General production expenses are written off as other expenses. General production expenses

Every enterprise engaged in production activities is faced with the need for additional costs aimed at increasing the efficiency of the process. Maintaining equipment, machines, premises in a condition suitable for use is a necessity. The larger the scale of the enterprise, the higher its overhead (indirect) costs. To obtain a clear understanding of the amount of costs of this kind, it is necessary to keep records of them separately from the main production ones.

Accounting

Account 25 “General production expenses”, as a rule, is maintained at enterprises of a production nature, but in relation to the balance sheet it is active, intended for generalization and distribution of information, and is closed every calendar month. The debit reflects everything of a general production nature. is intended to write off the calculated amount to the cost of production. 25 account has no balances at the beginning of the period and its end, is not reflected in the final balance sheet, the account turnover must be equal at the end of each reporting period. Analytics is carried out for each type of expense separately.

Expenditures

Depending on the provisions approved in and in accordance with the PBU, each company allocates costs that cannot be fully included in a specific type of product. Such costs are charged to account 25, summed up and distributed by type of manufactured products in proportion to the selected indicator (cost price, payroll, consumption of current assets, etc.). The structure of operational activities is similar to production ones, but their separate accounting and control make it possible to conduct a more in-depth analysis of costs and identify problem areas of the main process. Account 25 summarizes the following types of expenses:

1. Materials, raw materials, spare parts, consumables.
2. Non-current funds of the enterprise.
3. Depreciation of equipment and machinery.
4. Intangible assets.
5. Remuneration of employees employed in general production workshops.
6. Deductions from salary.
7. Expenses for repairs of machinery and equipment.
8. Maintenance, maintenance, repair of own and rented premises of economic and production nature.
9. Communal expenses.
10. OS modernization.
11. Production tools, inventory, devices, MBP.
12. Contents of protection.
13. Maintenance of the production process.
14. Occupational Safety and Health.
15. Treatment facilities, environmental protection.
16. Taxes to budgets of various levels.
17. Other expenses.

Reflection of the amount of costs

25 debit account summarizes all written-off ODA, turnover accumulates during the month, and as a result shows the total monetary value of expenses. In this case, accounting records of the following plan are compiled:

• Dt 25 Kt 02, 05. Depreciation charges for intangible assets and fixed assets have been accrued.
• Dt 25 Kt 10, 16. Materials used for general production (OPR) needs are written off.
• Dt 25 Kt 69, 70. The salaries of the OPD employees have been accrued, and deductions have been made to the funds.
• Dt 25 Kt 60, 76. Services provided by third parties are written off as ODA costs.

Transferring costs to product costs

At the end of each worked month, account 25 must be closed. The amount of expenses in the debit of the account is calculated and written off, i.e., included in the cost of manufactured products. When producing several, overhead costs are divided between them in proportion to the selected coefficient. Accounting (record) entries are prepared (Debit 20 - Credit 25). The amount of debit turnover must be equal to the amount written off on the loan; an account balance of 25 is not allowed. With an automated accounting system, the process of closing accounts 25 and 26 occurs automatically when the “period closing” function is launched. At the preparatory stage, depreciation of equipment and machinery involved in experimental work, operational maintenance, auxiliary production and the main cycle is calculated. Next, the program writes off the account expenses in accordance with the settings. After the closing procedure, it is necessary to check and analyze the account for the presence of balances.

Accounting account 25 “General production expenses” is used to generate costs that are included in the cost of manufactured products/services not directly, but indirectly. What expenses are reflected in this account? How is account 25 closed? Let's look at the wiring using typical examples.

Characteristics of account 25

Account 25 “General production expenses” is intended for the accumulation and subsequent write-off of costs for servicing the main and auxiliary production of the enterprise. The data is summarized for the reporting period with distribution for product output at the end date. What expenses can be attributed to accounting account 25? The list of costs is determined in each organization independently, depending on the specifics of economic activity.

On the account 25 the following types of costs can be taken into account:

• Salaries of support service employees.
• Depreciation charges and expenses for repairs of fixed assets and other objects used in the production process.
• Operation and maintenance of working equipment and machines.
• For insurance of production equipment.
• Utility costs for heating, electricity and other types of costs for maintaining production premises.
• Insurance contributions from the salaries of auxiliary production workers.
• Transportation costs.
• Other similar costs.

