This article, posted among others on the October issue of the ITS disk, is devoted to the features of the automatic transfer of balances on accounts 25 "General production expenses" and 26 "General expenses" by the document "Month Closing" in the standard configuration "Accounting", edition 4.0 (with a new chart of accounts ) for "1C:Enterprise 7.7".

Procedure for distribution of indirect costs

The procedure for including general production and general business expenses in the cost price is determined by the accounting policy of the organization. In the configuration, the "Accounting Policy" processing is intended for these purposes (menu "Service" - "Accounting Policy" - tab "Distribution of Indirect Costs").

To write off general business expenses based on the results of the month to the debit of account 90 “Sales” (subaccount 90.8 “Management expenses”), you must set the flag “Use the direct costing method.” Otherwise, general business expenses will, like general production expenses, be written off to the debit of account 20 "Primary production".

General production and general business expenses are written off to the debit of account 20 “Main production” with simultaneous distribution in accordance with the analytics of account 20:

• Types of nomenclature;
• Divisions.

The analytics “Production cost items” for account 20 does not participate in the distribution. In the generated transaction Debit 20 Credit 25 (26) the cost item “General production (general business) expenses” is indicated.

To write off general production and general business expenses to the debit of account 20, the distribution base is pre-calculated. The distribution base is calculated as the sum of costs (debit turnover on account 20 for the month being closed) for the items of production costs specified on the "Distribution of indirect costs" tab of the "Accounting Policy" processing. These may be items that reflect the wages of production workers, material costs, and/or others. Cost items included in the distribution base are marked with red checkmarks in the form of a list of the directory “Production Cost Items”.

The property of the cost item "Included in the distribution base of indirect costs" is periodic. This means that for different periods of the enterprise’s activity, the accountant himself determines the composition of these items.

For the purpose of distributing general production expenses, the distribution base is calculated for each division. General production costs of the division are distributed by type of item in proportion to the distribution base.

For the purposes of distributing general business expenses, the distribution base is calculated as a whole for account 20. General business expenses are distributed by type of item and divisions of the main production in proportion to the distribution base.

This difference in the distribution when writing off general production and general business expenses is associated with the interpretation of analytical accounting in the context of divisions in accounts 25 and 26:

• Analytical accounting of general production expenses on account 25 by division is carried out by structural divisions involved in the main production, which corresponds in purpose to analytical accounting by division on account 20;
• Analytical accounting of general business expenses for account 26 by division is carried out by structural divisions corresponding to the place where costs arise and, in general, not related to the main production.

Example

Initial data

The production cost item “Payment of production workers” is indicated as the distribution base. In accordance with the enterprise's accounting policy, the direct costing method is not used.

During the month, the following expenses are reflected in the accounting records:

• for account 20 “Main production” (see table 1):

Table 1

• for account 25 “General production expenses” (see table 2):

table 2

• for account 26 “General business expenses” (see table 3)

Table 3

Distribution of overhead costs

Let us determine the basis for the distribution of general production costs for each division (production cost item “Payment of production workers”). See table 4:

Table 4

Let's calculate the distribution of overhead costs using the following formula:

SOPRvn = OPRp * BRpvn / BRp, where

• SOPRvn - the amount of overhead costs distributed by type of item;
• OPRp - general production expenses for the division (debit of account 25);
• BRp - distribution base for the division as a whole;

Distribution of general business expenses

The basis for the distribution of general business expenses (account 20 as a whole) is visible from the last report - 140,000.

Let's calculate the distribution of general business expenses using the following formula:

SOHRvn = OHR * BRpvn / BR, where

• SOHRvn - the amount of general business expenses distributed by type of item;
• ОХР - general business expenses (debit of account 26);
• BR - distribution base for account 20 as a whole;
• BRpvn - distribution base by division and type of item.

The complete distribution table is as follows:

Features of postings for the distribution of indirect costs

The transactions generated by the “Month Closing” document look like this (see Table 5):

Table 5

It should be noted that according to account 25, the subconto “Items of overhead costs” is “current”, i.e. According to this subconto, the reports show only turnover and no balances. Balances can only be obtained in the context of the “Divisions” sub-account or for account 25 as a whole. When generating transactions for the credit of account 25, the sub-quote “Items of overhead costs” remains empty. This technique reduces the number of transactions and simplifies the understanding of the distribution result.

According to account 26, both sub-accounts are “current” - “Items of general economic expenses” and “Divisions”. When generating transactions for the credit of account 26, the “General expenses items” and “Divisions” remain empty.

