How to deal with the repair of fixed assets

Let me come to this question: repair is the act of restoring the original performance of a fixed asset. The regular repairs of the fixed assets of the enterprise shall be recorded as the expenses of the current period when they are disbursed.

The account for the entry should be the same as the account listed for the provision of depreciation. If the amount of repair expenditure is large or uneven, the method of making up and amortizing should be adopted in order to balance the costs of each period. Here's an example:

For example, if an enterprise's large-scale equipment is planned to be overhauled in three years, it is necessary to adopt the method of mentioning before repairing, and 5,000 yuan per year should be raised: borrow: 5,000 for manufacturing costs, and loan:

The withdrawal fee is 5000. If the repair cost of 13,000 yuan is incurred in June of the third year, 12,500 yuan has been withdrawn (2 * 5,000 + 2,500) so: borrow:

The withdrawal fee is 12,500, the borrowing cost is 500, and the bank deposit is 13,000. Example 2: If the company wants to repair the office building, it receives 165,000 yuan of materials from the warehouse and pays the wages of the repair personnel 15,000 yuan with bank deposits, with a total of 180,000 yuan, which is amortized evenly in the year

First borrow: 180,000 expenses to be amortized, credit: raw materials 1650010 loan:

Bank deposits: 15000. When amortized monthly:

Debit: 15,000 for administrative expenses (180,000 12), Credit: 15,000 for expenses to be amortized.

It should be noted here that the use of raw materials for the repair of fixed assets, there is also a problem of input tax transfer, which will not be repeated here due to limited space. I believe that I can help you somewhat. If you have any objections, please feel free to contact me so that we can continue our meaningful discussion.

It can be the same, all directly into the current cost; Major repairs can also be withheld or apportioned on a monthly basis.

The repair cost of the national asset can be directly applied, and if it is too large, it can be amortized for a long time.

1. The daily maintenance of fixed assets does not need to be included in the book value of fixed assets, and is directly included in the current expenses when incurred. However, if it is a major repair, and the economic benefits it brings to the enterprise do not exceed expectations, then it needs to be included in the amortized expenses and amortized.

Second, the specific accounting treatment:

1. The value of fixed assets is gradually transferred to new products according to the degree of wear and tear itself, and its wear is divided into two situations: tangible wear and invisible wear; Physical wear, also known as material wear, is the loss of use value and value of equipment or fixed assets caused by the use of equipment or fixed assets in the production process or due to the influence of natural forces.

2. It is divided into two categories according to the occurrence of its loss. Quasi-tangible wear refers to the damage and deformation of equipment caused by friction, corrosion, vibration, fatigue and other reasons in the use of equipment. In view of the physical wear, attention should be paid to reducing the wear rate of the equipment while using it, and reducing and eliminating abnormal losses.

3. Accounting treatment:

According to the new accounting standards, when the original value reaches 50% (the original provision is 20%), it will be included in the original fixed asset value, and the depreciation will be calculated from the time it is put into use after maintenance; Less than 50% is included in the repair cost.

1. Borrow: fixed assets - major repair (or improvement) expenditure.

Credit: Bank Deposits (Cash);

2. Borrow: management expenses (manufacturing costs, etc.) - asset use expenses - major repair (or improvement) expenses.

Credit: Bank Deposits (Cash);

3. Subjects for the record of repair costs:

1. The repair cost should be recorded in the sales expenses, management expenses, manufacturing expenses, and operating cost accounting accounts (different purposes are included in different accounts), for example, the repair costs of the management department are included in the management expenses, and the repair costs of the sales department are included in the sales expenses.

2. If the enterprise is in the production and processing industry, the equipment repair cost and the input invoice obtained are the special VAT invoice or general invoice for the maintenance fee, which should be included in the manufacturing expense account. For the repair cost of fixed assets, the input invoice obtained is a special VAT invoice or general invoice for the maintenance fee, which should be included in the management expense account.

3. If it is the repair cost of the workshop department, there are the following situations:

1) The maintenance costs incurred by the fixed assets of the buildings used in the workshop are included in: management expenses.

2) The maintenance costs incurred by the machinery and equipment belonging to the workshop should be included in: manufacturing costs.

The new standard stipulates that when the daily maintenance expenditure of fixed assets does not meet the conditions for recognition of fixed assets, subsequent expenses such as fixed asset repair costs incurred in the production workshop of the enterprise shall be included in the management expenses.

In the daily accounting, enterprises should judge whether the subsequent expenditure of fixed assets should be capitalized or expensed according to the above principles. In the specific banquet practice, the following subsequent expenses incurred by fixed assets are usually treated as follows:

1. The repair cost of fixed assets shall be directly included in the current expenses.

2. The expenditure on the improvement of fixed assets shall be included in the book value of fixed assets, and the amount after the increase shall not exceed the recoverable amount of the fixed assets.

