Why do you want to set up the subject of "contract performance cost" instead of directly counting raw material consumption into "main business cost"? (Certified Public Accountant, Accountant

First of all, we should know why we should formulate new income standards. The fundamental reason is to make the financial statements closer to the truth and reflect the real business situation.

In fact, the appearance is that the original income standards can no longer meet the needs of increasingly complex trading business in practice, and the external demand is that the standards need to be related to international accounting.

Normative convergence. In short, it is to let accounting truly reflect business.

Secondly, why not directly enter the main business cost through fees, because the costs incurred and when to enter the main business cost/other business costs are bound to be related to income matching. Generally speaking, it is not the expenses incurred in the current period, but the cost of all one-time entry into the main business. Therefore, the establishment of contract performance cost and contract acquisition cost is actually to collect costs first and then transfer them into costs according to income standards.

Take Jian 'an enterprises as an example:

1: charge the project construction contract fee.

Borrow: Contract Performance Cost-Project Construction-Contract Cost

Taxes payable-VAT payable-input

Loan: cash/bank deposit/raw materials/wages payable to employees.

2. Revenue recognition

Debit: Contract Settlement-Price Settlement

Loan: main business income/other business income.

Carry-over cost

Debit: main business cost/other business cost.

Loan: contract performance cost-project construction-contract cost (loan contract performance cost is not the debit amount of the entry 1, but is based on the income criterion.

Carry-forward, if there is a balance, means there are unconfirmed costs, which are reflected in the asset items in the balance sheet)

Of course, some people say that Jian 'an enterprises used to collect fees through engineering construction, but note that there is no separate construction facility under the new income criterion.

Table of income criteria for industrial enterprises. Unified according to the new income standard.

It has also been said before that some industries can also collect costs through other subjects. Why set up a new one? For example, some property service companies do.

This is the way to collect fees.

Note: Some enterprises will first collect expenses into the "labor cost" account, and then transfer them to the "main business cost" account.

Debit: labor cost

Loans: cash/bank deposits/salaries payable to employees, etc.

leave behind

Debit: main business cost

Loans: labor costs