General production expenses are written off. Accounting for general production and general business 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:

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.
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 production 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:

Dt 25 - Kt 70 - 116,000 rubles - salary of management personnel.
Dt 25 - Kt 69 - 35,264 rubles - insurance premiums accrued.
Dt 25 - Kt 60 - 187,000 rubles - invoice received from utility providers.
Dt 25 - Kt 02 - 27,500 rubles - depreciation of the building is written off as general production expenses.
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 an 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.

Production of products is always associated with certain costs, which subsequently form the cost value. General production expenses combine the amounts necessary to maintain the main and auxiliary production workshops. Costs not directly related to the manufacture of products are classified as general business expenses and are accounted for separately.

Definition

Manufacturing overhead costs are costs directly related to production activities. The main distinguishing feature from direct costs of manufacturing products is that the amounts cannot be attributed to a specific type of product. General production expenses may include costs for:

depreciation deductions;
equipment maintenance;
payment for utility services;
rent of industrial premises;
wages for workers involved in the service process;
other expenses.

Although costs are not directly related to any type of product, they must be taken into account when calculating production costs.

The concept of general expenses

The activities of any enterprise are necessarily connected with the functioning of its various departments. A production workshop cannot operate on its own without management and control employees. The products must then be stored and sold, which requires other personnel and premises. All this leads to the formation of costs that seem to be far from the production process, which are combined into the group of general business expenses.

They may include amounts necessary for:

covering administrative and management expenses;
remuneration for employees employed outside production;
depreciation and repair of general purpose fixed assets;
payment for rent of non-production premises;
covering other expenses of a similar nature.

General business expenses are also written off to the cost of manufactured products in accordance with the rules of the enterprise's accounting policy.

Characteristics of overhead costs

General production and general business expenses are combined into a group of indirect costs that arise in the course of the enterprise's activities. It is difficult to trace the ratio of their amount to types of products and production time, so they are written off by the method of allocating costs in proportion to a given indicator.

General production and general business expenses are taken into account, highlighting separate cost items and departments (shops). This allows you to control the distribution of funds and identify the most expensive objects to maintain and manufacture.

Overhead costs in accounting data

General and general production expenses in total terms are reflected in synthetic accounts 25 and 26. Both accounts do not have a balance at the end of the month, since they serve to collect and distribute the costs of main production. The amounts are written off to account 20, making entries Dt 20 Kt 25/26. Some enterprises (for example, those providing intermediary services) account for all administrative and general business expenses on account 26, without using account 20.

Analytical accounting is also kept for accounts 25 and 26. Sub-accounts are opened for each workshop, as well as for individual items of general business expenses. When filling out, the accountant is based on data from primary documentation and other forms of accounting registers developed by the enterprise. Additionally, statements No. 12 and 15 are maintained to account for general production and general business expenses.

Typical entries for the debit of accounts 25, 26

Accounting for overhead costs includes collecting information about cost items for maintenance, servicing and fulfilling the needs of main and auxiliary production. Using account 26 pursues the same goals, only the amounts of administrative and management expenses are recorded. Over a certain period, the necessary information is collected in the debit of accounts 25 and 26.

In this case, the following postings Dt 25/26 can be made:

Kt 02, 05 – depreciation of fixed assets and intangible assets has been accrued;
Kt 70 – wages accrued to general production (administrative) personnel;
Kt 69 – social benefits accrued. payments to employees involved in servicing workshops (management employees);
Kt 76 - general production (general business) expenses include payment of utility bills;
Kt 10 – materials were sent for the maintenance of production (administrative) facilities.

In addition to the account assignments discussed above, others can be used. The main thing is not to violate the principle of double entry and follow the rule of an active account: credit in debit, write-off in credit.

Loan transactions: write-off of overhead costs

The instructions for using the standard chart of accounts say that collective synthetic accounts 25 and 26 must be closed at the end of the month. This requirement means that all debit amounts are charged to account 20 (or 90 for general expenses). The accountant will record entries like:

DT “Main production” CT “Overhead production expenses” – the amounts of general production expenses incurred for the needs of the main production shops are written off;
Dt “Service production” Kt “Overhead production costs” – the amounts of overhead costs for remuneration of personnel of service production are attributed;

DT “Auxiliary production” CT “General production expenses” – expenses for utility bills for auxiliary production facilities are written off;
DT “Main production” CT “General business expenses” – general business expenses were included in the actual production cost;
Dt “Cost of production” Ct “General expenses” – the amounts of administrative and managerial costs are written off to the cost of production.

Depending on which account the data from the debit turnover of general business expenses is credited to, the full or production cost of the products is formed.

Production cost

Costs arising in connection with the maintenance or maintenance of production facilities can be attributed to the final result in proportion to the amount specified by the accounting policy. The distribution of overhead costs aims to calculate the cost per unit of production at the exit from the workshop, taking into account all the costs of the industrial cycle.

The distribution of general production and general business expenses when using this method occurs in different ways: from account 25 the amounts are written off to the 20th account, and from 26 to 90. Thus, administrative, managerial and other overhead expenses in terms of general business expenses are not included in the production cost, but relate directly to the financial result.

This is one of the methods that can be applied in an enterprise. Production cost indicators allow you to analyze the profitability of a particular workshop and regulate the amount of costs for the production of certain types of products.

Cost and taxation

In order not to create additional registers for tax accounting purposes, it is better to account for overhead costs at the full production cost. The method involves writing off to the debit of account 20 both general production and general business expenses. The accountant’s choice of a method for attributing indirect costs to the cost of products should be based primarily on the provisions of the enterprise’s accounting policy.

