Administrative expenses are expenses that are in no way related to production activities. For example, administrative staff salaries, office maintenance and servicing, postal and advertising costs. In this article we will look at what else is included in management expenses, how to reflect them in accounting and determine the financial result.

In this article you will learn:

What are administrative expenses

Management costs are those costs of an organization that cannot be associated with the production process, that is, they are not involved in the production of goods or services. For example, if workers on a production floor received wages, then this expense item is included in the cost of production, and the salary of the chief accountant should be included in management expenses, since he is not involved in the production of products. If costs can be attributed to at least one of the organization’s production areas, then they are already considered commercial. Management costs can be included in the cost of production, but not all at once, but by distribution among all types of manufactured products in proportion to revenue for a certain period (month, quarter, year). .

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How it will help: plan administrative and management expenses and minimize the risk of including unreasonable costs in the budget.

What is included in management expenses

These usually include the following expenses:

• for wages and insurance premiums administrative personnel not directly related to the production process;
• administrative (for business trips, postal and advertising, office needs (water, tea, coffee, cleaning products, etc.);
• costs of communication and telephony, Internet;
• representative;
• transport;
• on consulting services, on auditors, appraisers, etc.;
• for rent and maintenance of administrative premises (not of a production nature);
• depreciation of fixed assets for general purposes;
• repair of fixed assets for administrative and general economic purposes, etc.

This list is not complete; it can be supplemented with certain items depending on the specifics of the organization’s activities (for example, maintaining a canteen, medical center, security, cleaning the area in front of the building, etc.).

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How it can help: In many companies, planning administrative and management expenses drags on for months. But even during this time it is not always possible to develop a reliable budget, since the approval process involves a large number of participants, each of whom tries to approve, or in other words, “push through” additional cost items. Nevertheless, it is quite possible to draw up a realistic budget for these expenses, and deviations in it will not exceed 5–10 percent.

How it will help: Two-thirds of your colleagues monitor key financial indicators companies and spend half their working day on it. We learned how to turn it with our own hands accounting program into a convenient system for monitoring and managing your business.

Accounting

Despite the fact that administrative expenses are not directly related to the main production activities of the enterprise, they are reflected in the expense accounts, namely, in account 26 “General business expenses”. There are two ways to write them off:

1. They are recognized as conditionally constant and written off at the end of the month to the cost of production. for this in registers accounting the following entry is made: Debit 90 “Sales” Credit 26 “General expenses”. This order must be indicate in the accounting policy of the organization. Posting means that administrative expenses are written off to the cost of goods manufactured in the month in which they are included in the expenses of ordinary activities.

Important! You can write off the entire account 26 “General business expenses” to the cost of production, provided that this account is used only for accounting for administrative expenses. Otherwise (when the organization takes into account both administrative and production expenses on account 26), the specified entry will be considered incorrect.

2. When management costs are divided into semi-fixed and semi-variable costs. In this case, semi-fixed costs are written off similarly to the previous paragraph. But in writing off conditional variables, the following options are possible:

• when it can be attributed to the main production, an entry is made Credit 26 “General business expenses” Debit 20 “Main production”;
• if they relate to auxiliary production, then entry in accounting registers there will be Debit 26 “General expenses” Credit 23 “Auxiliary production”;
• if they relate to service economy– Debit 26 “General business expenses” Credit 29 “Service production or farms”.

These expenses will be charged to the cost of manufactured products as goods are sold and reflected by posting Debit 90 “Sales” Credit 20 “Main production”, 23 “Auxiliary production”, 29 “Service production or farms”.

Important! If in reporting period there were no sales, management expenses can be written off to account 91 “Other income and expenses” subaccount “Other expenses”. This is the point of view of some economists.

In accounting (financial) statements, management expenses are reflected only in the Report on financial results(form 2) on line 2220 “Administrative expenses”.

Important! Line 2220 of the Income Statement is completed only if the company has chosen the first method of reflecting management expenses in accounting, that is, they are not distributed among the objects of calculation and there are no postings using accounts 20, 23, 29. Otherwise, management expenses constitute the cost of manufactured products and are reflected in line 2120 “Cost of sales”.

