How to account for the repair costs incurred in the machinery processing plant

1.The maintenance expenses incurred by the management department, such as car repair costs, air conditioning maintenance costs, etc., are included in the management expenses, and the entries are as follows: borrowing management expenses credit cash or bank deposits2

The equipment maintenance expenses incurred by the workshop production department are included in the manufacturing expenses, and the entries are as follows: borrowing manufacturing expenses and cash or bank deposits.

The repair costs incurred by the factory are accounted for according to the situation: 1. The "manufacturing expenses" account accounts for the indirect expenses incurred by small enterprises for the production of products and the provision of labor services, including wages and benefits, depreciation, repair costs, office expenses, water and electricity costs, machinery and material consumption, labor protection expenses, seasonal and repair period shutdown losses, etc. Borrow:

Manufacturing Expenses account, credited to accounts such as Bank Deposits.

2. The "management expenses" account accounts for the management expenses incurred by small enterprises in organizing and managing the production and operation of enterprises, such as the company's expenses incurred by the administrative department of small enterprises in the operation and management (including the wages of employees of the administrative department, repair costs, material consumption, amortization of low-value consumables, office expenses and travel expenses, etc.), trade union funds, unemployment insurance premiums, labor insurance premiums, intermediary agency fees, consulting fees (including consultant fees), litigation fees, business entertainment expenses, real estate tax, vehicle and vessel use tax, land use tax, Stamp duty, technology transfer fees, compensation fees for mineral resources, amortization of intangible assets, employee education expenses, research and development expenses, sewage charges, inventory losses or profits (excluding inventory losses that should be included in non-operating expenses), provision for bad debts, provision for inventory decline, etc.

Debit: "Administrative Expenses" account, credit "Bank Deposits" and other accounts. When the repair cost is incurred, it is recorded according to the accounting entry.

Accounting treatment of repair costs incurred in the production workshop, debit: management expenses - maintenance costs, debit: tax payable - value-added tax payable - input tax, credit:

The Appendix to the Application Guide of Accounting Standards for Business Enterprises Accounting Subjects and Main Accounting Treatments ("Management Expenses") stipulates that the pre-based follow-up expenses such as fixed asset repair costs incurred by the production workshop (department) and administrative management department of the enterprise shall be accounted for in the "Management Expenses" account.

That is to say, the expensed repair costs incurred in the production workshop of the enterprise are no longer included in the "manufacturing costs and repair costs" account, but are directly included in the "management costs and repair costs" account.

Manufacturing Expenses - Maintenance Costs, Credit: When Raw Materials and Other Manufacturing Expenses are carried forward, Borrow: Production Costs - Manufacturing Expenses, Credit:

Manufacturing costs – maintenance costs, etc.

What are the daily repair costs of machinery and equipment in the production workshop of the enterprise?

When the raw materials are destroyed and the manufacturing expenses are carried forward, the production cost - manufacturing expense, the credit: manufacturing cost - maintenance cost, etc.

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Write clearly the name of the repaired machine in the abstract, and if there is a fixed asset number, it is best to write it, the more detailed the better. Repair of machinery and equipment in the production workshop.

Borrow: manufacturing costs - repair costs.

Credit: Bank deposit or cash (if no payment is made, it is credited to Accounts Payable).

When I bought it back:

Borrow: Low-value consumables.

Credit: Bank deposits.

At the time of pick-up: Borrow: manufacturing costs.

Credit: Low-value consumables.

The parts of the repair machinery and equipment are accounted for through the low-value consumables account, and the second-level account for repair spare parts can be set up in the raw material account for the small amount.

At the time of purchase: borrow: low-value consumables or raw materials - spare parts for repair.

Tax Payable - VAT Payable (Input Tax).

Credit: Bank deposits.

When repairing machinery and equipment:

Borrow: manufacturing expenses or long-term amortized expenses.

Credit: low-value consumables or raw materials - spare parts for repairs.

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The daily repair cost of the workshop machine is a management cost. Appendix to the Guide to the Application of Accounting Standards for Business Enterprises issued by the Ministry of Finance Accounting Subjects and Main Accounting Treatment"Management fees"Subject) stipulates that the follow-up expenses such as fixed asset repair costs incurred by the production workshop (department) and administrative management department of the enterprise shall be in"Management fees"Accounting in the account. In other words, the expensed repair costs incurred in the production workshop of the enterprise are no longer included"Manufacturing Costs Repair Costs"accounts, but directly credited"Management Costs Repair costs"Subjects.

The explanation of the standard stipulates that the daily repair cost of fixed assets should be directly included in the profit or loss of the current period when incurred. Follow-up expenses such as fixed asset repair costs incurred by the production workshop (department) and administrative management department of the enterprise are included"Management fees".

What is the cost of daily repair of machines in the workshop.

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The daily repair cost of the workshop machine is a management cost. The Ministry of Finance issued the "Accounting Standards for Business Enterprises Application Assignment Chanan Appendix Accounting Subjects and Main Account Treatment" ("Management fees"Subject) stipulates that the follow-up expenses such as fixed asset repair costs incurred by the production workshop (department) and administrative management department of the enterprise shall be in"Management fees"Accounting in the account. In other words, the expensed repair costs incurred in the production workshop of the enterprise are no longer included"Manufacturing Costs: Repair Dust Song"accounts, but directly credited"Management Costs Repair costs"Subjects.

The explanation of the guidelines stipulates that the daily repair costs of fixed assets should be directly included in the profit and loss of the current period when cherry acres occur. Follow-up expenses such as fixed asset repair costs incurred by the production workshop (department) and administrative management department of the enterprise are included"Management fees".

The new standard stipulates that the repair costs of fixed assets that do not meet the recognition conditions stipulated in Article 4 of the fixed assets standard shall be included in the current profit or loss when incurred, and it is clearly pointed out in the appendix "Accounting Subjects and Main Accounting Treatment" of the "Accounting Standards for Business Enterprises - Application Guide" that the subsequent expenses such as fixed asset repair costs incurred by enterprises related to the establishment of special sales agencies shall be in"Selling expenses"Account accounting; The follow-up expenses such as the repair costs of fixed assets incurred by the production workshop (department) and the administrative department of the enterprise are in"Management fees"Account accounting; "Manufacturing costs"The expense items related to fixed assets are the consumption of machine materials and the depreciation of fixed assets in the production workshop, and there are no fixed asset repair cost items.

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