In accordance with the legislation in the field of accounting, the method of distribution of general business (overhead) costs between certain types of products, i.e. by type of activity, is chosen by the enterprise independently. Often, this takes into account the industry affiliation and the specifics of the organization's activities.
Instructions
Step 1
Please note that the distribution of general business expenses included in the cost of production can be carried out in proportion to the amount of direct costs for its production or in accordance with the wages of workers employed in the main production.
Step 2
However, keep in mind that when carrying out activities for which the income tax rate differs from the rate established for the main activity, a special procedure for the distribution of general business expenses has been established. In this case, general business expenses should be allocated in proportion to the amount of revenue received from each type of activity, in the total amount of revenue, regardless of the accounting policy adopted by the enterprise. For the correct calculation of income tax at different rates, you need to keep separate records for these types of activities.
Step 3
Thus, if your organization carries out these types of activities, but the policy provides for a different procedure for the distribution of general business expenses, then their distribution should be reflected in the accounting accounts in accordance with the policy taken into account, and for tax purposes, an internal special calculation should be drawn up. In it, expenses are distributed in proportion to the proceeds received.
Step 4
True, in this case, you will have to form the cost of production twice: once for accounting purposes, and the second for tax accounting purposes. In this connection, in the accounting policy, it is better to immediately provide for the procedure according to which the distribution of general business expenses is carried out in proportion to the volume of proceeds, if this does not contradict the industry specifics. But, on the other hand, if your organization initially distributes general business expenses in proportion to revenue, contrary to the requirements of the accounted policy, this will not lead to the imposition of penalties on it and will not entail other adverse consequences.
Step 5
At the same time, keep in mind that it is still necessary to calculate the cost of production when distributing general business expenses in accordance with the accounting policy. This will make it possible to find out whether the enterprise has had any cases of selling products at a price lower than the cost price. Based on this, decide whether it is necessary to submit to the tax office additional calculations of the amount of revenue, income tax and VAT, based on market prices.