3. If it is not possible to distinguish whether it is the repair of fixed assets or the improvement of fixed assets, or the combination of repair of fixed assets and improvement of fixed assets, the enterprise should judge according to the above principles, and the subsequent expenses incurred shall be included in the value of fixed assets or included in the current expenses.

Fixed asset. Maintenance refers to the act of restoring the original performance of fixed assets in order to maintain the normal operation and use of fixed assets. Depending on the scope, cost and time of repair, it can be divided into daily repair and major repair. The specific accounting treatment of fixed asset repair costs is as follows:

1. If the daily repair cost of fixed assets does not meet the conditions for the recognition of fixed assets, it shall be included in the corresponding account according to the department to which the expenses belong, and the detailed entries are:

Borrow: Administrative expenses.

Selling expenses. Credit: Bank deposits.

2. The major repair expenditure recognized as a fixed asset must meet two conditions at the same time, one of which is that the repair expenditure reaches the early tax basis of destruction at the time of acquisition of fixed assets.

more than 50%; The second is to extend the service life of fixed assets by more than 2 years after repair. The cost of major repairs of fixed assets should be amortized according to the long-term prospective expenses.

to process. 1) When the enterprise incurs long-term amortized expenses:

Borrow: Long-term amortized expenses.

Taxes and fees due. VAT payable (input tax.

Credit: Raw materials (when repairing and requisitioning raw materials).

Bank deposits. 2) Amortize long-term amortized expenses and include them in the corresponding accounts according to the department to which the expenses are attributed

Borrow: Administrative expenses.

Selling expenses. Credit: Long-term amortized expenses.

The repair cost of fixed assets is generally included in the profit or loss of the current period and treated as the cost of the remaining sail period. When repair costs are incurred:

Borrow: management expenses - repair costs, credit: bank deposits, if the fixed assets repaired in the current period are large, and the expenses incurred are larger, which has a greater impact on the current cost level and financial results, the method of amortization can be used to deal with it. Repair costs are incurred:

Debit: expenses to be amortized, credit: bank deposits, amortized in installments:

Borrow: Management Expenses - Repair Costs Disturbed Draft, Credit: Expenses to be amortized.

The maintenance cost of fixed assets is divided into two categories, one is prudent for major repairs, and the other is for ordinary daily maintenance and repair.

Expenditure on major repair of fixed assets refers to the repair of most or all of the fixed assets in order to restore their performance. When the major repair expenses are not withheld and the expenditure is large, and the income period is more than one year, the major repair expenses should be treated as long-term amortized expenses.

The expenditure on major repairs of fixed assets must meet the following conditions at the same time:

1. The repair expenditure reaches more than 50% of the tax base at the time of acquisition of fixed assets;

2. The service life of fixed assets after repair is extended by more than 2 years, due to the uneven occurrence of major repair expenditures, in order to balance the cost burden, the company can adopt the method of expense amortization or expense provisioning.

Borrow: expenses to be amortized, credit: construction in progress, such as cost amortization period of more than one year:

Borrow: long-term amortized expenses, credit: construction in progress, general repair of fixed assets of production workshops, financial treatment is:

Borrow: manufacturing costs - repair costs, credit: bank deposits.

The expenses incurred in the maintenance of fixed assets are generally recorded in the management expenses and other accounts for accounting, and how to carry out the accounting treatment of the maintenance costs of fixed assets?

The accounting of fixed asset maintenance expenses is recorded separately.

The subsequent expenses such as maintenance expenses related to fixed assets incurred by the enterprise do not meet the conditions for recognition of fixed assets

Borrow: administrative expenses (production workshop and administrative department).

Selling expenses (agencies that specialize in sales).

Credit: bank deposits, etc.

If the fixed assets are improved, renovated and expanded, renovated and renovated, etc., the subsequent expenditure of capitalization:

1. The subsequent expenses that can be capitalized on fixed assets shall be included in the accounting of "construction in progress". (Record the book value of fixed assets).

2. When the renovation project is completed and reaches the intended usable state, it should be converted from the construction in progress to the fixed asset, and the depreciation of the fixed asset shall be calculated according to the redetermined service life, estimated net residual value and depreciation method.

What are the management fees?

Management expenses refer to the expenses incurred by an enterprise in organizing and managing the production and operation of the enterprise. Including: start-up expenses incurred during the preparation period of the enterprise, company expenses, trade union funds, board of directors fees, litigation fees, business entertainment expenses, etc., incurred by the board of directors and administrative departments in the operation and management of the enterprise or should be borne by the enterprise.

What are the selling fees?

Selling expenses refer to the expenses incurred by a business in the sales process. It mainly includes insurance premiums, packaging costs, exhibition fees and advertising costs, commodity maintenance costs, estimated product quality assurance losses, transportation costs, loading and unloading costs, etc., as well as employee salaries, operating expenses, depreciation expenses and other operating expenses of sales agencies specially set up for the sale of the company's goods.