At the end of the month, if there is any retained tax credit, the enterprise should treat the overpaid VAT this month as follows: Debit: Tax payable - Unpaid VAT. Credit: Tax payable - VAT payable (excess VAT paid when transferring out). 1. What causes the input to be greater than the output, and how to solve it. If there is a large inventory backlog on the books, this will usually result in an input tax backlog. Input tax comes from procurement. Whether there is a large amount of raw materials or the product is not sold, it will indirectly bring a large amount of input. If the current sales are not large, the input tax will naturally be greater than the output tax. 2. In order to avoid the risk of purchase price fluctuations, a more common method for large companies is to use the futures market for hedging to reduce losses caused by purchase price fluctuations. For example, Company A is an edible oil production and processing enterprise, and soybeans and corn are the main raw materials. If the price will rise after the expiration date, you can buy futures contracts for future months in the futures market. Even if the spot price does rise in the future, the futures market contract will be closed. The income can make up for the loss of rising spot prices. In the professional vocabulary of the futures market, this is a typical hedging transaction, which can help companies lock in profits in advance. 3. Value-added tax is a turnover tax levied based on the value-added amount generated during the circulation of goods (including taxable services) as the basis for tax calculation. In terms of tax calculation principles, value-added tax is a turnover tax levied on the added value of multiple links in the production, circulation, and labor services of goods or the added value of goods. Implement extra-price tax, that is, consumers will bear the burden. Taxes will only be levied if there is value-added, but no tax will be levied if there is no value-added.