What does the material procurement cost include?

Material procurement costs include operating expenses, management expenses and financial expenses.

The purchase price of general goods purchased in China should be the original purchase price (that is, the price listed in the special VAT invoice); Domestic purchase of agricultural and sideline products should be based on the original purchase price and the tax paid when purchasing duty-free products.

It must be noted that the purchase expenses incurred in purchasing goods, including all the expenses and handling fees paid before the purchase of export goods arrives at the delivery station and wharf, should be included in the operating expenses as current profits and losses. The amount of tax refund obtained for export commodities shall be deducted from the purchase cost of export commodities in the current period.

Collection of material procurement expenses:

"Material Procurement" course: accounting for the procurement cost of goods purchased by enterprises. The borrower of this course registers the original price of the purchased goods, the lender registers the actual cost of the goods in storage, and the ending balance reflects the purchase cost of the goods in transit.

"Operating expenses" subjects: accounting for various expenses incurred by enterprises in all aspects of purchase, sale and storage, including import and export miscellaneous fees, loading and unloading fees, sorting fees, packaging fees, insurance fees, exhibition fees, storage fees, inspection fees, advertising fees, commodity losses, accumulative commission of import and export commodities, wages and welfare expenses of operators, etc.

Refer to the above content: Baidu Encyclopedia-Material Procurement Cost