Why are indirect costs not automatically allocated (possible reasons)?

• The distribution base for indirect costs is not specified.
• For account 20, there are no debit turnovers for the cost items indicated as the base for the distribution of indirect costs for the month being closed.
• Account 25 has balances for departments for which there are no debit turnovers for account 20.

Account 25 (overhead expenses)

We talked about the features and composition of overhead costs in. We will tell you in this material how accounting of overhead costs is kept and how overhead costs are distributed.

Account 25 “General production expenses”

Let us recall that general production expenses are the costs of servicing the main and auxiliary production of the organization.

General production expenses are accounted for on account 25 “General production expenses” (Order of the Ministry of Finance dated October 31, 2000 No. 94n).

General production costs are collected in the debit of account 25 from the credit of accounts for accounting for inventories, settlements with employees for wages, etc. In fact, accounting for general production and general business expenses in terms of reflection in the debit of accounts 25 and 26 “General business expenses” is similar. The difference is only in the composition of costs, which can be included in the composition of general production or general economic costs of the organization.

The most typical example of overhead costs is the costs of a workshop in which several types of products are produced.

Here are the most typical transactions for general production expenses:

Operation	Account debit	Account credit
Accrued depreciation of general production equipment	25	02 “Depreciation of fixed assets”
Materials written off for general production purposes	25	10 "Materials"
Wages accrued to general production employees	25	70 “Settlements with personnel for wages”
Insurance premiums have been calculated for the wages of general production employees.	25	69 “Calculations for social insurance and security”
Reflected expenses for insurance of general production property	25	76 “Settlements with various debtors and creditors”
Provided third-party general production services	25	60 “Settlements with suppliers and contractors”

Write-off of general production expenses

Since there should be no balance on account 25 at the end of the month, at the end of the month overhead expenses are written off by posting:

Debit account 20 “Main production” - Credit account 25

Similarly, general production costs can be written off as part of the costs of auxiliary production or service industries and farms.

So, when writing off general production expenses, the posting may be as follows:

Debit account 23 “Auxiliary production” - Credit account 25

And if general production expenses are written off for the costs of service facilities, the posting will be as follows:

Debit of account 29 “Service production and facilities” - Credit of account 25

How are overhead costs distributed?

The organization determines the methods for distributing general production and general expenses independently based on the characteristics of its activities and the procedure established in.

In general, to determine the distribution coefficient of overhead costs, the formula can be presented as follows:

K OPR = OPR / B,

where K OPR is the coefficient of distribution of overhead costs;

OPR - the amount of general production expenses for the month;

B - base for distribution of overhead costs.

The specified coefficient can show how many rubles of overhead costs are per 1 ruble of the distribution base. This coefficient can also be presented as a % by multiplying the resulting indicator by 100.

We gave an example of the distribution of indirect expenses reflected in account 25.

However, the basis for the distribution of general production costs may be different. For example, the cost of basic raw materials and supplies, the number of employees, the cost of fixed assets and other indicators.

When determining a particular method for distributing overhead costs, the basis is chosen that most closely shows the relationship between overhead costs and the cost of the final product.

An example of writing off indirect costs for the main and auxiliary production of an organization. The organization accounts for costs at actual cost

LLC "Production Company "Master"" produces jewelry. In accordance with the accounting policy, for accounting purposes, cost accounting is carried out at actual cost. General production and administrative expenses are distributed in proportion to the salaries of production workers.

"Master" has two workshops:

• Workshop No. 1 - production of machine-made chains and bracelets. An auxiliary repair group has been created on the territory of the workshop, which is engaged in setting up the production equipment of workshop No. 1;

• workshop No. 2 - production of exclusive handmade products (pendants, earrings, rings).

In addition, the organization has created a design bureau that develops sketches and models of new products for both workshops.

To reflect actual costs by workshop, additional subaccounts have been opened to account 20:

• 20 subaccount “Workshop No. 1”;
• 20 sub-account “Workshop No. 2”.

In April, actual expenses were:

For workshop No. 1:

• cost of consumed raw materials, materials - 1,200,000 rubles;

• salary of production workers - 185,323 rubles;

• contributions for compulsory pension (social, medical) insurance and contributions for insurance against accidents and occupational diseases - 55,968 rubles;

• depreciation of fixed assets used in production - 70,000 rubles.

For workshop No. 2:

• cost of consumed raw materials, materials - 800,000 rubles;

• salary of production workers - 96,368 rubles;

• contributions for compulsory pension (social, medical) insurance and contributions for insurance against accidents and occupational diseases - 29,103 rubles;

• depreciation of fixed assets used in production - 20,000 rubles.

