What are the accounting entries for patent fees?

Patent fee is the fee paid when handling patent right or applying for patent. For many independent R&D enterprises, patent fee is an indispensable expense. How to write the accounting entry of patent fee?

Accounting treatment of patent fees

When R&D expenditure occurs:

Debit: R&D expenditure-expensed expenditure (research expenditure and development expenditure that do not meet capitalization conditions)

R&D expenditure —— Capitalized expenditure (development stage expenditure eligible for capitalization)

Loans: bank deposits, raw materials, wages payable to employees, etc.

At the end of the period, transfer the spent R&D expenses to the current management expenses:

Borrow: management fee

Loan: R&D expenditure-expense expenditure

R&D expenditure eligible for capitalization; When the intangible assets reach the usable state;

Borrow: intangible assets

Loan: R&D expenditure-capitalized expenditure

What is R&D expenditure?

R&D expenditure refers to the depreciation of assets, the consumption of raw materials, the wages and welfare expenses of the personnel directly involved in the development, the rent and borrowing expenses incurred in the development process.

"R&D expenditure" is a cost account, which is used to account for the expenditure incurred in the process of R&D of intangible assets. The detailed accounts of "expensed expenditure" and "capitalized expenditure" should be set according to the R&D project for detailed accounting. The final debit balance reflects the expenditures eligible for capitalization in the ongoing R&D projects of the enterprise.

What do you mean by raw materials?

Raw materials refer to all kinds of raw materials, main materials, auxiliary materials, packaging materials, outsourced semi-finished products, etc. After processing and changing in the production process, it constitutes the main entity of products and an important part of enterprise inventory.

The "raw materials" account belongs to the asset account, and the debit balance at the end of the period reflects the planned cost or actual cost of the enterprise's inventory materials. And make detailed accounting according to the storage location (warehouse), category, variety and specification of materials.