How to account for the products entrusted by external units for processing? How are processing costs

This is also the answer found on Know, I hope it will be helpful to you, slightly modified.

According to the relevant provisions of the Accounting System for Business Enterprises (2001):

1. For the raw materials and parts received by the enterprise for processing and assembly of incoming materials, it shall separately set up the "entrusted processing incoming materials" account and the relevant material ledger to calculate the amount of its receipt and receipt, which is not included in the accounting scope of the "raw materials" account.

2. If an industrial enterprise accepts the substitute products processed and manufactured by foreign raw materials, it shall be regarded as the products of the enterprise and accounted for in the "inventory goods" account after the completion of the manufacturing inspection and receipt.

Therefore, the accounting treatment of the consignment processing business is as follows:

1. Accept raw materials delivered by customers.

Accounting treatment is not carried out, but the "entrusted processing incoming materials" account should be set up for reference to calculate the amount of the balance of receipt and distribution.

2. Costs incurred in processing labor, manufacturing, etc.

Borrow: production costs - substitutes.

Credit: Employee compensation payable, manufacturing expenses.

and other subjects...This is also the answer found on Know, I hope it will be helpful to you, slightly modified.

According to the relevant provisions of the Accounting System for Business Enterprises (2001):

1. For the raw materials and parts received by the enterprise for processing and assembly of incoming materials, it shall separately set up the "entrusted processing incoming materials" account and the relevant material ledger to calculate the amount of its receipt and receipt, which is not included in the accounting scope of the "raw materials" account.

2. If an industrial enterprise accepts the substitute products processed and manufactured by foreign raw materials, it shall be regarded as the products of the enterprise and accounted for in the "inventory goods" account after the completion of the manufacturing inspection and receipt.

Therefore, the accounting treatment of the consignment processing business is as follows:

1. Accept raw materials delivered by customers.

Accounting treatment is not carried out, but the "entrusted processing incoming materials" account should be set up for reference to calculate the amount of the balance of receipt and distribution.

2. Costs incurred in processing labor, manufacturing, etc.

Borrow: production costs - substitutes.

Credit: Employee compensation payable, manufacturing expenses.

and other subjects...3. Completion and warehousing.

Borrow: Inventory goods - substitutes.

Credit: Cost of Production - Substitute Products.

4. Charge processing fees.

Debit: Accounts receivable.

and other subjects...Credit: main business income.

and other subjects...Credit: Tax Payable – VAT Payable (Output Tax) Payable

5. Carry forward the cost of substitute products.

Borrow: Cost of main business.

and other subjects...Credit: Inventory goods - substitute goods put away.

Upon receipt of commissioned processing materials, you can set up a record account book, and receive the costs incurred in receiving and warehousing delivery.

Borrow. Production costs (consignment processing materials).

Borrow. raw materials, labor, etc.

Shipped out. Borrow.

Accounts receivable. Borrow.

Main business income (processing fees).

VAT output tax.

Carry-forward costs. Borrow.

Principal business costs.

Borrow. Production costs.

Accounting processing of consignment processing (in the case of the entrusting party):

1. Entrust others to process the issued materials.

Borrow: Commissioned processing materials.

Credit: raw materials.

2. Pay the processing fee.

Borrow: Commissioned processing materials.

Tax Payable – VAT payable (input tax).

Credit: Bank Deposits Accounts Payable.

3. Pay withholding and payment of consumption tax (if there is no consumption tax, do not do this) borrow: entrust processing materials.

Credit: Bank deposits.

4. Entrust the processing materials to be recovered and put into storage to continue processing.

Borrow: raw materials.

Credit: Commissioned processing materials.

5. Direct sales of commissioned processing products.

Debit: accounts receivable, bank deposits, etc.

Credit: main business income.

Tax Payable – VAT payable (output tax).

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.

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...

Confirmation of the cost of recording the consignment processing method.

If the inventory (materials) of the enterprise adopts the entrusted processing method, the value shall be recorded.

For: commissioned processing materials + processing fees + freight + handling fees + if directly after recovery, the entrusted party collects and pays the consumption tax.

should be included in costs; If it is reprocessed after recovery and then re-processed, it will be included in the debit of "tax payable - consumption tax payable", and will not be included in the cost of entrusted processing materials.

On April 1, 2010, Company A issued processing materials at a cost of 800,000 yuan;

Borrow: commissioned processing materials 80

Credit: Raw materials 80

On May 1, 2010, the processing fee of 100,000 yuan was paid, and the value-added tax was paid of 10,000 yuan;

Borrow: Commissioned processing materials 10

Tax Payable – VAT payable.

input tax) credit: bank deposits.