Analytical accounting is possible by divisions (departments, workshops) of the organization, types and items of expenses. Costs collected on account 25 are not written off directly to the cost of products, but only through account 20 or, as well as 29.

25 account in accounting is...

It is advisable to use the collecting and distribution 25 accounting account in those manufacturing enterprises whose activities involve the production of a large range of products. In such organizations, the distribution of account 25 is carried out in proportion to the value of the base indicator for the reporting period. In this case, the chosen write-off method must be approved in the accounting policy of the enterprise, taking into account the requirements established in the methodological recommendations for various industries - construction, petrochemical, chemical complex, etc.

If the volume of production is small and, accordingly, there are few objects of calculation, it is allowed not to use the account. 25, and immediately write off costs to account 20 or 23. However, this method is not always reliable for determining the exact cost of production and controlling cost estimates. Therefore, it is recommended to carry out the traditional closing of account 25 - the postings are given below.

Subaccounts to account 25:

• 25.1 “Maintenance and operation of machinery/equipment” – is intended to summarize data on the costs of maintaining the functionality of production equipment.
• 25.2 “General shop expenses” - used to generate information about the maintenance and management of the main and auxiliary production units.

The accounting account in question is classified as active, since the debit of account 25 increases by the actual costs incurred from correspondence from – , 05, 04, , 21, 19, 16, 23, , 29, 69, 70, , 71, 79, 76, , , 96 counts. And the write-off is carried out on the account loan. 25 in correspondence with expense accounts - 20, 28, 29, 23, 79, 76, 99, 97.

How to close account 25

Closing account 25 (postings in our example) is most often done in proportion to the direct costs of wages for employees involved in the main production. In addition, it is possible to use revenue or direct material costs as a base indicator. The choice of the optimal method is carried out by the enterprise independently; it is necessary to consolidate the methodology in the accounting policy.

Postings to account 25: example

Let’s assume that for May, the organization’s accountant attributed the following types of costs to account 25:

• D 25 K 70 – 200,000 rub. for staff salaries.
• D 25 K 69 – 61,600 rub. for insurance premiums.
• D 25 K 02 – 50,000 rub. for depreciation of fixed assets.
• D 25 K 60 – 70,000 rub. for utility costs.

Total: 381,600 rub.

At the same time, the organization has 2 production workshops. How to close account 25? The basis is taken as the salary of the main workers in the amount of 700,000 rubles, where

• Workshop 1 – 330,000 rub.
• Workshop 2 – 370,000 rub.

Account distribution 25 done like this:

• Workshop 1 – 179,897 rub. = 381,600 / 700,000 x 330,000 rub.
• Workshop 2 – RUB 201,703. = 381,600 / 700,000 x 370,000 rub.

Conclusion - in this article we learned how to close account 25 and whether it is possible to conduct accounting without using it. When choosing a base indicator, remember that in general you should focus on the industry specifics of Russian enterprises and the accounting policies of each company separately.

The profitability of any economic entity depends on the correct reflection and accounting of costs. Their optimization, control, and distribution affect the cost of goods (services) and reduce the risks of sanctions from tax authorities. At the initial stage of activity, each company plans and forms a list of costs necessary to implement production processes. An important aspect reflected in the accounting policy is the methods of distribution of general production and

Cost classification

The pricing policy of an enterprise takes into account the market situation regarding a certain type of goods, services or work, while the cost is regulated due to the amount of invested profit or the redistribution of business expenses. Production costs are a constant value that is the sum of actual cost indicators. The selling price (of work, services, goods) includes cost, commercial expenses and the amount of profit.

