Carry-over, or period-end carry-over, refers to transferring the balance or difference of one account to another account at the end of the period. There are two accounts involved here, the former is the transfer-out account and the latter is the transfer-in account. Generally speaking, after carrying forward, there is no balance in the transfer-out account.
The so-called "carry-over" is an important specific business in accounting work. Usually, it is the practice of transferring the amount and balance of one account to this account or another account. This is called carry-over.
Carry-forward generally has four purposes: one is to settle the balance of this account; The second is to calculate the cost of this reporting period; The third is to calculate the current profit and loss and profit realization; Fourth, in order to maintain the continuity of accounting work, the balance at the end of this accounting year must be transferred to the next accounting year.
Carry-over is for better accounting, but the accounting accounts are clearer.
Main business cost of extended data: it is a profit and loss account, which is used to calculate the costs incurred by enterprises in their daily activities such as selling goods, products, providing services or transferring the right to use assets. Its borrower records the actual cost of goods/products/services sold; At the end of the registration period, there should be no balance after the amount transferred by the credit to the "profit of this year" subject is carried forward. The account should also be set up according to the product category.
First of all, in order to settle the balance, such as the "finished goods" account in the inventory, it is necessary to carry forward the production cost of this month, that is, cancel the cost of the sold products to obtain the current balance of the finished goods; Secondly, in order to calculate the current cost, there are many cost items that need to be carried forward, such as manufacturing expenses, basic production expenses and auxiliary production expenses. , should be carried forward to the production cost account;
Thirdly, in order to calculate profits, the current sales income, sales cost, other business income, other business costs, non-operating income, non-operating expenses, income tax, product sales tax and additional period expenses (management expenses, sales expenses and financial expenses) should be carried forward to this year's profit account; Finally, the balance of all accounting subjects should be carried forward to the next accounting year at the end of the accounting year.
References:
Baidu Encyclopedia-Carry-over, Baidu Encyclopedia-Carry-over Cost