How is the die in the manufacturing industry
According to the specific use time of the mould, such as one year can be used in manufacturing expense account. You may enter a long-term deferred expense account for more than one year.
Mold entry should be separate: If the period of use is over one year, the fixed assets shall be credited, and the depreciation shall be gradually recovered from the period of time. entries Borrowing: fixed assets -- molds Loan: bank deposit/inventory cash/accounts payable 2) use fixed number of year within a year, or easy to loss, recorded in the packing materials and low-value products, you can use the double fifth amortization method (recipients when cancel after verification 50% cost, scrap again when the cost of cancel after verification of the remaining 50%)
If you are a production company, you can buy it as a tool and sell it as a material sale. Purchase: low value consumables - molds Taxes should be paid in the form of VAT Bank deposits (or accounts payable) Sales: bank deposits (or accounts receivable) Other business income - material sales Tax payable - value-added tax Cost of transfer: other business costs Low value of the loan - molds Welcome to use the "fiscal and tax question-and-answer community" for financial advice
