Every enterprise engaged in production activities is faced with the need for additional costs aimed at increasing the efficiency of the process. Maintaining equipment, machines, premises in a condition suitable for use is a necessity. The larger the scale of the enterprise, the higher its overhead (indirect) costs. To obtain a clear understanding of the amount of costs of this kind, it is necessary to keep records of them separately from the main production ones.

Accounting

Account 25 “General production expenses”, as a rule, is maintained at enterprises of a production nature, but in relation to the balance sheet it is active, intended for generalization and distribution of information, and is closed every calendar month. The debit reflects everything of a general production nature. is intended to write off the calculated amount to the cost of production. 25 account has no balances at the beginning of the period and its end, is not reflected in the final balance sheet, the account turnover must be equal at the end of each reporting period. Analytics is carried out for each type of expense separately.

Cost items

Depending on the provisions approved in and in accordance with the PBU, each company allocates costs that cannot be fully included in a specific type of product. Such costs are charged to account 25, summed up and distributed by type of manufactured products in proportion to the selected indicator (cost price, payroll, consumption of current assets, etc.). The structure of operational activities is similar to production ones, but their separate accounting and control make it possible to conduct a more in-depth analysis of costs and identify problem areas of the main process. Account 25 summarizes the following types of expenses:

1. Materials, raw materials, spare parts, consumables.
2. Non-current funds of the enterprise.
3. Depreciation of equipment and machinery.
4. Intangible assets.
5. Remuneration of employees employed in general production workshops.
6. Deductions from salary.
7. Expenses for repairs of machinery and equipment.
8. Maintenance, maintenance, repair of own and rented premises of economic and production nature.
9. Utility costs.
10. OS modernization.
11. Production tools, inventory, devices, MBP.
12. Contents of protection.
13. Maintenance of the production process.
14. Labor protection.
15. Treatment facilities, environmental protection.
16. Taxes to budgets of various levels.
17. Other expenses.

Reflection of the amount of costs

25 debit account summarizes all written-off ODA, turnover accumulates during the month, and as a result shows the total monetary value of expenses. In this case, accounting records of the following plan are compiled:

• Dt 25 Kt 02, 05. Depreciation charges for intangible assets and fixed assets have been accrued.
• Dt 25 Kt 10, 16. Materials used for general production (OPR) needs are written off.
• Dt 25 Kt 69, 70. The salaries of the OPD employees have been accrued, and deductions have been made to the funds.
• Dt 25 Kt 60, 76. Services provided by third parties are written off as ODA costs.

Transferring costs to product costs

At the end of each worked month, account 25 must be closed. The amount of expenses in the debit of the account is calculated and written off, i.e., included in the cost of manufactured products. When producing several, overhead costs are divided between them in proportion to the selected coefficient. Accounting (record) entries are prepared (Debit 20 - Credit 25). The amount of debit turnover must be equal to the amount of write-off on the loan; an account balance of 25 is not allowed. With an automated accounting system, the process of closing accounts 25 and 26 occurs automatically when the “period closing” function is launched. At the preparatory stage, depreciation of equipment and machinery involved in experimental work, operational maintenance, auxiliary production and the main cycle is calculated. Next, the program writes off the account expenses in accordance with the settings. After the closing procedure, it is necessary to check and analyze the account for the presence of balances.

Account 25 “General production expenses” is intended to summarize information on the costs of servicing the main and auxiliary production of the organization. In particular, the following expenses may be reflected on this account: for the maintenance and operation of machinery and equipment; depreciation charges and costs for repairs of fixed assets and other property used in production; expenses for insurance of the specified property; costs for heating, lighting and maintenance of premises; rent for premises, machinery, equipment, etc., used in production; remuneration of workers engaged in production maintenance; other expenses similar in purpose.

General production expenses are reflected in account 25 “Overall production expenses” from the credit of accounts for inventory, settlements with employees for wages, etc. Expenses recorded in account 25 “Overall production expenses” are written off to the debit of accounts 20 “Main production”, 23 “Auxiliary production", 29 "Servicing industries and farms".

Analytical accounting for account 25 “General production expenses” is carried out for individual divisions of the organization and expense items.