General production expenses (account 25) and expenses for general business needs, together with data from account 20, make up the bulk of the cost of manufactured products. The data is used both for the purposes of accounting and analysis of the financial activities of the enterprise, and for tax service data.

Account 25 of accounting is an active account “General production expenses”, intended to reflect the amounts of expenses for servicing the main and auxiliary production of the enterprise. Using standard postings and practical examples for dummies, we will study the specifics of using account 25, the procedure for allocating costs and closing an account.

Like all expense accounts, it is active and has no balance at the end of the reporting period. Expenses on account 25 are indirect, that is, it takes into account costs the cost of which cannot be directly attributed to specific types of products.

The list of expenses collected on account 25 contains the following expenses:

employee salaries;
administrative expenses;
business trips;
insurance premiums;
maintenance of production equipment;
maintenance and repair of buildings, production systems;
maintenance of production facilities;
production losses, etc.

Analytical accounting of overhead costs is broken down by department and cost item.

The account may not be used if the organization has a limited number of items produced. In this case, it is sufficient to use accounts 20 and 23. But for many organizations, the use of indirect costs is more profitable from the point of view of calculating profit.

To calculate the profit, direct and indirect costs are taken. Indirect expenses, including account 25, are written off completely, which reduces income tax.

Amounts on account 25 do not participate in the formation of cost; they are written off to accounts 20, 23 and 29. The write-off methodology and distribution procedure are fixed by the enterprise in its accounting policies.

Subaccounts

Sub-accounts can be opened to the “General production expenses” account:

25.01 — “Maintenance and operation of equipment”;
25.02 — “General shop expenses.”

In this case, the first subaccount takes into account and monitors the implementation of the cost estimate for maintaining and ensuring the operability of the equipment. For construction organizations, this equipment is construction machines and other mechanisms.

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General production (general shop) expenses include the costs of management and maintenance of structural units of the main and auxiliary production.

Cost Allocation

Costs of account 25 are distributed to accounts 20, 23 and 29 by type of product in proportion to the established base. The distribution base for indirect costs is determined in accordance with methodological recommendations developed for various industries.

The choice of distribution methodology from an accounting perspective is selected depending on the reporting purposes. The least labor-intensive method is most often used - the distribution of indirect costs by a common base.

Typical postings for account 25

Postings to account 25 “General production expenses”

Example 1

The Avest company incurred the following expenses in July 2016:

salary of the management staff - 315,000 rubles;
contributions to extra-budgetary funds - 94,500 rubles;
utilities - 98,000 rubles;
depreciation of the industrial building - 31,000 rubles.

The accountant reflects these transactions with postings:

Example 2

Let's consider an example of the distribution of costs of account 25 between workshops.

The KapStroyProekt company has 3 production workshops. The costs of each workshop are directly allocated to specific types of products or distributed among other types of products in proportion to individual types of expenses.

Let’s assume that the enterprise “KapStroyProekt” incurred general production costs for a certain reporting period:

for the maintenance of buildings for general industrial purposes - 180,000 rubles;
for labor protection - 90,000 rubles;
for the salaries of shop managers - 310,000 rubles;
for awards to “excellent production workers” - 120,000 rubles.

The total amount of these costs is distributed among the three workshops in accordance with the direct costs in each workshop. Employees' salaries:

workshop No. 1 - 220,000 rubles;
workshop No. 2 - 400,000 rubles;
workshop No. 3 - 105,000 rubles.

Direct costs by workshop:

workshop No. 1 - 60,000 rubles;
workshop No. 2 - 80,000 rubles;
workshop No. 3 - 40,000 rubles.

In accordance with the accounting policy of the organization, shop expenses are distributed between shops in proportion to the costs incurred:

For the period under review, the total amount of shop expenses was: 180,000 + 90,000 + 310,000 + 120,000 = 700,000 rubles;
Costs for all workshops were: 220,000 + 400,000 + 105,000 + 60,000 + 80,000 + 40,000 = 905,000 rubles.

We calculate the distribution coefficient:

Shop No. 1: (220,000 + 60,000)/905,000* 100 = 31%
Shop No. 2: (400,000 + 80,000)/905,000 * 100 = 53%
Shop No. 3: (105,000 + 40,000)/905,000 * 100 = 16%

We calculate the distribution of overhead costs between workshops:

Workshop No. 1: 700,000 * 31% = 217,000 rubles;
Workshop No. 2: 700,000 * 53% = 371,000 rubles;
Workshop No. 3: 700,000 * 16% = 112,000 rubles.

Closing the 25th account will be reflected by the following transactions:

Conclusion

25 account is quite rarely used in business activities. This account is used as an intermediate link in determining the cost of production. Like all expense accounts, the account is revolving - that is, it has no balances at the end of the period.

From the point of view of economic activity, the allocation of general production costs is justified for industrial enterprises that have a branched structure of main and auxiliary production. All other organizations can get by with 26 counts.

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 General plant 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.. .

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:

Materials, raw materials, spare parts, consumables.
Non-current funds of the enterprise.
Depreciation of equipment and machinery.
Intangible assets.
Remuneration of employees employed in general production workshops.
Deductions from salary.
Expenses for repairs of machinery and equipment.
Maintenance, maintenance, repair of own and rented premises of economic and production nature.
Communal expenses.
OS modernization.
Production tools, inventory, devices, MBP.
Contents of protection.
Maintenance of the production process.
Occupational Safety and Health.
Treatment facilities, environmental protection.
Taxes to budgets of various levels.
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 compiled (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.