expenses Amortization of low-value consumables.

Credit: Low-value consumables.

The accounting method for the purchase of low-value consumables is similar to the accounting method for the purchase of raw materials.

The entries are as follows: Debit: Low Value Consumables - Detail Account.

Tax Payable – VAT payable (input tax).

Credit: Bank deposits.

Five-five sales promotion of low-value consumables:

It is amortized at 50% when it is requisitioned, and 50% when it is scrapped.

For example, the actual cost of a batch of office chairs in the sales department is 1,500 yuan.

When receiving: borrowing: operating expenses.

Credit: Low-value consumables – office chairs.

At the end of life: borrow: operating expenses 750

Credit: Low-value consumables – office chairs.

Enterprises should use the one-time resale method or the five-five amortization method to amortize low-value consumables and packaging materials, and include them in the cost of relevant assets or current profit or loss.

Which method to use depends on your own business regulations.

Accounting for the bookkeeping and amortization of low-value consumables purchased by enterprises:

At the time of purchase. Borrow: low-value consumables.

Credit: Cash (or bank deposit).

Amortization (one-time amortization method or five-five amortization method can be used).

Borrow: Administrative expenses (or manufacturing expenses, etc.) - amortization of low-value consumables.

Credit: Low-value consumables.

If there is no change in low-value consumables at the end of the month, there is generally no need to make accounting entries, if it is a change, just do it according to the entries given.

When purchasing: borrow: low-value consumables (can also be counted as material warehousing), borrow: tax payable, credit: bank deposit.

The one-time amortization method is used when receiving:

Borrow: manufacturing expenses, management expenses, etc., Credit: low-value consumables.

If the five-five amortization method is adopted, half of it will be amortized when it is received, and the other half will be amortized when it is scrapped.

At the time of purchase. Borrow: Inventory, Low-value consumables, Administrative expenses.

Credit: Bank Deposits Cash on hand.

If low-value consumables are included in the purchase, then you should also do the following when you receive them

Borrow: production costs, administrative expenses.

Credit: Inventory Low-value consumables.

If the management fee is made at the time of purchase, then there is no need to make entries when receiving it.

1. When an enterprise purchases low-value consumables, the accounting entries are:

Borrow: Turnover materials – low-value consumables.

Tax Payable – VAT payable (input tax).

Credit: Bank deposits.

Borrow: management fees, etc.

Credit: Turnover materials – low-value consumables.

The purchase or use of low-value consumables by enterprises should be accounted for through the account of "turnover materials - low-value consumables", which refers to the labor materials whose single value is below the specified limit and whose service life is less than one year, and can be used many times and basically maintain their physical form. It should be noted that if an enterprise receives low-value consumables for non-taxable activities or non-taxable items, it needs to transfer out its input tax.

1. One-time amortization method.

It refers to the transfer of the full value of low-value consumables at one time when they are used"Amortization method for the 'Amortization of Low-Value Consumables' account. It is suitable for items with low value, short service life, and not much at one time.

Borrow: Administrative expenses (or manufacturing expenses, etc.) - amortization of low-value consumables.

Credit: Turnover materials (low-value consumables can also be set separately).

Amortization method (amortization on an annual basis).

Borrow: Turnover material back to the material - in use.

Credit: Turnover Materials - In Stock.

Borrow: Administrative expenses (or manufacturing expenses, etc.) - amortization of low-value consumables.

Credit: Working Materials - Amortization.

2. Amortization method.

It refers to the amortization method of amortizing the average value into the cost according to the estimated use time of low-value consumables. This amortization method is more balanced and suitable for items with a higher unit value and a longer useful life. The amortization method is adopted, and in accounting, the actual cost of low-value consumables is transferred to all of them when they are collected"Expenses to be amortized" account, later installments from"Expenses to be amortized are transferred to the Administrative Expenses - Amortization of Low-Value Consumables account.

3. Five-five amortization method.

That is, the 50% amortization method refers to the amortization method of amortizing half when receiving low-value consumables and amortizing half when discarding. This method is simple to calculate, but the amortization amount at the time of scrapping is large and the balance is poor.

4 Net amortization method.

A lump sum amortization is used to amortize the full value of the expense at the time of requisition: management expenses.

