How to write the accounting entry of freight for enterprise purchasing materials?
The freight generated by procurement is generally included in the cost of raw materials:
Borrow: raw materials (original price+freight)
Taxes payable-VAT payable (input tax)
Loans: bank deposits
Related accounting entries of purchased materials
1. The materials haven't arrived at the warehouse yet and are still on the way;
Debit: materials in transit
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
2. After the materials arrive, they shall be accepted and put into storage:
Borrow: raw materials
Lending: materials in transit
3. The payment has not been paid, and the materials have been accepted and put into storage:
Borrow: raw materials
Taxes payable-VAT payable (input tax)
Credit: accounts payable
4. When the materials arrive at the end of the month but the documents are not received, they shall be accounted for according to the provisional valuation value:
Borrow: raw materials
Credit: accounts payable-estimated accounts payable
5. At the beginning of next month, the original accounting entries will be written off in red:
Borrow: raw materials (red amount)
Credit: Accounts Payable-Estimated Accounts Payable (red amount)
6. After receiving the invoice bill:
Borrow: raw materials
Taxes payable-VAT payable (input tax)
Loans: bank deposits, etc.
What are the actual costs of purchasing materials?
The actual cost of purchasing materials by enterprises includes the purchase price; Foreign freight and miscellaneous expenses (including transportation, loading and unloading, insurance, packaging, warehousing and other expenses); Reasonable losses in transit; Sorting and sorting expenses before warehousing (including labor, expenses and necessary losses during sorting and sorting, deducting the value of recycled waste); Local transportation and miscellaneous expenses of bulk materials; Taxes payable by the buyer according to regulations and customs duties payable on imported materials.