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How it will help: if you are not sure of the accuracy of the profit, you should make sure that all expenses from the financial results report are taken into account correctly. And including management ones. It is possible that they are used twice in the report or are deliberately distorted. Read more about how to check the accounting for such expenses in this solution.

Tax accounting

The Tax Code of the Russian Federation does not contain such a concept as management expenses, but it does contain the concept of indirect expenses. Indirect costs are costs of an organization that cannot be directly attributed to the production of products and can be included in expenses in the period in which they are incurred. Thus, indirect costs include, for example, communication services, rent, insurance, etc. The most important difference between indirect costs and direct ones is that they relate to in full to expenses of the current reporting (tax) period. The exception is organizations that do not produce anything, but are engaged in the provision of services. The company decides independently which costs to classify as direct or indirect for each individual production cycle.

Indirect costs include:

• for the maintenance of administrative and management personnel;
• for the rental of premises or equipment, equipment not directly involved in the production of goods;
• for property insurance;
• for information, consulting and audit services;
• utilities, etc.

Everything in the income tax return indirect costs are reflected on an accrual basis from the beginning of the year on line 040 of Appendix No. 2 to sheet 02. Some types of administrative expenses included in line 040 should be shown separately:

• accrued taxes and fees, advance payments for them are reflected on line 041;
• the amounts of depreciation charges are shown on lines 042 and 043;
• acquisition costs land plots and the rights to conclude a land lease agreement - on line 047, etc.

Financial analysis of management expenses

Since the amount of management costs does not depend on whether the volume of production increases or decreases, then financial analysis they are considered conditionally permanent. With an increase in production volumes, the amount of management costs per unit of production, accordingly, decreases, and, therefore, the amount of profit per unit of production will increase. You can also increase the amount of profit per 1 unit of production by reducing management costs, for example, by reducing administrative staff and their salaries, while maintaining or even increasing production volumes. What exactly to choose is up to each organization to decide for itself. Often, organizations prefer to combine these two methods of increasing profit per unit.

Administrative expenses are the funds necessary for managing an organization, which form part of the current expenses of the enterprise and influence the formation of production costs.

In accounting, administrative expenses are reflected in the debit of the general expenses account. They can also be considered as periodic expenses that are not related to the production process, but are necessary to maintain the property and financial complex of the enterprise in the reporting period. In this case, they are classified as either losses of the company.

Administrative expenses include salaries and bonuses of management personnel, expenses for business trips, postal, office needs, transport, maintenance of administrative buildings, depreciation costs, office maintenance (rent, public utilities, communications), services of third-party organizations (insurance, legal, auditing), etc. are determined according to office and postal expenses amounting to 2-3% of the salary of management personnel. Costs for maintaining buildings are calculated similarly to workshop costs (electricity, water, heating). 3% is allocated for equipment, 7% of their value on the balance sheet. equal to 6.5% for factories and 6.1% for workshops of the cost of fixed assets for economic and administrative purposes.

The budget for enterprise management costs is accurately calculated to ensure it normal functioning. Administrative expenses are planned using several methods. The first (traditional) involves limiting this type of expense to a percentage of the salary fund of the main personnel. The second (“from what has been achieved”) is based on annual indexation level of expenses according to their growth rate for the period. It is also possible to plan in connection with the final result of the activity. This method is the most effective, but unlike Western countries, it is practically not used in Russia.

In many companies, planning for management costs extends over several months. Developing a reliable budget is quite a labor- and time-consuming activity, because quite a lot of participants are involved in its approval.

Administrative expenses are not directly related to the main (production, commercial) activities of the enterprise. However, in accounting they are reflected in the debit of general business expenses accounts. If accounting policy Since the enterprise allows such expenses to be included only partially in the cost of its products, they can be written off using certain entries.

Management expenses are planned in a separate budget, are not tied to production or sales volumes, and are calculated regardless of the dynamics of the enterprise’s income. Most of these expenses are limited expenses. They are divided into costs associated with business assets and costs associated with its development. The first group includes articles such as depreciation deductions, expenses for equipment maintenance, rental payments etc. They are planned in connection with the cost and service life of fixed assets. The second part (salaries of managers and other specialists, engineering, technical and management personnel, their representative, travel, transportation and other expenses) are planned individually for each company.

