Reflection of administrative costs in accounting Administrative expenses do not depend on volumes entrepreneurial activity, therefore they cannot be written off to “Main production” at the end of the month (account 20). They are taken into account in “General expenses” (D 26). Features of accounting are that there are two write-off methods: Reflection in accounting

• traditional - are recognized as conditionally constant and are fully related to the full cost, carried out as K 26, D 90
• based on the division of administrative costs into semi-fixed and semi-variable

When using the second method, the reduced production cost is calculated, conditionally fixed expenses are written off to “Cost of sales” (D 90-2), that is, they are recognized as costs of the reporting period that reduce income.

Administrative expenses: reflected in financial statements

VAT on expenses related to production; Debit 20 Credit 23 - 68,000 rub. — auxiliary production costs associated with the production were written off finished products; Debit 19 Credit 60 - 90,000 rub. — “input” VAT on expenses for renting premises for general purposes is taken into account; Debit 26 Credit 60 - 500,000 rub. (590,000 - 90,000) - expenses for renting general purpose premises are taken into account; Debit 68 Credit 19 - 90,000 rub. — “input” VAT on expenses for renting premises for general purposes has been accepted for deduction; Debit 19 Credit 60 - 16,200 rub. — “input” VAT on marketing and legal services is taken into account; Debit 26 Credit 60 - 90,000 rub. (106,200 - 16,200) - costs for marketing and legal services are taken into account; Debit 68 Credit 19 - 16,200 rub. — accepted for deduction of “input” VAT on marketing and legal services; Debit 26 Credit 69, 70 - 289,800 rub.

Management expenses. line 2220

Home — Articles In practice, there are often situations when the established accounting procedure ceases to be unambiguous based on the requirements for articles financial statements, established by PBU 4/99. Situation. Conducting audit financial statements of the organization, the auditor pointed out to the chief accountant that the item “Administrative expenses” was not formed in the profit and loss report.

The chief accountant referred to the accounting policy approved by the head of the organization, according to which the organization forms an indicator of the total cost of finished products (hereinafter - GP) with an assessment of work in progress (hereinafter - WIP) at the actual cost.

Management expenses: composition and reflection in accounting

VAT accrued (42,000 x 20 x18%) 90-3 68-VAT 151,200 Sales of products written off (27,300 x 20 edition) 90-2 43,546,000 Maintenance and equipment written off as expenses of the reporting period 90, subaccount "Administrative expenses" 26,362,000 Financial result recognized (991,200 - 151,200 - 546,000 -362,000) 99 90-9 68,000 Table 5 thousand rubles. Indicator For the reporting year For the previous year Name Code 1 2 3 4 Material costs 120 Labor costs 400 Social contributions 104 Depreciation 38 Other costs 158 Total by cost elements 820 Change in balances (increase (+), decrease (-)): work in progress (56) deferred expenses reserve upcoming expenses finished products (218) The total amount of costs recorded on account 20 for December amounted to 820,000 rubles.

Production plan - 30 products, actual - 28 products: 820,000: 30 = 27,300 rubles. (subject to rounding for ease of calculation).

Administrative and commercial expenses

Example A company is engaged in the production of finished products. The cost of raw materials and materials used in the production process amounted to 2,400,000 rubles.

Attention

The salary of production workers is 900,000 rubles. Contributions were calculated from her compulsory social insurance in the amount of 234,000 rubles.

Expenses for services third party organizations related to the production of finished products are equal to 118,000 rubles. (including VAT - 18,000 rubles). The costs of auxiliary production amounted to 68,000 rubles.
Sum general expenses equal to 1,636,000 rubles. (including VAT - 106,200 rubles), of which for: - rental of general purpose premises - 590,000 rubles. (including VAT - 90,000 rubles); - payment for marketing and legal services— 106,200 rub.

