Subject to the implementation of the new accounting standards, the cost of the project meal may be charged to the cost, provided that the relevant invoices are supported. In accordance with the new accounting standards, the benefit payable line has been eliminated, so that the benefit fee is no longer required to be pre-discharged. Specific accounting entries are as follows:
(1) when welfare expenses are incurred:
Loan: payable to employees - employee benefits
Loans: cash, etc
(2) at the end of the month, when costs are allocated:
Borrowed: administrative costs - welfare costs
Loan: payable to employees - employee benefits
(3) on carrying-over gains and losses:
Lending: current year's profits
Lending: administrative costs - welfare costs
If the enterprise is still implementing the former enterprise accounting system, the treatment of benefits may vary. Under the original system, benefits may or may not be charged. If a benefit is selected, it will need to be processed according to the previous accounting entries; if no benefit is charged, the expenditure incurred for the meal can be charged directly to the “management costs - benefit costs”。
It is noteworthy that, regardless of the accounting system used, enterprises should ensure compliance with the relevant laws and regulations when spending on meals and maintain reasonable accounting records to facilitate tax returns and financial audits。
In addition, in order to ensure the legitimacy and compliance of expenditure on meals, enterprises should establish sound internal control systems to regulate the process of approval, reimbursement and payment of meals and ensure that every expenditure on meals is properly and effectively controlled。
Finally, when dealing with the cost of meals, enterprises should focus on cost-benefit analysis to ensure that expenditure on meals generates corresponding business gains and avoid unnecessary waste。
