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What account should the packing box be recorded in

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It’s the shell of a luxury gift box. The cost is very high. Is it recorded in inventory or operating expenses
is it inventory goods – packaging, or operating expenses – packaging?

packaging boxes are generally not recyclable, so they are included in raw materials – packaging materials

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manufacturing enterprises are included in manufacturing expenses, while trading enterprises are included in sales expenses

packaging materials are generally included in turnover materials – packaging materials &nbsp& nbsp;

account

purchased packaging materials: &nbsp& nbsp; & nbsp; & nbsp;& nbsp;

debit: revolving materials – packaging materials

taxes payable – VAT payable (input tax) &nbsp& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;

credit: bank deposits (cash and accounts payable)

extended data:

the dual economic attributes of packaging are obvious. The accounting attribute of packaging is a current asset and a part of inventory. Generally speaking, according to the economic attributes of inventories, inventories can be divided into two categories. One category refers to labor objects, such as raw materials, products in process, entrusted processing materials, inventory commodities, etc. they are the carriers of enterprise production and labor value, as well as the carriers of enterprise capital movement

the other is labor means, represented by low-value consumables. As a labor tool, low-value consumables together with fixed assets provide labor conditions for enterprise production. Materially, they do not form a product entity, but gradually transfer their value to the labor object – “product” through amortization

according to the current definition of packaging, packaging can be divided into two parts. One part is the packaging as an integral part of enterprise commodities, such as the packaging box for TV sets, the box for packing shirts, the bottle for packing wine, etc. this part of the packaging has belonged to the “labor object” from the economic attribute; The other part of the packaging is the packaging container for the enterprise to keep or keep another kind of inventory, such as oil barrels, wine jars, etc. this part of the packaging is essentially a “labor means” (or “labor tools”)

reference source: Baidu Encyclopedia – sales expenses

according to different situations, the accounting items included are different, mainly raw materials, production costs and other business expenses

I. various packaging materials, such as paper, rope, iron wire, iron sheet, etc., shall be accounted in the “raw materials” title; The packaging materials used for storing and keeping commodities and materials but not for sale shall be accounted under the title of “fixed assets” or “low value consumables” respectively according to the value and service life

enterprises with a small number of packages may not set this account and incorporate the packages into the “raw materials” account for accounting. Self made packaging materials separately listed as enterprise commodity products shall be treated as inventory commodities and shall not be accounted for in this account

II. Packaging materials purchased, self-made and entrusted to other units for processing, acceptance and warehousing. Packaging materials accepted by the enterprise and obtained by the debtor in the form of non cash assets offsetting the debt. The packaging materials obtained from non monetary transactions, as well as the inventory of packaging materials, shall be subject to accounting treatment in accordance with the relevant provisions of the “raw materials” title

III. for the production of collecting packaging materials, debit the “production cost” and other subjects and credit this subject; For packages sold with commodities but not priced separately, debit the “operating expenses” title and credit this title; For packages sold with commodities and priced separately, debit the title of “other business expenses” and credit this title

IV. when leasing or lending packaging materials for the first time, the cost shall be carried forward, debited to the “other business expenses” title (leasing packaging materials), debited to the “operating expenses” title (lending packaging materials), and credited to this title

those with a large amount of rented or lent packaging materials can be amortized by times through the “deferred expenses” or “long-term deferred expenses” accounts. When the used rental and lending packaging materials are recovered in the future, the physical management shall be strengthened and registered in the memo book

extended data

packaging has the characteristics of strong liquidity, many circulation links, easy damage and loss, and some can be used repeatedly. Therefore, it is necessary to strengthen the accounting and management of packaging materials

from the perspective of accounting method, the accounting of packaging materials is basically similar to that of materials. The accounting of the purchased, self-made and outsourced packaging materials that have been accepted and warehoused by the enterprise is the same as that of the raw material revenue. The difference is mainly in the accounting of the delivery and receipt of packaging materials. There are four main situations for enterprises to collect packaging materials:

(1) produce collected packaging materials, which are used to package products and are used as a component of products

(2) packages that are sold with the product but not priced separately

(3) sell separately priced packages along with the product

(4) packages rented or lent to the purchasing unit for use

reference source: Baidu Encyclopedia — packaging

the packing box should be recorded in the items of packaging and low value consumables