Account 25 “General production expenses” appeared due to the fact that a workshop can produce not only one, but several types of products, so the problem arises of how to include such general (indirect) expenses in the cost of finished products. During the reporting period, these costs are collected on temporary transit account 25 “General production expenses”, and at the end of the reporting period, when calculating the full cost of finished products, the problem arises of including these costs in specific types of products, therefore this account belongs to the group of collecting and distribution accounts . And depending on how the accountant distributes these costs between types of manufactured products according to randomly selected bases, he will receive the corresponding cost value.

An important addition to the characteristics of account 25 “General production expenses” is that it can reflect the costs of repairing not only fixed assets, but also “other property”, in particular tools and business equipment, regardless of which account will be taken into account last.

Account 25 “General production expenses” reflects indirect costs for servicing main and auxiliary production when two or more types of products are produced. These include costs for the maintenance and operation of machinery and equipment, production management and maintenance, etc. The amount of these costs in most cases depends on the volume of production. So, all these expenses during the month are collected in the debit of account 25 “General production expenses”, and at the end of the month their total amount is distributed between the types of products produced and written off, depending on the type of production, either to account 20 “Main production”, or to account 23 “Auxiliary production”, or to account 29 “Service production and farms”. Thus, on the first day of each month, account 25 “General production expenses” has no balance.

Manufacturing overhead costs can be allocated among product types in different ways. If the calculation is carried out not by the names of manufactured products, but by centers of responsibility, then there is no need to distribute overhead costs by type of finished product.

When calculating shop costs, it is advisable to include general production costs in the costs reflected in account 20 “Main production”.

The distribution of overhead costs by type (name) of product or by responsibility center involves determining the distribution base. Most often, the distribution is carried out in proportion to the wages of workers in the main production. This decision is motivated by theoretical and practical reasons.

In the first case, we are talking about the labor theory of value, according to which value is created only by the abstract labor of direct producers, i.e. workers. Devout Marxist A.A. Bogdanov believed that it was necessary to take into account all the labor of those involved in production. In the second, they proceed from the fact that such a solution is technically very simple to implement. However, this reveals a paradox that K. Marx encountered more than a hundred years ago: the higher the level of mechanization and automation, the smaller the share of indirect costs falls on such a “center of responsibility.” In fact, the more machines, the higher the share of depreciation expenses, but their main amount is written off to production areas in which there is either no depreciation, or almost

No. This suited some managers, as it allowed them to prove the high efficiency of the use of machinery and equipment and note that the lack of mechanization makes production unprofitable. However, this is just an accounting trick. The difficulty is that allocating costs to any basis will always be a trick.

General production expenses are accumulated, which at the end of each month are distributed by postings to the expenses of the main, auxiliary and service production and to individual types of products. The account is active-passive and usually does not have sub-accounts.

What is taken into account on account 25

General production expenses include:

1. All production management costs:

• remuneration of employees involved in managing workshops and sites;
• social charges on their wages;
• business trips of managers and workers of workshops and sections;
• other expenses, which include expenses for stationery, communication services, purchase of periodicals, participation in conferences, trainings, seminars, etc.

2. Depreciation of fixed assets and intangible assets, directly used in workshops and areas.

3. Expenses for maintenance, operation and repair of fixed assets and intangible assets for general production purposes, rent, insurance, including:

• the cost of fuels and lubricants, cleaning and other auxiliary materials;
• salaries of auxiliary workers (mechanics, electricians, adjusters, repairmen, lubricants, etc.) with accruals;
• the cost of energy consumed (electricity, water, steam, etc.) to ensure the operation of production mechanisms;
• the cost of services for the operation and maintenance of machinery and equipment provided by auxiliary production and;
• the cost of used equipment and tools;
• expenses for maintaining production premises;
• expenses for security and fire safety;
• the cost of repairing fixed assets, including leased ones;

4. Costs for improving technology and organizing production.

5. Expenses for technological control, safety and labor protection.

6. Environmental protection costs.

Typical entries for writing off general production expenses

General production expenses items are accumulated in the debit of the account, written off to, occurs at the end of each month.

