26 account general business expenses. Collection and distribution accounts. The procedure for distributing general business expenses

Account 26 “General business expenses” is used by organizations to systematize and accumulate costs non-productive nature, which are impossible to do without without significant losses for the business. These are expenses that are designed to ensure the productivity of management processes.

Characteristics of account 26

The expenses recorded in this account do not have a direct impact on the formation of the cost of goods produced or services provided. But there is a factor of indirect impact on final product prices due to the need to redistribute costs. Account 26 "General" production costs» is intended to reflect amounts for:

• remuneration of administrative workers;
• rental of general utility premises;
• taxes and contributions transferred to the budget;
• information, consulting and audit services;
• providing all necessary business units.

The 26th account in the accounting department includes expenses for:

• maintaining non-production equipment in working order;
• retraining and retraining of employees belonging to the category of non-working specialties;
• accrued depreciation for objects involved in production management.

The main document regulating the 26th account accounting and operations on it, - PBU 10/99. Its provisions regulate the rules for monthly write-off and attribution of general business expenses to cost. Each enterprise has a choice of how to distribute the amounts written off. The adopted methodology should be fixed in accounting policy organizations.

Account 26 in accounting is classified as active, that is, the accumulation of expenses on it is carried out in debit. Loan costs are written off at the end of the month. It is important that at the end of the month the account has a zero balance. Maintaining analytical records is carried out in the context of departments, the needs of which were directed cash flows, and cost items. Account 26, for which there are no subaccounts, is carried out in analytics using subaccounts.

General business expenses are characterized by the use of a full or partial journal-order form. In the latter option, it is enough to maintain journal order 5 for the purposes of synthetic and analytical accounting. In the full form, the analytics are taken into account in statement 15, and synthetic accounting is reflected in the order journal 10.

Account 26 “General business expenses”: examples of postings

Examples of typical transactions involving general business expenses:

1. Reflection of the accrued amount of depreciation for general-purpose equipment Dt 26 - Kt 02.
2. Write-off of inventory items or household equipment for the needs of business units - account 26 for debit and account 10 for credit.
3. Calculation of remuneration for administrative personnel Dt 26 - Kt 70 with reflection of insurance premiums Dt 26 - Kt 69.
4. To reflect amounts accounts payable, arising before suppliers, invoice. 26 is recorded in correspondence with Kt 60.
5. Posting tax accruals – Dt 26 and Kt 68.
6. Costs allocated to future periods are written off to Dt 26 from Kt 97.

When closing the month, there are two options for making transactions to reset the account. 26 “General business expenses”. The first method involves the proportional distribution of the total amount between types of production.

Example

Based on the results of May 2017, Eleftheria LLC incurred production expenses totaling 700,000 rubles, including:

• 300,000 rubles relate to direct costs of main production;
• 400,000 rubles are credited to auxiliary production.

The amount of general business expenses for the month amounted to 350,000 rubles.

When closing account 26 at the end of the month, it is allocated to production expenses, about which entries are made:

1. General business expenses have been taken into account in full - Dt 26 Kt 70 (69, 10, 60, 02) - 350,000 rubles.
2. Transfer of general business costs to main production – Dt 20 Kt 26 – 150,000 rubles (300,000/700,000*350,000).
3. Transfer of general business costs to auxiliary production – Dt 23 Kt 26 – 200,000 rubles (400,000/700,000*350,000).

But accounting account 26 can be closed with one entry Dt 90 Kt 26, including expenses directly in the cost of production.

Accounting account 26 is general business expenses or indirect costs, is used in almost every enterprise, with the exception of state budget and credit organizations. In this article we will look at the main nuances of this account, its properties, typical transactions and examples of use in accounting.

Determination of general business expenses

General business expenses include all costs for administrative needs that are not directly related to production, provision of services or performance of work, but relate to the main type of activity.

The list of general business expenses depends on the profile of the organization and is not closed, according to the recommendations for using the chart of accounts.

