Repair of fixed assets is a process that results in the restoration of the operational properties of objects. How the costs of repairing fixed assets are taken into account in accounting, what entries reflect this process - we will look into this in the current article.

A fixed asset can be restored in two ways:

• through routine repairs;
• through major repairs (reconstruction and modernization).

Cost accounting in both cases occurs differently. It is necessary to clearly understand the differences in these processes so as not to have problems with the tax inspectorate in the future and not to resolve disputes with the auditing authority in court. It is very important at the initial stage to determine how the object will be restored.

If normal routine repairs are carried out, then all associated costs are written off as the organization’s expenses in the current tax period.

If reconstruction and modernization of the facility is carried out, then all costs are attributed to the increase in the value of the facility.

Read more about OS modernization and reconstruction in.

The main difference between OS repair and reconstruction is that in the first case there is no change in the technical and economic indicators of the object. Reconstruction or modernization is, first of all, an improvement in the technical, economic and production performance of an object.

OS repair is the elimination of malfunctions, damage, as well as carrying out preventive measures to prevent premature wear of the object, as well as work aimed at maintaining the operating condition of the equipment.

Carrying out repair work, as a rule, begins with the formation of estimates and a work plan approved by the head of the enterprise.

After repair, the object is accepted for accounting on the basis of the acceptance certificate for repaired, reconstructed and modernized objects OS-3.

Preparation of repair and modernization documents

When carrying out repairs of fixed assets, the following documents are drawn up:

• order of the manager, which determines in relation to which objects work should be carried out;
• defective statement, which indicates the nature of the malfunctions and defects requiring repair work;
• estimate documentation;
• contract agreement if third parties are involved;
• act of acceptance and delivery of repaired fixed assets form OS-3.

Accounting

Repairs can be carried out in two ways:

• contract method;
• in an economic way.

In the first case, repair work is carried out with the help of third-party contractors, with whom a contract is concluded; after completion of the work, the contractor draws up estimates for the work performed.

In the second case, repair work is carried out on our own.

The costs of repairing fixed assets are included in the production cost accounts, that is, they are included in the following entries: D20 (23, 25, 26, 44) K10 (60, 70, 69).

If the costs amount to a significant amount, then the organization can carry out repair work at the expense of a pre-formed reserve. This reserve is formed by gradually including certain amounts in the cost of production over a long period of time, while postings D 20 (23, 25, 26) K96 are made, where account 96 is called “Reserve for future expenses”, on which a reserve is formed for the loan. The amount of monthly deductions for the formation of the reserve is determined as 1/12 of the annual cost of repairs according to the estimate. During the repair process, all costs are written off to the account of this reserve using the following entries: D96 K10 (70, 60, 69..).

If at the end of the year there are funds left on the credit of account 96 (that is, the amount required for repairs was less than the formed reserve), then the remaining funds are written off to account 91 by posting D96 K91/1, thus account 96 is closed.

If the amount of the reserve is not enough to carry out repair work, then the missing funds are either received using an additional entry to increase the reserve fund D20 K96, or this amount is written off as expenses by posting D20 K10, 60, 70.

Postings for accounting for expenses for repairs of fixed assets.

Repair of fixed assets are actions carried out to reduce the degree of wear and tear and restore the technological capabilities of fixed assets in order to maintain them in an efficiently functioning state.

Fixed production assets must be used efficiently, and for this they need to be restored from time to time. This is possible in various ways: through modernization, reconstruction or repairs of varying degrees of duration and thoroughness.

By carrying out repairs as a result of investing certain costs, the value of the asset being repaired increases, that is, the operating efficiency increases.

Let's consider ways to repair fixed assets, analyze the features of its reflection in accounting.

Repair of fixed assets: what is it?

