44 the accounting account "Expenses for sale"
In the accounting on the balance sheet 44("Expenses for sale") during the reporting period, information on the costs incurred by the organization is collected and stored. They are related to the sale of goods, services, works, products. The account is active, calculating.
When conducting accounting in the industrial sector, account 44displays information on expenses for packaging and packaging of products or products, for their delivery to the customer, for loading and unloading, payments for intermediary services, payment for rent of storage facilities, for example, in another region, fees to advertising agencies and other similar costs.
In trade
At the enterprises which carry out commoditycirculation, one way or another, there will be regular sales costs. In trade organizations such costs can be: payment, payment for transportation of goods, rent, advertising and similar expenses.
In agriculture
In organizations involved in agriculture (milk, agricultural crops, leather processing, meat processing, wool), the following expenses are added to account 44:
- general procurement;
- for the maintenance of poultry and livestock;
- on payment of rent of reception and procurement points.
Other expenses may also be included here.
Account structure
Debit account 44 during the reporting year shows the amount of production costs.
The credit reflects the write-off of these costs. The amount of distribution costs attributable to goods sold per month is written off in whole or in part at the end of the reporting month. This happens depending on the order stipulated by the accounting policy of the economic entity. Transport costs for partial write-off are subject to distribution between the sold goods and their balances at the end of the month.
The costs of implementation include:
- subaccount 44.1 is used to display the costs incurred in selling products that are displayed on a debit basis;
- sub-account 44.2 is used mainly by enterprises engaged in trade and catering.
Consider the main postings:
- Debit.44 / Kr.02 accrued depreciation of fixed assets used in trading activities.
- Deb.44 / Kr.70, wages are paid to employees of trade.
- Deb.44 / Kr.60 reflects the cost of support services and intermediary services of third-party organizations.
- Deb.44 / Cr.68 reflects the amount of fees and taxes.
- Debit.44 / Kr.05 accrued amortization of intangible assets.
- Debit.44 / Cr.60 transportation costs (VAT not included).
- Deb.19 / Kr.60 reflects the amount of VAT on transport costs.
- Deb.44 / Kr.71 are written off travel expenses of employees of trade.
- Deb.44 / Kr.94 the shortage of goods within the limits of the norms of natural loss is written off.
- Deb.90.2 / Kr.44 at the end of the month, the cost of selling was written off.
Calculation of sales costs (account 44)
The total cost of goods sold for the reported period is formed by adding up the cost of sales and factory cost.
If at the end of the month only a part of the goods is sold, then the amount of selling costs is distributed in proportion to their cost of production between unrealized and sold products.
The distribution coefficient is the ratio of the amount of sales costs to the value of the shipped products.
In the reporting month, the organization shipped readyproduction for the amount of 240 thousand rubles at the production cost, and sold - for 170 thousand rubles. At the end of the month, the cost of selling amounted to 100 thousand rubles.
Task: to distribute expenses for sale.
- Coefficient of distribution: 100 000/240 000 = 0.4167.
- The costs of selling the sold products are written off.
Debit 90.2 Credit 44
170 000 x 0.4167 = 70 839.
- Calculate the cost of sales for shipped products:
100 000 - 70 839 = 29 161 or (170 000 - 100 000) х 0.4167 = 29 169.
Advertising costs
Almost all interested in profit organizations are engaged in advertising their products or activities. Today, there are many different ways to do this:
- place advertisements, advertisements in the media;
- distribution of catalogs with products, booklets;
- sponsoring celebrations, etc.
Also on the account 44 account for the costs of the advertising campaign. The method of writing off such expenses is determined based on the accounting policy of the enterprise:
- It is distributed between the sold products and the finished products stored in the warehouse.
- The costs of advertising in the cost of goods sold are reflected.
Such expenses (advertising expenses) are allowed to be fully taken into account in the cost of products that have already been sold.
Making or purchasing gifts that the firmgives participants of advertising actions during their holding, are normalized. For tax purposes, the amount of such expenses can not exceed 1% of the revenue of the organization (firm) for the reporting period. The standard is valid for all advertising costs not included in the list of standardized costs.
Example
LLC sponsored City Day by payingperformance of well-known artists, listing five hundred thousand rubles. This is considered an advertisement. Therefore, such a contribution is taken into account, respectively. Such costs are normalized.
OOO has recovered for the reporting period 47,200,000 rubles (including VAT 7 million 200 thousand rubles). The standard of advertising expenses is 400 thousand rubles: (47,200,000 - 7,200,000) x 1%.
The amount exceeding the standard is: 500 000 - 400 000 = 100 000 rubles.
Taxable profit LLC can only reduce by 400 thousand rubles.
