How to amortize low-value consumables?

According to the enterprise accounting system, the amortization method of low-value consumables can be one of "one-time amortization method", "multiple amortization method" and "five-five amortization method". Once the amortization method is determined, it shall not be changed at will.

Accounting method of "five-five amortization method":

1. Borrow when purchasing: low-value consumables-low-value consumables in stock.

Loans: bank deposits, etc.

2. Borrow when collecting: low-value consumables-low-value consumables in use.

Borrow: low-value consumables-low-value consumables in stock.

At the same time, it is amortized according to 50% of the cost of low-value consumables.

Borrow: manufacturing costs, etc.

Loan: low-value consumables-amortization of low-value consumables.

3. Borrowing when scrapped: borrowing for manufacturing expenses, etc. : raw materials (if there is residual value).

Loan: low-value consumables-amortization of low-value consumables.

At the same time, reduce the low-value consumables in use.

Borrow: low-value consumables-amortization of low-value consumables

Borrow: low-value consumables-low-value consumables in use.

Judging from your supplementary question, the hardware materials you bought can not be included in the "low-value consumables" subject, but should be included in the "raw materials" subject, and the amortization method of low-value consumables is not applicable.

On the supplementary question.

The above raw materials, to your problem, do not refer to raw materials, but materials, as you said, "hardware' materials'".

It can be seen that the "hardware materials" you mentioned may indeed include low-value consumables. However, frequent purchase and requisition, on the one hand, shows that your company lacks management, and on the other hand, proves that it is not a low-value consumable. So, you need to distinguish the two correctly.

For the business that happened before, for the hardware materials, because the purchase and consumption are synchronous, you should directly debit the manufacturing expenses and other subjects, and credit the cash or bank deposit subjects. The future treatment will be discussed when your rules and regulations are formulated.