Definitions of repair as a way to support and improve the efficiency of basic material assets in modern regulations are not given. It has not been cancelled, and therefore is considered relevant. The Regulations on carrying out preventive maintenance repair of industrial buildings and structures MDS 13-14.2000, approved by Decree of the USSR State Construction Committee dated December 29, 1973 No. 279: it defines the repair of this particular type of fixed asset. This is considered a combination of technical measures related to improving or maintaining at the same level the operational characteristics of buildings, structures and their structures.

Characteristics of repair of fixed assets

Repair, as a way to maintain the OS in an effective condition, is characterized by the following factors:

• the functions of the fixed asset being repaired remain unchanged;
• the technical capabilities of the asset are not expanded;
• the characteristics of the object are as close as possible to the original ones;
• initial cost of fixed assets reflected in balance sheet, increases as a result of repairs.

Repair of fixed assets is carried out in different ways:

• repairing damage;
• repair;
• replacement of individual elements, structures and assemblies;
• maintenance (maintenance, lubrication, checking, cleaning, setting, adjustment, etc.).

Classification of repairs of fixed assets

Depending on what is taken as the basis for dividing into groups (scope of work, their cost, duration, degree of interference in the functioning of the fixed asset and the order of organization), repairs can be divided into several categories.

1. If planning is possible:

• scheduled preventative maintenance– carried out regularly, without waiting for problems in the functioning of the fixed asset, in order to prevent a decrease in efficiency;
• emergency repair– emergency elimination of problems or disruptions in the operation of the facility to restore its functionality;
• refurbishment– a type of emergency, when work is forced to be carried out after any impact on fixed assets emergency situations beyond human control, such as natural disasters.

According to the volume and characteristics of the work performed:

• Maintenance– the smallest scale and cost of repair actions performed, designed to ensure effective operation until the next repair, without affecting the main functional characteristics of the facility (can be carried out several times during the year);
• average renovation– a more labor-intensive process involving high costs, requiring partial intervention in the operation of the fixed asset being repaired; most often associated with the replacement of parts and important components (not performed more than once a year);
• major renovation– the most expensive and time-consuming of all types of restoration repair work, they completely cover the object, providing for high-level interventions, as a result of which it falls out of service during the repair (carried out occasionally).

By selected side of execution:

• economic method of repair– maintenance and/or restoration of the facility is carried out by attracting internal resources of the organization itself;
• contract repair method– attracting external contractors to carry out the work.

Current and major repairs: how to distinguish

The division of repairs into current and capital is important, since these types of work are reflected differently in the enterprise’s accounting and other reporting. Meanwhile, the regulations of tax and accounting legislation do not provide a clear distinction and definition of these types of repair work.

The letter of the Ministry of Finance of the Russian Federation dated January 14, 2004 No. 16-00-14/10 “On the grounds for determining types of repairs” explains that the organization itself must develop provisions on the basis of which repair work will be classified as current or capital. In this case, it is permissible to use the provisions of documentation that has remained relevant since the times of the USSR, such as the cited Resolution of the State Construction Committee No. 279.

Let's consider the main differences between current and major repairs, which are accepted in business practice.

№	Base	Maintenance	Major renovation
1	Periodicity	No more than once a year	More than one year
2	Nature of work	Elimination of damage, malfunctions, replacement of individual parts	Complete disassembly, replacement of all damaged or worn elements
3	Duration	Not very long lasting	Long lasting
4	Basic execution method	More often economic	More often a contractor
5	Regularity	Must be carried out according to special schedules	Depends on the degree of wear and tear of the fixed asset, is assigned specifically
6	Additional work	Not provided	May be accompanied by reconstruction, modernization

Nuances of accounting for OS repairs

The specifics of accounting for the costs of repairing fixed assets must be reflected in the accounting policies of a particular enterprise and are formalized by an appropriate order. As a rule, these funds are included in the costs of production or circulation, for which one of the ways is chosen.