What do administrative expenses include: accounting features, write-off methods

Administrative expenses accounted for on account 26 “General” household expenses", in accordance with accounting policy can be monthly (clause 9, 20 PBU 10/99, Instructions for using the Chart of Accounts): 1) written off as conditionally constant in the debit of account 90 “Sales”, subaccount 90-2 “Cost of sales”; 2) be included in the cost of products, works, services (i.e. written off as a debit to accounts 20 “Main production”, 23 “Auxiliary production”, 29 “Service production and facilities”). Note! General business expenses of construction organizations may be included in the cost of work under contracts construction contract only if compensation is provided for by the customer (clause
14 PBU 2/2008). The specifics of including management expenses in the cost of sales are established by industry guidelines, recommendations, and guidelines (clause

Administrative expenses

There are 3 options for writing off the conditionally variable part:

• K 26, D 20 - if they relate to the main production
• K 26, D 23 - if they relate to auxiliary production
• K 26, D 29 – if they relate to service economy or production

Administrative costs are included in the cost price after the sale of products (goods) and are written off to “Sales” (account 90). The income statement is reflected in line 040. Some economists express the opinion that administrative costs can be written off on D 91 if reporting period there were no sales.

Disputes with tax office most often arise regarding expenses for the services of management companies. If there is an agreement, a document confirming payment, and an acceptance certificate for work performed, there should be no claims.

What do management expenses include?

Important

In individual financial statements, in particular in the profit and loss statement, OHR is reflected in the article “Cost of goods, products, works, services sold” as part of the full cost products sold(works, services). In the second method, expenses recorded in account 26 “General business expenses” as semi-fixed expenses are written off monthly as a debit to account 90 “Sales”.

Experts also express the opinion that if there are no sales in a particular period, OHR should be written off as a debit to account 91 “Other income and expenses.” Such an alternative procedure in terms of maintaining accounting records of the industrial enterprise is provided for by the interconnected norms of the last paragraph of paragraph.
9 PBU 10/99 and the characteristics of account 26 given in the Instructions for using the Chart of Accounts.
As in the case of selling expenses, the procedure for recognizing and determining the amount of management expenses is fully consistent with similar indicators for costs associated with ordinary activities. Read more about this in the “Cost of sales” section (line 2120). In the composition of management expenses, in particular, they reflect the costs of: - maintenance of the administrative and managerial apparatus; — maintenance of general business personnel not related to the production process; — on depreciation charges and expenses for repairs of fixed assets for management and general economic purposes; — rent for general business premises; - payment for information, audit, consulting services; — training and retraining of personnel; — purchase of office supplies, equipment and other materials necessary for management needs.

In which accounting account are management expenses reflected?

When assessing work in progress at actual production costs, calculations will be made in accounting and the entries presented in table will be reflected. 2. The total cost for December will be 1,182,000 rubles.

30 products were supposed to be produced, while 28 were produced for the amount of 1,103,200 rubles. (1,182,000: 30 x 28). So, the cost of the GP produced in December was 1,103,200 rubles, the cost of one product was 39,400 rubles. (RUB 1,103,200: 28 units). The balance of work in progress (account balance 20 as of December 31, 2010) will be 78,800 rubles. (1,182,000 - 1,103,200). Let's calculate the share of OCR in total amount costs for the month, for which we take the ratio of OCR to the total amount of costs for the month: 362,000 rubles.

: RUB 1,182,000 x 100% = 30.6%. In the cost of a unit of finished products, chemical chemicals will be based on the calculated share of chemical chemicals of 12,056 rubles. (RUB 39,400 x 30.6%). The cost of manufactured OHR products will amount to 337,568 rubles. (RUB 12,056
Work in progress,” however, the distortions will be insignificant: 31% (RUB 24,432: RUB 78,800 x 100%). If the method of assessing work in progress is chosen in the accounting policy, the line “Finished products and goods for resale” of the article “Inventories” reflects the actual production cost of the remainder of the products that have gone through all the stages (phases, redistributions) provided for technological process, as well as complete products that have passed testing and technical acceptance. Finished goods may be shown on the balance sheet in one of three valuations depending on accounting policy organization: at actual production cost; according to standard (planned) production costs, including costs associated with the use of operating systems, raw materials, materials, fuel, energy, labor resources, and other costs for production in the production process; for direct cost items.

Indicator For the reporting year For the previous year Name Code 1 2 3 4 Material costs 130 (120 + 10) Labor costs 600 (400 + 200) Social contributions 162 (104 + 58) Depreciation 60 (38 + 22) Other costs 230 ( 158 + 72) Total for cost elements 1182 (820 + 362) Change in balances (increase (+), decrease (-)): work in progress (56) deferred expenses reserve for future expenses of finished products (218) Table “Expenses for common types activities (by cost elements)” with this method of reflection will allow you to obtain expenses for ordinary activities in the amount of 908,000 rubles. (1,182,000 - 56,000 - 218,000). Despite the fact that in the considered example (with the first method) industrial and chemical works are included in the cost price of the enterprise, the amount of management expenses can be indicated in the cost of the sold enterprise (in the example, they amounted to 241,000 rubles as part of the cost of the enterprise).

