Costs for the acquisition of inventories. Accounting for inventories in accounting
Inventory is inventories. No company can operate without them. She acquires them, uses them in her activities, and sells them. This means that the MP must be taken into account. In this article we will tell you how to properly maintain accounting records of inventories.
In this article you will learn:
What is MPZ
Inventory is inventories. Rarely, but still use the concept of goods and materials (inventory assets). This abbreviation has been used before. That is, inventory and materials are essentially synonyms.
Inventory in accounting is the assets that an enterprise uses in business activities as:
- materials and/or raw materials to produce products for sale (performance of work, provision of services).
- goods for resale
- assets that a company uses for management purposes.
How it will help: the provision regulates the accounting procedure for inventories acquired by the company. Take the document as a sample to confirm when and within what time frame employees submit to the primary accounting department who keeps records.
Materials can be classified as follows (Figure 1).
Picture 1. Classification of MPZ
This way you can take materials into account. For example, open subaccounts for account 10 “Materials”. Similarly, goods for resale and finished goods can be taken into account.
These two concepts are often confused. Goods are assets that an organization has purchased in order to sell them at a premium. The company produces finished products independently. It is possible that some assets will be both finished products and goods. For example, if an organization does not have enough of its own production capacity and it purchases some from suppliers.
Read also:
How it will help: Improving the efficiency of inventory management can hardly be called one of the primary tasks of the CFO. Nevertheless, he should understand at least the basic principles, because inventories are an integral part of the company’s working capital. How to avoid unjustified costs for storing warehouse balances, how not to miss out on profits due to a lack of inventory - more details in this solution.
How it will help: when a company experiences a shortage of working capital and attracts loans, money immobilized in inventories is an unaffordable luxury. It’s even worse if these are illiquid stocks that have not been sold for a long time. The proposed solution will make it possible to dispose of stale residues in warehouses with maximum benefit, and not just dispose of them.
Accounting for materials and inventories in accounting accounts
The company keeps records of inventories in the following accounts:
Figure 2. Basic accounts for inventory accounting
Materials are sometimes recorded in off-balance sheet accounts (Figure 3).
Figure 3. Off-balance sheet accounts for accounting for inventories
Capitalization of goods and materials
The company takes into account materials according to actual cost (clause 5 of PBU 5/01). It includes all the costs the company incurred while it was delivering the material to its warehouse. For example:
- contractual value of assets;
- transportation costs (the organization has the right to immediately attribute costs for delivery to sales costs, if such a rule fixed in the accounting policies );
- cargo insurance;
- for goods – the cost of pre-sale preparation;
- customs payments;
- remuneration to intermediaries, etc.;
If the company operates on a common system, then VAT does not need to be included in the contract price of goods. The company will deduct the tax. But the company is in special mode VAT accounting in the cost of MPZ. Also, general business expenses are not included in the cost of inventories (clause 6 of PBU 5/01).
Organizations representing small businesses have the right to conduct simplified accounting. An exception is only for legal entities listed in Part 5 of Article 6 of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting”: microfinance firms, law firms, etc.
Organizations that maintain simplified accounting have the right to account for inventories only at the contractual value. They can immediately charge the remaining expenses to expenses for ordinary activities in the period in which they were incurred.
If a company received tangible assets free of charge, then they must be accounted for at market value. You focus on market value if you received assets after dismantling or repairing fixed assets, during inventory, etc.
If the materials appeared as capital contribution , then take them into account at the cost, the cost specified in the decision of the general meeting of participants or the sole participant.
When an organization receives inventory, it makes entries in accounting (table).
Table. Accounting for inventories: postings
Methods for assessing inventories in accounting
After the company accepted the inventory for accounting. She begins to use them in production or core activities. That is, he writes off. In this case, the cost of inventories in accounting can be assessed using one of three methods:
1. At the cost of each unit. In this case, the company should know. how much the specific material or product that she is writing off costs. That is, when an asset is disposed of, the cost of its acquisition is written off. Most often, such accounting is carried out for expensive assets.
2. Based on the average value of assets. In this case, assets are divided into groups. For example, if a company sells sweets, then the following groups are possible: chocolates, lollipops, cookies, etc. The average cost is determined by the formula:
Inventory cost is the cost of inventories or goods at the beginning and end of the period.
Quantity of inventories – quantity of inventories at the beginning and end of the period
To determine the value of disposed assets, you need to multiply the average value by the quantity.
Most companies conduct accounting automatically - in special programs. Therefore, such indicators are rarely calculated manually.
3. At the cost of the first acquisition of inventories. In Russia it is also called the FIFO method. This name comes from the English FIFO - First In First Out, which literally means “first in - first out”. This name fully reflects the essence of the method. That is, the value of disposed assets is the value of the earliest goods received. For example, the company bought the first batch of cement at a price of 560 rubles. per bag, and the second - at a price of 600 rubles. No matter what batch the company uses the material from. first it will be written off at a cost of 560 rubles.
The organization establishes the chosen method in its accounting policies. In this case, one type of inventory (for example, raw materials) can be assessed by one method, and another type of inventory (for example, goods) - by another (clause 16 of PBU 5/01).
Accounting for disposal of inventories
The disposal of materials must be documented. For example, when releasing materials into production, a requirement-invoice M-11 or a limit-intake card M-8 is drawn up.
The following entries are made in accounting:
Debit 20.23, 25.26 Credit 10
Resale goods, like finished goods, are disposed of when a company sells them to a customer. The following entries are made in accounting:
Debit 90 Credit 43
The Company took into account the cost/asset value upon sale.
Debit 62, 76 Credit 90
The company shipped the goods to the buyer.
1.5. Accounting for inventories
The following assets are accepted for accounting purposes as inventories (PBU 5/01, approved by Order of the Ministry of Finance of the Russian Federation dated 06/09/2001 No. 44n):
intended for sale;
The main accounting accounts used are No. 10, 14, 15, 16, 19, 41, 43, 45.
Finished products are part of inventories intended for sale (the final result of the production cycle, assets completed by processing (assembly), the technical and quality characteristics of which comply with the terms of the contract or the requirements of other documents, in cases established by law).
Goods are part of inventories purchased or received from other legal entities or individuals and are intended for sale.
The accounting unit for inventories is selected by the organization independently in such a way as to ensure the formation of complete and reliable information about these inventories, as well as proper control over their availability and movement. Depending on the nature of inventories, the order of their acquisition and use, a unit of inventories can be an item number, batch, homogeneous group, etc.
Inventories accepted for accounting at actual cost.
The following assets are accepted for accounting purposes as inventories:
used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services);
intended for sale;
used for the management needs of the organization.
Finished products is part of the inventory intended for sale (the final result of the production cycle, assets completed by processing (assembly), the technical and quality characteristics of which comply with the terms of the contract or the requirements of other documents, in cases established by law).
Goods are part of inventories acquired or received from other legal entities or individuals and intended for sale.
Valuation of inventories. Inventories are accepted for accounting at actual cost.
