Provisions of the Ministry of Finance on Financial Management of Property Management Enterprises

Article 7 All expenses incurred by enterprises in the process of providing maintenance, management and services to property owners and users in property management activities shall be included in the costs and expenses in accordance with state regulations.

article 8 the direct expenses incurred by an enterprise in property management activities are included in the operating costs. Operating costs include direct labor costs, direct material costs and indirect costs. Enterprises that implement the first-level cost accounting may not set up indirect expenses, and the relevant expenses are directly included in the management expenses.

direct labor costs include wages, bonuses and employee welfare expenses of personnel directly engaged in property management activities.

direct material costs include all kinds of materials, auxiliary materials, fuel and power, components, parts, low-value consumables, packaging materials, etc. directly consumed by enterprises in property management activities.

the indirect expenses include the salary, bonus and employee welfare expenses of the managers of the property management unit to which the enterprise belongs, depreciation expenses of fixed assets and repair expenses, utilities, heating expenses, office expenses, travel expenses, postal and telecommunications expenses, transportation expenses, lease expenses, property insurance fees, labor protection expenses, security expenses, greening and maintenance expenses, amortization of low-value consumables and other expenses.

article 9 the paid use fees paid by an enterprise for operating facilities and equipment shall be included in the operating costs.

article 11 the paid use fee for the management premises paid by an enterprise shall be included in the operating costs or management expenses.

article 11 the expenses incurred by an enterprise in decorating and renovating the management house shall be included in deferred assets, and the operating costs or management expenses shall be amortized in stages within the effective use period.

article 12 an enterprise may, at the end of the year, make provision for bad debts at the rate of 1.3%-1.5% of the balance of accounts receivable at the end of the year, which shall be included in the management expenses.

in case of bad debt loss, the provision for bad debts shall be written off. Recover the bad debts that have been written off and increase the bad debt reserve.

bad debt loss incurred by enterprises without provision for bad debts is included in management expenses. Recover the bad debts that have been written off and offset the management expenses.

Please determine the accounting subjects according to the above regulations and the actual situation of the enterprise and the Accounting System for Business Enterprises.