Management expenses should be mandatory be documented. Such documents are payment orders, receipts, expenses cash orders. Without these documents, the organization does not have the right to accept expenses for tax purposes.

It is advisable to take into account all current costs for carrying out trading activities in account 44 “Sales expenses” separately from each other (in different analytical accounts or subaccounts): as costs associated with the sales process and management costs. The need for such a distinction is due to the different order in which they are written off from account 44. In addition, in financial statements they are shown separately. Before you start writing off expenses in trade organization, it is necessary to determine which of them are management costs and which are distribution costs.

IN current legislation There are no direct indications on this matter. It stipulates that management costs are those associated with managing the entire organization, and distribution costs are aimed directly at the sale of goods. This means that a trading organization, based on the specified definitions and professional judgment, independently, taking into account the specifics of its activity, determines what relates to each type of cost and consolidates this procedure in its accounting policy.

We determine the range of management expenses

Items of expenses that can be classified as managerial in a trade organization are presented in table. 1.

Features of writing off management expenses

Management costs |*| , accounted for by a trade organization on account 44, at the end of the reporting month are subject to debit to account 90-5 “Management expenses” in the full amount (clause 10 of Instruction No. 102 *).
__________________________
* Instructions for accounting of income and expenses, approved by Resolution of the Ministry of Finance of the Republic of Belarus dated September 30, 2011 No. 102 (hereinafter referred to as Instruction No. 102).

*

Important! The amount of expenses written off as a debit to account 90-5 is reflected in the profit and loss statement on page 040 “Management expenses” (paragraph 3 of clause 60 of the Instructions on the procedure for preparing financial statements, approved by the resolution of the Ministry of Finance of the Republic of Belarus dated October 31. 2011 No. 111).

Example 1. Write-off of administrative expenses

In the current month, the trading organization incurred the following expenses:

- rent for office space, utility and operating expenses, electricity costs - RUB 4,535.62, incl. VAT - 658.33 rubles;

- expenses for a director’s business trip abroad for production purposes (daily allowance, travel expenses, living expenses) - 2,330.66 rubles;

- services of a specialized organization for accounting of a trade organization - 630 rubles. (without VAT);

- salary of the management staff - 15,902.22 rubles;

- mandatory deductions for salaries in the Federal Social Security Fund and Belgosstrakh - 5,479.91 rubles;

- depreciation of fixed assets used by the management apparatus - 1,620 rubles;

- the cost of materials used for production purposes of the management apparatus (stationery, toilet paper, soap, the cost of bottled water consumed by general business employees) - 3,875 rubles.

In this case, the following entries will be made (see Table 2):

Note. The amount of VAT presented by the lessor is a tax deduction for the organization (clause 1, subclause 2.1, clause 2, article 107 of the Tax Code). Tax deductions are made after VAT is reflected in accounting and the purchase book (if it is maintained by the payer). The basis for the deduction is electronic VAT invoices received in the prescribed manner from the lessor, subject to their signing by the payer with an electronic digital signature (paragraph 2, clause 5-1, part one, clause 6-1, article 107 of the Tax Code).

Example 2. Entertainment expenses incurred in the interests of the organization

This month, the trade organization incurred expenses for receiving representatives of a foreign delegation from Kazakhstan (representation expenses) for negotiations on concluding an agreement for the supply of goods. For these purposes, the trade organization paid by bank transfer:

- rental of dishes and staff serving a business dinner - 278.10 rubles, incl. VAT (at a rate of 20%) - 46.35 rubles;

- expenses for road transportation of delegation representatives - 170 rubles, incl. VAT (at a rate of 20%) - 28.33 rubles.

An employee of a trade organization responsible for accompanying a foreign delegation was given cash from the organization's cash desk in the amount of 240 rubles, from which he paid:

- for food, alcoholic and non-alcoholic drinks (wine and juices) - 239.20 rubles, incl. VAT - 31.69 rubles;

- disposable napkins for table decoration in the amount of 27.30 rubles, incl. VAT (at a rate of 20%) - 4.55 rubles.