The actual cost of inventories purchased for a fee is the amount of the organization's actual costs for the acquisition, with the exception of value added tax and other refundable taxes. The actual costs of purchasing inventories include:
amounts paid in accordance with the agreement to the supplier (seller);
amounts paid to organizations for information and consulting services related to the acquisition of inventories;
customs duties;
non-refundable taxes paid in connection with the acquisition of a unit of inventory;
remunerations paid to the intermediary organization through which inventories were acquired;
costs for the procurement and delivery of inventories to the place of their use, including insurance costs. These costs include, in particular, costs for the procurement and delivery of inventories; costs of maintaining the procurement and warehouse division of the organization, costs of transport services for the delivery of inventories to the place of their use, if they are not included in the price of inventories established by the contract; accrued interest on loans provided by suppliers (commercial loan);
interest on borrowed funds accrued before the inventory was accepted for accounting, if it was raised for the acquisition of these inventories;
costs of bringing inventories to a state in which they are suitable for use for the intended purposes. These costs include the organization’s costs of processing, sorting, packaging and improving the technical characteristics of received stocks, not related to the production of products, performance of work and provision of services;
other costs directly related to the acquisition of inventories.
Accounting and formation of costs for the production of inventories is carried out by the organization in the manner established for determining the cost of relevant types of products.
The actual cost of inventories contributed as a contribution to the authorized (share) capital of the organization is determined based on their monetary value agreed upon by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation.
Current market value refers to the amount of cash that can be received as a result of the sale of specified assets.
The actual cost of inventories received under contracts providing for the fulfillment of obligations (payment) in non-monetary means is recognized as the cost of assets transferred or to be transferred by the organization. The value of assets transferred or to be transferred by an organization is established based on the price at which, in comparable circumstances, the organization usually determines the value of similar assets.
If it is impossible to determine the value of assets transferred or to be transferred by an organization, the value of inventories received by the organization under agreements providing for the fulfillment of obligations (payment) in non-monetary means is determined based on the price at which similar inventories are purchased in comparable circumstances.
The actual cost of inventories, determined in accordance with paragraphs 8, 9 and 10 of PBU 5/01, also includes the actual costs of the organization for the delivery of inventories and bringing them into a condition suitable for use.
The actual cost of inventories, in which they are accepted for accounting, is not subject to change, except in cases established by the legislation of the Russian Federation.
An organization engaged in trading activities may include the costs of procuring and delivering goods to central warehouses (bases), incurred until they are transferred for sale, as part of sales costs.
Goods purchased by an organization for sale are valued at their cost of acquisition. An organization engaged in retail trade is allowed to evaluate purchased goods at their selling price with separate consideration of markups (discounts).
Release of inventories. When releasing inventories (except for goods accounted for at sales value) into production and otherwise disposing of them, they are assessed in one of the following ways:
at the cost of each unit;
at average cost;
at the cost of the first acquisition of inventories (FIFO method);
The application of one of the specified methods for a group (type) of inventories is based on the assumption of consistency in the application of accounting policies.
Inventories used by an organization in a special manner (precious metals, precious stones, etc.), or inventories that cannot normally replace each other, can be valued at the cost of each unit of such inventories.
Valuation of inventories at average cost is made for each group (type) of inventory by dividing the total cost of the group (type) of inventory by their quantity, consisting respectively of the cost price and the amount of balance at the beginning of the month and the inventory received during the given month.
Valuation at cost of the first acquisitions of inventories (FIFO method) is based on the assumption that inventories are used during a month or another period in the sequence of their acquisition (receipt), i.e. inventories that are the first to enter production (sale) must be valued at the cost of the first acquisitions, taking into account the cost of inventories listed at the beginning of the month. When applying this method, the assessment of inventories in stock (in warehouse) at the end of the month is made at the actual cost of the latest acquisitions, and the cost of goods, products, works, services sold takes into account the cost of earlier acquisitions.
For each group (type) of inventories during the reporting year, one valuation method is used.
The assessment of inventories at the end of the reporting period (except for goods accounted for at sales value) is carried out depending on the accepted method for valuing inventories upon their disposal, i.e. at the cost of each unit of inventory, the average cost, the cost of the first acquisitions.
Materials are accounted for on account 10 “Materials” at the actual cost of their acquisition (procurement) or accounting prices.
Subaccounts can be opened for account 10 “Materials”:
10-1 "Raw materials and materials";
10-2 "Purchased semi-finished products and components, structures and parts";
10-3 "Fuel";
10-4 "Containers and packaging materials";
10-5 "Spare parts";
10-6 "Other materials";
10-7 "Materials transferred for processing to third parties";
10-8 "Building materials";
10-9 "Inventory and household supplies";
10-10 "Special equipment and special clothing in the warehouse";
10-11 "Special equipment and special clothing in operation", etc.
When accounting for materials at accounting prices (planned cost of acquisition (procurement), average purchase prices, etc.), the difference between the cost of valuables at these prices and the actual cost of acquisition (procurement) of valuables is reflected in account 16 “Deviation in the cost of materials.”
Depending on the accounting policy adopted by the organization, the receipt of materials can be reflected using accounts 15 “Procurement and acquisition of material assets” and 16 “Deviation in the cost of material assets” or without using them.
If an organization uses accounts 15 “Procurement and acquisition of material assets” and 16 “Deviation in the cost of material assets”, on the basis of supplier settlement documents received by the organization, an entry is made in the debit of account 15 “Procurement and acquisition of material assets” and in the credit of accounts 60 “Settlements with suppliers and contractors", 20 "Main production", 23 "Auxiliary production", 71 "Settlements with accountable persons", 76 "Settlements with various debtors and creditors", etc. depending on where certain values came from, and on the nature of the costs of procuring and delivering materials to the organization. In this case, an entry in the debit of account 15 “Procurement and acquisition of material assets” and the credit of account 60 “Settlements with suppliers and contractors” is made regardless of when the materials arrived at the organization - before or after receiving the supplier’s settlement documents.
The posting of materials actually received by the organization is reflected by an entry in the debit of account 10 “Materials” and the credit of account 15 “Procurement and acquisition of material assets.”
If the organization does not use accounts 15 "Procurement and acquisition of material assets" and 16 "Deviation in the cost of material assets", the posting of materials is reflected by an entry in the debit of account 10 "Materials" and the credit of accounts 60 "Settlements with suppliers and contractors", 20 " Main proceedings", 23 "Auxiliary proceedings", 71 "Settlements with accountable persons", 76 "Settlements with various debtors and creditors", etc. depending on where certain values came from, and on the nature of the costs of procuring and delivering materials to the organization. In this case, materials are accepted for accounting regardless of when they were received - before or after receipt of the supplier's payment documents.
The cost of materials remaining in transit at the end of the month or not removed from suppliers’ warehouses is reflected at the end of the month as a debit to account 10 “Materials” and a credit to account 60 “Settlements with suppliers and contractors” (without posting these values to the warehouse).
The actual consumption of materials in production or for other business purposes is reflected in the credit of account 10 “Materials” in correspondence with the accounts of production costs (selling expenses) or other relevant accounts.