The costs associated with setting up production equipment in workshop No. 1 were:

• cost of materials, parts, spare parts - 60,000 rubles;

• salary of repair group employees (including contributions for compulsory pension (social, medical) insurance and contributions for insurance against accidents and occupational diseases) - 80,000 rubles.

The costs of maintaining the design bureau amounted to:

• designer salary - 124,000 rubles;

• the amount of contributions for compulsory pension (social, medical) insurance - 37,200 rubles;

• the amount of contributions for insurance against accidents and occupational diseases - 248 rubles;

• depreciation of office equipment of a design bureau - 43,000 rubles.

The amount of general business expenses for April is 248,000 rubles.

The share of wages of production workers in workshops is:

• shop No. 1 - 66% (185,323 rubles: (185,323 rubles + 96,368 rubles) × 100%);
• workshop No. 2 - 34% (96,368 rubles: (185,323 rubles + 96,368 rubles) × 100%).

The amount of general production expenses (costs of maintaining a design bureau), which is distributed between workshops, is equal to:
124,000 rub. + 37,200 rub. + 248 rub. + 43,000 rub. = 204,448 rub.

The amount of overhead costs, which is included in the cost of production, is equal to:

• for workshop No. 1 - 134,936 rubles. (RUB 204,448 × 66%);
• for workshop No. 2 - 69,512 rubles. (RUB 204,448 × 34%).

The “Master” accountant distributed the amount of general business expenses as follows:

• for workshop No. 1 - 163,680 rubles. (RUB 248,000 × 66%);
• for workshop No. 2 - 84,320 rubles. (RUB 248,000 × 34%).

The following entries were made in the “Master’s” accounting:

Debit 20 subaccount “Workshop No. 1” Credit 10
- 1,200,000 rub. - raw materials transferred to workshop No. 1 were written off;

Debit 20 subaccount “Workshop No. 1” Credit 70 (69)
- 241,291 rub. (185,323 + 55,968) - wages accrued to the workers of workshop No. 1 (including insurance contributions);

Debit 20 subaccount “Workshop No. 1” Credit 02
- 70,000 rub. - depreciation was accrued on production fixed assets of workshop No. 1;

Debit 20 subaccount “Workshop No. 2” Credit 10
- 800,000 rub. - raw materials transferred to workshop No. 2 were written off;

Debit 20 subaccount “Workshop No. 2” Credit 70 (69)
- 125,471 rub. (96,368 + 29,103) - wages accrued to the workers of workshop No. 2 (including insurance contributions);

Debit 20 subaccount “Workshop No. 2” Credit 02
- 20,000 rub. - depreciation was accrued on production fixed assets of workshop No. 2;

Debit 23 Credit 10
- 60,000 rub. - the cost of materials spent on repairing equipment in workshop No. 1 was written off;

Debit 23 Credit 70 (69)
- 80,000 rub. - salaries of the repair group employees were calculated (including insurance premiums);

Debit 20 subaccount “Workshop No. 1” Credit 23
- 140,000 rub. (60,000 rubles + 80,000 rubles) - the costs of auxiliary production of workshop No. 1 are taken into account;

Debit 25 Credit 70 (69)
- 161,448 rub. - salaries of designers were calculated (including insurance premiums);

Debit 25 Credit 02
- 43,000 rub. - depreciation has been calculated on fixed assets of the design bureau;

Debit 20 subaccount “Workshop No. 1” Credit 25
- 134,936 rub. - general production expenses were written off to the cost of production of workshop No. 1;

Debit 20 subaccount “Workshop No. 2” Credit 25
- 69,512 rub. - general production expenses were written off to the cost of production of workshop No. 2;

Debit 26 Credit 10 (02, 60, 69, 70)
- 248,000 rub. - general business expenses are reflected;

Debit 20 subaccount “Workshop No. 1” Credit 26
- 163,680 rub. - general business expenses were written off for the cost of production of workshop No. 1;

Debit 20 subaccount “Workshop No. 2” Credit 26
- 84,320 rub. - general business expenses were written off for the cost of production of workshop No. 2.

General business expenses in the absence of activity

Situation: How to reflect general business expenses in accounting if the organization does not receive income from its activities?

General business expenses (for example, salaries of management personnel, office rental costs and other expenses associated with the development and development of a business), like other expenses, must be taken into account regardless of whether they lead to income or not (clauses 16-18 of PBU 10/99). Therefore, even if the organization does not receive income from its activities, these expenses must still be fully reflected in the accounting accounts.