Since the funds received from the organization for entertainment expenses were not enough, the employee spent personal funds in the amount of 26.5 rubles.

IN deadlines he submitted a report with documents confirming the targeted expenditure of funds. Cash, spent by the employee in the interests of the organization, are reimbursed to him from the organization's cash desk - as soon as all supporting documents are submitted to the accounting department.

In accounting, these expenses are reflected as follows (see Table 3):

__________________________
* Clause 38 of the Instructions on the procedure for maintaining cash transactions and the procedure for cash payments in Belarusian rubles on the territory of the Republic of Belarus, approved by Resolution of the Board of the National Bank of the Republic of Belarus dated March 29, 2011 No. 107 (hereinafter referred to as Instruction No. 107), it is allowed to use personal funds of individuals for the purchase of goods (work, services) in the interests of legal entity, with which the specified individuals are in an employment relationship, within the limits established for settlements between business entities - no more than 100 basic units (BV) for one day (clause 69 of Instruction No. 107).

Example 3. Car inspection expenses incurred for production purposes

A trading organization owns an official a car. It is used for the needs of the management apparatus in production interests. More than 2 years have passed since the car was manufactured.

This month, the organization paid for inspection services at a diagnostic station worth 19 rubles, incl. VAT (at a rate of 20%) - 3.17 rubles, and the state duty for issuing a permit to admit a vehicle to participate in traffic in the amount of 378 rubles. excluding VAT (9 BV × 2 years).

During the technical inspection, play in the vehicle's steering was detected. In this regard, the technical inspection was not passed the first time. The driver promptly corrected the specified malfunction and paid for certain types of control and diagnostic work during the repeated inspection at the expense of personal funds (by payment by bank card) in the amount of 3.0 rubles, incl. VAT (at a rate of 20%) - 0.5 rub. The second time, the inspection was successfully completed within the established time frame.

The employee submitted a report with documents confirming the target expenditure of funds. The funds spent by the employee in the interests of the trade organization are reimbursed to him for bank card in full size.

The following entries are made in accounting (see Table 4):

Management expenses represent the costs of running a company. They are separated from the costs of maintaining the production process. This is their main feature.

What are included in management expenses?

First, let's figure out what is not included in management expenses. They do not include any expenses related to production activities.

Let's look at an example. The workshop manager's salary is something that can be attributed to expenses for production processes. This is due to the specifics of the work of this specialist. It directly ensures production stability. The CEO's salary is already management expenses. The main difference between these costs is that production costs affect the cost of the final product, while management costs do not. However, the latter can be included in the cost indirectly.

Let's look at typical examples of management expenses:

• Expenses for administrative needs.
• Ensuring the work of managers.
• Depreciation and expenses for repairs of operating systems for management purposes.
• Renting premises for company activities.
• Expenses for the services of an auditor and consultant.
• Expenses for other administrative needs.
• Security.
• Costs of contacting third party companies.
• Personnel training.
• Expenses for office, telephone communications.

UR have a conditionally constant value. That is, they practically do not change. The amount of spending can be predicted. This is due to the fact that the volume of management costs is not affected by the number of products produced. However, the expansion of production volumes leads to a decrease in the size of the SD per unit of product. For this reason, profit per unit of product produced increases.

ATTENTION! Information on the total volume of damages can be obtained from line 2220 of the loss report. Detailed information is contained in account 26 of accounting.

Types of SD and forms of their planning

Management expenses are not directly tied to sales figures or production volumes. The calculation is made without taking into account the dynamics of the enterprise's income. Most overhead expenses are included not in standardized, but in limited expenses. That is, a certain limit is set for them for a given period. Management expenses can be divided into two categories:

1. Asset-linked. These are depreciation charges, expenses for the maintenance and repair of operating systems, premises, and rent.
2. Linked to the development of enterprises. These include expenses for paying salaries to management personnel. This could include travel allowances and vacation pay. Planning such expenses is very difficult.