1. Actual expenses are included in distribution costs. This method is used mainly for current repairs: expenses are written off in the same period in which they were incurred.
2. A special repair financial reserve is created. The organization chooses the procedure for accruing reserve funds in relation to the special limits established in internal regulations for such deductions, the size of which depends on the group of fixed assets.
3. Assigning repair costs to deferred expenses so that later they can be written off evenly. This method is more convenient if large-scale repair work is to be carried out, and a fund or reserve for this has not been created. If you write off immediately a large amount for these expenses, the reflection of the cost of work will be disrupted.

Accounting entries for different methods of organizing the accounting of repair equipment

Economic method organizing repairs allows you to immediately write off the costs of repair work. Postings:

• debit – 20 “Production, provision of services”, 23 “Auxiliary production”, 25 “General production expenses”, 26 “General business expenses”, 44 “ retained earnings, uncovered losses";
• credit – 10 “Materials”, 69 “Calculations for social insurance and security”, 70 “Settlements with personnel for wages” and other accounts.

Backup method When a fixed asset repair fund is created, it provides for the use of funds from this reserve. If at the end of the reporting year the repairs are completed and the reserve is not fully spent, the remainder will be reversed. If repairs continue into the next year, the balance of funds in the reserve at the end of the reporting year is included in its financial results. If, on the contrary, there were not enough funds to complete the repairs, you will have to spend additional expenses and write them off as expenses at the end of the year. Postings:

• debit 96 “Reserves for future expenses”, correspondence with production expense accounts is possible;

Repair costs planned for the future, must be written off evenly, in equal parts.

REFERENCE! Standard deductions for future periods cannot be greater than the average figure characterizing this indicator for the previous three years.

Postings:

• debit 97 “Calculations for future periods”;
• credit 23 “Auxiliary production”, 10 “Materials”, 69 “Calculations for social insurance and security”, 70 “Settlements with personnel for wages”.

in accounting (BU) and tax (TA) accounting can occur according to different rules. At the same time, they have a lot in common. Let's look at these similarities and differences.

Repair of fixed assets - what is it?

Repair of fixed assets (Fixed Assets) is a process that relates to both own and leased property. It is carried out in order to support or restore the functionality of the OS. The repair procedure consists of eliminating faults that have arisen, replacing worn parts or individual components of the object. Depending on the frequency and volume of work performed, repairs can be:

• current,
• average,
• capital.

However, in no case should the repair process lead to changes in the basic technical characteristics or the purpose of the object being repaired, since such a change will already be regarded as modernization (reconstruction), which must be taken into account according to completely different rules (clause 2 of Article 257 of the Tax Code of the Russian Federation).

Carrying out repairs, unlike modernization (reconstruction), does not in any way affect either the initial or residual value of the object. All repair costs, whatever their value, are taken into account during the period of its completion. However, such expenses require economic justification and documentary evidence (letters of the Ministry of Finance of the Russian Federation dated March 24, 2010 No. 03-03-06/4/29, dated February 25, 2009 No. 03-03-06/1/87).

Repairs can be carried out:

• attracted counterparty,
• on our own,
• in a mixed way.

Documentation of repairs

Repairs are preceded by drawing up:

• a defective statement reflecting the condition of the object, which can be made in 1 copy if the repairs are carried out on their own or in a mixed way, and drawn up in 2 copies if the repairs are carried out by a third-party contractor;

• estimates for repair work drawn up either by a third-party contractor or by its own department carrying out repairs;
• an order from the manager to carry out repairs, which reflects the timing of the repair work, the forces carrying it out, and, if necessary, decisions to replace temporarily absent OS;
• agreement for repairs, if it will be done by a third party;
• invoice for the internal movement of fixed assets, if the object is being repaired in its own department.

Upon completion of the repair work, the following is drawn up:

• certificate of acceptance of the object from repair;

• invoice for internal movement of fixed assets, if the object was repaired in its own department;
• a record of the repair performed in the OS inventory card.

For an example of such a record, see the sample for the article. .

