How to write the accounting entry for paying the information service fee?

Information service fee refers to the cost of using communication lines to contact other companies, which is an indispensable expenditure of enterprises. How to make accounting entries when paying information service fees?

Accounting treatment of information service fee payment

Borrow: management fee-information technology management fee

Loan: bank deposit/cash on hand.

Accounting treatment of value-added tax invoice received from the other party's service fee.

Borrow: management fee-information technology service fee

Taxes payable-VAT payable-input tax

Loans: bank deposits

How to understand the management expenses?

Management expenses refer to various expenses incurred by the administrative department of an enterprise for organizing and managing various production operations and production activities.

Management expenses belong to the period expenses and are included in the current profit and loss when incurred.

"Management expenses" belong to profit and loss subjects. This course debits the management expenses incurred by the registered enterprise, and the management expenses at the end of the credit registration are transferred to the "profit of this year" course. After the transfer, this account should have no balance.

This course should be set up according to the cost items of management expenses, and detailed accounting should be carried out.

What is the tax payable?

"Taxes payable" accounts for various taxes and fees payable by enterprises in accordance with the provisions of the tax law, including but not limited to value-added tax, consumption tax, income tax, urban maintenance and construction tax, land use tax, land value-added tax, property tax, education surcharge and personal income tax.

Taxes payable are liabilities, and detailed accounts should be set according to taxes payable, such as VAT payable, enterprise income tax, local education surcharge, land value-added tax, deed tax, urban maintenance and construction tax, etc., for detailed accounting.