Paragraph 20 of PBU 10/99 determines that any enterprise has the right to independently determine its accounting policies, including management ones. They can become part of the cost by type of business activity: production or sale of goods, provision of services, performance of work (letter of the Ministry of Finance No. 07-05-06/191 dated 02.09.208). When developing accounting policies, you should be guided by the Instructions for the chart of accounts.

Management costs include costs that do not have a direct connection with the production or sale of goods, services, or work. If costs can be associated with one of the areas of business activity, they are considered commercial (for example, wages and deductions for the head of a production department).

Management costs can be included in the composition if they are distributed in proportion to revenue across all types of manufactured products (sold goods, works, services). When developing an accounting policy, an enterprise (organization) must be guided by Law No. 129-FZ and paragraph 4 of PBU 1/2008.

There are 3 options for writing off the conditionally variable part:

• K 26, D 20 - if they relate to the main production
• K 26, D 23 - if they relate to auxiliary production
• K 26, D 29 - if they relate to service facilities or production

Administrative costs are included in the cost price after the sale of products (goods) and are written off to “Sales” (account 90). B are reflected in line 040.

Some economists express the opinion that administrative costs can be written off on D 91 if there were no sales during the reporting period.

Disputes with the tax office most often arise over expenses for the services of management companies. If there is an agreement, a document confirming payment, and an acceptance certificate for work performed, there should be no claims. Tax authorities may consider this type of service to be economically unprofitable and aimed at tax evasion. Analyzing the decisions made by the courts in similar cases, we can conclude that most entrepreneurs manage to prove that such expenses are justified.

Financial analysis of management costs

Administrative expenses in financial analysis are classified as conditionally constant, since their value does not depend on the volume of production. If the volume of products produced (sold) increases, the unit of goods increases due to scale.

Complex economic conditions force entrepreneurs to take a different look at the administration staffing table. Enterprise managers are trying to combine the functions of departments in order to reduce the number of employees. This allows you to reduce costs for salaries, rent, transportation, office equipment, and business trips. The amount saved is the amount of increased profit.

Some choose another path - reduction wages, allowances and bonuses while maintaining the number of administrative staff. This option is preferable because it does not increase the unemployment rate or reduce employee loyalty.

A good option is to transfer part of the office staff to the “home” mode, which allows saving on rent of premises, utility bills, and official transport. Almost all staff can work via the Internet.

Competent allows you to use the optimization of administrative costs as a means of increasing profits. The funds saved on optimizing the management staff can be invested in development, reorganization, renewal, and innovation.

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Administrative expenses

Administrative expenses

Administrative expenses are expenses not related to production or commercial activities enterprises: costs for maintaining the personnel department, legal department, automated control system department, OHS, lighting and heating of non-production facilities, business trips, communication services, etc.

In English: Management overhead

Synonyms: Administrative expenses

English synonyms: Administration overhead

Financial Dictionary Finam.

See what “Management expenses” are in other dictionaries:

Expenses not related to the production or commercial activities of the enterprise: costs of maintaining the personnel department, legal department, lighting and heating of non-production facilities, business trips, communication services, etc.... ... Dictionary of business terms

administrative expenses- All expenses not related to the production or commercial activities of the company, namely: costs of maintaining the personnel department, legal department, automated control system department, OHS, lighting and heating of non-production facilities,... ...

MANAGEMENT COSTS- (eng. management expenses) – expenses for managing an organization. U.r. constitute part of the organization’s current expenses, forming the cost of products (works, services). In the bay. accounting for U.R. reflected in the debit of the general business expenses account.... ... Financial and credit encyclopedic dictionary

MANAGEMENT COSTS- econ. (from English management expenses) expenses for managing an organization. U.r. constitute part of the organization’s current expenses, forming the cost of products (works, services). In the bay. accounting for U.R. reflected in the debit of the general business account... ... Universal additional practical explanatory dictionary by I. Mostitsky