Reflection of repairs in accounting

Accounting for the cost of repairing fixed assets in BU varies depending on how the repair work is carried out.

When carried out on their own (i.e., by one of the auxiliary departments), an order is opened for such work in the relevant department, for which direct costs associated with it are collected during the entire time the repair is in progress:

Dt 23 Kt 10, 69, 70.

If third-party contractors are involved for part of the work (i.e., a mixed method of repair), then account 60 will be added to the list of accounts reflected in this loan entry. In this case, a VAT posting may also arise if the services of a third-party contractor are subject to this tax:

Dt 19 Kt 60.

The overhead costs of the auxiliary department performing the repairs, distributed at the end of each month, will also be added to the total cost of the repair order:

Dt 23 Kt 25.

Upon completion of the repair, which will be recorded in the acceptance certificate of the object, the costs collected in account 23 for the corresponding order will be written off as overhead costs for the maintenance of the department in which the repaired OS is used:

Dt 25 (26, 44) Kt 23.

When repairs are carried out only by a third-party contractor, the costs for it will appear in accounting only on the date of signing the act of acceptance of the object from repair and will immediately be charged to overhead costs for the maintenance of the department in which the OS that has been repaired is used, with the allocation of VAT indicated in the documents :

Dt 25 (26, 44) Kt 60;

Dt 19 Kt 60.

In the posting for accounting for completed repair costs for both options (in-house or third-party), the list of accounts indicated by debit may also include accounts 23 and 29, if the accounting of overhead costs for them is organized using the boiler method or in separate subaccounts of these accounts. OS repair costs cannot be included in direct costs, since the objects are not involved in production during repairs.

According to the current accounting rules, a reserve for OS repairs is not created in the accounting department. Previously, this could be done, but since 2011, this possibility has been excluded from the Methodological Guidelines for fixed assets accounting, approved by Order of the Ministry of Finance of the Russian Federation dated October 13, 2003 No. 91n (Order of the Ministry of Finance of the Russian Federation dated December 24, 2010 No. 186n).

Accounting for repairs in tax accounting

NU management accounting for the cost of repairing fixed assets possible in 2 ways (Article 260 of the Tax Code of the Russian Federation):

• The same as in accounting, i.e. by including costs in expenses during the period of completion of repairs (clause 1).
• Through the creation of a reserve (clause 3). The amount of contributions to it is determined in a special manner established by clause 2 of Art. 324 Tax Code of the Russian Federation. The total amount of the reserve has limits, but can accumulate over several tax periods. If a reserve is created, then all repair costs are taken into account and attributed to the reduction of this reserve. And only if its amount is exceeded, repair costs can be taken into account directly in the costs.

The decision to create or not create a reserve in NU must be fixed in the accounting policy. If you decide to create it, the algorithm for calculating the amount of the reserve and the period for which it is formed are also written down.

Since the current accounting rules do not provide for the possibility of creating a reserve for repairs of fixed assets, differences will arise between the accounting and accounting data in terms of the reserve formed for the purposes of the accounting system.

Results

OS repair consists of implementing measures aimed at maintaining the operability of fixed assets, but it should not lead to a change in the technical characteristics or purpose of the OS. Repair costs are taken into account in expenses in the amount of actual amounts upon completion of repair work, regardless of whose forces the repair is carried out: in-house or outsourced. Documented justification for the need for repairs is required. In the NU it is permissible to create a reserve for repairs, but this leads to differences between the BU and the NU.

Our IT department purchased a controller (part, part of the server), which was installed in an existing server purchased earlier. Please tell me whether it can be written off as an invoice claim, as a spare part for a server, or is it necessary to modernize the fixed asset, increasing its cost?

In this situation, if you replaced a faulty controller with a new one, then this operation is recognized as a repair, the cost of inventory and materials is written off when it is installed on cost accounts, initial cost There is no need to increase the OS.

