How to calculate the insurance premium and handling fee?
According to the relevant provisions of accounting standards, the cost of purchased materials includes: purchase price, transportation fee (including transportation fee, loading and unloading fee, insurance fee, packaging fee, storage fee before warehousing, etc. ), reasonable loss in transit, sorting and sorting expenses before warehousing (including labor and expenses incurred in sorting and sorting, quantity loss incurred in sorting and sorting, deducting the value of recycled waste), taxes and other expenses that should be included in the cost according to regulations.
Therefore, the handling fees and insurance premiums incurred in purchasing materials should be included in the actual cost of materials. If it is not put into storage, it will be counted as goods in transit, and if it is put into storage, it will be counted as raw materials. The accounting entries are as follows:
Borrow: raw materials/materials in transit (purchase price+insurance premium+handling fee)
Taxes payable-VAT payable (input tax)
Loans: bank deposits
Raw materials refer to all kinds of raw materials, main materials, outsourced semi-finished products and auxiliary materials that do not constitute product entities but contribute to product formation. Raw materials specifically include raw materials and main materials, auxiliary materials, outsourced semi-finished products (outsourced parts), spare parts for repair (spare parts), packaging materials, fuel, etc.
Differences between raw materials and materials in transit
"Materials in transit" is used to calculate the daily accounting of materials, commodities and other materials by enterprises at actual cost (purchase price), as well as the purchase cost of various materials (i.e. materials in transit) that have been paid for but not yet accepted and put into storage. This course should carry out detailed accounting according to suppliers and material varieties.
"Raw materials" are used to calculate the income, delivery and balance of various materials in the enterprise inventory.