General business expenses, which are reflected in account 26 of the same name, should be taken into account in one of the following ways:

• write them off to account 20 “Main production”;

• take them into account in account 91 “Other income and expenses” in the subaccount “Other expenses”.

In the first case, general business expenses will be taken into account as part of the main production expenses (i.e., in the debit of account 20 (Instructions for the chart of accounts)), forming the full cost of finished products. When the organization begins to receive income, taking into account these costs, the financial result from sales will be formed (clauses 18 and 19 of PBU 10/99).

In the second case, expenses will directly form the financial result (loss) of the reporting period (i.e., taken into account as the debit of account 91-2) (Instructions for the chart of accounts).

Until January 1, 2011, general business expenses could be taken into account using account 97 “Deferred expenses”. Since January 1, 2011, organizations no longer have this opportunity. This conclusion follows from subparagraph 14 of paragraph 1 of the amendments approved by order of the Ministry of Finance of Russia dated December 24, 2010 No. 186n.

Determine the chosen procedure for distributing expensesin accounting policies for accounting purposes (Clause 4 PBU 1/2008).

Accounting for small businesses

For organizations that have the right to conduct accounting in a simplified form, a special procedure for accounting for income and expenses of temporary differences .

This conclusion follows from the provisions of paragraphs 4, 8, 12, 15 and 18 of PBU 18/02.

Workshop 11

Topic 14. Accounting for expenses for ordinary activities

1. Topics of abstracts and/or reports

1. Expenses for ordinary activities and their classification.
2. The procedure for accounting and distribution of direct and indirect costs for production.
3. Accounting and distribution of costs of auxiliary production.
4. Methods of accounting for production costs.

2. Guidelines for preparing reports and/or abstracts

When preparing a report on the topic “Expenses for ordinary activities and their classification,” it is necessary to disclose the concepts of the organization’s main activities and expenses associated with these activities, noting that the expenses attributable to the main activities depend on the organization’s production activities.

The report must disclose the content of expenses attributed to ordinary activities, based on the legal form and scope of the organization.

Particular attention should be paid to the question in what period expenses for ordinary activities are accepted for accounting. Since the ordinary activities of the organization are related to the production of products, works and services, the report must disclose the classification of expenses for ordinary activities in the context of cost elements.

In relation to a specific industry, provide a classification of costs by costing item.

When preparing a report on the topic “Accounting procedures and distribution of direct and indirect costs of production,” it is necessary to disclose the economic concepts of “direct costs” and “indirect costs.” Outline the procedure for preparing overhead cost estimates. Pay special attention to the technique of processing primary documentation for accounting for direct and indirect costs.

Using a specific example, consider the procedure for distributing indirect costs between types of manufactured products.

When preparing a report on the topic “Accounting and distribution of costs of auxiliary production,” it is necessary to consider the workshops classified as auxiliary production, outlining the features of cost accounting in each workshop.

As an example, it is advisable to consider accounting for the costs of a repair and construction workshop of auxiliary production, which provides services to the main production workshops for the repair of fixed assets. The material will be presented on the basis of existing accounting registers and applicable primary documentation.

When preparing a report on the topic “Methods of accounting for production costs”, it is necessary to emphasize that, in accordance with current practice, an enterprise can account for production costs using one of the following methods:

1. Translational method of accounting for production costs.
2. Order-by-order method of accounting for production costs.
3. Standard method of accounting for production costs.

The use of one or another method of accounting for production costs is determined by the specifics of the technological process and the current procedure for accounting for production costs, which should be reflected in the accounting policy of the organization.

When revealing the organization of cost accounting using the redistribution method, it is necessary to disclose the concept of “redistribution” and the industries where this cost accounting method is applied. Using the example of an enterprise belonging to this industry, disclose the accounting of direct costs, indirect costs and methods of their distribution between processing stages and types of products. As an industry, you can use enterprises for the extraction of coal, peat, and shale. The cost per unit of production with this method is determined by dividing the costs of the redistribution by the amount of products produced by the redistribution.

When revealing the organization of cost accounting using the order-by-order method, it is necessary to disclose the concept of “production order”, as well as the documentation of opening an order, the procedure for maintaining the “Order Cost Accounting Card”, the procedure for accounting for direct and indirect costs and methods for their distribution between orders. The cost per unit of production with this method is determined by dividing the costs of the order by the quantity of products accepted for execution according to the order.