If the controller is purchased and installed to improve the properties of the server, then the cost of the controller is taken into account in account 08 and, after installation, increases the initial cost of the OS (upgrade is carried out).

How to carry out and reflect in accounting the repair of fixed assets

Any fixed assets wear out and become obsolete over time. If you write off an object too early, you can restore functions that have failed (clause 26 of PBU 6/01). This can be done in one of three ways - reconstruct, modernize or repair. In the recommendation you will learn how to reflect the repair in accounting and what documents to draw up. And how does repair generally differ from modernization and reconstruction? It is important to distinguish them, since this determines the order in which you recognize expenses.

How is repair different from reconstruction and modernization*

Since repairs, reconstruction and modernization are reflected differently in accounting and taxation, it is important to classify them correctly. The cost of restoration work does not matter to distinguish between such concepts. What matters here is the purpose for which such work is carried out (see table below):

Type of work	Target
Repair	Eliminate the malfunction that prevents the operation of the facility and restore functionality. At the same time, the properties of the object do not change (letter of the Ministry of Finance of Russia dated March 24, 2010 No. 03-03-06/4/29)
Modernization	Change the technological and service purpose of the object, improve some of the properties of the fixed asset. For example, in order to be able to work with it under increased loads (paragraph 2, paragraph 2, article 257 of the Tax Code of the Russian Federation)*
Reconstruction	Rearrange the facility so that its capacity increases, the quality of products improves or its range becomes wider (paragraph 3, paragraph 2, article 257 of the Tax Code of the Russian Federation)

To determine whether a property restoration is a renovation, renovation, or upgrade, refer to the following documents:

• Regulations on carrying out scheduled preventative repairs of industrial buildings and structures MDS 13-14.2000, approved by Decree of the USSR State Construction Committee dated December 29, 1973 No. 279;
• Departmental Construction Standards (VSN) No. 58-88 (R), approved by order of the State Committee for Architecture under the USSR State Construction Committee dated November 23, 1988 No. 312;

This is stated in the letters of the Ministry of Finance of Russia dated March 24, 2010 No. 03-11-06/2/41, dated February 25, 2009 No. 03-03-06/1/87 and dated November 23, 2006 No. 03 -03-04/1/794.

The answer to this question depends on the nature of the improvements.

In general, repairs are necessary precisely to restore the working condition of the property, and not to change its properties. If the characteristics of the fixed asset have improved, then the work may be considered reconstruction or modernization. That is why it is necessary to clearly define what the improvements are related to.

Work is recognized as repair work only if, as a result, properties change that are not related to the workload and technical and economic indicators of the object. In addition, it is important that such restoration does not affect the quality and range of products (works, services). IN otherwise costs for restoration work will not meet the criteria for repair costs.

The courts share this position. Thus, if the work led to changes in the technical and economic indicators of the object and its purpose, then they cannot be considered repairs (see, for example, the determination of the Supreme Arbitration Court of the Russian Federation dated March 3, 2011 No. VAS-173/11).

By the way, there is an interesting position of the courts on replacing faulty parts of an object with more advanced or powerful ones. According to the arbitrators, this is not modernization. The main thing is that as a result of such a replacement, the technological or production purpose of the facility does not change. Even if performance characteristics improve, the costs of replacing faulty components and assemblies are recognized as repair costs. This position, for example, is expressed in decisions of the Federal Antimonopoly Service of the Central District dated February 9, 2010 No. A14-14803/2008/500/24, Northwestern District dated August 21, 2007 No. A56-20587/2006, Moscow District dated August 14 2006 No. KA-A40/7489-06, Ural District dated June 7, 2006 No. F09-4680/06-S7).

Repair costs*

The costs of repairing fixed assets are included in the current expenses of the organization (paragraph 2, paragraph 67,). With the exception of costs for repairs of objects, the initial cost of which has not been formed. That is, which are not included in account 01 (). In this case, include repair costs in the initial cost of the object when you reflect it as part of fixed assets (clause 8 of PBU 6/01).

