According to the enterprise accounting standards and the provisions of the enterprise accounting system: how to deal with the accounting accounts of the processing company, the materials provided by others should not be accounted for, only in the register.

Accounting entries are as follows:

1, the purchase of materials:

Borrow: raw materials?

Taxes payable - VAT payable (input tax)?

Credit: bank deposits, etc.

2, when collecting processing fees and advancing raw materials:

Borrow: accounts receivable / bank deposits?

Credit: main business income?

Taxes payable - VAT payable (output tax)

3. Carry forward costs:

Borrow: main operating costs?

Credit: raw materials

Second, the materials provided by others to be accounted for: No need to be accounted for (the materials are purchased by others on behalf of the processing only processing fees, does not belong to their own company's costs of course do not have to be accounted for)

1, their own company to buy the material entries:

Borrow: Raw materials/low-value consumables/packaging and so on

Taxes payable- VAT payable - (input tax)

credit: bank deposits/cash (paid for goods at the time of purchase) accounts payable (goods have not yet been paid)

2, collect processing fees and advances on raw materials:

debits: accounts receivable/bank deposits

credit: income from the main business

tax payable - VAT payable - (output tax)

Borrow: main operating costs

Loan: raw materials

Expanded:

In order to account for the occurrence of VAT payable by the enterprise, deduction, payment "Input tax", "paid tax", "output tax", "export tax refund", "input tax transfer" and other columns.

Enterprises purchasing materials or accepting taxable labor services from the country, according to the amount of VAT invoices should be included in the purchase cost or should be included in the cost of processing, repair and fitting materials, debit "material purchases", "materials in transit", "Raw materials", "Inventory goods" or "Production costs", "Manufacturing costs", "commissioned materials", "administrative expenses" and other accounts,

Based on the amount of deductible VAT indicated on the special invoice, debit "Taxes payable bank deposits" and so on. The return of purchased goods, do the opposite accounting entries.

Enterprises purchasing tax-exempt agricultural products, according to the purchase price and the specified deduction rate to calculate input tax, debit "Taxes payable - payable VAT (input tax)" account, according to the purchase price after deducting the input tax calculated in accordance with the provisions of the difference between the purchase price,

Debit "Material Purchase", "Raw Materials", "Inventory Commodities", etc., according to the price payable or actually paid, credit " Accounts payable", "bank deposits" and other accounts.

The value-added tax paid on the purchase of fixed assets for production should be included in the input VAT, which can be deducted from the output VAT, and the VAT paid on the purchase of goods used for non-taxable projects should be included in the cost of the goods purchased.

Baidu Encyclopedia-Value Added Tax Payable