When materials are disposed of (sold, written off, transferred free of charge, etc.), their cost is written off to the debit of account 91 “Other income and expenses.”
Inventories are the working capital of an organization, the characteristic feature of which is that they completely transfer their value to the product of labor in one production cycle.
In accordance with PBU 5/01 “Accounting for inventories” (Order of the Ministry of Finance of Russia dated 06/09/2001 No. 44N), the following assets belong to the inventory:
- used as raw materials, materials, in the production of products, works, provision of services;
- intended for sale;
- used for the management needs of the organization.
The accounting unit of inventories is chosen by the organization independently, depending on the nature of inventories, the procedure for their acquisition and use. An inventory unit can be a product number, a batch, or a homogeneous group. Inventory and equipment are accepted for accounting at actual cost. The actual cost of inventories is determined differently, depending on the source of receipt of inventories.
The actual cost of inventories purchased for a fee is the amount of actual acquisition costs excluding VAT. The actual costs of purchasing inventories include:
- amounts paid in accordance with the contract to suppliers;
- amounts paid for information, consulting and intermediary services;
- customs duties;
- non-refundable taxes paid in connection with the purchase of materials;
- costs for the procurement and delivery of inventories to the place of their use, including insurance costs, and accrued interest on loans provided by suppliers, if they are involved in the acquisition of these inventories;
- costs of bringing MPZ to a state in which they are suitable for use.
In accordance with the Guidelines for accounting for inventories, costs directly related to the procurement process and delivery of materials to the organization form the so-called transportation and procurement costs. Transportation and procurement costs include:
- expenses for loading materials into vehicles and their transportation, payable by the buyer under the contract in excess of the price of these materials;
- expenses for the maintenance of the procurement and storage apparatus of the organization, including the cost of remuneration of the organization’s employees directly involved in the procurement, acceptance, storage and release of purchased materials, employees of special procurement offices, warehouses and agencies organized in places of procurement (purchase) of materials, employees directly those engaged in the preparation (purchase) of materials and their delivery (accompaniment) to the organization, deductions for the social needs of these employees;
- expenses for the maintenance of special procurement points, warehouses and agencies organized in procurement areas (except for labor costs with deductions for social needs);
- markups (surcharges), commissions (cost of services) paid to supply, foreign trade and other intermediary organizations;
- fees for storage of materials at places of purchase, at railway stations, piers, and ports;
- interest payments for granted loans and borrowings related to the acquisition of materials before they are accepted for accounting;
- travel expenses for direct procurement of materials;
- the cost of losses on delivered materials in transit (shortages, damage) within the limits of the amounts stipulated by the supply agreement;
- other expenses.
Costs of bringing materials to a state in which they are suitable for use for the purposes envisaged by the organization, include the organization’s costs for processing, processing, refining and improving the technical characteristics of purchased materials that are not related to the production process. The specified work can be performed both by the purchasing organization’s own resources and by third-party organizations. When such work is performed by third parties, the delivery costs include the cost of the work performed and the costs of transportation to the place of work and back, loading and unloading, performed by third parties.
The actual cost of inventories, in which they are accepted for accounting, is not subject to change, except in cases established by the legislation of the Russian Federation.
Attention should be paid to the fact that the actual cost of materials includes accrued interest on commercial loans and borrowed funds. Moreover, only those accrued before the materials were accepted for accounting can be included in the actual cost. Interest accrued after the materials are accepted for accounting, according to clause 11 of PBU 10/99 “Expenses of the organization,” are included in the other expenses of the organization.
The assessment of materials, the cost of which is expressed in foreign currency upon acquisition, is carried out in Russian rubles by recalculation at the rate of the Central Bank of the Russian Federation valid on the date of acceptance of the values for accounting.
The actual cost of inventories contributed to the contribution to the authorized capital is determined based on their monetary value, agreed upon by the founders.
The actual cost of materials manufactured by the organization itself is determined based on the actual costs associated with their production.
The actual cost of inventories received under a gift agreement or free of charge, as well as those remaining from the disposal of fixed assets and other property, is determined based on their current market value as of the date of acceptance for accounting.
The actual cost of inventories received under contracts providing for the fulfillment of obligations in non-monetary means is recognized as the cost of assets transferred or to be transferred.
In current accounting (in a warehouse), material assets are accounted for at a conditional accounting price, which is the purchase price or the standard (planned) cost of purchase.
Material assets used by the enterprise are classified into the following types: raw materials, basic materials, auxiliary materials, purchased semi-finished products, packaging materials, fuel, spare parts and other assets.
To account for materials, account 10 “Materials” is used, an active, balance sheet account, to which the following sub-accounts are opened:
- "Raw materials and supplies."
- “Purchased semi-finished products and components, structures and parts.”
- "Fuel".
- "Containers and packaging materials."
- "Spare parts".
- "Other materials".
- “Materials transferred for processing to third parties.”
- "Construction Materials".
- "Inventory and household supplies."
- "Special equipment and clothing in the warehouse."
- “Special equipment and protective clothing in operation.”
Raw materials and basic materials form the material basis of manufactured products, works and services.
Raw materials are typically products from agriculture and extractive industries.
Auxiliary materials help bring manufactured products to finished products in accordance with established specifications and standards.
Purchased semi-finished products and components, structures and parts are raw materials and materials that have undergone certain stages of processing, but are not classified as finished products.
Containers and packaging materials are a type of inventory intended for packaging, transportation and storage of products.
Fuel and spare parts are valuables used in generating heat, repairing fixed assets, and consumed by own vehicles.
Building materials are used directly in the process of construction and installation work, manufacturing of building parts and structures.
Special equipment and special clothing. In accordance with the Guidelines for accounting of special tools, special devices, special equipment and special clothing (Order of the Ministry of Finance dated December 26, 2002 No. 135N), special equipment includes:
- special tools and devices - technical means that have individual properties and are designed to provide conditions for the production of specific types of products and services;
- special equipment - means of labor repeatedly used in production, which provide conditions for performing specific (non-standard) technological operations;
- workwear - personal protective equipment for workers.
The composition of special tools and special devices includes: tools, dies, molds, molds, rolling rolls, pattern equipment, chill molds, flasks, etc.
Special equipment includes:
- special technological equipment (metalworking, forging, thermal, welding, etc.);
- control and testing apparatus and equipment (stands, consoles, mock-ups of finished products, testing facilities) intended for adjustments, tests of specific products and their delivery to the customer;
- reactor equipment;
- decontamination equipment, etc.
The special clothing includes:
Special clothing, special shoes and safety equipment (overalls, suits, jackets, dressing gowns, short fur coats, various shoes, mittens, goggles, helmets, gas masks, etc.).
According to the accounting policy of the organization, the following materials can be taken into account: inventory, tools, household supplies and other means of labor.
Analytical accounting of material assets is organized by storage locations (warehouses, storerooms) in the context of item numbers, which are assigned to materials according to the nomenclature developed at the enterprise.
Analytical accounting is carried out on materials accounting cards (form No. 17).