The main general operating costs can be identified:

1. Administrative and management expenses

• Business trips;
• Salaries of administration, accounting, management personnel, marketing, etc.;
• Entertainment expenses;
• Security, communication services;
• Consultations of third-party specialists (IT, auditors, etc.);
• Postal services and office.

1. Repair and depreciation non-production fixed assets;
2. Rent of non-industrial premises;
3. Budget payments (taxes, fines, penalties);
4. Others:

Organizations not related to production (dealers, agents, etc.) collect all costs on account 26 and subsequently write them off to the sales account (account 90).

Important! Trade organizations may not use account 26, but assign all expenses to account 44 “Sales expenses”.

Main properties of account 26

Let's consider the main properties of account 26 “General business expenses”:

1. Refers to active accounts, therefore, it cannot have a negative result (credit balance);
2. Is transaction account and does not appear on the balance sheet. At the end of each reporting period it must be closed (there should be no balance at the end of the month);
3. Analytical accounting is carried out according to cost items (budget items), place of origin (divisions) and other characteristics.

Typical wiring

Account 26 “General business expenses” corresponds with the following accounts:

Table 1. By debit of account 26:

Table 2. For the credit of account 26:

Closing 26 accounts

Closing account 26, that is, writing off all general business expenses, is performed in several ways:

1. Included in the cost of production through production accounts if products are produced;
2. Referred to as cost of sales when providing services or work;
3. Referred to the current expenses of the reporting month using the direct costing method:

Important! The write-off method, as well as the basis for the distribution of general business expenses, must be fixed in the accounting policies of the organization.

Write-off as part of the cost of production

In this case, general business expenses are written off in shares, taking into account the distribution base, into production accounts and may remain on product cost accounts (for example, when producing products under account 43 “Finished Products”) or production accounts (for example, unfinished production under account 20 “Main production”) at the end of the reporting period.

Main types of cost distribution bases:

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• Revenue
• Product output volume
• Planned cost of production
• Material costs
• Direct costs
• Salary and so on

When closing the month, the following transactions are generated, for example:

General business expenses are distributed to the cost of production (production accounts) according to the specified distribution and analytical accounting base:

Therefore, general business expenses are written off:

• In full - if one product is produced (no analytics);
• Distributed across all types of products in proportion to the selected base - if several types of products are produced and calculated in the context of analytics.

Example

LLC "Horns and Hooves" produces hats and shoes, which are produced according to planned cost. In an organization, direct expenses are reflected in account 20 “Main production”, and indirect expenses in account 26 “General business expenses”.

• The distribution base is material costs.

In November 2016, direct expenses amounted to RUB 51,040.00:

• For headwear – RUB 28,020.00. of them:
• Material costs – RUB 15,000.00.
• For the production of shoes - RUB 23,020.00. of them:
• Material costs – RUB 10,000.00.

indirect costs– 18,020 rub.

• 3/p administrative staff – RUB 10,000.00.
• Insurance premiums – RUB 3,020.00.
• Premises rental – RUB 5,000.00.

According to the distribution base for material costs:

Postings when closing account 26

Important! Also in the accounting policy, you can indicate non-distributable general business expenses, which will be written off immediately to current expenses in Account 90.08.

Write-off to cost of sales

If the accounting policy specifies the write-off method “to cost of sales,” then the following transactions are taken into account when closing the period:

In this case, costs can also be taken into account in terms of analytics.

Write-off using direct costing method

If the accounting policy specifies the “direct costing” write-off method, then general business expenses are taken into account as semi-fixed and when closing the period they are reflected in the following entries:

In this case, the amount of costs is written off in full in each reporting period.

Examples of using account 26 “General business expenses”

Let's look at the above postings using examples.

Example 1. Closing an account for the cost of production at the planned cost, one type of product

LLC "Horns and Hooves" produces products, the production of which is carried out at a planned cost. In an organization, direct expenses are reflected in account 20 “Main production”, and indirect expenses in account 26 “General business expenses”.