Management costs are constantly increasing. This must be taken into account when planning them. An increase in spending is necessary to ensure the efficiency of the company and maintain competitiveness. Indexing plays a vital role. Let's consider ways to plan SD:

1. Traditional. This method was used in the Soviet Union, and therefore its second name is Soviet. It implies limiting the UR to a set percentage of the salary fund. This method is considered obsolete. This is due to the fact that it has many disadvantages. In particular, its use leads to a decrease in production efficiency. Traditional way practically not used. It is not relevant for commercial production.
2. Planning based on already achieved results. The method assumes an annual increase (indexation) of SD indicators. The increase is made based on the growth rate of expenses. The method in question is often used by commercial companies.
3. Planning with a connection to the final result. This is the most effective method, which is used by key structures of highly developed countries.

The specific method is determined depending on the needs of the enterprise. In Russia, the second option is most popular.

Features of accounting for management expenses

The concept of management expenses is not contained in regulations regulating accounting. Accounting for these expenses is determined in a practical way. In particular, UR are recorded in the line “Management expenses”, on account 26 (debit):

• DT KT02, 05 – depreciation calculation for fixed assets.
• DT26 KT04 – write-off of expenses for scientific and other research, the results of which will be used in the future in general economic activity.
• DT26 KT16 – write-off of deviations in the cost of fixed assets that were applied for general business needs.
• DT26 KT18 – VAT write-off.
• DT26 KT21 - the use of semi-finished products that were manufactured in production for general economic needs.
• DT26 KT23 – write-off of expenses of auxiliary production.
• DT26 KT29 – write-off of expenses of service farms.
• DT26 KT43 – write-off of the cost of finished products that are used for general economic needs.
• DT26 KT60, 76 – accounting for expenses for the services of auditors, consultants and other representatives of third-party companies.
• DT26 KT68 – tax assessment.
• DT26 KT69 – calculation of contributions to pension or health insurance.
• DT26 KT70 – accrual of earnings for management staff.
• DT26 KT71 – write-off for general business expenses generated by reporting employees.
• DT26 KT76 – provision of services for general business needs.
• DT26 KT79 – general business expenses generated at the head office and received by branches, aimed at the autonomous balance.
• DT26 KT94 – write-off of shortages and expenses from damage to material objects.
• DT26 KT96 – formation of reserves for future expenses for general running costs.
• DT26 KT97 – write-off of expenses for upcoming periods.

Let's consider the entries on the credit of account 26:

• DT76 KT26 – compensation for damage that was previously taken into account as part of general business expenses.
• DT86 KT26 – write-off of expenses using money allocated for targeted financing.
• DT90 KT26 – writing off expenses that are on account 26 to the debit of account 90.

Each transaction must be confirmed primary documentation. If source documents are missing, the inspection authorities will have questions. For each transaction, the transaction amount is indicated.

Tax accounting

Any company expenses, including management expenses, are taken into account for tax purposes. To be taken into account, they must meet the following conditions:

• The costs are rational from an economic point of view.
• Expenses are confirmed by primary documentation. All expenses are included in tax accounting only on the basis of information from accounting.
• The main purpose of expenses is the profit of the enterprise in the future.

Expenses will be reflected in the period to which they belong.

FOR YOUR INFORMATION! When tax accounting for management expenses, specialists have many questions. For example, many do not know whether the following UR periods are considered expenses if there is no profit. When analyzing tax regulations, we can conclude: UR for tax purposes are recognized only in expenses of the current reporting period. In accounting, the company independently determines the procedure for recognizing expenses and records this in its accounting policies.

In the financial results statement (f.2) there is line 22101 " Business expenses" and line 22201 "Administrative expenses" - I need an exact list of these expenses in the Tax Code, I did not find it with that name. The list is necessary for a branch abroad.

Administrative expenses: an accurate list of commercial and administrative expenses in Tax Code RF.>>>

The current accounting legislation does not contain the concept of management and commercial expenses. In practice, the line “Administrative expenses” of the Income Statement reflects general business expenses accounted for in account 26 - costs associated with managing the organization, organizing its business activities, maintaining it common property. For an approximate list of general business expenses, see Recommendation 1.