On May 1, 2010, the consumption tax will be collected and paid by the entrusted party, and the consumption tax rate will be 10%;

a.Determination of tax basis.

a.Market**;

b.Composition Tax**.

Material cost + processing fee) (1-consumption tax rate) = (80 + 10) (1-10%) = 100 (10,000 yuan);

b.Consumption tax payable = 100 10% = 10 (10,000 yuan);

a.When paying consumption tax.

Borrow: Commissioned processing materials 10

Credit: Bank deposits or accounts payable.

b.When the processed materials are recovered after completion:

Borrow: 100 items in stock

Credit: 100 for commissioned processing materials

c.When this product is sold:

Debit: Accounts receivable 234

Credit: main business income.

Tax Payable – VAT payable (output tax).

When carrying forward costs:

Borrow: Cost of main business.

Credit: 100 of goods in stock

Consumption tax will no longer be counted;

d.If you reprocess it after retracting it, and then ** time:

a.The consumption tax collected and paid by the entrusted party will be included in the debit side of "tax payable - consumption tax payable".

Debit: Tax Payable - Excise Tax Payable 10

Credit: Bank deposits or accounts payable 10

b.When the processed materials are recovered after completion:

Borrow: Raw materials 90

Credit: Commissioned processing materials 90

c.When the final product**, the total excise tax payable is credited to the "tax payable - excise tax payable".

Borrow: Business tax and surcharge.

Credit: Tax Payable – Excise Tax Payable 28

d.Finally, make up the difference

Debit: Tax Payable - Excise Tax Payable 18

Credit: Bank Deposit 18

For the inventory (materials) of the enterprise using the entrusted processing method, the recorded value is: entrusted processing materials + processing fees + freight + loading and unloading fees + if the direct ** is recalled after recovery, the consumption tax collected and paid by the entrusted party shall be included in the cost; If it is reprocessed after recovery and then re-processed, it will be included in the debit of "tax payable - consumption tax payable", and will not be included in the cost of entrusted processing materials.

On April 1, 2010, Company A issued processing materials at a cost of 800,000 yuan;

Borrow: commissioned processing materials 80

Credit: Raw materials 80

On May 1, 2010, the processing fee of 100,000 yuan was paid, and the value-added tax was paid of 10,000 yuan;

Borrow: Commissioned processing materials 10

Tax Payable – VAT payable (input tax).

Credit: Bank deposits.

On May 1, 2010, the entrusted party will collect and pay the consumption tax on behalf of the trustee, and the consumption tax rate will be 10%;

a.Identification of travel chain difficulties on the basis of taxation.

a.Market**;

b.Composition tax calculation** = (material cost + processing fee) (1 - consumption tax rate) = (80 + 10) (1-10%) = 100 (10,000 yuan);

b.Consumption tax payable = 100 10% = 10 (10,000 yuan);

a.When paying consumption tax.

Borrow: Commissioned processing materials 10

Credit: Bank deposits or accounts payable 10

b.When the processed materials are recovered after completion:

Borrow: 100 items in stock

Credit: 100 for commissioned processing materials

c.**When this item is used:

Debit: Accounts receivable 234

Credit: main business income 200

Tax Payable – VAT Payable (Output Tax) 34

When carrying forward costs:

Borrow: Cost of main business 100

Credit: 100 of goods in stock

Consumption tax will no longer be counted;

d.If you reprocess it after retracting it, and then ** time:

a.The consumption tax collected and paid by the entrusted party will be included in the debit side of "tax payable - consumption tax payable".

Debit: Tax Payable - Excise Tax Payable 10

Credit: Bank deposits or accounts payable 10

b.When the processed materials are recovered after completion:

Borrow: Raw materials 90

Credit: Commissioned processing materials 90

c.When the final product**, the total excise tax payable is credited to the "tax payable - excise tax payable".

Borrow: Sales tax and surcharge 28

Credit: Tax Payable – Excise Tax Payable 28

d.Finally, make up the difference

Debit: Tax Payable - Excise Tax Payable 18

Credit: Bank Deposit 18

Summary. Accounting treatment for consignment processing.

1. Accounting treatment of entrusted processing**

1.When receiving the entrusted processing materials and materials: accounting treatment may not be made, but the entrusted processing materials received shall be registered in the reference book, and the increase or decrease of the materials received and put into processing shall be recorded.

2.After the entrusted materials are sent to the production workshop for processing, the labor, auxiliary materials, etc. will be recorded

Borrow: production costs.

Credit: manufacturing expenses, etc.

3.When the processing is completed and put into storage, the processing cost of this batch is carried forward.

Borrow: Inventory goods - consignment processing products.

Credit: Production costs.