The accounting policy states:

• General business expenses are written off against the cost of production.
• The distribution base is the planned cost.

• 3/p production workers– 20,000.00 rub.
• Insurance premiums – RUB 6,040.00.

Important! If PBU is used, and general business expenses in tax accounting are taken into account as indirect expenses (established in the accounting policy), then temporary differences (TD) also arise:

Example 2. Closing an account for the cost of sales when providing services

Horns and Hooves LLC provides security services. General business expenses are written off immediately to the cost of security services.

In November 2016, general business expenses amounted to RUB 23,020.

• 3/p personnel – RUB 10,000.00;
• Insurance premiums – RUB 3,020.00;
• Premises rental – RUB 10,000.00:

Example 3. Closing an account using the direct costing method

Horns and Hooves LLC produces products. In an organization, direct expenses are reflected in account 20 “Main production”, and indirect expenses in account 26 “General business expenses”.

The accounting policy states:

• General business expenses are written off using the direct costing method.

In November 2016, direct expenses amounted to RUB 88,040:

• 3/p production employees – RUB 20,000.00;
• Insurance premiums – 6,040.00 rubles;
• Material costs – RUB 62,000.00.

Indirect costs – RUB 13,020:

• 3/p administrative personnel – 10,000.00 rubles;
• Insurance premiums – RUB 3,020.00:

In accounting, account 25 “General production expenses” is intended to summarize information on the costs of servicing (managing) the main and auxiliary production of an organization. The following expenses may be reflected in this account:

– on the maintenance and operation of machinery and equipment of the unit;
– depreciation deductions and costs for repairs of fixed assets and other property used in production;
– expenses for insurance of the specified property;
– costs of heating, lighting and maintenance of premises;
– rent for premises, machinery, equipment used in production;
– remuneration of workers engaged in production maintenance;
– other expenses similar in purpose.

Depending on the accounting option used at the enterprise, account 25 is maintained either in each structural unit separately (with a decentralized accounting method, when the unit is placed on a separate balance sheet), or in the context of each structure using sub-accounts or analytical accounting codes (with centralized or mixed method). In the latter case, based on the production focus of a particular division, the costs collected under this structure are written off to accounts 20, 23.

Information on expenses for the management needs of the enterprise as a whole, not directly related to production process and not related to structural divisions, collected on account 26 “General business expenses”. The following costs may be reflected in this account:

– administrative and management expenses;
– maintenance of general business personnel not related to the production process;
– depreciation charges and expenses for repairs of fixed assets for management and general economic purposes;
– rent for general business premises;
– costs of paying for information, auditing, consulting, etc. similar services;
– other administrative expenses similar in purpose.

General business expenses can be written off both to accounts for recording production costs (account 20, 23) and to accounts for accounting for product sales, that is, to account 90 “Sales”.

When using the first option, the enterprise forms the production (and taking into account commercial expenses, or sales costs, the full) cost of manufactured products for its individual types (orders, redistributions).

To do this, in the accounting policy it is necessary to determine the basis for the distribution of general business costs on accounts 20, 23, 29, and within them (if necessary) by type of product. Depending on the industry and type of activity, such a base (indicator) may be revenue from sales of products (works, services), personnel wage fund, indicators of commodity output in physical terms, or the amount of direct costs.

Let's look at the most common options using examples.

How to distribute general business expenses in proportion to direct costs?

The main production units of Prommash CJSC include the forging and stamping shops, and the motor transport shop is listed as an auxiliary one.

Behind the reporting month The cost of production of the main production (account 20) includes direct costs (taking into account overhead costs) in the amount of 250,000 rubles. Direct costs of auxiliary production (account 23) are taken into account in the amount of 50,000 rubles.

General business expenses on account 26 amounted to 100,000 rubles for this period.

The accountant allocated general business expenses in proportion to direct costs in this way. The total cost of main and auxiliary production is 300,000 rubles. (250,000 + 50,000).

