The materials used by the welfare department are accounted for under the Accounting Section of Employee Compensation Payable - Welfare Payable.
The raw materials were purchased with input tax credit, and the welfare department should do input tax transfer when they are used:
Borrow: Employee Compensation Payable - Welfare Payable
Credit: Raw Materials
Taxes and Charges Payable - Value Added Tax Payable - Input Tax Transfer
Expanded Information:
Note:
Employee welfare expenses are mainly used for the medical expenses of the employees (including medical insurance paid by the enterprises participating in the Employee medical insurance premiums), medical staff salaries, medical expenses, employees injured in the line of duty to overseas medical expenses, employees living in difficult conditions, staff bathrooms, barber shops, kindergartens, nurseries and other collective welfare department staff salaries.
When an enterprise provides employees with purchased goods as non-monetary benefits, the amount of employee compensation should be determined in accordance with the fair value of the goods and related taxes, and be recognized in the current period's profit or loss or the cost of the relevant assets.
Baidu Encyclopedia-Employee Benefits
Baidu Encyclopedia-Accounting Entries