Account 44 in accounting “Sales expenses” is an active account that reflects expenses for the sale of goods, products or services. For typical transactions and how account 44 is closed, see the table.

When to use account 44 in accounting

The cost of goods in trade is formed according to the rules of PBU 5/01 (approved by Order of the Ministry of Finance of Russia dated 06/09/2001 No. 44n). The costs that a trading organization incurs when selling goods are called distribution costs and are not included in the cost of goods. They are collected on account 44. It does not matter what the enterprise trades and how - wholesale or retail.

On account 44 in accounting, trading companies summarize information about expenses:

• for the transportation of goods;
• for renting premises;
• for advertising, etc.

Elena Popova answers,

State Advisor to the Tax Service of the Russian Federation, 1st rank

“The composition of costs that a non-trading organization can take into account on account 44, . An organization that is engaged exclusively in trade (wholesale or retail) may include in its selling expenses...”

There are also costs in production that cannot be immediately included in the cost price. They are not directly related to the production process, but to the management or sales of products or services.

So, costs associated with sales in manufacturing companies are written off to account 44 in accounting.

These costs include:

• for loading and transportation of products;
• on packaging and packaging;
• on contents in warehouses, etc.

You can find out all other accounts from the chart of accounts.

Which subaccounts are opened for account 44 in accounting?

Analytical accounting on account 44 is organized by types and items of expenses. This follows from the Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94n.

Account 44.01 in accounting is intended to formulate the amount of distribution costs in trade organizations.

Account 44.02 in accounting summarizes information about business costs for sales in manufacturing or industrial enterprises.

In addition, accounting account 44 may include additional items - subaccounts for distribution costs. For example, by accounting account 44.01, a company has the right to open sub-accounts: 44.01.1 - not taken into account when calculating income tax, 44.01.2 - taken into account in the tax base for income tax.

Account 44 in accounting: postings

The debit of account 44 reflects the organization's expenses for the reporting period in correspondence with accounts - 02, 04, 05, 10, 23, 29, 16, etc. On the credit of account 44, account 44 is fully or partially closed with postings to the enterprise's income accounts - 90 , 99. For examples of frequently used postings, see the table.

The main task of account 44 is to reflect expenses on the sale of goods, manufactured products, services provided or work performed.

There are several categories of costs that can be generalized for different organizations and which are collected on account 44. These include: costs for the delivery of products, their packaging and warehousing, costs associated with logistics and transportation, rental of buildings or premises, deductions, which are established by law, advertising, etc. In this case, for example, if it is necessary to load goods onto any transport, its type does not matter; the costs of loading onto ships, trains or cars are reflected equally. However, each organization with its own specifics has slight differences in what costs will be reflected on account 44.

The main differences apply to three types of organizations: manufacturing and agricultural, trading enterprises (or acting as intermediaries), construction companies that directly procure technical materials or structures.

The main difference in recording expenses between the listed types of organizations is related to the nature of their activities. For example, sales organizations would not use account 44 for packaging or shipping costs. At the same time, the costs of storing goods at the points of sale themselves will relate specifically to this type of enterprise.

The debit of account 44 is also used to reflect the costs of an employee’s business trip if it is related to the sales of finished goods (manufacturing organization) or the main activity (trade organization). Correspondence is carried out by debit and credit of account 71 when accruing travel expenses. When paying for travel expenses, posting Dt 44 Kt 76 “Settlements with various debtors and creditors” is carried out.

Subaccounts 44 accounts

Sales costs are one of the main indicators that an enterprise must take into account to determine the price of a product. These expenses are recorded on accounting account 44 (). In the article we will look at what is included in sales expenses, and also look at typical entries in tables and examples for account 44.

Selling expenses are the costs of an organization to purchase a product, as well as additional costs for its sale. The main items of selling expenses include costs for:

• maintenance and servicing of fixed assets that take part in the sales process (commercial equipment, retail premises, etc.);
• wages for employees who directly support the sales process;
• other and administrative expenses.

To record and analyze generalized information about the amounts of sales expenses, account 44 is used. Expenses are accumulated according to Dt 44, a decrease in the amount of costs is reflected according to Kt 44.