The share of general business expenses that must be taken into account in the costs of main production is equal to:

250,000: 300,000 x 100,000 = 83,333.33 rubles.

The share of general business expenses that must be taken into account in the costs of auxiliary production will be:

50,000: 300,000 x 100,000 = 16,666.67 rubles.

In the accounting of ZAO Prommash, these transactions will be reflected in the following entries:

DEBIT 20 CREDIT 26

DEBIT 23 CREDIT 26
– 16,666.67 rub. – the share of general business expenses is included in the costs of auxiliary production.

Let's consider an example of the distribution of general business expenses in proportion to the wage fund.

The wage fund of the main production personnel of Prommash CJSC for reporting period amounted to 300,000 rubles. The wage fund for employees of auxiliary production (motor transport workshop) for the same period amounted to 50,000 rubles, and for employees of the dispensary, which is on the balance sheet of the enterprise, 10,000 rubles.

General business expenses for the month are determined in the amount of 100,000 rubles. The organization's accountant distributed general business expenses in proportion to the staff wage fund. Total expenses for wages for the reporting period is equal to:

300,000 + 50,000 + 10,000 = 360,000 rub.
The share of general business expenses that must be taken into account in the costs of main production (account 20) was:
300,000: 360,000 x 100,000 = 83,333.33 rubles.
The share of general business expenses that must be taken into account in the costs of auxiliary production (account 23) is equal to:
50,000: 360,000 x 100,000 = 13,888.89 rubles.
The share of general business expenses that must be taken into account in the costs of maintaining the dispensary (account 29) is equal to:
10,000: 360,000 x 100,000 = 2,777.78 rubles.

In the accounting of the enterprise, these transactions will be reflected in the following entries:

DEBIT 20 CREDIT 26
– 83,333.33 rub. – the share of general business expenses is included in the costs of main production;
DEBIT 23 CREDIT 26
– 13,888.89 rub. – the share of general business expenses is included in the costs of auxiliary production;
DEBIT 29 CREDIT 26
– 2777.78 rub. – the share of general business expenses is included in the costs of maintaining the dispensary.

If accounting policy enterprise for accounting purposes, it is established that general business expenses are written off to the accounting account for product sales (account 90 “Sales”), then an incomplete (limited) production cost will be formed in the accounting. The full production cost of products (works, services) can only be collected in analytical accounting to the sales account by type of product using analytical accounting codes. In accounting, such a transaction will be reflected by posting:

DEBIT 90-2 CREDIT 26
– general business expenses are written off as expenses of the organization.

How to work with account 26 of the chart of accounts

Account 26 in accounting

26 hours “General business expenses” are used in accounting of both production organizations and companies in other industries to summarize information about costs not related to production activities, but intended to support the management process.

Accounting account 26 is a display of funds spent by an enterprise aimed at providing for management and administrative needs not directly related to production. For example, the following information about indirect costs may be reflected here:

1. Payments for rented general premises;
2. Costs of information and advertising services;
3. Provision of business departments;
4. Expenses for maintenance and repair of non-production equipment;
5. Transfers to the budget of taxes and contributions.

That is, on the account. 26 contains all information about the organization’s expenses of funds that are not directly related to the production process, but are necessary to continue conducting business activities. Cost monitoring allows you to highlight the weakest aspects of the management process and reduce non-production costs.

Enterprises engaged in non-productive activities (with the exception of companies engaged in trade) display on the account information about the funds spent to support this activity. Write-off of incurred costs - to debit 90 “Sales”.

Account 26 in accounting is active, that is, the debit shows the costs incurred, for example, the amount of accrued contributions to the budget for wages in correspondence with the reflection inventories, wages, etc., (10.70 and others), for a loan - writing off costs to the debit of corresponding accounts (for example, 20 “Main production”).

Attention! In accounting, everything displayed on 26 accounts. expenses must be distributed monthly by the enterprise to the appropriate accounts, closing balance equals zero. The method of distribution is determined by the enterprise independently depending on the industry of business (must be fixed in the accounting policy).

