The catering expenses incurred by the company may be used for entertaining customers or employee welfare. According to different situations, they are included in different accounting subjects for related accounting treatment.

what is the subject of food and beverage expenses?

catering expenses are included in the business hospitality account if they are for entertaining customers, and included in the welfare account if they are for employees in the unit.

if it is organized by the daily management department, it can be included in the management expenses, and the secondary details can be set as entertainment expenses.

if it is the catering expenses incurred in the process of selling products, it can be included in the sales expenses and the second-level detailed entertainment expenses.

management expenses refer to various expenses incurred by an enterprise for organizing and managing its production and operation, including the start-up expenses incurred by the enterprise during the preparation period, the company funds incurred by the board of directors and the administrative department in the operation and management of the enterprise (including the salary of employees in the administrative department, material consumption, amortization of low-value consumables, office expenses and travel expenses, etc.), the trade union funds borne by the administrative department, and the directors' membership fees (including the board members' allowance, meeting expenses and travel expenses, etc.). Follow-up expenses such as fixed assets repair expenses incurred by the production workshops (departments) and administrative departments of enterprises are also accounted for as management expenses.

management expenses belong to the period expenses, which are included in the losses or benefits of the current period when they occur, and belong to the profit and loss category.

accounting treatment related to catering expenses

1. Catering expenses for business

Borrowing: management expenses-business entertainment expenses

Lending: cash on hand/bank deposit

2. Catering expenses for employees

Borrowing: salary payable to employees-employee welfare expenses

Lending: cash on hand/bank deposit

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