When revealing the organization of cost accounting using the standard method of accounting for production costs, it is necessary to highlight the following issues:

1. The procedure for drawing up standard calculations.
2. Cost accounting according to standards.
3. Documentation and recording of deviations from standards.
4. Documentation and accounting of changes in standards.

When preparing the report, it is necessary to emphasize that this method of accounting for production costs is used at mechanical engineering enterprises, the finished products of which are formed from parts, assemblies, and subassemblies. Standard calculations are developed on the basis of current standards, costs for each part, unit and product as a whole. Within a month, recording of deviations from the norms is organized on the basis of primary documents with a signal strip. Deviation from the norms is timed to coincide with the first day of the month and is issued with a notice of change in norms.

The cost per unit of production with this method is determined as the sum of costs according to norms (±) deviations from norms (±) changes in norms.

3. Terms and concepts to learn

Students need to define and learn the terms given below using special dictionaries.

Terms: costs, prime cost, incremental method of accounting for production costs, custom method of accounting for production costs, standard method of accounting for production costs, auxiliary production, costing, cost standards, changes in standards, deviations from standards.

4. Tasks

1. Based on the data below, distribute general production and general business expenses by type of product.

Guidelines

The distribution of general production and general economic expenses by type of product should be made in proportion to the basic wages of production workers by type of product.

Problem 1

Initial data.

1. General production expenses of workshop No. 1 for the reporting month amounted to 600,000 rubles.
2. by type of product
   • products “A” - 40,000 rubles.
   • products “B” - 60,000 rubles.
   • products “B” - 20,000 rubles.

Solution.

The distribution of overhead costs is carried out in proportion to the basic salary of production workers and is presented in a table.

Products		General production expenses

** The amount of overhead costs attributable to product A is calculated as:

.

Problem 2

Exercise.

1. Distribute general business expenses between:

a) work in progress and finished products;

b) types of products.

Initial data.

1. General business expenses of the organization for the reporting month amounted to 840,000 rubles.
2. Work-in-progress assessed at shop cost – RUB 400,000.
3. Finished products assessed at shop cost – 800,000 rubles.
4. • products “A” - 40,000 rubles.
   • products “B” - 60,000 rubles.
   • products “B” - 20,000 rubles.

Solution.

The distribution of overhead costs is carried out in two stages.

At the first stage, overhead costs are distributed between work in progress and finished products in proportion to their workshop cost and are compiled in a table.

Indicators	Workshop cost	General running costs
Unfinished production
Finished products

.

** The amount of general business expenses attributed to work in progress is calculated as:

.

The amount of general business expenses attributable to finished products is calculated as:

.

At the second stage, general business expenses allocated to finished products are distributed between types of products in proportion to the basic wages of production workers and are drawn up in the table:

Products	Basic salary for production workers	General running costs

* The percentage of general business expenses is calculated as:

.

** Amount of general business expenses attributable to:

products A -

products B -

products B -

Task 2

Problem 1

1. Prepare cost accounting sheets using unfinished and semi-finished cost accounting methods.
2. Determine the actual cost of manufactured finished products.
3. Prepare a cost estimate for a unit of finished product “A”.

Initial data.

In the manufacture of product “A”, the incremental cost accounting method is used. The production process consists of three stages. The first two stages are carried out in workshop No. 1, the last stage - in workshop No. 2.

a) Actual direct costs for redistributions for October 200_g. are given in table. 1.

Table 1

No.	Naming of expenditures	Processing costs, rub.
		1 repartition	2nd stage	3rd stage
	Raw materials
	Basic salary for production workers
	(26%)

b) General production expenses for October 200_g. amounted to:

• in workshop No. 1 - RUB 85,850.
• in workshop No. 2 - 22,200 rubles.

e) 1500 units were manufactured in October. finished products.

Guidelines

In accordance with the accounting policy, general production costs of workshop No. 1 are distributed between production stages in proportion to processing costs, which include:

• basic wages for production workers;
• additional wages for production workers;
• UST from wages accrued to production workers.

General business expenses are distributed between processing areas in proportion to the amount of processing costs and general production expenses.

To account for semi-finished products of own production, account 21 “Semi-finished products of own production” is used, the cost of which is determined as the sum of the costs of the 1st and 2nd stages.

Solution.