Analytical monitoring

Expenses of the enterprise, information about which is collected on the account. 26, are an integral part of production costs and influence the formation of the cost of products manufactured and services provided. Analytics is carried out by departments, which are aimed at providing cash, as well as by cost items.

Example: purchasing an antivirus program for computers

Subconto 1: Information Technology Department

Subconto 2: material costs.

The chart of accounts does not provide for the opening of subaccounts 26 of the accounting account.

Normative base

The use of 26 “General business expenses” in accounting is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, PBU 10/99 “Expenses of the organization” and other legally approved documents.

Basic business operations

1. Calculation of depreciation of general business equipment
2. Write-off of purchased inventory and business equipment for servicing business departments (for example, purchasing office supplies)
3. Carrying out payroll calculations for business units and administrative departments

   Dt 26 Kr 70 - employee wages;

   Dt 26 Kr 69 - accrual mandatory contributions V social funds from accrued wages

4. Display of accounts payable to service providers
5. Tax calculation
6. Write-off of deferred expenses
7. Closing the month and writing off costs based on the results of work performed

   7.1 Inclusion in cost when distributed between productions

   Dt 23 Kr 26 - auxiliary production;

   Dt 20 Kr 26 - basic

   Dt 29 Kr 26 - service production

   Attention! Expenses are written off in DT accounts 23 and 29 in cases where additional production facilities performed work or manufactured products for third parties.

   7.2 Direct inclusion in total cost

   Dt 90 Kr 26 - at semi-fixed costs

Victor Stepanov, 2017-01-11

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Reference materials on the topic

Accounting

Chapter 4. Classification of accounting accounts

Collection and distribution accounts

Collection and distribution accounts are intended for the collection and subsequent distribution of costs at individual stages of production and sale of finished products.

The following active accounts are classified as collection and distribution accounts:

25 “General production expenses”;
26 “General business expenses”;
44 “Sales expenses”.

The structure of accounts 25 and 26 has some features that distinguish them from other active accounts. These accounts do not have a balance because they are closed at the end of each month. In this regard, accounts 25 and 26 are not reflected in the balance sheet.

Chart of accounts 25 “General production expenses” and 26 “General business expenses”

Account 25 “General production expenses” records general production costs that are associated with servicing the main production, for example, workshop costs for the maintenance and operation of equipment, salaries for equipment adjusters, depreciation and repair of fixed assets for general production purposes, etc.

Account 26 “General business expenses” records general business expenses associated with enterprise management, i.e. maintenance of administration, accounting, office, payment for various legal, information, audit services etc.

Closing account 26 – postings

These expenses are collected during the month on the debit of accounts 25 and 26, and at the end of the month they are ultimately written off to account 20, i.e., included in the cost of production. Expenses on accounts 25 and 26 are called indirect, since they are not directly related to the production of specific products.

Account 44 “Sales expenses” reflects the costs associated with the sale of products. Such expenses include costs for containers, packaging, transportation, advertising of finished products, etc.

Example 4.7. Keeping records on collection and distribution accounts 25 and 26.

During the month, indirect expenses are reflected, shown in table. 4.5.

Exercise. Determine the amount of write-off of general production and general business expenses for accounts 25 and 26 at the end of the month.

Table 4.5

To solve the problem, it is necessary to collect and close accounts 25 and 26.

1a) 10000
2a) 3560
3) 240
4) 800
6) 1 300

The amount of general production costs for the month was 23,200 rubles, and the amount of general business expenses was 15,900 rubles.

At the end of the month, accounts 25 and 26 are closed. To do this, the amount of debit turnover in the same amount is written off from the credit of these accounts to the debit of account 20. Since the turnover on accounts 25 and 26 will be equal, these accounts will not have a balance.

The article talks about the purpose and basic methodology for using 26 accounting accounts. She will help you understand typical wiring using 26 counts.