Credit: When low-value consumables are scrapped, the residual value of scrapped materials will be used as a reduction for low-value consumables, and the management expenses will be debited: materials and materials.

Credit: Administrative expenses.

When using amortization to receive low-value consumables, the expenses to be amortized are debited according to the actual cost.

Credit: Low-value consumables are amortized in installments based on the durability of low-value consumables.

Borrow: Administrative expenses.

Credit: When the low-value consumables to be amortized are scrapped, the difference between the amortized value and the residual value will be used as the amortization amount of the scrapped low-value consumables.

Borrow: material troubles materials (residual material value).

Borrow: Administrative expenses.

Credit: Expenses to be amortized (amortized value).

When the 55-5 amortization is adopted, the actual cost is used.

Borrow: Low-value consumables (low-value consumables in use).

Credit: The amortization of low-value consumables in the current period is calculated based on 50% of the actual cost of low-value consumables collected in the current month.

Borrow: Administrative expenses.

Credit: Low-value consumables (amortization of low-value consumables) When low-value consumables are scrapped, the difference between 50% of the actual cost of scrapped low-value consumables and the value of residual materials will be included in the "management expenses".

Borrow: material material (residual material value).

Low-value consumables (amortization of low-value consumables) (amortization).

Borrow: Administrative expenses (the difference between 50% of the actual cost of scrapped low-value consumables minus the value of residual materials).

Credit: Low-value consumables (low-value consumables in use) (actual cost of scrapping low-value consumables).

Purchase: Borrow: Turnover Materials - Low-value Consumables, Borrow: Tax Payable - VAT Payable - Inflow Rock Tax (if the general taxpayer obtains a special ticket and does not use it for non-deductible items), Credit: Bank deposits, etc., one-time amortization:

Borrow: manufacturing expenses, management expenses, sales expenses, etc., credit: turnover materials - low-value consumables, five to five amortization:

When receiving: borrowing: turnover materials - low-value consumables - in use, credit: turnover materials - low-value consumables - in the warehouse, amortizing half of its value when receiving it for the first time;

Borrow: manufacturing expenses returned to Lu, management expenses, sales expenses, etc., credit: turnover materials - low-value consumables - amortization, amortization of half of its value when the second use:

Borrow: manufacturing expenses, administrative expenses, sales expenses, etc., credit: turnover materials - low-value consumables - amortization, at the same time:

Borrow: Turnover Materials - Low-Value Consumables - Amortization, Credit: Turnover Materials - Low-Value Consumables - In Use.

Low-value consumables refer to a kind of labor materials whose single value is below the specified limit or whose service life is less than one year, and can be used many times while basically maintaining their physical form. The main methods of amortization of low-value consumables include: one-time amortization method, amortization method, net amortization method and five-five amortization method.

How should relevant accounting entries be written?

Low-value consumables and other enterprise turnover materials that meet the definition and conditions of inventory shall be included in the cost in stages according to the number of uses.

If the amount is small, it shall be included in the cost at the time of receipt, and shall be recorded in the memorandum book.

If the amortization of low-value consumables is carried out by the method of amortization, the single average amortization of the book value of the low-value consumables should be amortized when they are used.

In the case of using the amortization method, it is necessary to set up separate detailed accounts of "turnover materials - low-value consumables - amortization", "turnover materials - low-value consumables - in the warehouse", and "turnover materials - low-value consumables - in use", and the specific accounting entries are as follows

1. When purchasing (assuming that a special VAT invoice is obtained):

Borrow: Turnover materials – low-value consumables.

Tax Payable – VAT payable (input tax).

Credit: bank deposits, etc.

2. When receiving:

Borrow: Turnover materials – low-value consumables – in use.

Credit: Turnover materials - low-value consumables - in stock.

3. Amortize half of its value when it is first received:

Borrow: manufacturing costs.

Credit: Turnover Materials – Low-Value Consumables – Amortization.

4. Amortize half of its value when receiving it for the second time

Borrow: manufacturing costs.

Credit: Turnover Materials – Low-Value Consumables – Amortization.

At the same time: borrow: turnover materials - low-value consumables - amortization.

Credit: Turnover materials – low-value consumables – in use.