Subaccounts 44 accounts

Accounting for sales expenses on account 44

The costs of maintaining and servicing fixed assets (store premises, commercial equipment) involved in the process are one of the main components of sales costs. Let's look at typical transactions for accounting for these expenses:

As a rule, the full functioning of the sales process is ensured by employees of the organization, whose job responsibilities are in one way or another related to the sale of goods (services). We are talking about salespeople at retail outlets, loaders, and delivery drivers, whose wages are included in sales expenses.

If the production of goods is carried out in-house, then selling expenses can be reflected in the following entries:

The use of additional goods and materials in the sales process is recorded using the following entries:

Example of reflecting expenses on account 44

During February 2016 Mashinostroitel LLC:

• sold products in the amount of 3,124,000 rubles, VAT 476,542 rubles;
• cost of goods - 2,318,000 rubles;
• expenses for renting a sales area and salaries for sellers - 843,500 rubles;
• paid by customers - RUB 3,050,000.

Postings were made in the accounting of Mashinostroitel LLC.

In accounting, on balance sheet account 44 (“Sales expenses”), during the reporting period, information about the costs incurred by the organization is collected and stored. They are associated with the sale of goods, services, works, and products. The account is active, calculation.

In industry

When keeping records in the industrial sector, account 44 displays information on the costs of packaging and packaging products or products, their delivery to the customer, loading and unloading, deductions for intermediary services, payment for the rental of warehouse premises, for example, in another region, fees to advertising agencies and other similar costs.

In trade

Enterprises that carry out commodity circulation will, one way or another, regularly incur selling costs. In trade organizations, such costs can be: wages, payment for the transportation of goods, rent, advertising and similar costs.

In agriculture

In organizations involved in the agricultural sector (milk, agricultural crops, leather processing, meat processing, wool), the following expenses are summed up in account 44:

• general procurement;
• for the maintenance of poultry and livestock;
• to pay for the rent of receiving and procurement points.

Other expenses may also be included here.

Account structure

The debit of account 44 during the reporting year shows the amount of production expenses.

The loan reflects the write-off of these costs. The amount of distribution costs attributable to goods sold during the month is written off in whole or in part at the end of the reporting month. This happens depending on the procedure provided for by the accounting policy of the economic entity. Transport costs in case of partial write-off are subject to distribution between goods sold and their balances at the end of the month.

Sales costs include:

• subaccount 44.1 is used to display expenses incurred in the sale of manufactured products, which are displayed as a debit;
• Subaccount 44.2 is used mainly by enterprises engaged in trade and catering.

Account 44. Postings

Let's look at the main wiring:

• Deb.44 / Cr.02 depreciation of fixed assets used in trading activities was accrued.
• Deb.44 / Kr.70 wages were accrued to trade workers.
• Deb.44 / Kr.60 reflects the cost of auxiliary work and intermediary services of third-party organizations.
• Deb.44 / Kr.68 reflects the amount of fees and taxes.
• Deb.44 / Cr.05 depreciation of intangible assets was accrued.
• Deb.44 / Kr.60 transportation costs (VAT not taken into account).
• Deb.19 / Kr.60 reflects the amount of VAT on transport costs.
• Deb.44 / Kr.71 travel expenses of trade workers were written off.
• Deb.44 / Kr.94 the shortage of goods was written off within the limits of natural loss norms.
• Deb.90.2 / Kr.44 at the end of the month, sales costs were written off.

Calculation of sales expenses (account 44)

The total cost of products sold during the reporting period is formed by adding sales expenses and factory costs.

If at the end of the month only part of the goods is sold, then the amount of sales costs is distributed in proportion to their cost between unsold and sold products.

The distribution ratio is the ratio of the amount of sales costs to the cost of products shipped.

Allocation of selling expenses. Example.

In the reporting month, the organization shipped finished products worth 240 thousand rubles at production cost, and sold 170 thousand rubles. At the end of the month, sales costs amounted to 100 thousand rubles.

Task: distribute sales costs.

• Distribution coefficient: 100,000/240,000=0.4167.
• Selling costs are written off on products sold.

Debit 90.2 Credit 44

170,000 x 0.4167=70,839.

• Sales costs for shipped products are calculated:

100,000 - 70,839 = 29,161 or (170,000 - 100,000) x 0.4167 = 29,169.

Advertising expenses

Almost all organizations interested in profit are engaged in advertising their products or activities. Today there are many different ways to do this:

• place commercials and advertisements in the media;
• distribution of product catalogs and booklets;
• sponsoring holiday events, etc.