(1) collection

debit: production cost

credit: packaging

(2) month end carry forward packaging cost variance

debit: production cost

credit: material cost variance

(3) when the packaging price payment is received, the following accounting entries are made:

debit: bank deposit 935

credit: other business income 800

taxes payable – VAT payable 135

(4) when the packaging cost is carried forward, the following accounting entries are made:

debit: other business expenditure 810

credit: packaging 810

extension data:

from the perspective of accounting method, The accounting of packaging materials is basically similar to that of materials. The accounting of the purchased, self-made and outsourced packaging materials that have been accepted and warehoused by the enterprise is the same as that of the raw material revenue. The difference is mainly in the accounting of the delivery and receipt of packaging materials. There are four main situations for enterprises to collect packaging materials:

(1) produce collected packaging materials, which are used to package products and are used as a component of products

(2) packages that are sold with the product but not priced separately

(3) sell separately priced packages along with the product

(4) packages rented or lent to the purchasing unit for use

the accounting of packaging materials can be based on actual cost or planned cost. In order to reflect and supervise the increase and decrease of packaging materials and their consumption, a “packaging” account shall be set up for accounting

in the case of calculating the amortized value of rented and lent packaging materials with the “five five amortization method” and “net value amortization method”, this account should set up five subsidiary accounts of “unused packaging materials in inventory”, “used packaging materials in inventory”,
“rented packaging materials”, “lent packaging materials” and “packaging material amortization”

1. Packaging materials for production collection

most of the packaging materials for production collection belong to internal packaging and become an integral part of the product. Generally, such packaging materials are not priced separately and are not recovered after the product is sold. Therefore, their costs are carried forward together with the product costs when they are sent out

2. Packages that are not separately priced are sold with the product

packages that are not separately priced are sold with the product and are treated as operating expenses when the product is sold

reference source: Baidu Encyclopedia – packaging and low value consumables

included in sales expense accounting

in case of packaging materials

debit: raw materials,

debit: taxes payable; VAT payable (input tax)

credit: bank deposits, accounts payable, etc.

if it is a packaging container (barrel, box, bottle, bag, etc.) for packaging enterprise goods

debit: packaging materials

credit: bank deposits, etc.

extension data

enterprise (Finance) should”expenses” is changed to “business and management expenses”, Accounting for various expenses incurred by the enterprise (Finance) in the process of business operation and management

including depreciation expenses, business publicity expenses, business entertainment expenses, electronic equipment operation expenses, cash and currency transportation expenses, safety prevention expenses, post and Telecommunications expenses, labor protection expenses, foreign affairs expenses, printing expenses, amortization of low value consumables, employee wages and welfare expenses, travel expenses, water and electricity expenses, employee education expenses, labor union expenses, conference expenses, legal expenses, notarization expenses, consulting expenses and intangible assets amortization

amortization of long-term unamortized expenses, heating and cooling expenses, intermediary fee, technology transfer fee, greening fee, directors’ membership fee, property insurance premium, labor insurance premium, unemployment insurance premium, housing accumulation fund, property management fee, research fee, withdrawal of insurance guarantee fund, etc


reference source: Baidu Encyclopedia – sales expenses

packaging boxes are included in the “low value consumables and packaging” account when purchasing, and the accounting standards for small enterprises use the revolving material account. The usage time shall be included in other business costs or production costs respectively

packaging materials refer to various packaging containers reserved for packaging products, such as barrels, boxes, bottles, jars, bags and other materials used to store and keep products
according to the requirements of the accounting standards for business enterprises, the accounting treatment of packaging related businesses is as follows:
1. Packaging purchase receipt
this business is very simple. Packaging belongs to inventory, so when purchasing receipt, it is debited to the “packaging” account and credited to the related items according to the purchase cost
2. Packaging delivery
1. Packaging collected by the production department constitutes the cost of the product, Therefore, the cost of packaging materials shall be included in the production cost of products, debited to “production cost” and credited to “packaging materials”
2. If the package is sold with the product and priced separately, it is equivalent to the package sold separately. Debit “other business cost”: credit “package”
3. If the package is sold with the product but not priced separately, it should debit “sales expense” and credit “package”
4. Debit “other business cost” for rented packaging materials: credit “packaging materials”,
5. Debit “cash on hand” and other credit “other business income” for the rent received from packaging materials
6. For loaned packaging materials, debit “sales expense” and credit “packaging materials”.

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