Each organization creates provisions in its accounting policies that regulate the accounting of expenses, methods of their distribution and write-off. Accounting regulations (Tax Code, PBU) recommend a list and classification of costs included in the cost price. The consumption rate of each item is established by the internal documents of the enterprise. Costs are systematized according to various criteria: by economic content, by time of occurrence, by composition, by the method of inclusion in the cost, etc. To formulate calculations, all costs are divided into indirect and direct. The principle of inclusion in the cost depends on the number of types of products manufactured by the company or services provided. Methods for distributing direct costs (salaries, raw materials, depreciation of capital equipment) and indirect (expertise and maintenance work) are determined in accordance with regulatory documents and internal regulations of the company. It is necessary to dwell in more detail on general and general production expenses, which are included in the cost by the distribution method.

ODA: composition, definition

With a branched production structure aimed at producing several units of products (services, works), the enterprise incurs additional costs that are not directly related to the main type of activity. At the same time, accounting for expenses of this type must be kept and included in the cost price. The structure of the ODA is as follows:

Depreciation, repair, operation of equipment, machinery, intangible assets for production purposes;

Contributions to funds (FSS, Pension Fund) and wages of personnel servicing the production process;

Utility costs (electricity, heat, water, gas);

Other expenses related directly to the production process and its management (write-off of used equipment, equipment, travel expenses, rent of space, services of third-party organizations, provision of safe working conditions, maintenance of auxiliary units: laboratories, services, departments, leasing payments). Production costs are costs associated with the process of managing the main, service and auxiliary departments; they are included in the cost price as general production costs.

Accounting

Methods for distributing general production and general business expenses are based on the total value of these indicators accumulated during the reporting period. To summarize information on ODA, the chart of accounts provides for a cumulative register No. 25. Its characteristics: active, collectively distributive, has no balance at the beginning of the month and the end (unless otherwise provided by the accounting policy), analytical accounting is maintained by divisions (shops, departments) or types of products. During a certain period, information on actual expenses incurred is accumulated in the debit of account 25. Typical correspondence includes the following operations.

• Dt 25 Kt 02, 05 - the accrued amount of depreciation of fixed assets and intangible assets is allocated to OPR.
• Dt 25 Kt 21, 10, 41 - goods of own production, materials, inventory are written off as production expenses.
• Dt 25 Kt 70, 69 - salary accrued to the personnel of the operational development department, deductions were made to extra-budgetary funds.
• Dt 25 Kt 76, 84, 60 - invoices issued by counterparties for services rendered, work performed are included in general production expenses, the amount of shortfalls identified based on the results of the inventory is written off.
• The debit turnover of account 25 is equal to the amount of actual expenses, which at the end of each reporting period are written off to the calculation accounts (23, 29, 20). In this case, the following accounting entry is made: Dt 29, 23, 20 Kt 25 - accumulated expenses are written off for auxiliary, main or servicing production.

Distribution

The amount of overhead costs can significantly increase the cost of manufactured products, work performed, and services provided. At large industrial enterprises, pilot projects are planned and the concept of “consumption rate” is introduced; deviations of this indicator are carefully studied by the analytical department. In organizations engaged in the creation of one type of product, methods for distributing general production and general business expenses are not developed; the sum of all costs is fully included in the cost price. The presence of several production processes implies the need to include all types of costs in the calculation of each of them. The distribution of general production costs can occur in several ways:

1. Proportional to the selected basic indicator, which optimally corresponds to the combination of ODA and the volume of output (volume of goods produced, wage funds, consumption of raw materials or supplies).
2. Maintaining separate accounting of ODA for each type of product (costs are reflected in analytical sub-accounts opened to register No. 25).

In any option, methods for distributing indirect costs must be enshrined in the accounting policies of the enterprise and not contradict regulations (PBU 10/99).

OCR, composition, definition

Administrative and economic costs are a significant factor in the cost of goods, work, products, and services. General business expenses are a total reflection of management costs, they include:

Contributions to social funds and remuneration of management personnel;

Communication and Internet services, security, postal, consulting, audit expenses;

Depreciation charges for non-production facilities;

Office, utility bills, information services;

Expenses for personnel training and compliance with industrial safety rules;

Other similar costs.

The maintenance of the management apparatus is necessary for the implementation of production processes and further marketing of products, but the high proportion of this type of expense requires constant accounting and control. For large organizations, the use of the standard method of calculating operational and technical expenses is unacceptable, since many types of administrative expenses are variable in nature or, in case of a one-time payment, are transferred to the cost of production in stages, over a certain period.

