Outsourcing, delivery of goods:

Borrow: entrust processing goods.

Loan: inventory goods

Obtain special VAT invoice for processing fee:

Borrow: entrust processing goods.

Borrow: Taxes payable-VAT payable (input tax)

Loans: bank deposits, etc.

Recover the entrusted processed goods:

Borrow: inventory goods

Loan: entrusted processing goods

Revenue is recognized by selling, and cost is carried forward:

Debit: accounts receivable, etc.

Loan: income from main business

Loan: Taxes payable-VAT payable (output tax)

Debit: main business cost

Loan: inventory goods

What's the difference in tax treatment between incoming materials processing and incoming materials processing?

Processing with imported materials means that foreign businessmen provide certain raw materials, auxiliary materials, spare parts, packaging materials and other materials (if necessary, machinery and equipment will be provided), and domestic enterprises are entrusted to process and assemble according to the requirements of foreign manufacturers. The finished products are sold by foreign manufacturers, and domestic enterprises charge processing fees according to the contract. After signing the processing contract with imported materials, operating enterprises should file the contract with the customs in advance before the goods arrive. After filing, they should enter the data of tax-free declaration according to the export declaration form of processing with imported materials.

Feed processing refers to the processing trade in which imported materials and parts are imported by operating enterprises and finished products are exported by operating enterprises.

There are three main differences in tax treatment between incoming processing and incoming processing: first, the imported materials for incoming processing are fully tax-free, and the materials and parts fees are paid when the incoming processing is imported, but the value-added tax and consumption tax are not required, and the payment of customs duties depends on the specific materials; Second, the processing fee for incoming processing is exempt from value-added tax and consumption tax, and the processing fee is not involved in incoming processing; Third, when the goods are exported, the processing with supplied materials is exempt from VAT, but not refundable, while the processing with supplied materials is tax-free and refundable.

How to carry forward the cost when there is no receipt/issue report for garment processing? According to our introduction in the above article, you can know that processing enterprises are involved in accounting treatment, and you can find these answers in our article after the processing business of your own processing enterprises is completed.