Account 44 also takes into account the costs of the advertising campaign. The method of writing off such expenses is determined based on the accounting policy of the enterprise:

1. Distributed between products sold and finished products stored in the warehouse.
2. Advertising costs are reflected in the cost of goods sold.

The production or purchase of gifts that the company gives to participants in promotions during their implementation is regulated. For tax purposes, the amount of such expenses cannot exceed 1% of the organization’s (company’s) revenue for the reporting period. The standard applies to all advertising costs not included in the list of regulated expenses.

Example

LLC sponsored the City Day, paying for the performance of famous performers, transferring five hundred thousand rubles. This is considered advertising. Therefore, such contribution is taken into account accordingly. Such expenses are normalized.

The LLC earned 47,200,000 rubles during the reporting period (including VAT of 7 million 200 thousand rubles). The standard for advertising expenses is 400 thousand rubles: (47,200,000 - 7,200,000) x 1%.

The amount exceeding the standard is: 500,000 - 400,000 = 100,000 rubles.

An LLC can reduce its taxable profit by only 400 thousand rubles.

During the reporting period (or month), sales costs are entered into the ledger and then debited to subaccount 2 “Sales” (as a result, the cost of resources sold is formed) from credit 44 of the accounting account.

When forming the cost of goods sold, trading organizations accumulate most of the costs in account 44, defined as “Sales expenses.” Account analysis helps to understand the composition and structure of costs incurred. In this article, we will look at the existing expenses in the organization, accounting account 44, which reflects sales expenses.

Determining expenses in an organization

Any organization pays special attention to costs. They not only help to correctly determine the cost of goods, but also subsequently influence the accrued tax (on profit, simplified tax system).

Accounting may reflect all expense transactions of an enterprise made in the reporting period, regardless of their characteristics and types. For tax accounting purposes, only those costs whose existence is permitted by law are taken into account. In addition, they must be documented and economically justified.

The procedure for recognizing incurred expenses in tax and accounting depends on the accounting method adopted. The cash method (used by simplifiers, can also be used by organizations on a general system with small amounts of income, non-profit structures) allows you to take into account costs only upon their actual payment. With the accrual method, expenses must be committed (transaction carried out) and documented. In this case, actual payment is not required.

Not all organizations in the process of conducting their activities have the right to conduct simplified accounting with the procedure for recognizing expenses as they are actually paid. The following entities are required to use only the accrual method of accounting: housing institutions, microfinance organizations, political parties, bar associations (colleges), notary offices, institutions whose activities are subject to mandatory auditing, as well as non-profit organizations whose functions include performing the duties of a foreign agent.

Types of expenses

Expenses include not only direct sales costs, but also other non-operating costs. That is, expenses are divided into expenses for ordinary current activities and others.

The following costs for current trading activities are distinguished:

• rental of premises and utility payments;
• costs of materials used in the course of activities;
• payment for services of third parties;
• costs of transporting goods;
• costs incurred for storing goods;
• entertainment and other expenses.

Non-operating costs include the services of credit institutions, including the cost of repaying accrued interest for the use of borrowed funds. This also includes all expense transactions associated with the issue of securities, legal costs, and payment of bonuses to counterparties for achieving the established sales volume.

Costs incurred for ordinary activities in trading organizations are collected in account 44 “Sales expenses”. Non-operating expenses are accounted for using account 91-2 “Other expenses”.

However, not all expenditure transactions of an organization are recognized as expenses. These include the following activities:

• deposits of funds in the management capital of other institutions;
• acquisition of securities without the purpose of further resale;
• repayment of principal debt obligations on borrowed funds;
• making deposits and advances towards future acquisitions;
• funds allocated for the purchase of non-current assets (fixed assets and others).

Account 44 to reflect write-offs of expenses

Costs in trade organizations are divided into direct and indirect. The first type includes the cost of purchased goods (reflected on) and the costs of transporting purchased goods (reflected on account 44 “Sales expenses”). Other costs are recognized as indirect.

The methodology for generating and writing off expenses for accounting purposes must be reflected in the accounting policies of the legal entity. faces. Selling expenses in trading companies can either be written off completely as sales (), or distributed between sold and unsold products (direct costs). The latter also applies to transportation costs, since the moment of determining such costs appears with the shipment of goods. Other types of expenses increase the cost of goods sold each month.

Account 44. Example with accounting entries

Account 44: offsetting accounts

Account 44 “Sales expenses” corresponds with the following accounting accounts