Accounting accounts

All accounting accounts used Russian organizations, are presented in the standard Chart of Accounts. This document is approved by the Resolution of the Ministry of Finance of the Russian Federation. Its use is mandatory for all entities carrying out economic activity on the territory of the country (with the exception of credit and state budget organizations).
To ensure unity of principles for its use, the Ministry of Finance attaches instructions to the Chart of Accounts. Accounting accounts are divided into several main groups (sections of the chart of accounts). Each of the groups is used to summarize information about a certain category of business transactions carried out by the company as part of a business process. For example, there is a group of accounts that is designed to record information about production inventories(raw materials, supplies, spare parts, etc.) or production costs.

General running costs

In every company, many processes occur in parallel with production, and they influence it indirectly. These could be the direct implementation of accounting, the purchase of a chair for the director, the renovation of the building in which the board of directors of the enterprise meets, etc. The costs of providing these processes and similar ones are called general business expenses.

Accounting account 26 is an account that accumulates information about costs for management needs not directly related to production. The recommendations for using the chart of accounts contain an open list of such expenses.

Classification of accounting accounts

Accounting accounts are divided into three main groups: active, passive and active-passive. In order to understand whether an accounting account is active or passive, it is necessary to define these concepts.

Active accounts are intended to account for the company's property (assets), passive accounts are used to collect information about the sources of income (financing) of assets. Active-passive are accounts for recording the obligations (debts) of the company and the results of its activities. Any accounting account can be schematically depicted in the form of a table.

The "Account Chart" table shows the active account. He cannot have a credit balance (negative result). A liability account cannot have a debit balance. An active-passive account can have both a debit and a credit balance.

General business expenses, at first glance, cannot be attributed to property or to the sources of its formation. The fact is that expenses collected on account 26 after the end of the reporting period (calendar month) are included in the cost of finished products, which is a company asset. Thus, accounting account 26 is an active account.

Accounting entries for the debit of account 26

Any business transaction in accounting is reflected in the debit of one account and the credit of another account. Accountants usually call a posting a record of any fact in the company’s activities. For each account there is a list of typical (most common) transactions. For clarity, information about the main transactions using account 26 is presented in the table below.

Accounting entries for loan 26 accounts

Analytical accounting of general business expenses

One of the most important tasks of accounting is collecting information about economic activity and providing it to company departments that are engaged in analyzing such data and developing coordination decisions aimed at improving and increasing the effectiveness of the business process. The goal of solving this problem is to organize the accounting methodology in such a way that the data used is the most correct and complete.

To make data more informative, there is such a direction as analytical accounting. The system of such accounting allows you to group information according to characteristics that are most suitable for a specific vector of commercial activity.

Accounting account 26 is an account that involves grouping data by cost items. They can be material or transportation costs, labor costs, etc. Each company determines the criteria for classifying costs in account 26 for itself.

General and production expenses

Accounting professionals can easily draw a line between the concepts of general production and general business expenses, but to the average person they may seem similar or even equivalent.
To collect information about such expenses, accounts 25 and 26 are used in accounting.

General business expenses are expenses that are common to each division of the company. And general production expenses will be expenses that belong only to the production unit of the enterprise. For example, the wages of the legal department of a company are general business expenses, and the wages of the mechanical shop employees who maintain production equipment, main and auxiliary production, must be classified as general production expenses.

Practice using 26 accounts

So, you have read a very short excursion "26 Accounting for Dummies". The information presented is only a small part of the knowledge that is necessary for the error-free application of 26 counts in practice. In order to consolidate the knowledge, I will give several practical examples.

Accounting account 26 is, for example, the following correspondence:

• D26/K60. Services were provided by a third party to renovate the premises of the commercial department.
• D26/K10. The use of office supplies by office employees is reflected.
• D26/K69. Contributions to the Pension Fund and the Social Insurance Fund were accrued for the salaries of employees of the purchasing department, etc.