11.2. Documentation of the movement of MPZ
Operations for the movement of inventories are documented with a variety of primary documents, the main ones of which are approved by Resolution of the State Statistics Committee of the Russian Federation dated October 30, 1997 No. 71a.
The receipt of materials at the enterprise's warehouse is formalized by a receipt order (form M-4), which reflects the name of the material, the quantity received, the conditional price, and the purchase price. It is drawn up by the financially responsible person on the day the valuables are received at the warehouse in one copy, and then transferred to the accounting department along with shipping documents.
If there are discrepancies between the actual quantity and the data specified in the supplier's invoice, a Materials Acceptance Certificate (form M-7) is drawn up. The act is a legal basis for filing claims against the supplier or sender. The act is drawn up in two copies by members of the selection committee with the obligatory participation of the financially responsible person and the supplier’s representative.
In cases of delivery of materials by own vehicles, the basis for their receipt is the consignment note.
The return of material assets from production to the warehouse as unused is issued with an Internal Movement Invoice (forms M-13 and M-14).
The release of material assets for the production of products, works, and services is carried out on the basis of limit cards (Form M-8) and invoice requirements (Form M-11).
Limit cards (form M-8) indicate:
- name of materials subject to release;
- vacation limit;
- actual vacation against the established limit;
- vacation date;
- the balance of the unused limit.
Limit and intake cards are issued in two copies: the first - to the department using the material, the second - to the warehouse. When releasing materials from the warehouse, the department representative signs a copy of the warehouse limit card, and the storekeeper signs a copy of the department limit card.
The sale of material assets is formalized by an invoice for the release of materials to the third party (form M-15). At the end of the month, documents documenting the movement of materials are submitted to the accounting department for accounting verification and processing.
In cases where standard documents are not available, the enterprise is given the right to independently develop receipt and expenditure documents while maintaining the required details in them.
11.3. Organization of materials accounting in warehouses
Accounting for materials in warehouses is carried out by the warehouse manager (storekeeper), with whom an agreement has been concluded on financial responsibility for the valuables entrusted to him.
A storekeeper is hired in agreement with the chief accountant and is released from his position only after a complete inventory of inventory items and their transfer according to an act approved by the head of the organization.
In warehouses (storerooms), quantitative (varietal) accounting of materials is carried out in the context of types of materials and item numbers. Accounting is carried out on materials accounting cards (form M-17), the main details of which are:
- name of the material;
- its item number;
- location (rack, shelf);
- unit of measurement;
- price (registration price).
On cards, records are kept in natural units of measurement. A feature of maintaining warehouse accounting cards is compliance with the following rule - determining a new balance of material after each operation of their movement.
In warehouses, materials are accounted for using the operational balance method. Its essence is that every 5-10 days an accounting employee checks the entries on the materials accounting cards, confirming the results of the check with his signature. On the 1st day of each month, the storekeeper draws up a balance book and submits it to the accounting department for verification and taxation. In accounting, the balance book data is verified with the material flow statement compiled in the accounting department. If discrepancies are identified, records are double-checked until an inventory is taken.
11.4. Accounting for materials in accounting
Depending on the provisions adopted in the Accounting Policy, accounting of materials in the accounting department can be organized according to one of the following options.
In the first accounting option, account 10 “Materials” generates the actual cost of purchased materials excluding VAT.
Settlements with suppliers for supplied values are recorded in account 60 “Settlements with suppliers and contractors”.
Based on primary documents (receipt orders, supplier invoices, invoices, advance reports on travel expenses of persons involved in the direct acquisition of material assets, bank account statements), the following accounting entry is drawn up for the cost of materials received:
Dt sch. 10 "Materials"
Dt sch. 19 "VAT"
K-t sch. 71 “Settlements with accountable persons”
K-t sch. 51 "Current account".
Based on the fact that in current accounting materials are taken into account at book prices (standard or planned cost), the accounting department reflects on account 10 “Materials” the cost of materials at book prices and deviations of the actual cost of materials from their cost at book prices. This necessitates the distribution of deviations of the actual cost from the accounting price between the balances of materials in warehouses and those spent on the production of products, works and services.
The distribution is made according to the average percentage of deviations, the size of which is determined as follows:
Where By- percentage of deviations;
Onm- deviation of the actual cost of materials from their cost at accounting prices at the beginning of the month, thousand rubles;
Ohm- deviation of the actual cost of materials purchased per month from their cost at discount prices, thousand rubles;
Mnm- cost of materials at the beginning of the month at accounting prices, thousand rubles;
Mm- cost of materials at accounting prices received per month, thousand rubles.
The amount of deviations related to the balance of materials in warehouses is determined as the product of the percentage of deviations by the balance of materials at the end of the month at a conditional price, i.e.
Where Co- the amount of deviations for the balance of materials, thousand rubles;
Mkm- cost of materials at the end of the month at accounting prices, thousand rubles.
The amount of deviations related to the amount of materials spent during the reporting month Ср is determined as the product of the percentage of deviations Po by the cost of materials spent during the reporting month at the accounting price, i.e.
Where Wed- the amount of deviations for materials spent per month, thousand rubles;
Mr- materials consumed per month at the accounting price, thousand rubles.
The calculation of the distribution of deviations is carried out in the statement in the context of types and groups of values. The order of distribution of deviations of the actual cost of materials from their cost at accounting prices is shown in table. 11.1.
Table 11.1
Calculation of deviations of the actual cost of materials from their cost at accounting prices
No. |
Indicators |
At the discount price, thousand rubles. |
Deviation from the book price , thousand rubles |
Actual cost , thousand rubles |
Remaining materials at the beginning of the month |
||||
Received during the reporting month |
||||
Total with remainder |
||||
Average percentage of deviations |
||||
Used in a month |
||||
Balance of materials at the end of the month (item 3 - item 4) |
The following accounting entry is made for the cost of materials spent on production:
Dt sch. 20, 23, 25, 26
K-t sch. 10 "Materials".
The assessment of materials spent on the production of products, works and services is carried out in one of the following ways:
- at the cost of each unit;
- at average cost;
- at the cost of the first in time acquisition of inventories (FIFO method);
- at the cost of the most recent acquisition of inventories (LIFO method).
In the second accounting option, all actual costs for the procurement of materials are taken into account on account 15 “Procurement and acquisition of materials”. The debit of this account reflects the actual costs associated with the purchase of materials, excluding VAT, from the credit of different accounts: 60 “Settlements with suppliers and contractors”, 71 “Settlements with accountable persons”, 51 “Current account”. The credit of account 15 reflects the standard (planned) cost of purchased and capitalized materials, written off to the debit of account 10 “Materials”. Deviations in the actual cost of materials from their cost at accounting prices are written off to the debit of account 16 “Deviations in the cost of materials.”
The deviations in the cost of materials taken into account on account 16 at the end of the month are subject to distribution between the balances of materials in warehouses and the cost of materials spent on the production of products, works and services in the current month.
The distribution of deviations is carried out similarly to the procedure set out when organizing the accounting of materials according to the first option.