Accounting

Account No. 26 is intended to collect information about the company. Its characteristics: active, synthetic, collecting and distributing. Closes monthly at 46.23, 29, 90, 97, depending on what methods of distribution of general production and general business expenses are adopted by the internal regulatory documents of the enterprise. Analytical accounting can be carried out in the context of divisions (departments) or types of products (work performed, services provided). Typical account transactions:

• Dt 26 Kt 41, 21, 10 - the cost of materials, goods and semi-finished products is written off for maintenance.
• Dt 26 Kt 69, 70 - reflects the calculation of wages for administrative and economic personnel.
• Dt 26 Kt 60, 76, 71 - general business expenses include services of third-party organizations paid to suppliers or through accountable persons.
• Dt 26 Kt 02, 05 - depreciation of non-production objects, intangible assets and fixed assets was accrued.

Direct cash costs (50, 52.51) are usually not taken into account as part of the OCR. An exception may be the accrual of interest on loans and borrowings, and this accrual method must be specified in the accounting policy of the enterprise.

Write-off

All general business expenses are collected in monetary terms as a debit turnover of account 26. When closing a period, they are written off to the main, servicing or auxiliary production, may be included in the cost of goods to be sold, charged to future expenses, or partially allocated to the enterprise's loss. In accounting, this process is reflected by the following entries:

• Dt 20, 29, 23 Kt 26 - OCR included in the cost of production of the main, service and auxiliary production.
• Dt 44, 90/2 Kt 26 - general business expenses are written off in trading enterprises, to the financial result.

Distribution

General business expenses in most cases are written off similarly to general production expenses, i.e., in proportion to the selected base. If this is of a long-term nature, then it is more appropriate to attribute them to future periods. Write-offs will occur in certain parts attributable to cost. Conditionally variable general business expenses can be attributed to or included in the price of goods produced (in trading enterprises or those providing services). The method of distribution is regulated by internal documents.

1C

Currently, accounting for general production and general economic costs is carried out in accounting databases and programs of the 1C group. Distribution methods are regulated by special settings. When calculating the cost of experimental work and industrial maintenance, it is necessary to check the boxes opposite the approved base in the “production” tab. When writing off as deferred expenses, it is necessary to establish the period and amount. To include costs in the financial result, fill in the appropriate tab. When the “period closing” function is launched, general production and general business expenses accumulated in registers 25 and 26 are automatically written off to the debit of the specified accounts. This process forms the cost of the finished product.

Account 25 “General production expenses” is intended to summarize information on the costs of servicing the main and auxiliary production of the organization. In particular, the following expenses may be reflected on this account: for the maintenance and operation of machinery and equipment; depreciation charges and costs for repairs of fixed assets and other property used in production; expenses for insurance of the specified property; costs for heating, lighting and maintenance of premises; rent for premises, machinery, equipment, etc., used in production; remuneration of workers engaged in production maintenance; other expenses similar in purpose.

General production expenses are reflected on account 25 "Overhead production expenses" from the credit of accounts for inventory accounting, settlements with employees for wages, etc. Expenses recorded on account 25 "Overhead production expenses" are written off as a debit 20 accounts“Main production”, “Auxiliary production”, “Service production and farms”.

Analytical accounting for account 25 “General production expenses” is carried out for individual divisions of the organization and expense items.

Account 25 "General production expenses"
corresponds with accounts

by debit

on loan

02 Depreciation of fixed assets 04 Intangible assets 05 Amortization of intangible assets 10 Materials 16 Deviation in the cost of material assets 19 Value added tax on acquired assets 21 Semi-finished products of own production 23 Auxiliary 29 Attendants 43 Finished products 60 Payments to suppliers and 69 Calculations for social 70 Settlements with personnel for 71 Settlements with accountables 76 Calculations with different 79 On-farm 94 Shortages and losses from 96 Reserves for upcoming 97 Deferred expenses