1. Distribution of overhead costs of workshop No. 1 by redistribution.

* The percentage of overhead costs is calculated as:

** Amount of overhead costs attributable to:

repartition No. 1 -

repartition No. 2 -

2. Distribution of general economic expenses between divisions.

* The percentage of general business expenses is calculated as:

repartition No. 1 -

repartition No. 2 -

repartition No. 3 -

3. The calculation sheet for the unfinished version of cost accounting has the form:

No.	Expenditure	Redistributions			Total
	Raw materials
	Basic salary for production workers
	Additional wages for production workers
	UST from wages accrued to production workers
	General production expenses
	General running costs

4. The cost of finished products is 702,274 rubles.

5. The cost per unit of finished product will be:

6. The calculation sheet for the semi-finished version of cost accounting has the form:

Calculation sheet

No.	Expenditure	Redistributions			Total
	Raw materials
	Semi-finished products of our own production
	Basic salary for production workers
	Additional wages for production workers
	UST from wages accrued to production workers
	General production expenses
	General running costs

Semi-finished products of own production are included in the costing sheet in the amount of actual costs for stages 1 and 2.

The cost of finished products is 702,274 rubles, which is determined as .

The cost per unit of finished product will be:

Problem 2

1. Prepare a cost accounting sheet for orders.
2. Distribute general business expenses.
3. Determine the cost per unit of product order No. 1.

Initial data.

In the main production workshop, order No. 1 has been opened for the production of 5 lathes with numerical control, and in workshop No. 2, an order has been opened for the production of an automatic line for the production of pallets.

a) Actual direct costs for orders for October 200_g. are given in table. 2.

table 2

b). General production expenses for October 200_g. amounted to:

• in workshop No. 1 – 85,850 rubles.
• in workshop No. 2 – 22,200 rubles.

c) General business expenses of the enterprise amounted to 54,260 rubles.

d) There is no work in progress at the beginning and end of the reporting period.

Guidelines

According to the accounting policy, general business expenses are distributed among orders in proportion to the basic wages of production workers.

Solution.

Solving the problem includes the following steps:

1. Distribution of general expenses of workshop No. 1 according to orders.

Indicators	Basic salary for production workers	General production expenses
Order No. 1
Order No. 2

* The percentage of general business expenses is calculated as:

** The amount of general business expenses attributed to:

order No. 1 -

order No. 2 -

2. Cost accounting sheet for orders.

No.	Expenditure	Orders		Total
	Raw materials
	Basic salary for production workers
	Additional wages for production workers
	UST from wages accrued to production workers
	General production expenses
	General running costs

4. The cost of finished products of the workshop is 742,801 rubles.

5. The cost per unit of finished product (machine) for order No. 1 will be:

6. The cost of an automatic line for the production of pallets according to order No. 2 will be 293,732 rubles.

Test

Task 3

Exercise.

1. According to the log of business transactions for the month, indicate the correspondence of accounts.
2. Reflect business transactions on accounting accounts.
3. Distribute indirect costs by type of product in proportion to the total amount of direct costs.
4. Allocate selling expenses in proportion to sales proceeds.
5. Determine the actual production cost per unit of each type of shoe.
6. Determine the total cost per unit of sold shoes of each type.

Initial data.

The shoe factory produces four types of shoes. There are no work in progress balances at the beginning of the month.

Data on costs and volume of production and sales for the month are given in table. 3.

Table 3

Data on production costs, production and sales volumes

Product type	Cost of consumed basic materials, per unit. cont., rub.	Wages of production workers, per unit. cont., rub.	Production volume, steam.	Sale price, rub.	Sales volume, pairs
1. Women's shoes
2. Women's boots
3. Men's boots
4. Home slippers

Business transaction log for the month

No.		Amount, rub.
		private	general
	Salary accrued:
	AUP employees
	UST accrued at current rates:
	specialists and employees of production departments
	AUP employees
	workers for servicing the production unit
	workers of general economic services
	workers for packaging finished products
	Insurance payments from accidents and occupational diseases are accrued to the Social Insurance Fund at a rate of 2%
	specialists and employees of production departments
	AUP employees
	workers for servicing the production unit
	workers of general economic services
	workers for packaging finished products
	Materials were released and spent for the repair of fixed assets:
	main production
	general purpose
	Accrued depreciation of fixed assets:
	main production
	general purpose
	The debt for electricity consumed is reflected in the accounting:
	in general economic services
	Stationery supplies issued and used up:
	in production departments
	in general economic services
	Based on advance reports, actual travel expenses of AUP employees are written off
	Debt for communication services is reflected in the accounting
	Rent accrued for the rental of general purpose operating systems
	Materials were released and consumed for product packaging
	The debt for product advertising services is reflected in the accounting

Guidelines

The distribution of indirect costs by type of product is carried out in proportion to the total amount of direct costs and is presented in table. 4.