If a fixed asset breaks down due to the fault of an employee, repair costs can be deducted from his salary.

Accounting for the cost of repairing fixed assets depends on the method in which it was carried out - contract or business (in-house).

The repairs were carried out on a self-help basis*

The costs of carrying out repairs on your own include:

• from the cost of spare parts and Supplies. The cost of spare parts and materials purchased for repairs should be included in the inventory;
• from the salaries of the employees who performed the repairs;
• from insurance premiums accrued from employee salaries, etc.

If the organization has established a repair service, then document the costs of this work by posting:

Debit 23 Credit 10 (16, 69, 70...)
– expenses for repairs of fixed assets are reflected.

After the fixed asset has been completely repaired (that is, an act in form No. OS-3 has been signed), write off the expenses recorded on account 23 to cost accounting accounts depending on the purpose for which the fixed asset is used. As a rule, these are accounts that reflect depreciation on repaired fixed assets:

Debit 20 (25, 26, 29, 44...) Credit 23
– the costs of repairing fixed assets are written off.

If there is no repair service in the organization, then do not take into account the costs of repairing the fixed asset in account 23. As they arise, do the wiring immediately:

Debit 20 (25, 26, 29, 44...) Credit 10 (16, 69, 70...)
– the costs of repairing fixed assets are taken into account.

This procedure follows from the Instructions for the chart of accounts (account 23).

An example of reflecting in accounting the costs of repairing fixed assets carried out on an economic basis. There is no repair service in the organization

LLC "Trading Company "Hermes"" carried out routine repairs of the refrigeration chamber on its own. There is no repair service in the organization. The organization does not create a reserve for the repair of fixed assets. The organization uses the accrual method and pays income tax quarterly.

Before carrying out the repair, a report was drawn up on the identified malfunctions (defects) of the refrigeration chamber. According to the report, the compressor failed. Since the compressor cannot be restored, they decided to replace it.

To do this, in January the organization purchased a compressor for the amount of 3,540 rubles. (including VAT - 540 rubles) and handed it over for repair work. The organization records the cost of materials without using accounts 15 and 16. In January, the refrigerator compartment was repaired. The accountant was given a report on the replacement of the compressor.

Labor costs (salaries and insurance premiums from it) the employees who performed the repairs amounted to 2,000 rubles.

The Hermes accountant made the following entries:

Debit 10-5 Credit 60
– 3000 rub. (3540 rub. – 540 rub.) – a compressor was purchased;

Debit 19 Credit 60
– 540 rub. – VAT is taken into account on the cost of the compressor;

– 540 rub. – VAT is accepted for deduction;

Debit 60 Credit 51
– 3540 rub. – listed cash for the compressor;

Debit 44 Credit 10-5
– 3000 rub. – the compressor installed during the repair of the refrigeration chamber was written off;

Debit 44 Credit 70 (69)
– 2000 rub. – the costs of paying employees who repaired the refrigeration chamber were taken into account.

The repair was carried out by a contractor

If the repairs are carried out by a contractor, then reflect the expenses for his remuneration by posting:

Debit 20 (25, 26, 29, 44...) Credit 60
– the costs of repairing fixed assets carried out by contract are taken into account.

This order follows from paragraphs , , , PBU 10/99.

An example of how expenses for repairs of fixed assets performed by a contractor are reflected in accounting*

LLC "Trading Company "Hermes"" repaired the refrigeration chamber with the help of contractor Alpha LLC. The cost of the work was 8260 rubles. (including VAT - 1260 rubles). The organization does not create a reserve for the repair of fixed assets. The organization uses the accrual method and pays income tax quarterly.

