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How are the packages sold with the products handled financially?

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Our company sells a batch of goods, and the packaging is sold with the products. How should my company keep accounts?

China. Happy Smurfs reply: first of all, when receiving packaging, debit “production cost” and credit “revolving materials – packaging”. When selling, it is generally divided into two situations: (1) the packaging sold with the product but not priced separately is recorded as: Debit: sales expense credit: revolving materials – packaging; (2) the packaging sold with the product but priced separately, Entries are: Debit: other business cost credit: revolving materials – packaging debit: bank deposit credit: other business income

there are two situations:
(1) packages sold with goods that are not separately priced are included in the “sales expense” — debit: sales expense credit: revolving materials
(2) separately priced packages sold with goods are included in other business costs – Debit: other business costs, credit: revolving materials

1. How to tax the packages sold with the products
(1) consumption tax
taxable consumer goods sold together with packaging, regardless of whether the packaging is priced separately or how it is calculated financially, shall be included in the sales of taxable consumer goods for consumption tax

(2) value added tax
the taxable sales amount of value-added tax refers to all the prices and extra price expenses charged by taxpayers for taxable sales. Therefore, the packages sold with the products are included in the sales volume and subject to value-added tax

(3) enterprise income tax
when an enterprise sells goods together with packaging, it shall be subject to enterprise income tax as a part of sales revenue

2. Sales expenses
sales expenses refer to various expenses incurred in the process of selling goods and materials and providing labor services

the main accounting treatment of sales expenses:
(1) the packaging fees, insurance fees, exhibition fees, advertising fees, transportation fees, handling fees and other expenses incurred by the enterprise in the process of selling goods are debited to this account and credited to “cash” and “bank deposit”

(2) the operating expenses such as employee compensation and business expenses of the sales organization specially set up for the sale of the enterprise’s goods incurred by the enterprise are debited to this account and credited to “employee compensation payable”, “bank deposit”, “accumulated depreciation” and other accounts

at the end of the period, the balance of this account should be transferred to the “profit of this year” account. After carrying forward, there should be no balance in this account

3. Other business costs

other business costs refer to the expenses incurred in other daily business activities other than the main business activities recognized by the enterprise. The amortization amount of intangible assets includes the cost of selling or renting fixed assets, the amortization amount of other fixed assets, and the cost of renting fixed assets. If the cost model is adopted to measure the investment real estate, the depreciation or amortization of the investment real estate also constitutes other business costs

an enterprise should set up an “other business cost” account to calculate the expenses incurred in other daily business activities other than the main business activities recognized by the enterprise. Other business costs incurred by the enterprise shall be debited to this account and credited to “raw materials”, “revolving materials”, “accumulated depreciation”, “accumulated amortization”, “employee compensation payable”, “bank deposit” and other accounts

the “other business cost” account performs detailed accounting according to the type of other business cost. At the end of the period, the balance of the “other business cost” account is transferred to the “profit of this year” account. After carrying forward, the “other business cost” account has no balance

just convert the packaging into the cost

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