Table 4

List of distribution of indirect costs by type of product

Product type	Cost of consumed basic materials, per unit. cont., rub.	Wages of production workers, per unit. cont., rub.	Production volume, steam.	Direct costs, rub.	General production costs, rub.	General expenses, rub.
1. Women's shoes
2. Other types of products

Sales expenses are distributed in proportion to the proceeds from the sale and are presented in table. 5.

Table 5

List of distribution of sales expenses in proportion to sales proceeds

Product type	Sale price, rub.	Sales volume, pairs	Sales proceeds, rub.		Selling expenses, rub.
1. Women's shoes
2. Other types of products

The actual production cost per unit of each type of footwear is determined in table. 6.

Table 6

Actual production cost per unit

The total cost per unit of sold shoes of each type is determined according to the data in Table. 7.

Table 7

Total cost per unit of shoes sold

Literature

1. Federal Law of the Russian Federation “On Joint-Stock Companies” dated July 18, 2009 No. 181-FZ.
2. Federal Law of the Russian Federation “On Limited Liability Companies” dated August 2, 2009 No. 217-FZ. Federal Law of the Russian Federation “On Accounting” dated November 21, 1996 No. 129-FZ.
3. The regulations on maintaining accounting and financial reporting in the Russian Federation were approved by order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n.
4. Chart of accounts for accounting financial and economic activities of organizations and instructions for its application, approved by order of the Ministry of Finance of the Russian Federation dated October 30, 2000 No. 94n.
5. The accounting regulations “Accounting for inventories” PBU 5/01, approved by order of the Ministry of Finance of the Russian Federation dated 06/09/2001 No. 44n.
6. The accounting regulations “Income of the organization” PBU 9/99, approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 32n.
7. Accounting Regulations “Organization Expenses” PBU 10/99, approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. ZZn.
8. Accounting Regulations “Accounting for Fixed Assets” PBU 6/01, approved by Order of the Ministry of Finance of the Russian Federation dated March 30, 2001 No. 26n.
9. Accounting Regulations “Accounting for Intangible Assets” PBU 14/2007, approved by Order of the Ministry of Finance of the Russian Federation dated December 27, 2007 No. 153n.
10. V.A. Erofeeva, G.V. Klushantseva, V.B. Kemter. Accounting with elements of taxation. – St. Petersburg: Legal Center Press, 2006.
11. Kondrakov N.P. Accounting. – M.: INFRA-M, 2005.

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General operating expenses (OCC) are expenses not directly related to production or other core activities. However, they are necessary for the normal functioning of any organization. These are indirect costs that can be distributed between production facilities, types of products and are written off taking into account the method chosen by the organization. The composition of the operational and maintenance work, the accounting procedure, the method of their distribution and write-off, as a rule, are determined by the type of activity of the business entity.

What is considered OCR?

According to the Instructions for the application of the Chart of Accounts (pr. 94n of the Ministry of Finance), the following can be legally classified as OMR:

• remuneration for the AUP of the central office with contributions to the Funds;
• depreciation of fixed assets, intangible assets used in the management process;
• rental payments if buildings for non-industrial purposes are used under a lease agreement;
• expenses for maintaining non-industrial buildings, including payments to utility services;
• labor protection costs;
• payment for business trips of the AUP;
• entertainment expenses;
• clerical, banking, expenses, auditor services, etc.

Regulatory acts currently do not contain an exhaustive list of environmental protection measures. The main feature that allows costs to be classified in this category is the fact that they are not directly related to the production of goods, work or provision of services.

On a note! When deciding whether to consider expenses general production or general economic, for example, if an organization has a branch, it is advisable, in addition to the ratio of its costs directly to the production process, to evaluate such a factor as the participation of the responsible persons of the branch in the production of products (management of the organization as a whole). In certain cases, the territorial distance of the division (branch) from the company’s central office plays a role.

Distribution and write-off of chemical equipment

General business expenses in production at the end of the accounting period must be distributed, since they are indirect in nature. If an organization produces one type of product, all technical and chemical works are transferred to the costs of this type of product entirely, i.e. we can say that they are “distributed” to him in full. If there are several types of products, then chemical and chemical works are distributed among them proportionally.

The distribution base can be:

• remuneration of production workers;
• direct production costs;
• revenue from product sales;
• volume of products produced, etc.

The organization independently decides on the choice of the distribution base for chemical equipment and consolidates it in its accounting policies. One of the most common is the distribution by wages of workers employed in production.