Selling and administrative expenses- “Commercial and administrative expenses” - an item in the profit and loss statement that includes costs not directly related to the manufacture of products or provision of services, as well as to the payment... ... Economic and mathematical dictionary

Costs of maintaining the control apparatus and its maintenance. Includes the costs of maintaining government agencies and government controlled, general economic management apparatus (ministries, departments, main... ... Great Soviet Encyclopedia

administrative expenses- Costs of maintaining the management apparatus; expenses for maintaining office passenger cars; expenses for maintaining security; business travel expenses. Topics: accounting... Technical Translator's Guide

fixed costs- Administrative expenses highlighted in reporting on a separate line, depreciation of fixed production assets, costs of maintenance and repair of equipment, etc. To the group P.r. taxes attributable to the cost of production are also included and not... ... Technical Translator's Guide

FIXED COSTS- administrative expenses, highlighted in the reporting as a separate line, depreciation of fixed production assets, costs of maintaining and repairing equipment, etc. To the group P.r. taxes attributable to the cost of production are also included and not... ... Great Accounting Dictionary

Expenses of the insurance company, including: acquisition costs; collection expenses; management expenses. See also: Business costs Competitiveness of the insurer Balance sheet profit insurance company Financial Dictionary Finam ... Financial Dictionary

Associate Professor of the Department
"Accounting and Audit" KFAT and SO,
consultant at the publishing house "Accountant's Adviser"
N.N. Shishkoedova

Someone manages the activities of any organization. Therefore, the accountant needs to reflect management expenses in accounting and reporting, the amount of which can be very significant.
In this article we will look at existing options accounting, distribution and write-off of management expenses and their impact on the financial result and content of the organization’s financial statements.

What is included in management expenses?

Administrative expenses, or in accordance with the terminology used by the drafters of the Chart of Accounts and the Instructions for its application, general business expenses, are expenses incurred for the purpose of managing the organization and not directly related to the production process.
In particular, Management expenses include:
administrative and management expenses;
expenses for maintaining general business personnel not related to the production process (director and his deputies, secretaries, personnel department employees, accounting and other services);
depreciation deductions, expenses for maintenance and repair of fixed assets for management and general economic purposes;
rent for premises for general purposes;
expenses for payment of information, audit, consulting and other services provided by external organizations and entrepreneurs;
expenses for recruitment, selection, training, retraining, advanced training of personnel;
other administrative expenses similar in purpose.

Subtleties of using account 26 “General business expenses”

In accordance with the Instructions for using the Chart of Accounts, most organizations use account 26 “General business expenses” to reflect administrative expenses from the credit of accounting accounts inventories, settlements with employees for wages, settlements with other organizations (individuals), etc. However, there are two important nuances.
Firstly , accountants of firms engaged exclusively in trading should note Special attention to the fact that, due to the specifics of accounting for the operations of trade organizations, trade organizations do not use account 26 at all. Of course, this does not mean that trading firms do not have management costs. It’s just that in the case of trading organizations, administrative expenses are considered as an integral part of distribution costs (commercial expenses), and therefore they are taken into account in account 44 “Sales expenses”.
Secondly , accountants of organizations engaged only in intermediary activities (commission agents, agents, brokers, dealers, etc., except for trading organizations), should note that, in accordance with the Instructions for using the Chart of Accounts, they must use account 26 “General business expenses” for generalization information about all your expenses for conducting intermediary activities. And they can only use one option for writing off management expenses - from the credit of account 26 to the debit of account 90 “Sales”.

Options for writing off management expenses

In accordance with current regulations By accounting In Russia, two options for writing off management expenses are allowed. Each organization must choose one of them and consolidate it in its accounting policies.

Option 1. In the cost of products, works, services

The first option for writing off general business expenses, used in Soviet times, is still used in Russian organizations and specified as the main

Every enterprise obliged to form based on the results of activities for the period, a report on financial results. The result is either profit or loss, which depends on the amount of expenses and income of the entity.

In accounting

In accordance with latest law on accounting adopted in November 2011 No. 402-FZ, expenses relate to objects double entry companies or individual entrepreneurs. Among Russian standards, PBU 10/99 regulates the expense part of accounting.

According to these two acts, costs are the occurrence of liabilities or disposal of assets, leading to a decrease in the capital and economic benefits of the company. All company expenses are taken into account exclusively on accrual basis, the moment depends on a number of conditions.