In April, upon receipt of the act in form No. OS-3, the Hermes accountant made the following entries:

Debit 44 Credit 60
– 7000 rub. (RUB 8,260 – RUB 1,260) – the costs of repairing the refrigeration chamber are taken into account;

Debit 19 Credit 60
– 1260 rub. – VAT is taken into account on the cost of repair work;

Debit 68 subaccount “VAT calculations” Credit 19
– 1260 rub. – VAT is accepted for deduction;

Debit 60 Credit 51
– 8260 rub. – funds were transferred to Alfa for the repair of the refrigeration chamber.

How to carry out and reflect in accounting and taxation the modernization of fixed assets

Accounting for modernization costs

The costs of modernizing fixed assets are taken into account in account 08 “Investments in fixed assets"(clause 42 of the Methodological Instructions, approved by order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n). To ensure the possibility of obtaining data on types of capital investments, it is advisable to open a sub-account “Modernization Expenses” for account 08.*

The costs of modernizing fixed assets using economic methods are:

• from the cost of consumables;
• from employee salaries, deductions from it, etc.

Reflect the costs of carrying out modernization on your own by posting:

Debit 08 subaccount “Modernization expenses” Credit 10 (16, 23, 68, 69, 70...)
– the costs of modernization are taken into account.

To maintain the functionality of fixed assets, it is necessary to periodically repair them. OS repair differs from modernization in that it eliminates malfunctions and damage to an object (assemblies, parts) without improving its characteristics. How to reflect the repair of fixed assets in accounting, as well as the entries that need to be generated when carrying out such operations, we will consider further.

There are two types of repairs:

• Current;
• Capital.

When reconstructing and modernizing, repair costs increase the cost of the facility. For repairs, both current and capital, they are written off as current expenses.

OS repairs are carried out economically, that is, on our own, or contractually, with the involvement of third-party performers. The costs of repairs are written off to production cost accounts, that is, included in the cost price.

General cost allocation scheme:

If the costs of repairing the OS amount to significant amounts, then the organization can restore these costs from the previously formed fund in account 96 “Reserve for future expenses.”

Reserve for OS repair

The essence of the repair reserve is to distribute costs evenly across periods of the year. That is, expenses for repairs carried out in the current period are written off not to current costs, but to account 96. A reserve for repairs cannot be created for individual fixed assets; to calculate the reserve, the total cost of all fixed assets of the organization is taken.

An accounting reserve for OS repairs can be created by companies created at least 3 years ago. The reserve amounts are calculated based on the amounts of repair costs of previous periods - the average amount of costs for the previous three years is calculated. The amount of the reserve should not exceed this figure.

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Accrual of reserve for repair of fixed assets - postings

In the Rakita organization, the amount of repair costs for 2013 amounted to 50,000 rubles, for 2014 - 70,000 rubles, for 2015 - 60,000 rubles. The average amount is 60,000 rubles. ((50,000 + 70,000 + 60,000)/3). The reserve is created monthly, the amount reflected: 60,000/12 = 5,000 rubles.

In January 2016, the accountant creates a reserve for the repair of fixed assets:

Do-it-yourself OS repair

LLC "Fortuna" carries out repairs of the OS facility in an economic way. The organization does not create a reserve for repairs, so all costs are accepted as expenses of the current period. The cost of the own materials spent is 3,600 rubles. Costs for remuneration of workers performing repairs - 10,000 rubles.

Postings for repairing the OS in an economic way will be as follows:

With the economic method, all amounts from cost accounts are ultimately collected on account 23 “Auxiliary production”, which is closed on account 20 “Main production”.

Let's assume that an organization creates a reserve for OS repairs. Then the costs will be written off against the reserve.

Transactions for writing off the costs of repairing the OS using an economic method at the expense of the reserve will be as follows:

* The calculation of the Social Insurance Fund is given as an example of the calculation of insurance premiums.

Contract OS repair

GreenLight LLC entered into an agreement with the contractor, Technoserv, to repair the escalator. The total amount of the OS repair contract was 330,400 rubles, including VAT of 50,400 rubles.

Contractual OS repairs will be as follows:

During repairs at the expense of the reserve.