In practice, the line “Commercial expenses” of the Income Statement reflects the expenses recorded in account 44 “Sales expenses”. An approximate list of expenses accounted for on account 44, depending on the field of activity of the enterprise (production, trade) - see Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94N “On approval of the Chart of Accounts for accounting financial and economic activities of organizations and instructions for its application” .

The rationale for this position is given below in the recommendations of the Glavbukh System

Administrative expenses: general expenses

Costs associated with managing an organization, organizing its economic activities, and maintaining its common property are classified as general business expenses. General business expenses include:

• labor costs for administrative, managerial and general business personnel (with deductions for social needs);
• rent, depreciation, costs Maintenance buildings, structures and equipment for general corporate and administrative purposes;
• security costs;
• costs of training and recruitment;
• entertainment expenses;
• expenses for payment of communication services;
• Communal expenses;
• stationery and postal and telegraph costs;
• labor protection costs, etc.

Administrative expenses b wow: general running costs

During the reporting period, general business expenses are reflected in the debit of the same name account 26:

Debit 26 Credit 10 (21)
– materials (semi-finished products of own production) spent on general economic needs are written off;

Debit 26 Credit 70
– salaries of administrative, managerial and general business personnel were accrued;

Debit 26 Credit 69
– contributions for compulsory pension (social, medical) insurance and contributions for insurance against accidents and occupational diseases are calculated from the salaries of administrative, managerial and general business personnel;

Debit 26 Credit 60, 76
– the cost of work (services) performed is taken into account as part of general business expenses third parties(for example, auditing, consulting services);

Debit 26 Credit 02 (05)
– depreciation has been accrued on fixed assets ( intangible assets) for general economic and administrative purposes.

Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94N “On approval of the Chart of Accounts for accounting of financial and economic activities of organizations and instructions for its application”

Account 44 "Sales expenses"

“Account 44 “Sales Expenses” is intended to summarize information on expenses associated with the sale of products, goods, works and services.

In organizations engaged in industrial and other production activities, on account 44 “Sales expenses” the following expenses can be reflected, in particular: for packaging and packaging of products in warehouses finished products; for delivery of products to the departure station (pier), loading into wagons, ships, cars and others vehicles; commission fees (deductions) paid to sales and other intermediary organizations; on the maintenance of premises for storing products at places of sale and remuneration of sellers in organizations engaged in agricultural production; for advertising; for entertainment expenses; other expenses similar in purpose.

In organizations carrying out trading activities, on account 44 “Sales expenses” the following expenses (distribution costs) can be reflected, in particular: for the transportation of goods; for wages; for rent; for the maintenance of buildings, structures, premises and equipment; for storage and processing of goods; for advertising; for entertainment expenses; other expenses similar in purpose.*

In organizations that procure and process agricultural products (beets, milk, wool, cotton, leather raw materials, flax, livestock, poultry, etc.), account 44 “Sales expenses” can reflect, in particular, the following expenses: other expenses ; general procurement expenses; for the maintenance of procurement and receiving points; for the maintenance of livestock and poultry at bases and reception points (paragraph as amended, put into effect starting with the annual financial statements for 2006 by order of the Ministry of Finance of Russia dated September 18, 2006 N 115n - see the previous edition).

The debit of account 44 “Sales expenses” accumulates the amounts of expenses incurred by the organization related to the sale of products, goods, works and services. These amounts are written off in whole or in part to the debit of account 90 “Sales”. In case of partial write-off, the following are subject to distribution:

• in organizations engaged in industrial and other production activities - packaging and transportation costs (between certain types products shipped monthly based on their weight, volume, production cost or other relevant indicators);
• in organizations engaged in trading and other intermediary activities - transportation costs (between the goods sold and the balance of goods at the end of each month);
• in organizations procuring and processing agricultural products - to the debit of accounts 15 "Procurement and acquisition material assets" (expenses for the procurement of agricultural raw materials) and (or) 11 "Animals for growing and fattening" (expenses for the procurement of livestock and poultry).

All other expenses associated with the sale of products, goods, works, services are charged monthly to the cost of products sold (goods, works, services).

Analytical accounting for account 44 “Sales expenses” is carried out by types and items of expenses.”