Due to the characteristics of the construction industry, the material cost accounts for a large proportion of the project cost (generally more than 65%), especially in the current situation, the preferential margin of winning the bid is very large, and controlling the material cost has become the key to reducing the cost. Material cost is determined by two factors: material consumption and material purchase cost, so there are two main aspects to control material cost: controlling material purchase cost and controlling material consumption. From the point of view of easy management and cost reduction, the material management accounting method of "A supplier" in construction enterprises came into being. "A supplier" can exist between the owner and the general contractor, or between the general contractor and the subcontractor. Taking the general contractor and subcontractors as examples, this paper analyzes the accounting method of "Party A's supply" in the material accounting of construction enterprises from the angles of accounting and tax law.
The so-called "Party A's supply" refers to a material supply and management accounting method between the general contractor and the subcontractor during construction. The actual operation flow is: the general contractor signs a material supply and price settlement contract with each subcontractor, stipulating that the main materials used by subcontractors in subcontracted projects shall be purchased by the general contractor, and the material price settlement shall be subject to the price agreed in the contract, and the quantity shall be settled according to the quantity allocated to subcontractors by the general contractor. That is to say, in the "A-supply" method, the price risk of materials is borne by the general contractor, and the quantity risk of materials is borne by each subcontractor. The general contractor estimates the required amount of materials according to the progress of each subcontractor's procurement of materials, and when purchasing materials (actually supplied to subcontractors), it is recorded as the cost of materials owned by the general contractor. When subcontractors use materials, the materials department of the general contractor fills in the requisition and submits it to the budget department, which will exclude this part of materials from the total settlement when settling accounts with subcontractors.
With the increasingly detailed social division of labor, a large-scale project now involves subcontractors not only construction subcontractors, but also material subcontractors and light industry subcontractors. From the point of view of the whole project management, the management accounting method of "Party A provides" does have its own advantages. First of all, the materials of the whole project are purchased by the general contractor. In a construction enterprise with scientific internal quality management, the control of construction quality has the most basic grasp. Secondly, for large-scale engineering projects, a project contracted by the general contractor may be subcontracted to dozens or even dozens of subcontractors due to the specific requirements for professional level in project progress and construction. Making the best economic lot size according to the purchasing decision of inventory can obviously reduce the purchasing cost. Moreover, bulk purchasing has more price concessions than sporadic purchasing. For subcontractors, due to their own scale restrictions, the quality of procurement personnel and the lack of information on purchase channels, signing the "A-supply" contract can reduce their procurement costs and purchase costs. As long as the price in the contract is reasonable, it is beneficial to them. For the general contractor, they only bear the price risk, not the quantity risk, and the risk of material shortage and damage is not borne by them. "One-time feeding" can reduce management costs. In enterprises with scientific management, the application of "A Feeding" can realize the ideal inventory state of "zero inventory" at the end of the month. Although "A material" has many advantages from the perspective of management and cost, the application of "A material" method is unreasonable from the perspective of accounting and tax law.
First of all, from the accounting point of view.
1. There may be inconsistency between the physical circulation and the book circulation of Ah Oi. "Materials supplied by Party A" shall be purchased by the general contractor in a unified way, and the materials department shall fill in the material schedule and distribute it to all subcontractors. Due to the frequent materials in and out of the construction enterprises in the whole project, the material management department needs to deal with the materials in and out of the warehouse. Generally, companies with good internal control will have material consumption accounts, which are included in the cost according to the material consumption report of the material department at the end of the month. If the enterprise does not require the preparation of a monthly report but a quarterly report, it is to prepare a consumption report at the end of the quarter and record the current material consumption in the cost, because the material consumption is not only at the end of the current period, but throughout the whole construction stage. According to the consumption of construction progress, the budget department will generally prepare a cost estimate for the financial department, and the financial department will prepare a cost estimate report accordingly. In other words, the materials estimated by the general contractor are included in the project cost, but the materials issued are used by subcontractors, so the general contractor cannot grasp the use of materials. The general contractor can't know the consumption degree of materials before settling accounts with subcontractors, and the physical circulation of inventory is inconsistent with the book circulation.
2. "Party A's material supply" may affect the recognition of main business income. According to the "Specific Accounting Standards-Construction Contract", this standard generally requires the percentage of completion method to confirm income. Considering that some enterprises are short of funds and seriously in arrears, the recovery of contract income is uncertain to a great extent, and the recovery cost method is allowed. The percentage of completion method should be used to determine the completion progress, and the accumulated actual contract cost can be used as the proportion of the estimated total contract cost. When determining the contract cost, the new standard requires deducting the part that has been put into use but has not been used. Because the general contractor can't know the usage of materials after the materials are distributed to subcontractors, the budget department adopts an estimation method for the materials included in the current cost, which is an obstacle to determining the completion schedule. When the project spans several years, it will affect the confirmation of the main business income of each period. Secondly, the allocation of materials is settled through the current account, and the project settlement between the general contractor and subcontractors is also accounted for through the current account. If the current account used is used to calculate both the money purchased by the general contractor and the money settled with the subcontractor according to the contract price and project pricing. After the hedging of accounts receivable and accounts payable, the subcontractor may actually include the difference between them in the main business income and underestimate the income. At the same time, materials directly enter the cost of the general contractor, rather than the engineering cost of the subcontractor, which reduces the cost of the subcontractor.
