What Is an Acquisition Fee?

Equipment purchase cost refers to the cost of purchasing or self-made equipment, tools, and appliances that meet the standards of fixed assets for construction projects. The fixed asset standard is determined by the service life of more than one year, the unit value is above the prescribed limit of 1,000 yuan, 1500 yuan, or 2,000 yuan. The specific standards are prescribed by the competent authority. Equipment, tools, and appliances, whether or not they meet the standard of fixed assets, are included in the purchase of equipment and tools. ^[1]

Equipment purchase fee

Equipment purchase cost refers to the cost of purchasing or self-made equipment, tools, and appliances that meet the standards of fixed assets for construction projects. The fixed asset standard is determined by the service life of more than one year, the unit value is above the prescribed limit of 1,000 yuan, 1500 yuan, or 2,000 yuan. The specific standards are prescribed by the competent authority. Equipment, tools, and appliances, whether or not they meet the standard of fixed assets, are included in the purchase of equipment and tools. ^[1]

The equipment purchase fee is composed of the original equipment price and equipment transportation and miscellaneous expenses.

Equipment purchase fee = equipment original price + equipment

Equipment transportation costs

For imported equipment, the freight and loading and unloading charges are the freight and loading and unloading charges incurred from China's onshore port or border station to the construction site warehouse (or the storage location for the equipment to be installed designated by the construction organization design).

Transportation and miscellaneous expenses = original equipment price × transportation and miscellaneous expenses

Equipment transportation insurance premium

Transportation Miscellaneous Insurance Premium = Original Equipment Price × Insurance Premium Rate

Equipment purchase and storage fees

Procurement and storage fee = original equipment price × procurement and storage fee rate

Composition and calculation of the purchase cost of tools, appliances and furniture

The purchase cost of tools, appliances and production furniture refers to the preliminary design requirements for new or expanded projects, which guarantee the initial production of equipment, instruments, tool cards, appliances, production furniture and spare parts that do not meet the fixed asset standards, etc. Purchase costs. Generally, the equipment purchase fee is used as the calculation base and multiplied by the corresponding rate.