10 Materials 20 Main production 23 Auxiliary productions 28 Defects in production 29 Service industries and farms 76 Settlements with various debtors and creditors 79 On-farm settlements 97 Deferred expenses 99 Profits and losses of production production and economy contractors insurance and ensuring payment of labor to persons debtors and creditors calculations of damage to valuables expenses

Application of the chart of accounts: account 25

• The procedure for accounting for expenses for setting up an accounting program

  For reporting periods, the Chart of Accounts is assigned to account 97 “Expenses for future periods”. ... expenses are reflected in the debit of cost accounting accounts (20 “Main production”, 25 ... “General production expenses” ..., 26 “General business expenses”, 44 “Expenses on ... agreements”). These expenses also include the costs of acquiring exclusive rights...

The account for accounting general production expenses, closing it partly for the expenses of the main production, and partly for the account ... - water costs (account 25) - 2 million rubles, administrative and general expenses (account 26) - ... 5,000,000 Factory general expenses are shown expenses 25 10, 69, 70, 02 ... 25 1,600,000 Part of the factory overhead costs added to general business expenses 26 25 ... 5,000,000 Factory overhead expenses are shown 25 10, 69, 70, 02 ... cost price 20 25 1,600 000 Part of the plant's general expenses was written off separately...

• Does it make sense to divide costs into variable and fixed?

  Transport and indirect expenses) The amount of fixed expenses for a certain time... on complex accounts (cost items): 25 “General production expenses”, 26 “General business expenses”, 29 “... Production and household maintenance”, 44 “Expenses.. - variable cost and shop expenses; in proportion to the special distribution coefficients... we will show the result of the distribution of expenses. Variable expenses are distributed based on...

• Tax accounting of government agencies in 1C since 2017.

  In accordance with Ch. 25 Tax Code of the Russian Federation. If correctly... performed works, services). Overhead expenses or general production costs are costs that... credit the corresponding accounts for analytical accounting of accounts 010980000 “General business expenses”, as well as... in accordance with the norms of Ch. 25 of the Tax Code of the Russian Federation for the purpose... “General”. The procedure for distributing general production and general business costs is established in ... "using the checkboxes "Distribute general production costs", "Distribute general business costs" ...

• New plan for the implementation of technical means for conducting operational operations

  This type of equipment** 23, 25 02 * Expenses incurred for setting up operating technical... one of the specified accounting accounts: auxiliary costs or general production expenses (depending... on the accounting system). Using the main expense account... the correspondence of the accounts will be as follows: Contents of the transaction Debit Credit Expenses are reflected under... an agreement with a partner for the technical means provided by him 23, 25 ...

• Redemption of leased property: acceptance for accounting

  Should have been listed on off-balance sheet account 001 “Leased fixed assets... are drawn up correctly and the organization is presented with an invoice, the “input” tax is accepted... the cost of materials is written off to the accounts of the corresponding costs for... “Main production”, 25 “ General production expenses" or 26 "General operating expenses" 10-6 "...attribute the cost of the material to account 97 "Deferred expenses" (clause ... (according to an additionally entered off-balance sheet account) in order to ensure control...

Can reduce the number of synthetic accounts in the work plan it accepts... 23 “Auxiliary production”, 25 “Overall production expenses”, 26 “General business... ;Sales expenses”; to account for finished products and goods, account... banks account 51 "Settlement accounts" (instead of accounts 51 "Settlement accounts", 52 "Currency accounts... accounts 90 "Sales", 91 "Other income and expenses.. .

At production enterprises, among the cost accounts, the 25th is intended to summarize information on expenses for auxiliary and main production.

Classification of enterprise costs

All expenses that make up the total costs of the enterprise and form the total cost of production are divided into 2 types:

1. Direct are directly related to product output. These include costs for purchased raw materials, materials, employee wages and others related to specific products and work.
2. Indirect costs are not directly associated with specific types of products or services. Such costs are distributed among the cost of manufactured products (services provided).

The composition of direct expenses is determined by the taxpayer independently in accordance with the established accounting policy of the organization. Refers to costs in the current period as products are sold or services are provided.

Indirect costs are subsequently distributed between the main, auxiliary and service industries, depending on the specifics of the enterprise's activities.