In this case, the following entries are made in the accounts:
- For the amount of actual costs for the acquisition (procurement) of materials:
- For the cost of materials capitalized in the assessment at standard (planned) cost according to primary documents:
- For the cost of materials assessed at standard (planned) cost, spent on the production of products, works and services according to primary documents:
- For the amount of deviations related to the cost of materials consumed according to accounting calculations:
- For the cost of paid supplier invoices according to the bank statement:
Dt sch. 15 “Procurement and acquisition of materials”
Dt sch. 19 "VAT"
K-t sch. 60, 71, 50, 51.
Dt sch. 10 “Materials” - standard (planned) cost of materials
Dt sch. 16 “Deviations in the cost of materials” - for the amount of deviations in the actual cost
K-t sch. 15 “Procurement and acquisition of materials” - for the amount of actual costs for the acquisition of materials.
Dt sch. 20, 23, 25, 26
K-t sch. 10 "Materials".
Dt sch. 20, 23, 25, 26
K-t sch. 16 “Deviations in the cost of materials.”
Dt sch. 60 “Settlements with suppliers and contractors”
K-t sch. 51 "Current account".
In cases where special tools, special devices, special equipment (special equipment) and special clothing are taken into account as part of material resources, their accounting is organized as follows.
These funds can be acquired by the organization from other persons, including through purchase, donation, receipt as a contribution to the authorized capital, or produced by the organization itself.
Special equipment and protective clothing that are owned by an organization, as well as under economic control or operational management, can be accepted for accounting at actual cost, i.e. in the amount of actual costs of acquisition or procurement without VAT.
The receipt of these funds is reflected by the entry:
Dt sch. 10/10 “Special equipment and workwear in the warehouse”
Dt sch. 19 "VAT"
K-t sch. 60 “Settlements with suppliers and contractors”
K-t sch. 75 “Settlements with founders”
K-t sch. 98 “Deferred income”.
The transfer of special equipment into operation is carried out on the basis of requirements and is reflected by the entry:
Dt sch. 10/11 “Special equipment and protective clothing in operation”
K-t sch. 10/10 “Special equipment and workwear in the warehouse.”
If the useful life of special equipment exceeds 12 months, then its cost is repaid in one of the following ways:
- in a linear way;
- proportional to the volume of products produced.
An entry is made for the cost of written-off special equipment:
Dt sch. 25, 26
The cost of workwear is repaid according to industry standards approved by the Decree of the Ministry of Labor and Social Development of the Russian Federation dated December 18, 1998 No. 51. The following entry is made:
Dt sch. 26 “General business expenses”
K-t sch. 10/11 “Special equipment and protective clothing in operation.”
The under-depreciated cost of special equipment is written off to other expenses of the organization by writing:
K-t sch. 10/11 “Special equipment and protective clothing in operation.”
Expenses for the repair of special equipment and clothing are included in the costs of ordinary activities.
Special equipment and protective clothing that do not belong to the organization, but are in its use or disposal, are accounted for on off-balance sheet accounts in the valuation provided for in the contract, or in the valuation agreed with their owner.
Accounting for disposal of materials. Disposal of materials occurs in the following cases:
- when released for the production of products, works and services;
- when sold externally;
- when contributing to the authorized capital;
- when transferred under a gift agreement;
- when transferred under a barter agreement.
Let us consider the procedure for recording each case of disposal of materials in the accounts.
Primary documents on the consumption of materials for the production of products, works and services in the accounting department are subject to accounting verification and processing. Based on these primary documents, a development table for the use of materials by cost areas is compiled. This records the following:
Dt sch. 20, 23, 25, 26
K-t sch. 10 "Materials".
As mentioned earlier, the assessment of materials used for production is made based on the cost reflected in the accounting policy of the organization.
Sales of materials to third parties are formalized by an order, invoice and invoice. In this case, based on the primary documents, the following entries are made:
- For the actual cost of materials sold:
- For the amount of the invoice presented to the buyer:
- For the amount of VAT due to the budget:
Dt sch. 91/2 “Other income and expenses”
K-t sch. 10 "Materials".
Dt sch. 62 “Settlements with buyers and customers”
K-t sch. 91/1 “Other income and expenses”
By comparing credit and debit entries in account 91 “Other income and expenses”, the financial result of the sale of materials is determined, which is reflected in the entry:
D-t.91/9 “Balance of other income and expenses”
The gratuitous transfer of materials is documented in an act. Materials are written off at actual cost. The following entries are made:
For the actual cost of materials donated:
Dt. 91/2 “Other income and expenses”
K-t sch. 10 "Materials".
Free transfer of material is subject to value added tax in accordance with clause 1 of Art. 146 of the Tax Code of the Russian Federation, since in this case there is a transfer of ownership of goods, work performed and services provided.
An entry is made for the amount of VAT due to the budget:
Dt. 91/2 “Other income and expenses”
K-t sch. 68 “Calculations for taxes and fees.”
The result of the gratuitous transfer of materials is written off to the financial result of the organization:
Dt. 99 “Profits and losses”
K-t sch. 91/9 “Balance of other income and expenses.”
Contributions to the authorized capital of another organization are assessed at the value agreed upon by the founders, unless a different assessment procedure is provided for by the legislation of the Russian Federation. Contributions to the authorized capital are considered as financial investments.
The following entries are made:
Dt sch. 58 “Financial investments”
K-t sch. 91 “Other income and expenses”
The disposal of materials in connection with the contribution to the authorized capital is reflected by the entry:
Dt sch. 91 “Other income and expenses”
K-t sch. 10 "Materials".
The financial result from investments made is reflected by the entry:
Dt sch. 91/9 “Balance of other income and expenses”
K-t sch. 99 "Profits and losses."
11.5. Inventory of inventories and reflection of its results on accounting accounts
In order to ensure the reliability of accounting and reporting data, enterprises conduct an inventory of material assets at least once a year and no earlier than the first of October.
The inventory is carried out by a commission appointed by order of the head of the organization, in the presence of the financially responsible person, from whom a receipt has been received stating that all valuables have been capitalized and the documents have been submitted to the accounting department. Warehouses are sealed before inventory.
Material assets received at the warehouse and issued from the warehouse during the inventory period are subject to registration in a special statement under the heading “Received (issued) from the warehouse during the inventory period.”
Inventory is carried out by weighing, measuring, measuring material assets for each storage location. Identified values are entered into an inventory list, according to which matching statements are compiled.
As a result of the inventory, the following can be identified:
- Surplus valuables that are subject to capitalization and assessed at market value. This records the following:
- Shortage of material assets, which is written off to account 94 “Shortages and losses from damage to assets.” The shortage of materials within the limits of natural loss norms is written off as expenses by writing:
Dt sch. 10 "Materials"
Dt sch. 25.26
K-t sch. 94 “Shortages and losses from damage to valuables.”
Shortages due to the fault of the financially responsible person are written off from account 94 “Shortages and losses from damage to valuables” to the debit of account 73/2 “Calculations for compensation of material damage.”
