Selling expenses are a set of costs incurred by production and agricultural enterprises in connection with the sale of products, works or services. Amounts of selling and administrative expenses include the cost of goods sold. The calculation procedure depends on the method chosen by the enterprise for the formation of the actual price of the product.
General concepts
If we consider the implementation process, then you should definitely pay attention to such concepts as selling expenses, administrative expenses, profit, cost. Without a clear definition of each of them, it is impossible to properly maintain accounting records.
Consider the situation on the example of a manufacturing enterprise. In the manufacturing process, costs are incurred. This is the payment of bills to suppliers, utilities, workers and other costs associated with production. All of these amounts are subsequently included in cost. Selling expenses are distributed by the method specified in accounting policies enterprises.
The concept of profit arises when the goods are sold. The company received payment. If the amount of income from sales is enough to cover all costs associated with the production and sale of products, and in addition its part will remain in the possession of the company, we can talk about profit.
Selling and administrative expenses - characteristic
The process of marketing and bringing the goods to the consumer requires certain efforts and costs. They are, as a rule, the services of transport organizations, payment for storage and packaging of products, advertising campaigns and others. Account 44, collecting information on the commercial expenses of the period, fully characterizes the stages of implementation. Amounts are accumulated in the debit, after which they are debited to other accounts by the method established by the accounting policy of the enterprise.
Management expenses include non-production facilities and personnel. The article is singled out separately only by industrial and agricultural enterprises. Trade-only organizations lead management accounting commercial expenses. Costs also include the cost of production.
Types of business expenses
Costs arising outside production, but directly related to products, can be divided into several categories:
- transport services;
- containers and packaging material;
- commission payments to intermediaries;
- advertising campaigns;
- storage of products;
- other costs associated with the sale of goods;
- management expenses (for trading enterprises).
Thus, selling expenses are the totality of costs incurred after the delivery of finished products to the warehouse and occurring before the sale. Trading enterprises include in this article and expenses of a general economic nature (administrative, managerial).
It should be remembered that not all amounts can be taken into account in part of non-production costs. For example, if the buyer reimburses the cost of packaging or other packaging material according to the contract, the amounts are taken into account in the part of the receivables of buyers (account 62), and not commercial expenses. Any reimbursement agreed upon with the customer shall be recorded in a similar manner.
Delivery costs
The complexity of accounting for transportation costs lies in the fact that you must carefully monitor the terms of the supply contract.There is the concept of ex-place, which is characterized by the point of delivery of goods produced at the expense of the seller. Most often companies use 4 types of transportation:
- shipment at own expense (or the seller’s ex-warehouse) - delivery costs are borne by the buyer;
- ex-wagon of departure - costs are distributed between the buyer and the customer;
- ex-warehouse of the customer - the cost of delivery is fully paid by the supplier;
- ex-wagon of destination - expenses are partially charged from both the customer and the seller.
Other terms of payment for transport services stipulated by the contract may also be applied. It is worth remembering that only those amounts that are paid entirely at the expense of the enterprise can be attributed to the part of commercial expenses. If the buyer plans to reimburse costs, then they do not participate in the formation of the cost and are accounted for on account 62.
Packaging costs
The cost of packaging and packaging materials are included in the actual cost or attributable to selling expenses. The first method is used when the products were packaged in workshops, which is taken into account in terms of production costs. If the company packs the finished goods in the warehouse, the costs of packaging and container material are classified as selling expenses.
Advertising campaigns
Advertising of goods is the main method of information impact on the buyer, which allows to improve the quality of sales. This part of the costs includes payment for any services related to the promotion of products on the market, whether it is printing booklets or window dressing.
The magnitude of the scope of the advertising campaign is regulated by regulations and directly depends on the amount of revenue:
- for income not exceeding 30 million rubles, it is allowed to use 5% of its amount;
- if the company received from sales 30–300 million rubles, then it is possible to use for advertising purposes 1.5 million + 2.5% with an income exceeding 30 million;
- in case of excess of revenue 300 million rubles. maximum advertising costs will amount to 8.25 million p. + 1% of the amount exceeded 300 million p.
You can include advertising costs in selling expenses only if the accounting department has primary documentation confirming the execution of work (services).
Business expenses accounting
According to the recommendations on the use of the standard chart of accounts of the Russian Federation, business expenses are reflected in account 44. This is an active account, the debit of which is credited, and the loan is debited.
On account 44 reflect the costs of commercial organizations involved in both the production of goods and engaged in trading activities. Cost items regarding commercial costs of industrial enterprises have already been considered. We will get acquainted with the possible types of managerial expenses of trade organizations recorded on account 44:
- payment for transport services;
- wage;
- storage costs of goods;
- rent;
- advertising, hospitality expenses.
Expenses of a commercial bank consist of items of economic, managerial and other expenses for the normal functioning of the bank.
Agricultural enterprises account for 44 procurement, operating expenses and maintenance costs for premises, livestock / poultry.
At the end of the month, the accountant relates the debit amounts to the invoice. 44 in the cost of production. Moreover, the distribution can be carried out partially. When keeping records, do not forget that selling expenses are a cost item that is used in calculating income tax. The process requires special care.
Write-off at cost
Amounts of business expenses accumulated during the reporting month are debited to the “Sales” account. Typically, the company does not have time to sell the entire volume of released (procured) products, which leads to the need to distribute the amounts between the goods sold and the balances in the warehouse. The calculation is made in proportion to the established unit cost of production.Detailed rules for allocating business expenses to cost are specified in the accounting policies of the enterprise.
The procedure for writing off amounts to the debit of account 90.2 also depends on the procedure for transferring ownership of the shipped products. If, according to the terms of the contract, the goods after shipment are considered the property right of the buyer, the posting Dt 90.2 Kt 44 can be issued immediately after delivery. In the case when the products are considered sold only after settlement, business expenses cannot be written off until payment is received.
Example of accounting on account 44
Consider the costs of commercial enterprises and the order of their reflection on accounts 44 and 90 for example. Condition specified: In March 2015, the factory incurred the following types of expenses:
- for the delivery of products - 240 thousand rubles;
- for storage of goods - 30 thousand rubles;
- procurement - 15 thousand p .;
- loading - 48 thousand rubles
In total - 333 thousand rubles. The production cost of products sold in March is 1.1 million p., And manufactured - 4.7 million p. The balances of accounts 43 and 44 shall be taken equal to zero.
We write off the amount for selling expenses:
- Dt 90.2 Kt 44 - 288 thousand (240 thousand + 48 thousand) - expenses for loading and delivery of goods that are completely related to the sold products are written off.
- We will distribute the amount of expenses for packaging material and storage between the goods sold and the balances in the warehouse:
- 30 + 15 = 45 thousand p. - total amount of expenses;
- 45 × 1100 ÷ 4700 = 10.532 thousand p. - the amount of expenses attributable to the cost of sales;
- Dt 90.2 Ct 44 - 10.532 p. - written off part of selling expenses.
For accounting goals Enterprises have the right to completely debit the debit amounts of account 44 to account 90.2, without distributing the costs between the products sold and stock balances. But in the data tax accounting it is necessary to indicate strictly those commercial expenses that are associated with the products sold.
Selling expenses - this is the main indicator of the profitability of a production or sales activity, through which you can conduct a qualitative analysis of costs and revenues.
