In the daily operations of a business, shelves serve as crucial tools for storing and displaying products, making their procurement and subsequent handling of related expenses a key aspect of financial management. Properly classifying and accounting for these costs not only ensures the accuracy of financial statements but also influences a company’s tax planning and cost control strategies. This article will explore, from an accounting perspective, the detailed methods for handling fixed assets, consumables, and installation costs involved in the shelf procurement process, helping businesses achieve refined management.

I. Fixed Assets—Investment Considerations for Long-Term Assets
When a company purchases shelving intended for long-term use, such expenditures should be recognized as fixed assets. According to accounting standards, fixed assets refer to tangible assets with a useful life exceeding one accounting year and a relatively high unit value. For instance, heavy-duty shelving designed for large warehouses or custom-built display racks in specialty retail stores meet the definition of fixed assets due to their durability and extended usage cycle.

The accounting processing steps are as follows:
1. Initial Recognition: At the time of acquisition, debit the "Fixed Assets" account based on the total actual payment made (including the purchase price, transportation costs, insurance premiums, and other expenses directly attributable to bringing the asset to its intended usable condition).
2. Depreciation Calculation: Starting from the month following the asset's投入使用 (put into use), depreciation should be accrued monthly, typically using either the straight-line method or an accelerated depreciation method, and allocated to each period's income statement. The depreciation period should be reasonably estimated based on the shelf's expected useful life.
3. Subsequent Expense Treatment: If subsequent repair and maintenance costs are minor and do not enhance future economic benefits, they should be directly recognized as expenses for the current period. However, if the expenditures are improvement-related and can significantly extend the asset's useful life or enhance its performance, they should be capitalized and added to the carrying value of the fixed asset.

In this way, companies can accurately reflect the cost-recovery process of shelving as a long-term investment, while also fairly allocating its depreciation across individual accounting periods.

Shelf System

II. Consumables — Management of Daily-Use Items
Unlike fixed assets, some low-value consumables—such as lightweight plastic pallets, label holders, and similar items—are better categorized as inventory materials or office supplies, given their low unit cost and frequent replacement. These are what we call "consumables." Though small in size, these items are essential for keeping daily operations running smoothly.

Accounting treatment method:
1. Goods Received into Inventory: Upon receiving the goods, credit "Accounts Payable" based on the invoice amount, while debiting either the "Raw Materials" or "Finished Goods" account.
2. Issuance and Outbound: When these consumables are actually used, they are transferred from the corresponding accounts and recorded under "Administrative Expenses," "Selling Expenses," or other relevant cost accounts, depending on the department using them.
3. Regular Inventory Reconciliation: To ensure that records match actual inventory, a physical count should be conducted periodically, with any discrepancies promptly addressed and adjusted.

This approach helps companies clearly track the flow of small-scale materials, making it easier to monitor costs and manage budgets.

III. Installation Costs – Essential Supporting Investments
Effective utilization of shelving often depends on professional installation services. Although this cost doesn’t contribute to the physical structure of the shelving itself, it is an essential requirement for ensuring the system functions properly. Therefore, installation expenses should be regarded as a necessary component of acquiring fixed assets.

Shelf System

Key points for accounting operations:
1. Capitalization Principle: If the installation costs are significant and closely tied to the shelf's useful life, it is recommended to include them as part of the original cost of the fixed asset, depreciating them together with the main equipment.
2. Separate Accounting Possibility: In certain special cases, such as leasing a venue that includes basic assembly services, if the contract clearly separates the prices of equipment purchase and installation services, the installation fee may also be treated as a one-time expense directly recognized in current-period profit or loss.
3. Tax Impact Considerations: Be aware that tax regulations in different regions may impose limitations on the scope of capitalization. Companies should carefully evaluate tax compliance when making decisions. Properly managing installation costs will not only safeguard the integrity of asset values but also help avoid unnecessary tax risks.

The correct accounting treatment for shelf purchases and related expenses requires companies to make a comprehensive judgment based on factors such as the nature of the asset, its intended use, and its economic benefits. By implementing refined classification and accounting, companies can not only enhance the quality of their financial information but also provide robust support for strategic decision-making. In practice, it is recommended that businesses establish sound internal management systems, strengthen cross-departmental communication and collaboration, and ensure that every expenditure is accurately recorded and effectively controlled. With the advancement of digital technology, leveraging ERP systems to automate such processes will become a growing trend, further enhancing the efficiency and accuracy of financial management.