Compensation for the shortage by the financially responsible person is carried out at market prices. In this case, the difference between the cost of materials at market prices and their actual cost until reimbursement is taken into account in account 9 8/4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables.”
For the amount of the difference to be reimbursed by the financially responsible person, account 73/2 “Calculations for compensation of material damage” is debited and account 9 8/4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables” is credited.
When compensating for the shortfall, the guilty party makes the following entries:
- Dt sch. 50 "Cashier"
- Dt sch. 9 8/4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”
K-t sch. 73/2 “Calculations for compensation for material damage.”
K-t sch. 91/1 “Other income and expenses.”
Typical accounting entries for materials accounting are presented in table. 11.2.
Table 11.2
Typical accounting entries for accounting for materials in organizations
conclusions
Valuable inventories refer to the organization's working capital, a characteristic feature of which is that they completely transfer their value to the product of labor in one production cycle.
Synthetic inventory accounting is carried out on account 10 “Materials” at actual cost, and analytical accounting is organized on warehouse accounting cards for each type, type, grade of material in natural units of measurement on warehouse accounting cards. An organization can account for materials using accounts 15, 16 and 10 or using only account 10 “Materials”. The accounting policy of the organization determines the assessment of inventories spent on production (FIFO, LIFO, weighted average price method). VAT paid to the supplier is not included in the actual cost of materials, but is fully presented to the budget for reimbursement, subject to the following conditions:
- material assets received (capitalized);
- VAT is highlighted in payment documents;
- there is an invoice.
In order to ensure the reliability of accounting and reporting data, an inventory of inventories is carried out. Identified surpluses are attributed to the financial results of the organization, and shortages are taken into account in account 94 “Shortages and losses from damage to valuables.” Shortages are written off taking into account the reasons for their occurrence.
Self-test questions
- Define the organization's inventory.
- What values relate to the organization's RPM?
- What values relate to the organization's special equipment?
- In what assessment are inventories reflected in the balance sheet and in current accounting?
- What costs are included in the actual cost of inventory?
- What methods of assessing inventories are used when determining the cost of materials consumed for the production of products, works and services?
- How are the deviations of the actual cost of materials from their cost at the book price distributed?
- What is the procedure for conducting an inventory of inventories?
- How are the inventory results of inventories reflected in the accounts?
- At what cost is the materially responsible person compensated for the shortage of materials?
Bibliography
- Federal Law “On Accounting” dated November 21, 1996 No. 129-FZ.
- Regulations on maintaining accounting and financial statements in the Russian Federation: Order of the Ministry of Finance of Russia dated March 24, 2000 No. 31n.
- Accounting Regulations “Accounting Policy of the Organization” (PBU1/98): Order of the Ministry of Finance of Russia dated December 30, 1999 No. 107n.
- Accounting Regulations “Accounting for Inventories” (PBU5/01): Order of the Ministry of Finance of Russia dated 06/09/2001 No. 44n.
- Accounting Regulations “Income of the Organization” (PBU9/99): Order of the Ministry of Finance of Russia dated March 30, 2001 No. 27n.
- Accounting Regulations “Organization Expenses” (PBU10/99): Order of the Ministry of Finance of Russia dated March 30, 2001 No. 27n.
- Accounting Regulations “Accounting for assets and liabilities, the value of which is expressed in foreign currency” (PBU3/2006) dated November 27, 2006 No. 154n.
- Guidelines for accounting of inventories: Order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n, taking into account changes and additions dated April 23, 2002 No. 33n.
- Erofeeva V.A., Klushantseva G.V., Kemter V.B. Accounting with elements of taxation. St. Petersburg: Legal Center Press, 2004.
- Kondrakov N. P. Accounting. M.: INFRA-M, 2005.
print version
Reader
| Job title | annotation |
Workshops
| Workshop name | annotation |
Presentations
| Presentation title | annotation |
Why does an accountant need to know the classification of inventories (MPI)? In order to correctly assign a particular asset to the required account and subaccount, it is necessary to correctly construct analytical and synthetic accounting of inventory. What are MPPs and how to classify them?
Inventories
Inventories include:
- Materials(accounting is kept on account 10):
- raw materials- agricultural products or products of the mining industry that have not previously been subjected to primary processing (milk, grain, sugar beets, wood, mined minerals - ore, coal, gas and others);
- basic materials- these are products of the manufacturing industry obtained in the process of processing raw materials (flour, granulated sugar, metal and others). Together with raw materials they form the material basis of the product.
- auxiliary materials- serve to impart certain qualities to a new product, or to maintain production equipment or ensure normal conditions for the production process. Depending on the industry, main and auxiliary materials may change places; the division into main and auxiliary materials is conditional.
- purchased semi-finished products— raw materials and materials that have undergone certain stages of processing, but have not yet become finished products;
- components, structures, parts;
- returnable production waste— remnants of raw materials and materials formed during their processing into finished products and which have completely or partially lost their consumer properties (sawdust, shavings, etc.);
- fuel;
- containers and packaging materials— items used for packaging, transportation, storage of various materials and products (boxes, bags, crates);
- spare parts— intended for the repair of machinery and equipment, and for the replacement of worn parts;
- inventory and household supplies(including stationery and office supplies with a service life of less than a year, consumables).
- Fixed assets, costing no more than 40,000 rubles (in tax accounting, the limit for fixed assets became 100,000 rubles from 01/01/2016).
Finished products — the final result of the production cycle, assets completed by processing (assembly), the technical and quality characteristics of which comply with the terms of the contract, accounting on account 43.
Goods— assets, n purchased or received from other legal entities or individuals and intended for sale, accounting is kept on account 41.
Each organization independently sets a limit on the value of fixed assets in its accounting - from zero to 40,000 rubles and reflects this in its accounting policies. Thus, where to classify, for example, an office desk worth 25,000 rubles: materials or fixed assets can be determined only by knowing the limit on the cost of fixed assets of a particular organization. There is no doubt about tax accounting - the table is considered a material expense.
NOT included in inventories:
- unfinished production(semi-finished products of own production).
Accounting unit MPZ
The accounting unit of inventories is chosen by the organization independently so as to ensure the formation of complete and reliable information about these inventories, as well as proper control over their availability and movement.
Depending on the nature of inventories, the procedure for their acquisition and use, a unit of inventories can be an item number, a batch, a homogeneous group, etc. (clause 3 of PBU 5/01).
If you want to test your knowledge on the topic of the article, go
PBU 5/01 “Accounting for inventories” was approved by order of the Ministry of Finance of Russia dated 06/09/2001 No. 44n. Guidelines for accounting of inventories were approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.
According to the requirements of PBU 5/01 for accounting, the following assets are accepted as inventories (MPI):
used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services);
- - intended for sale;
- - used for the management needs of the organization.
Materials are part of inventories and represent objects of labor that are used to manufacture products, perform work, and provide services. Materials are completely consumed in each production cycle and completely transfer their value to newly created products, works, and services. Materials are accounted for on the active account 10 of the same name, by debit - the balance of materials in the warehouse and receipts for the period, by credit - write-off for production, sale.
