What Is a Direct Debit?

Direct payment expenses refer to expenses that should be borne by the current period, such as direct payment of wages, miscellaneous expenses, storage fees, etc. of the month.

Pay directly

Right!

Direct payment expenses refer to expenses that should be borne by the current period, such as direct payment of wages, miscellaneous expenses, storage fees, etc. of the month.

Chinese name

Pay directly

Foreign name

Direct payment

Definition

The current payment should be borne by the current period

Processing method

Direct payment from the accounting department

Subject

accounting

There are two ways to pay expenses directly: one is to be paid directly by the accounting department when the expenses occur; the other is to pay in advance in the form of a reserve fund and then report the account.

(1) Direct payment by the accounting department

When expenses occur, the expense department directly reports to the accounting department with the expense certificate. The accounting department received the expense documents and verified that they could make payment accordingly. The accounting entries are as follows:

Borrow: operating expenses-× × expenses × × ×

Loan: bank deposit (or cash) ×××

Among the directly paid expenses, wages occupy a large proportion and the accounting is more complicated. The following explains this:

In order to strengthen the macro-control over consumer funds, the state requires that all sectors and units of the national economy must calculate total wages. The so-called total wage refers to the total labor remuneration paid by the state to all employees within a certain period of time. The amount of total wages is related to the proportion of accumulation and consumption in national income. Therefore, the issue of wages is an important issue of distribution. It directly affects the vital interests of employees. It involves the development of the national economy and the improvement of people's living standards. The state needs to deal with the issue of wage distribution from the macro and micro aspects.

The total wages paid by enterprises to employees include various wages, bonuses, allowances, and subsidies, but not including medical expenses, welfare subsidies, retirement expenses, innovation awards, rationalization suggestions, and technological transformation awards. Before the monthly salary is paid, the finance and accounting department should calculate and prepare according to the staff attendance, transfer, and salary level adjustment notices transferred from the personnel, labor and salary department, various subsidy change notices, and the withholding notices transferred from the relevant departments. The "salary table" calculates the payable wages and paid wages of each employee. If it is an enterprise that implements the daily wage system, the wages of absentee employees will be deducted according to the following calculations:

Daily wage = standard monthly salary + 30 days (or average actual working day per month)

Leave deductible wages = number of holidays x daily wages

Basic pay for sick leave = daily wage x number of sick leave days x ratio of basic pay for sick leave

Payable salary = standard salary + supplementary salary + various subsidies-deducted sick leave salary

Paid wages = payables-withholding payments

The monthly payroll table is the basis for wage accounting, and is used to draw cash from the bank to pay wages and perform accounting. After the payroll has been signed by the employees, it is the original voucher for paying wages.

Wages are calculated in the "Payable Payables" account, which is a liability category account that calculates the total wages payable by employees to employees. The wages registered by the debit party are deducted from the wages; the lenders register the total wages payable by various departments this month, and generally have no balance at the end of the period. The account shall be accounted for in detail according to the type of employees and the composition of total wages.

[Example] A commercial enterprise calculates the total wages to be paid to commercial employees in October of 28,000 yuan (including 22,000 yuan for operating personnel and 6,000 yuan for management personnel), and 1,600 yuan for employees in medical and welfare institutions. The salary of the long-term sick leave employee is 1,000 yuan. In addition, the monthly rent of 3,500 yuan for the business staff of the commercial staff for the housing management department is deducted, and 360 yuan is owed to the employee Wang Wenming. , As well as settlement of withholding rent.

The related accounts are processed as follows:

1. Calculate the actual salary and withdraw cash from the bank.

28 000 + 1 600 + 1 000-3 500-360 = 26 740 (yuan)

Borrow: Cash 26 740

Loan: bank deposits 26 740

2. Payroll and handle withholding payments.

Borrow: Payables-22 000 salaries of operating personnel

Salaries of management personnel 6 000

-Salaries of welfare agency personnel 1,600

-Non-staff salaries 1,000

Loan: Other receivables-Wang Wenming 360

Cash 26 740

Other payables 3 500

Borrow: Other payables 3 500

Loan: bank deposit 3 500

3 At the end of the month, the wages due this month are distributed.

Borrowing: operating expenses-salary of operating personnel 22 000

Management expenses-management staff salary 6 000

Welfare payable-salaries of welfare agency personnel 1 600

Non-operating expenses-non-staff salaries 1,000

Loan: Wages payable-salaries of operating personnel 22 000

Salaries of management personnel 6 000

-Salaries of welfare agency personnel 1,600

-Non-staff salaries 1,000

(2) Payment with reserve funds

In this method, the relevant functional departments within the enterprise are responsible for separate management according to the expense items, and a certain amount of reserve funds are drawn in advance, and the expense documents are reported to the accounting department on a regular basis, and the reserve funds are replenished after verification. When the finance and accounting department allocates the reserve funds to the relevant departments, the accounts are calculated in the "Other Receivables-Reserve Funds" account.

An example is as follows:

[Example] A commercial enterprise stipulates that the freight is managed by the storage and transportation department, receives a fixed reserve in advance, reports to the accounting department on a regular basis, and makes up the amount based on the reimbursement amount.

(1) According to the receipt receipt from the storage and transportation department, the finance and accounting department paid a reserve of RMB 3,000. Its accounting entries are as follows:

Borrow: other receivables-reserve fund (storage and transportation department) 3 000

Loan: bank deposit 3 000

(2) The storage and transportation department will report the paid freight voucher to the finance and accounting department on a regular basis, and this month will be reimbursed 365 yuan. Its accounting entries are as follows:

Borrow: Operating Expenses-Freight 365

Loan: bank deposit 365