Putting refrigeration equipment on the balance sheet of an enterprise is a classic task for an accountant, which often causes controversy during the initial verification of documents. Choosing the right account depends directly on the value of the asset, its useful life and your organization's current accounting policies. Incorrect classification can lead to a distortion of the tax base and fines from regulatory authorities.
In this article we will look in detail at how to correctly classify refrigerators depending on their purpose: for office, resale or industrial needs. We will consider the nuances associated with the limit on the value of fixed assets, which has been significantly increased in recent years, and will also touch upon the issues of VAT and depreciation.
We will pay special attention to how to deal with written-off equipment and whether its cost can be taken into account in one-time expenses. Correct reflection in accounting will allow you to avoid unnecessary bureaucracy and correctly formulate the financial result.
Criteria for classification as fixed assets
The first and main criterion that determines the fate of the refrigerator in accounting is its initial cost. According to the current rules, an asset is recognized fixed assetif it is intended for use in the organization's activities for more than 12 months and its value exceeds the limit established in the accounting policy.
Today, legislation allows organizations to independently set the threshold for classifying property as fixed assets, but not more than 100,000 rubles per unit. If your commercial refrigerator costs less than this threshold, it can be immediately written off as expenses as inventory.
- 📦 The cost is above the limit - we take it into account on account 01.
- 💰 The cost is below the limit - we take it into account on account 10 or immediately write off.
- 📅 A service life of more than a year is a prerequisite for the operating system.
- 🏭 Purpose - use in production or management, and not for resale.
In this case, separate accounting is not maintained, and the entire complex falls on the balance sheet as a single object.
Accounting entries for refrigerators costing more than the limit
If you purchased a powerful industrial unit or just an expensive cabinet for your employees' kitchen, and its price exceeds the threshold established in your company (for example, 100,000 rubles), then it is reflected in accounting as fixed asset. The process begins from the moment of actual receipt and signing of the acceptance certificate.
Account 08 “Investments in non-current assets” is used to reflect transactions. This account accumulates all costs associated with the purchase: supplier price, delivery, installation and commissioning. Only after commissioning the object is transferred to account 01.
⚠️ Attention: If the refrigerator requires complex installation or assembly, do not put it into operation until all work is completed. Premature start can lead to errors in calculating depreciation.
Typical transactions look like this:
| Operation | Debit | Credit |
|---|---|---|
| Reflects the cost of equipment | 08 | 60 |
| Input VAT allocated | 19 | 60 |
| Commissioning | 01 | 08 |
| Depreciation calculation | 20 (26, 44) | 02 |
Depreciation is calculated using the linear or non-linear method, depending on the chosen accounting policy. For refrigeration equipment, a second depreciation group is often used with a useful life of 2 to 3 years, which allows you to quickly write off the cost of the asset.
Accounting for inexpensive refrigerators as low-value property
In most cases, office or small store refrigerators cost less than 100,000 rubles. In such a situation, the law allows not to fence in complex structures for accounting for fixed assets, but to write off the cost of the asset at a time at the time of commissioning. This greatly simplifies the life of an accountant.
However, even with a one-time write-off, the object must be monitored. For this purpose, off-balance sheet account 010 “Fixed assets put into operation” is used. This allows you to keep quantitative records and not lose property during inventory.
The entries will look like this:
- 📝 Debit 10 Credit 60 - the refrigerator is capitalized as a material.
- 💸 Debit 91.2 (or 20, 26, 44) Credit 10 - the cost is written off as expenses.
- 🔢 Debit 010 is placed on off-balance sheet accounting for control.
The use of account 91.2 “Other expenses” is typical for organizations that use a simplified accounting system, while manufacturing enterprises can charge costs directly to production accounts. The choice of cost account depends on where exactly the refrigerator will be located: in a workshop, office or sales area.