An example of the distribution of OHR by base - by wages in production

Distribution of OHR = OHR of the period/production payroll by period, where “period” is usually “year”, but the previous quarter and half-year can be taken.

Distribution of chemical and chemical protection by types of products A, B, C:

OHR (A) = K * FOT (A),
OHR (B) = K * FOT (B),
OHR (C) = K * FOT (C).

Calculation: Let there be a small business entity whose non-production costs are minimized compared to production costs. The amount of OCR for the period amounted to 200,000 rubles. Payroll for production for the period is 600,000 rubles, for products A - 300,000, B - 200,000, C - 100,000 rubles. We get:

• To distributor OHR = 200000 / 600000 = 0.3333.
• OHR (A) = 0.3333 * 300000 = 100000.
• OHR (B) = 0.3333 * 200000 = 66667.
• OHR (C) = 0.3333 * 100000 = 33333.

  Total: 200,000.

Knowing the volume of products produced by type, it is possible by dividing the total amount of costs by type by the number of units of the corresponding product to calculate the OCR per unit of product.

Calculations are carried out similarly for other distribution bases selected by the organization.

OCR is written off in three ways:

1. Using account 20 “Main production”, transferring accumulated costs to the debit of this account from credit 26 “OKhR”, as mentioned above: for one type of product in full, or using distribution by type of product.
2. Using account 90, sub-account “Sales”. Costs are thus written off by organizations and firms providing various services (accounting support, consulting, etc.) and conducting non-production activities.
3. Using the so-called direct costing method. Its essence lies in the division of costs: on account 20 all production expense items are collected, which are then subject to write-off for products, and on account 90 the full amount is written off for O&R (see PBU 10/99, paragraph 2, paragraph 9).

Accounting for environmental protection

Accounting

General business expenses are accounted for on active account 26. At the end of the period, they are transferred to account 20 (23) or to account 90. Firms whose activities are non-productive in nature can collect basic expenses on account 26, and then transfer them to account 90 (except trading enterprises).

Postings:

1. Dt 26 Kt 76, 70, 71, 68, 69, 60, 23, 29, 10, 05, 02, etc. - reflection of non-production costs. Accounts 23 and 29 are applied if the organization has auxiliary and service industries that provided non-production services for the AUP.
2. Dt 20, 23 Kt 26 - write-off of chemical and chemical equipment for main and auxiliary production (if the latter is available in the organization).
3. Posting Dt 20 Kt 26 is done by type of product based on the calculations made or in full amount if the company has one type of product. The distribution of chemical and chemical resources between main and auxiliary production can be done in proportion to their production costs for the period.
4. When using account 90, the following posting is generated: Dt 90 Kt 26 for the corresponding subaccounts (2 if the company provides external services, 8 if direct costing is used).

Analytics for account 26 is organized by cost items and departments:

1. Management expenses (AUP business trips, wages with AUP deductions, etc.).
2. Business costs (wages and deductions for general business workers and personnel, labor protection, depreciation, etc.).
3. Other maintenance costs (utilities, office expenses, postage, etc.).

The given accounting option is only one of the possible ones.

Tax accounting

Costs in NU related to production and sales are divided into (Article 318-1 of the Tax Code of the Russian Federation). At the same time, the list (Article 265 of the Tax Code of the Russian Federation) does not allow OCR to be included among them. An organization can independently choose the procedure for attributing certain expenses to one another and enshrine it in its accounting policy (Article 319-1 of the Tax Code of the Russian Federation). Consequently, OCR can be taken into account for NU purposes as both direct and indirect. The main difference is that indirect costs can be taken into account for the purposes of tax accounting in the current period, while direct costs are calculated taking into account the balance of work in progress.

Despite the relative freedom in the issue of dividing costs into categories, the fiscal authorities remind that classifying certain costs as indirect is legal only if there is no real opportunity to take them into account as direct (letter of the Federal Tax Service No. KE-4-3/2952 dated 24.02. 2011 and a number of similar documents).

Firms providing services can fully account for their costs in the current tax period.

Main

1. General operating expenses do not relate directly to the production of products.
2. Depending on the chosen method, they are either distributed in proportion to the selected basic indicator, by type of product, and then written off according to the nomenclature, or completely attributed to cost, or isolated and attributed to cost using the “direct costing” method.
3. In accounting for industrial maintenance, account 26 is provided, which is closed to production accounts taking into account types of products or to account 90.
4. In tax accounting, according to the accounting policy for the purposes of NU, OHR can be classified as both direct and indirect.