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How to deal with the goods purchased by enterprises for gifts?
When some big festivals come, enterprises usually outsource some goods to their partners in order to better promote their cooperative relationship. How to account for the goods purchased by enterprises when they are given away?

Accounting entries for gifts of goods purchased by enterprises.

1. When an enterprise gives gifts or articles, it shall be included in the sales expenses (including the transfer-out of input tax).

Debit: sales expenses-business promotion expenses

Loans: Goods in stock

Taxes payable-VAT payable (transfer-out input tax)

2. Pay personal income tax (personal income tax is paid in advance by the enterprise when giving gifts).

Debit: sales expenses-business promotion expenses

Loans: bank deposits

If the gift or item given to the partner is a product produced by the enterprise itself, it should be regarded as sales, and it should be regarded as sales when it is included in the promotion expenses.

3. Gifts or items given.

Debit: sales expenses-business promotion expenses

Loan: income from main business

Taxes payable-VAT payable (output tax)

4. Cost of final sales

Debit: main business cost

Loans: Goods in stock

How much is the business promotion fee?

Refers to the expenses paid by enterprises to carry out business promotion activities, mainly refers to the advertising expenses that are not spread through the media, including gifts and souvenirs printed with corporate logos issued by enterprises.

How much is the sales fee?

Refers to the expenses incurred by enterprises in the process of selling materials and providing services, including insurance premium, exhibition fee, advertising fee, packaging fee, expected loss of product quality assurance, commodity maintenance fee, transportation fee, loading and unloading fee, etc. , as well as operating expenses such as employee salaries, business expenses and depreciation expenses. A sales organization set up specifically to sell the goods of the enterprise.