Refrigerator as a product: accounting for resale
The situation changes dramatically if your company is engaged in the sale of household appliances. In this case, the refrigerator is not a means of labor, but one intended for sale. Accounting is maintained on account 41 “Goods”. goods, intended for sale. Accounting is maintained on account 41 “Goods”.
When registering goods, it is important to correctly formulate their value. Unlike fixed assets, delivery costs are not capitalized in the cost of each unit if accounting is carried out at sales prices, but when accounting at purchase prices, transport costs are included in the cost of the goods.
Key features of accounting:
- VAT is allocated immediately upon purchase and is deductible.
- Depreciation is not accrued on goods.
- Costs for storage and maintenance of the warehouse go to account 44.
If you plan to use a refrigerator purchased for resale for your own office needs, you need to make internal wiring for the transfer from goods to fixed assets or materials. This is important for the correct calculation of income tax.
What to do with a defective refrigerator?
If a defect is detected upon acceptance, the product is not credited to the balance sheet as quality. A defect report is drawn up, and the goods are either returned to the supplier or discounted. In accounting, this is reflected through account 76 “Settlements with various debtors and creditors” or reversal entries.
Tax nuances and bonus depreciation
In tax accounting, the rules may differ from accounting rules. For example, for income tax, the limit on the value of fixed assets is also 100,000 rubles. Everything that is cheaper is written off as material expenses at a time. This creates temporary differences if in accounting you decide to keep the object on account 01.
The depreciation bonus is of particular interest. The organization has the right to include in expenses up to 10% (or up to 30% for certain groups) of the initial cost of fixed assets at a time. For refrigeration equipment, this may be relevant if it belongs to the second depreciation group.
⚠️ Attention: The use of bonus depreciation requires securing this right in the accounting policy. If you did not register this at the beginning of the year, you will not be able to take advantage of the benefit in the middle of the period.
It is also worth remembering about VAT. If a refrigerator is purchased for operations not subject to VAT, then the “input” tax is not deducted, but is included in the cost of the asset. This increases the amount of depreciation or initial expenses.
Write-off and disposal of equipment
Sooner or later, any refrigeration unit breaks down or becomes obsolete. The write-off procedure depends on how the records were kept. For objects on account 01, a commission is created, which draws up a write-off act (form OS-4 or independently developed).
If the residual value is not zero, it is written off as other expenses. If the equipment is fully depreciated, then only accumulated depreciation is written off. During disposal, income from the sale of scrap or dismantling costs may arise.
Stages of the process:
- 🛠 Creation of a commission and inspection of equipment.
- 📄 Drawing up a defect report.
- 🗑 Physical disposal or sale.
- 📉 Write-off from the balance sheet by postings.
It is important to correctly draw up documents confirming the impossibility of further operation, especially if the service life has not yet expired. This will protect you from questions from the tax inspectorate when checking expenses.
☑️ Documents for writing off the refrigerator
Frequently asked questions (FAQ)
Is it possible to immediately write off a refrigerator as an expense if it costs 150,000 rubles?
No, if in your accounting policy the limit is the standard 100,000 rubles. Exceeding the limit obliges the object to be maintained as a fixed asset with depreciation. You can change the limit in the accounting policy, but this must be done before the start of the financial year.
Is it necessary to charge depreciation on the refrigerator in the kitchen for employees?
Yes, if it is accounted for as a fixed asset (account 01). The fact that it is not directly involved in production does not exempt it from depreciation. The costs of its maintenance and depreciation are charged to account 91.2 or 26 (general business expenses).
How to account for spare parts for repairing a refrigerator?
Spare parts purchased for routine repairs are accounted for on account 10 and written off to costs (20, 26, 44) at the time of their actual use or transfer to repair. They do not increase the cost of a fixed asset, unless it is a modernization.
What useful life should be set for a refrigerator?
According to the Classification of fixed assets, refrigerators belong to the second depreciation group. The useful life is set in the range from 2 to 3 years inclusive. The organization chooses a specific period in months itself.