In analytical accounting, materials are divided into the following main groups:
- - raw materials and basic materials (form the material basis of the product. Raw materials are the products of agriculture and mining industries, materials are the products of manufacturing industries);
- - auxiliary materials (used to influence raw materials and basic materials: paints, varnishes for cars, spices in the food industry, equipment maintenance: lubricants, cleaning materials);
- - purchased semi-finished products (materials that have undergone certain stages of processing, but are not finished products);
- - returnable waste (residues of raw materials and materials generated during their processing into finished products, but which have partially or completely lost the consumer properties of the original raw materials: sawdust, scraps of fabric);
- - fuel: technological, propulsion, economic;
- - containers and packaging materials (intended for packaging, transportation and storage of materials and products: bags, boxes, boxes);
- - spare parts (used for repair and replacement of wearing units and parts of machines and equipment).
Finished products are part of inventories intended for sale (the final result of the production cycle, assets completed by processing (assembly), the technical and quality characteristics of which comply with the terms of the contract or the requirements of other documents, in cases established by law). Finished products are accounted for on the active account 43 of the same name, by debit - the balance of finished products in the warehouse and receipts for the period, by credit - shipment and sale.
Goods are part of inventories purchased or received from other legal entities or individuals and intended for sale. Goods are accounted for on the active account 41 of the same name, by debit - the balance of goods in the warehouse and receipts for the period, by credit - shipment and sale.
Inventory accounting unit is selected by the organization independently in such a way as to ensure the formation of complete and reliable information about these reserves, as well as proper control over their availability and movement. Depending on the nature of inventories, the order of their acquisition and use, a unit of inventories can be an item number, batch, homogeneous group, etc.
PBU 5/01 does not apply to assets characterized as work in progress.
Valuation of inventories. Inventories are accepted for accounting at actual cost.
The actual cost of inventories purchased for a fee, the amount of the organization's actual costs for the acquisition is recognized, excluding VAT and other refundable taxes (except for cases provided for by the legislation of the Russian Federation).
TO actual costs for the acquisition of inventories include:
- - amounts paid in accordance with the contract to the supplier (seller);
- - amounts paid to organizations for information and consulting services related to the acquisition of inventories;
- - customs duties;
- - non-refundable taxes paid in connection with the acquisition of a unit of inventory;
- - remunerations paid to the intermediary organization through which inventories were acquired;
- - costs of procurement and delivery of inventories to the place of their use, including insurance costs. These costs include, in particular, costs for the procurement and delivery of inventories; costs of maintaining the procurement and warehouse division of the organization, costs of transport services for the delivery of inventories to the place of their use, if they are not included in the price of inventories established by the contract; accrued interest on loans provided by suppliers (commercial loan); interest accrued on borrowed funds before accepting inventory for accounting, if they were raised to purchase these inventories;
- - costs of bringing inventories to a state in which they are suitable for use for the planned purposes. These costs include the organization’s costs of processing, sorting, packaging and improving the technical characteristics of received stocks, not related to the production of products, performance of work and provision of services;
- - other costs directly related to the acquisition of materials from water reserves.
Not included in actual costs for the acquisition of inventories, general business and other similar expenses, except for cases when they are directly related to the acquisition of inventories.
The actual cost of inventories during their production by the organization itself is determined based on the actual costs associated with the production of these inventories. Accounting and formation of costs for the production of inventories is carried out by the organization in the manner established for determining the cost of relevant types of products.
made as a contribution to the charter (folding) capital of the organization, determined on the basis of their monetary value, agreed upon by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation.
Actual cost of inventories, received by the organization under a gift agreement or free of charge, as well as those remaining from the disposal of fixed assets and other property, is determined based on their current market value as of the date of acceptance for accounting. In this case, the current market value is understood as the amount of funds that can be received as a result of the sale of these assets.
Actual cost of inventories, received under contracts providing for the fulfillment of obligations (payment) in non-monetary means, The value of assets transferred or to be transferred by the organization is recognized. The value of assets transferred or to be transferred by an organization is established based on the price at which, in comparable circumstances, the organization usually determines the value of similar assets. If it is impossible to determine the value of assets transferred or to be transferred by an organization, the value of inventories received by the organization under agreements providing for the fulfillment of obligations (payment) in non-monetary means is determined based on the price at which similar inventories are purchased in comparable circumstances.
The actual cost of inventories, in which they are accepted for accounting, cannot be changed except in cases established by the legislation of the Russian Federation.
Organization carrying out trading activities, The costs of procuring and delivering goods to central warehouses (bases), incurred before they are transferred for sale, may be included in the cost of sales.
Goods purchased by an organization for sale are valued at their cost of acquisition. An organization engaged in retail trade is allowed to evaluate purchased goods at their selling price with separate consideration of markups (discounts). This is an element of accounting policy for retail organizations.
Inventories that do not belong to the organization, but are in its use or disposal in accordance with the terms of the contract, are taken into account in the assessment provided for in the contract.
Accounting for the acquisition and procurement of materials (goods).
For a fee, the following entries are made in accounting:
Debit 10, 41, 42 Credit 60, (15), 71 - materials (goods) purchased for a fee from a supplier or through an accountable person are accepted for accounting;
Debit 60 Credit 51.52 - payment transferred to the supplier;
Debit 71 Credit 50 - money was issued from the cash register to the accountable person;
Debit 68 - VAT Credit 19 - VAT is accepted for deduction in calculations with the budget. In the manufacture of materials on our own
their actual cost is the sum of all relevant production costs. Notes are made:
Debit 10 Credit 20, 23, 29 - materials manufactured in-house are accepted for accounting. When adding materials (goods) their actual cost is determined as a contractual estimate agreed upon by the founders. Notes are made:
Debit 10, 41 Credit 75 - reflects the contractual cost of materials.
When receiving materials (goods) free of charge, their actual cost is determined at the market price on the date of acceptance for accounting. Notes are made:
Debit 10, 41 Credit 98 - reflects the market value of materials (goods);
Debit 20, 90-2 Credit 10, 41 - materials were released into production, goods were sold;
Debit 98 Credit 91-1 - included in other income is the cost of materials released into production or goods sold.
When purchasing materials (goods) in exchange for other property their actual cost is determined based on the price of the transferred property. Notes are made:
Debit 62 Credit 90-1 - revenue from the sale of the exchanged property is reflected;
Debit 90-3 Credit 68 - VAT - VAT is charged on sales revenue;
Debit 10, 41 Credit 60 - materials (goods) received in exchange for transferred property were capitalized;
Debit 19 Credit 60 - VAT is reflected on capitalized materials (goods);
Debit 60 Credit 62 - offset of obligations under the exchange agreement;
Debit 91-2 (Credit 91-1) Credit 62 (Debit 62) - reflects the difference between the value of the property being exchanged;
Debit 68 - VAT Credit 19 - accepted for deduction of VAT in calculations with the budget.
Upon receipt of materials (goods) as a result of disposal of fixed assets they are accounted for at market prices. Notes are made:
Debit 10, 41 Credit 91-1 - materials (goods) remaining after dismantling the fixed asset are taken into account
Debit 91-9 Credit 99 - profit from the dismantling of fixed assets is reflected.