Account 25 in accounting: its purpose

General information on servicing the main and auxiliary production is collected on account 25. Based on the results of the reporting period, the account is closed.

Account 25 can be called a collective and distribution account. Includes expenses for their subsequent redistribution. The account is actively used in manufacturing organizations engaged in production.

The list of costs that are collected on account 25 is quite extensive. Depends on the direction of production activity. Typically this includes the costs of wages, electricity and other utility bills, and payment for other services.

Production costs 25 accounts

Expenses	Examples of costs	Sources of costs
General production	Employee salaries, management expenses, travel allowances, contributions to extra-budgetary funds	70, 69, 76
Production	Salaries of the management staff, maintenance and repair of buildings, insurance transfers	70, 69, 02, 10, 60
Non-productive	Production losses, damage to goods and products	94

Under some circumstances, the use of 25 accounts is abandoned. This happens in situations where there are few types of products. Costs can be collected immediately directly on account 20 and 23.

However, in most cases, the formation of indirect costs is inevitable. In addition, it is not always economically profitable to take into account only direct expenses, thereby overestimating the tax base of the enterprise. Large enterprises cannot avoid the presence of indirect costs in accounting.

Definition of account 25 in accounting

Indirect costs 25 accounts do not directly participate in the formation of the final cost of production. Written off by distribution to 20, 23 or 29 accounts. The principles and methods of these actions should be fixed in the accounting policies.

The sources of cost formation in account 25 are accrued wages, contributions to extra-budgetary funds, depreciation of equipment, supplier services, travel expenses and other costs.

Example. The salary of the management staff for the quarter amounted to 116,000 rubles, contributions to funds - 35,264 rubles. Costs for electricity and other utility bills amounted to 187,000 rubles. Depreciation of the industrial building amounted to 27,500 rubles. Based on the results, the following entries will be generated in accounting:

1. Dt 25 - Kt 70 - 116,000 rubles - salary of management personnel.
2. Dt 25 - Kt 69 - 35,264 rubles - insurance premiums accrued.
3. Dt 25 - Kt 60 - 187,000 rubles - invoice received from utility providers.
4. Dt 25 - Kt 02 - 27,500 rubles - depreciation of the building is written off as general production expenses.
5. Dt 20 - Kt 25 - 365,754 rubles - general production expenses involved in the formation of the cost of manufactured products are written off.

Composition of expenses in tax accounting

To calculate profit, both direct and indirect costs are taken into account if the current accounting policy allows the use of the accrual method.

Indirect expenses, including those accumulated on account 25, are written off in full, reducing the profit from income received, sales of goods and services.

The taxpayer has the right to offset direct expenses not in full, but only in part of the costs included in the cost of products sold. That is, expenses that can be attributed to work in progress should not be attributed to the remaining products in the warehouse as expenses of the current period.

The requirements of the Tax Code do not contain direct instructions regarding the classification of direct and indirect costs. However, the process of allocating costs must be economically justified. Indirect ones, accumulating on account 25, should be formed only if it is not possible to attribute them directly to any type of product.

Traditionally, direct costs include the following:

• material costs aimed at purchasing raw materials for production;
• purchase of components and other semi-finished products;
• remuneration of employees directly involved in the production process, accrued contributions to extra-budgetary funds in favor of the specified personnel;
• depreciation of property related to the production process.

The list of expenses that are classified as direct is not closed. The organization has the right to create a more detailed list of costs independently.

In order to avoid subsequent claims from control authorities, it makes sense to prescribe economically sound principles in the current accounting policy of the enterprise. In this case, inspectors will have no reason to recognize indirect costs as direct, thereby increasing the tax base.

Indirect costs are directly involved in reducing the profit level of the enterprise, reducing the costs of the unshipped part of the product or work in progress.

However, the desire to classify as many costs as possible as indirect must be exercised with caution. In fact, this right to accept all costs as indirect is given only to organizations providing services.

If the enterprise had no income in the reporting period, it does not have the right to take into account the indirect expenses that arose when determining the tax base, according to the tax authorities. If the management of an organization makes a different decision, it may entail the need to defend its point of view in court.