4.When the processed product is delivered and an invoice is issued:

Debit: Accounts receivable.

Credit: main business income or other business income.

Tax Payable – VAT payable (output tax).

Tax payable – excise tax payable (if excise tax is involved, excise tax shall be withheld and remitted).

5.Register the receipt and payment of entrusted processing materials and materials in the reference book, and carry forward the inventory of goods

Borrow: Operating costs or other business costs.

Credit: Inventory Commodities - Commissioned Processing Products.

After the company receives the processing of incoming materials, it entrusts an external company to process the accounting.

Accounting treatment for consignment processing.

1.When receiving the entrusted processing materials and materials: accounting treatment may not be made, but the entrusted processing materials received shall be registered in the reference book, and the increase or decrease of the materials received and put into processing shall be recorded.

2.After the entrusted materials are sent to the production workshop for processing, the labor, auxiliary materials, etc. will be recorded

Borrow: production costs.

Credit: manufacturing expenses, etc.

3.When the processing is completed and put into storage, the processing cost of this batch is carried forward.

Borrow: Inventory goods - consignment processing products.

Credit: Production costs.

4.When the processed product is delivered and an invoice is issued:

Debit: Accounts receivable.

Credit: main business income or other business income.

Tax Payable – VAT payable (output tax).

Tax payable – excise tax payable (if excise tax is involved, excise tax shall be withheld and remitted).

5.Register the receipt and payment of entrusted processing materials and materials in the reference book, and carry forward the inventory of goods

Borrow: Operating costs or other business costs.

Credit: Inventory Commodities - Commissioned Processing Products.

Second, the accounting treatment of entrusted processing.

1.Transfer of material to processing units.

Borrow: commissioned processing materials.

Credit: raw materials.

2.Calculate and pay the processing fee.

Borrow: commissioned processing materials.

Tax Payable – VAT (input tax) payable

Tax payable – Excise duty payable if the processing is recovered for continuous production

Credit: Accounts payable.

3.Take back the processed product.

Borrow: Inventory of goods.

Credit: Entrusted processing materials (including materials and processing fees).

Note: For those processed materials that are directly used for sale after recovery, the consumption tax borne by them shall be included in the cost of processed materials.

For the processed materials that are used for continuous production after being recovered, the consumption tax paid shall be included in the debit of the account of "tax payable - consumption tax payable", and shall be used to offset the consumption tax borne after the sale of processed consumer goods according to regulations.

Accounting processing of the consignor, when the product is shipped:

Borrow: commissioned processing materials.

Credit: raw materials, inventory goods.

When paying the processing fee:

Borrow: commissioned processing materials.

Tax Payable – VAT payable (input tax).

Credit: Bank deposits.

When consumption tax is incurred, it will be included in the cost of the entrusted processing materials or the tax payable - consumption tax payable according to whether the recovered entrusted processing materials are directly external**.

When finally recovered:

Borrow: Inventory of goods.

Credit: Commissioned processing materials.

How to deal with the consumption tax accounting of consignment processing materials?

According to the provisions of the tax law, the taxation link of consumption tax is in the production link rather than the circulation link, that is to say, the amount of production is levied. However, since the consumption tax is levied on an ad valorem basis, and the sales volume is more objective than the production cost, for general goods, the consumption tax is levied according to the sales amount when the taxable goods are sold. However, it should be emphasized that the imposition of consumption tax at the time of sale does not change the essence of consumption tax in the production process.

It is not difficult to understand why the only taxpayers of consumption tax are industrial enterprises and not commercial enterprises, which is different from the general principle of VAT collection.

For consignment processing of recovered materials, based on the above"Taxation of the production process"The principle of this:

1.If it is directly used for sale, because the recovered materials have been taxed in the production process, that is, in the entrusted processing stage, therefore, after the recovery of the materials to the time of sale, they no longer belong to the production process of silver slag and are in the stage of waiting for circulation, and no longer belong to the consumption tax taxable goods, so the consumption tax paid on the recovered materials should be included in the cost of the recovered materials. Note that since the production of recovered goods is not done by the company itself, it cannot be included in the consumption tax"Taxes and surcharges on the main business"accounts, which should be included in the cost of recovering the goods.

2.If it is required for continuous production, then both the commissioned processing stage and the continued production stage after repossession belong to the production link and should be taxed on the entire production link.

Therefore, at this time, the consumption tax that has been levied on the recovered materials should be included in the debit side of the consumption tax payable account, so that after the completion of the entire production process mentioned above, the part of the potatoes that have been handed over can be deducted when the consumption tax payable is calculated at the time of sale, so as to avoid double taxation. In this respect, there is some similarity to the VAT deduction method.