Second, from the perspective of tax law.
1. According to the Provisional Regulations of the People's Republic of China on Business Tax, taxpayers engaged in taxable services and goods or non-taxable services shall separately account for the turnover of taxable services or the sales of non-taxable services. Taxable services and goods or non-taxable services that are not accounted for separately or cannot be accurately accounted for shall be subject to value-added tax, and business tax shall not be levied. It can be regarded as a part-time job for a construction enterprise to provide construction services and purchase materials at the contract price and settle accounts with subcontractors. If the materials for self-use are accounted separately from the materials supplied to subcontractors according to the contract after unified procurement, and the purchased goods are sold to others, the value-added tax shall be calculated and paid in accordance with the provisions of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC). If the taxable services operated by taxpayers are not accounted for separately, whether the value-added tax should be levied at the same time shall be determined by the organs affiliated to State Taxation Administration of The People's Republic of China, People's Republic of China (PRC). When the material management accounting method of "supplied by Party A" is adopted, it is different from the case that the materials are used to offset the advance payment of the project. "Party A's material supply" is actually a sales behavior, so according to the relevant provisions of the tax law, when there is "Party A's material supply" in a project, it will involve the payment of value-added tax or business tax. However, in the actual operation process, the accounting treatment of "A material" is only to offset accounts payable through current account transfer, so there is a tax blind spot in the accounting of "A material".
2. The services provided by construction enterprises are taxable services, and business tax shall be paid in accordance with the provisions of the tax law. Engaged in construction, repair, decoration engineering operations, no matter how to settle accounts, turnover includes the prices of raw materials and other materials and power used in the project. Although it is stipulated in the tax law, in practice, the project settlement invoice is issued and the tax is calculated at the same time, because "A material" leaves room for manipulating the main business income and main business cost in practice, which reduces the subcontractor's confirmation of the main business income and main business cost. By hedging the current account, the two different transactions of material payment and project payment are offset, and the purpose of reducing the tax payable is achieved. This practice is not the so-called narrow or broad tax planning, it is actually an act that leads to tax loss. This is not allowed by the tax law. Accordingly, the urban maintenance and construction tax and education surcharge accrued according to the business tax will also be reduced due to the reduction of business tax.
To sum up, in order to better calculate the cost of materials, that is, to grasp the progress of the project and correctly calculate taxes. I think we can improve the material management accounting method of "Party A provides" from the following aspects.
1. Considering the preferential price of bulk procurement and the smooth information of procurement channels of large general contractors, the general contractor can purchase in a unified way, or the subcontractors of special materials can purchase in a unified way, which can not only ensure the procurement cost of materials, but also basically ensure the engineering quality. Of course, there needs to be an independent third party to supervise (such as the owner). However, the consignee of purchased materials can be a subcontractor. Materials should not directly enter the general contractor's project cost, but should be transferred to the project cost by pricing the subcontractor's project. The consumption process of materials is recorded by subcontractors rather than general contractors. This can make the book circulation of materials consistent with the physical circulation, reasonably estimate the completion progress, and correctly confirm the income and cost. In addition, the general contractor can charge service fees according to the procurement services provided by the procurement contracts signed with subcontractors. In this way, it will not involve paying business tax or value-added tax according to the material remuneration of the contract, and the tax is based on the services provided, not the material remuneration, so that tax can be legally avoided.
2. The business tax shall be paid by the general contractor at the time of settlement with the owner. In order to speed up the infrastructure construction in China, China has given different degrees of preferential treatment to infrastructure construction in terms of taxation. Construction projects of construction enterprises can be divided into tax-free projects and taxable projects. If the contract signed by the general contractor and the owner is taxable, the general contractor shall pay taxes uniformly according to the total project cost of the general contractor when settling accounts with the owner. The general contractor issues a tax exemption certificate to the subcontractor, and the subcontractor handles the tax refund according to the tax exemption certificate. If the project signed by the owner and the general contractor is tax-free, it should also be tax-free for subcontractors. However, due to the tax exemption, that is, the contract amount between the general contractor and the owner can only be opened once, the subcontractor needs to pay tax when issuing the project income invoice, but it can be signed in the contract when both parties sign the contract to make up for the tax.
In short, due to the large proportion of materials in construction enterprises, in order to correctly calculate the cost of materials and estimate the percentage of completion, the management of materials should be more scientific and objective. The methods of material cost control and management need to be further improved.
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