How to deal with the storage expenses?

Warehousing expenses are the expenses incurred by enterprises for storing and keeping goods. Generally, storage expenses are included in the accounting of management expenses. How to deal with related accounting?

Accounting entries for storage expenses

Borrow: management fee-storage fee

Loans: bank deposits/cash on hand/raw materials

Debit: this year's profit

Loan: management fee-storage fee

What is the storage cost?

Storage cost is the sum of storage cost and enterprise management cost for storing and keeping a certain amount of materials. Specifically, it includes: wages, extracted employee welfare expenses, depreciation expenses, amortization of low-value consumables, repair and lease expenses, materials, fuel, power and lighting expenses, storage and maintenance expenses, labor protection expenses, transfer expenses, fire safety expenses, insurance premiums, management fees and other expenses. Storage cost is an important index reflecting the work quality and economic benefits of commodity materials storage and transportation enterprises.

How much is the management fee?

Management expenses refer to the expenses incurred by the administrative department of an enterprise for organizing and managing production and business activities. Including: company funds, trade union funds, consulting fees, attorney fees, business entertainment fees, unemployment insurance premiums, labor insurance premiums, directors' membership fees, office expenses for hiring intermediaries, travel expenses, post and telecommunications expenses, greening expenses, manager's salary and welfare expenses, etc. Expenses incurred by the board of directors and the administrative department in the operation and management of the enterprise or borne by the enterprise.

If it belongs to the period expenses, it shall be included in the current profits and losses. Enterprises should account for the occurrence and carry-over of management expenses through the subject of "management expenses". This course debits the management expenses incurred by the registered enterprise, and the management expenses at the end of the credit registration are transferred to the "profit of this year" course. After the transfer, this account should have no balance.