Expenses is the decrease in the economic benefits of the enterprise as a result of the disposal of assets or some liabilities that reduce the capital of the organization. In this way, costs differ from costs that do not reduce the size of the enterprise's capital and do not affect profits.
General business expenses recorded on account 26 are written off in pursuance of the "Instructions for the application of the Chart of Accounts" in one of the following options:
- to account 90 "Sales" (sales accounting) in the manner determined by the company, as conditionally fixed costs;
- to the debit of cost accounting accounts (account 29 - if the service organization performed services for other enterprises, accounts 23, 20 - if auxiliary production carried out products of work and provided services for other organizations).
The accounting policy established options for writing off expenses accounted for on account 26, and also determined the procedure for their distribution between calculation objects.
When writing off the costs of auxiliary production, it should be taken into account that they should be written off to the costs of service production.
Writing off the costs of service production (account 29) can be carried out in the following areas:
- at the expense of accounting for the costs of objects-consumers of services and work performed by the service production;
- at the expense of accounting for finished products and material values produced by the service production;
- to the account of sales accounting for the sale of products (services, works) to other enterprises and persons.
Costs that do not generate assets are expensed. Non-capital costs can be written off to the “Other expenses” account (91), or to the “Sales” account 90. Capital, which are reflected in the account "Investments in non-current assets" (08), but, as not yielding results, are recognized as non-operating expenses and are accounted for on account 91.
The write-off of expenses is established by the "Instructions for the Application of the Chart of Accounts", taking into account the developed "Methodological recommendations on the procedure for checking the correctness of accounting by organizations for tax purposes of expenses related to the maintenance of non-production facilities", published in the letter of the Ministry of Taxes and Tax Collection of Russia dated 07.02.01 No. VG-06-02 / 115.