Postings:

Account Dt	Kt account	Wiring description	Transaction amount	Base document
		to workshops (to areas)	300	Limit intake card M-8 and/or demand invoice M-11
		Wages accrued to employees involved in the management and maintenance of workshops and areas	500	Payroll T-49
	69	Social payments were accrued to employees involved in the management and maintenance of workshops and sites	130	Help-calculation, declaration under Unified Social Tax, calculation of advance payments under Unified Tax
	,	Depreciation of fixed assets and intangible assets for general production purposes was calculated		Help-calculation

Account 25 “General production expenses” displays all the organization’s costs aimed at servicing main and auxiliary production, subject to distribution. Separate display of information on production costs makes it possible to analyze costs more deeply in order to minimize them and accurately attribute them to specific manufactured products.

25 account in accounting is a collective summary of information about all funds spent aimed at servicing production and subject to subsequent distribution. Turnovers for the current period display important information:

1. Salaries of employees (exception - enterprise management bodies);
2. Equipment costs (rent payments for fixed assets accepted for temporary use, repair work);
3. Depreciation of fixed assets and intangible assets;
4. Cost of materials and spare mechanisms purchased for servicing main production equipment;
5. Transport services, etc.

That is, the account displays expenses common throughout the organization that directly affect the production process, but are subject to further distribution by type of activity performed. Subsequent division of costs gives a more in-depth assessment of the cost of each type of product produced in various production departments.

Account 25 in accounting is active, that is, the debit shows the incurred general production costs, for example, writing off used inventory items for the purpose of servicing the activities being carried out, and the credit corresponds with production accounts to include the money spent in the cost of manufactured products.

Attention! Account 25 is closed monthly by transferring amounts to cost items for inclusion in the cost of production of main or auxiliary production. The distribution method is determined by enterprises independently (must be reflected in the accounting policies)

Analytical monitoring

Analytical analysis of overhead costs is carried out by cost items and departments. Expenses are displayed separately for each department or production workshop based on closing documents, the share of materials attributable to this area, department wages, etc.

Attention! Direct costs for ensuring production are charged directly to the account. 20 in correspondence with the relevant invoices.

Regulatory framework

Using the account 25 in accounting is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, PBU 10/99 “Organization Expenses” and other legally approved documents.

Basic business operations

1. Depreciation calculation

   Dt 25 Kr 02 - for equipment intended for industrial activities;

   Dt 25 Kr 05 - for intangible assets

2. Transfer of purchased inventory and household equipment for maintenance and repair of equipment
3. Carrying out calculations for wages of industrial departments with the exception of administrative personnel

   Dt 25 Kr 70 - employee wages;

   Dt 25 Kr 69 - calculation of mandatory contributions to social funds from the amounts of accrued wages

4. Write-off of overhead costs for inclusion in the cost of manufactured products, depending on the type of activity performed

   Dt 20 Kr 25 - main production;

   Dt 23 Kr 25 - auxiliary production;

   Dt 29 Kr 25 - servicing production.

Account 25 “General production expenses” is intended to summarize information on the costs of servicing the main and auxiliary production of the organization. In particular, the following expenses may be reflected on this account: for the maintenance and operation of machinery and equipment; depreciation charges and costs for repairs of fixed assets and other property used in production; expenses for insurance of the specified property; costs for heating, lighting and maintenance of premises; rent for premises, machinery, equipment, etc., used in production; remuneration of workers engaged in production maintenance; other expenses similar in purpose.

General production expenses are reflected on account 25 "Overhead production expenses" from the credit of accounts for inventory accounting, settlements with employees for wages, etc. Expenses recorded on account 25 "Overhead production expenses" are written off as a debit 20 accounts“Main production”, “Auxiliary production”, “Service production and farms”.

Analytical accounting for account 25 “General production expenses” is carried out for individual divisions of the organization and expense items.

Account 25 "General production expenses"
corresponds with accounts

by debit

on loan

02 Depreciation of fixed assets 04 Intangible assets 05 Amortization of intangible assets 10 Materials 16 Deviation in the cost of material assets 19 Value added tax on acquired assets 21 Semi-finished products of own production 23 Auxiliary 29 Attendants 43 Finished products 60 Payments to suppliers and 69 Calculations for social 70 Settlements with personnel for 71 Settlements with accountables 76 Calculations with different 79 On-farm 94 Shortages and losses from 96 Reserves for upcoming 97 Deferred expenses

10 Materials 20 Main production 23 Auxiliary productions 28 Defects in production 29 Service industries and farms 76 Settlements with various debtors and creditors 79 On-farm settlements 97 Deferred expenses 99 Profits and losses of production production and economy contractors insurance and ensuring payment of labor to persons debtors and creditors calculations of damage to valuables expenses

Application of the chart of accounts: account 25

• Accounting for overhead costs
• Accounting for general production and general business expenses in organizations engaged in furniture production

  25-1 “Overhead production costs of main production” and 25-2 “Overhead production costs of auxiliary production”. At the end of the month, account 25 “General production expenses...” is closed. Expenses...