Integrated costs are divided according to ordinary activities, as well as others.

Depending on the criteria, expenses are divided into many different groups and blocks.

In the normal course of business, firms have several of the most significant and major articles used to reflect disposals and liabilities:

• for main production - score 20;
• for auxiliary production - account 23;
• general production expenses - account 25;
• general household expenses - account 26;
• on implementation - .

Example: the Yasmina company wrote off expenses for production materials for July - 50,000 rubles, accrued salaries to workshop workers - 200,000 rubles, insurance premiums into the off-budget system - 60,000 rubles, depreciation charges amounted to 30,000 rubles, write-off of deferred expenses for June - 15,000 rubles. How are general production and operating expenses distributed (in rubles)?

ODA:

• salary production workers - 70000;
• insurance payments - 21000;
• depreciation - 5000;
• materials for production - 25,000;
• payment to suppliers and debtors - 100,000.

• administrative staff salary - 130,000;
• insurance premiums - 39,000;
• depreciation - 18000;
• counterparties and debtors - 80,000;
• June expenses for the future period - 3000.

Total OHR - 270,000 rubles.

There were no finished products at the beginning of July. During the month, 20 units were produced and 5 units were not completed. The total of all production expenses (accounts 20, 25 and 26) is 800,000 rubles.

The regulation on management specifies the formation of cost in full. The production of 20 units costs 680,000 rubles. of all expenses.

Unit cost:

680000 / 20 = 34000 rub.

800000 - 680000 = 120000 rub.

What share of total expenses do they take? OHR:

270000 / 800000 = 0.34 or 34%.

In unit cost:

34000 * 34% = 11560 rub.

In the cost of producing all finished products:

11560 * 20 = 231200 rub.

In the cost of refinery output:

270000 - 231200 = 38800 rub. or 38800 / 120000 = 32%.

Finished products can be reflected in the balance sheet in one of three estimates, depending on the accounting policies of the organization:

1. At actual production cost.
2. According to the standard (planned) production cost, which includes costs associated with the use of operating systems, raw materials, materials, fuel, energy, labor resources, and other costs for production in the production process.
3. According to direct cost accounts.

This method of assessing production costs (based on actual production costs) corresponds to a similar method of assessing work in progress. They are recorded in the accounting department the following correspondences:

Debit 90 “Sales”, subaccount “Cost of sales” Credit 43 “Finished products”, write-off of the cost of finished products sold

Sum of all similar entries for reporting year forms an indicator of the cost of goods sold, products, works, services in the financial results report.

As for the second method, you need to know the number of units sold. Supposedly, out of 20 products released, 15 were sold.

Cost of remaining products:

680000 / 20 / 15 = 2267 rubles.

Cost of sale:

34000 * 15 = 510000 rub.

OHR in cost of sales for July products:

11560 * 15 = 173400 rub.

Checking the correctness of the calculation:

173400 / 510000 * 100 = 34%.

Recognition as conditionally permanent

IN in this case the original data will be used. Total expenses amounted to 800,000 rubles, of which 20 were invoiced, i.e. for main production - 100,000 rubles. It was planned to produce 25 units of products, in fact only 20 are ready.

Plan:

100000 / 25 = 4000 rub.

Calculations (in rubles):

1. Cost of finished products: 4000 * 20 = 80000.
2. Unit cost: 4000.
3. Refinery cost: 100,000 - 80,000 = 20,000.
4. Cost of sales: 4000 * 15 = 60000.
5. Cost of remaining finished products: 4000 * 5 = 20000.
6. : 8000 (unit selling price) * 15 = 120000 * 118% (VAT) = 141600.
7. VAT: 8000 * 15 * 18% = 21600.
8. Financial result: 141600 - 21600 - 60000 - 270000 (OHR) = 210000 rubles - the company’s loss for July.

Should the administrative expenses of the Yasmina company be excluded from the column of the cost of sales of goods, services, works, products and be included in a separate column of administrative expenses? Analysis of the law on accounting, PBU 4/99, Order of the Ministry of Finance of Russia No. 67n allows us to answer that no, they may not be excluded.

For confident accounting in this way, it is better to explain the amount of management costs written off using the settlement and accounting method in explanatory notes to the profit and loss account, so as not to arouse suspicions and claims from the fiscal authorities.

The moment of recognition of expenses is described in this video.