• Accounting for general production and general economic expenses in organizations of the glass and porcelain and earthenware industries

  On account 25 “General production expenses”. General production expenses include the following types of expenses: - ... 25-1 “Overhead production expenses of main production” and 25-2 “Overhead production expenses of auxiliary production”. At the end of the month, account 25 “General production expenses...” is closed. Expenses...

• Check whether the accounts in the agricultural organization are closed correctly

  ...: 1) accounts of auxiliary production; 2) accounts of deferred expenses, distribution of general production and general business expenses; 3 ... closing accounts is writing off the amounts of general production and general business expenses to the costs of the main production. General production expenses... in accounting policies. Almost all expenses on account 25 “General production expenses” by the time it is closed...

• Accounting for the costs of purchasing copyrights from a publishing house for accounting and tax purposes

  periods and reflect on the debit of account 97 “Expenses for future periods”. At the same time... writing off the remaining amount from the debit of account 97 “Deferred expenses” for costs... production”, and to account 91 “Other income and expenses”, including in the composition... the amount of royalties Pre-press expenses are taken into account on account 25 “General production expenses” and are written off... to the debit of account 20 “Main production...

• In the absence of revenue, can management expenses be classified as deferred expenses?

  Non-operating expenses are included in the expenses of the current period. Let us note that Chapter 25 of the Tax Code of the Russian Federation... thus, administrative expenses (account 25 "General production expenses" and account 26 "General operating expenses") can... be taken into account in two ways: - by monthly debiting the account... balance sheet as a separate item as deferred expenses (account 97) and are subject to write-off... in our opinion, accounting for management expenses using account 97 "Sales" ...

• Expenses for ordinary activities of the organization of inland water transport

  Fixed assets Expenses of auxiliary production are pre-accounted for in the debit of account 23 “... then written off to account 20 “Main production”. Indirect expenses associated with... accounts 25 “General production expenses” and 26 “General production expenses” and are written off to the debit of account 20 “Main production”. Expenses... 90 “Sales” and other accounts. Grouping expenses by element Any commercial organization... work or invoice presented. Labor costs Labor costs...

• Procedure for determining expenses

  Accounts and credit accounts 50 “Cash”, 51 “Cash accounts”, 52 “Currency accounts” and other accounts. Expenses... are debited to accounts 25 “General production expenses” and 26 “General business expenses” and are written off monthly to the debit of account 20 ... “Main production”. Expenses associated...)", 90 "Sales" and other accounts. Determining the amount of expense when the contract price is not... by debiting account 91 “Other income and expenses” and crediting account 60 “Calculations...

• Purpose of account 25

  Costs from account 25 are distributed to accounts 20 and 23. Let us highlight expenses that can... in the overhead costs account, as well as the corresponding corresponding accounts. Types of costs accumulated on account 25 ... by debit of the account includes more than two dozen accounts. With the credit of account 25 corresponds... to the application of the Chart of Accounts. Let us remind you: in the context of the article we are interested in overhead costs caused by... Overhead costs are reflected 02/25, 10, 60 200,000 Indirect costs are distributed...

• Accounting for food industry organization costs for production

  On account 25 “General production expenses”. General production expenses include the following types of expenses: ü ... 25-1 “Overhead production expenses of main production” and 25-2 “Overhead production expenses of auxiliary production”. At the end of the month, account 25 “General production expenses...” is closed. Expenses...

• Cost accounting for an organization engaged in the production of air conditioners and ventilation equipment

  25-1 “Overhead production costs of main production” and 25-2 “Overhead production costs of auxiliary production”. At the end of the month, account 25 “General production expenses...” is closed. Expenses...

• Accounting for the organization's costs for the production of alcoholic beverages

  25-1 “Overhead production costs of main production” and 25-2 “Overhead production costs of auxiliary production”. At the end of the month, account 25 “General production expenses...” is closed. Expenses...