When purchasing materials (goods) for foreign currency their actual cost is determined by recalculating their value at the exchange rate of the Central Bank of the Russian Federation on the date of acceptance for accounting. The cost of materials is no longer overestimated.
Positive exchange rate differences increase the actual procurement cost of materials (goods): Debit 10, 41 Credit 60.
Negative exchange rate differences reduce the actual procurement cost of materials: Debit 60 Credit 10, 41.
Interest on loan for the purchase of materials are included in other expenses: Debit 91-2 Credit 66, 67.
It is possible to calculate the actual cost of each type of materials (goods) from different suppliers only if they have a limited range of consumed materials (goods).
In addition, enterprises often deal with uninvoiced supplies, from which it is impossible to determine the actual cost of materials (goods). Uninvoiced deliveries include the situation of “goods in transit” (documents have arrived, but there is no cargo), as well as a situation in which the goods have arrived, but the entire set of documents is not available.
Later, the actual cost of materials (goods) will be known, but some of the supplied materials will already be used in production, and some of the goods will be sold. What to do in this case? When such situations arise in practice, enterprises, when procuring materials (goods), use their accounting value (average purchase price, planned, standard cost). In this case, a difference arises between the actual cost of procurement of materials (goods) and their accounting price. This difference is reflected in accounting as a deviation.
In this regard, when organizing accounting for the acquisition (procurement) of materials (goods), the organization has a choice:
- - keep records on account 10 or account 41 at the actual procurement cost (FPC);
- - keep records on account 10 or account 41 at accounting prices (UC). At the same time, on account 15, compare the actual cost (by debit) with the accounting price (by credit) and receive deviations, which at the end of the month are transferred to a special account 16 to account for deviations and include in the cost of products, works, services in terms of materials used in production or as part of selling expenses in relation to goods sold.
|
Kt 60 - actual cost (FZS) Kt 16 - excess of CA over FZS |
Excess of FZS over CA - Dt 16 |
In accounting, using the methods described above for accounting for the procurement of inventories, the following entries are made:
Method 1
Debit 10, 41 Credit 60, 71 - materials (goods) were received at the warehouse from suppliers and accountable persons at actual cost;
Debit 19 Credit 60, 71 - VAT is reflected on purchased materials (goods);
Debit 60 Credit 51, 52 - payment was transferred to the supplier of materials (goods);
Debit 71 Credit 50 - money was issued from the cash register to an accountable person for the purchase of materials (goods);
Debit 20, 90-2 Credit 10, 41 - materials were transferred to the production workshop at actual cost, goods were sold.
Method 2
Debit 10, 41 Credit 15 - materials (goods) were received at the warehouse from suppliers and accountable persons at the accounting price;
Debit 15 Credit 60, 71 - reflects the actual cost of materials (goods) after receipt of primary documents;
Debit 19 Credit 60, 71 - VAT on purchased materials (goods) is reflected;
Debit 16 (Credit 16) Credit 15 (Debit 15) - deviations of the actual procurement cost of materials (goods) from their book price are reflected.
If FZS is greater than CA, then Debit 16 Credit 15;
If the CA is greater than the FZS, then Debit 15 Credit 16;
Debit 60 Credit 51, 52 - payment was transferred to the supplier of the inventories;
Debit 71 Credit 50 - money was issued from the cash register to an accountable person for the purchase of inventories.
Write-off of the cost of materials upon transfer to the production workshop or goods upon sale is made in two entries:
Debit 20, 90-2, Credit 10, 41 - at the accounting price;
Debit 20, 90-2 Credit 16 - deviations of the CA from the FZS (direct entry or “red reversal”).
Distribution of deviations. When procuring materials (goods), the question also arises of the distribution of indirect costs for their procurement and delivery: transportation and procurement costs (TZR), customs duties and other similar costs. These expenses may relate to different groups, batches, types of materials (goods). As a rule, these expenses are taken into account in separate subaccounts of account 10 and account 41 and then on the last day of the month they are distributed in proportion to the base chosen in the accounting policy, or they are taken into account together with deviations and at the end of the month are included in the cost of production or goods sold for the current month at an average percentage deviations.
To determine the amount of deviations to be included in the cost of production of the current month in proportion to the cost of materials sold at discount prices or goods sold, the average percentage of deviations is used, which is calculated by the formula:
where Average% is the average percentage of deviations; Оо - the initial balance of deviations on account 16; That is the current receipt of deviations; Oz - initial balance of materials (goods); Tk - current receipt of materials (goods).
Then the amount of deviations is calculated as the product of the average percentage of deviations and the cost of materials released into production or goods sold at accounting prices.
Release (deregistration) of inventories. When releasing inventories (except for goods recorded at sales value) into production and otherwise disposing of them, they are assessed in one of the following ways:
- - at the cost of each unit;
- - at average cost;
- - at the cost of the first acquisition of inventories (FIFO method).
The application of one of the specified methods for a group (type) of inventories is based on the assumption of consistency in the application of accounting policies.
Inventories used by an organization in a special manner (precious metals, precious stones, etc.), or inventories that cannot normally replace each other, can be valued at the cost of each unit of such inventories.
The assessment of inventories at average cost is carried out for each group (type) of inventories by dividing the total cost of the group (type) of inventories by their quantity, consisting respectively of the cost price and the amount of balance at the beginning of the month and the inventory received during the given month.
The assessment of the cost of the first but time of acquisition of inventories (FIFO method) is based on the assumption that inventories are used within a month or another period in the sequence of their acquisition (receipt), i.e. inventories that are the first to enter production (sale) must be valued at the cost of the first acquisitions, taking into account the cost of inventories listed at the beginning of the month. When applying this method, the assessment of inventories in stock (in warehouse) at the end of the month is made at the actual cost of the most recent acquisitions, and the cost of goods, products, works, and services sold takes into account the cost of early acquisitions.
For each group (type) of inventories during the reporting year, one valuation method is used.
The assessment of inventories at the end of the reporting period (except for goods accounted for at sales value) is carried out depending on the accepted method for valuing inventories upon their disposal, i.e. at the cost of each unit of inventory, the average cost, the cost of the first acquisitions.
In the absence of inflation or its low level, all these estimates do not differ much from each other.
To use FIFO methods, inventory accounting should be organized by batch.
The valuation method is selected for each type of inventory.
Example 2.3.1. During the month, three purchases of materials were carried out - rolls of fabric of the same article number at different prices per roll. 120 rolls were put into production within a month. Calculate the valuation of rolls of fabric released into production in two ways: by average cost and by the FIFO method.
Solution
By average cost:
- - written off for production: 120 * 4750: 300 (rub.);
- - left in stock: 4750 - 1900 = 2850 (rub.).
- - written off for production: 100 x 10 + 20* 15 = 1300 (rub.);
- - left in stock: 4750 - 1300 = 3450 (rub.).
Primary accounting of receipt and release of inventories. Inventories, together with accompanying documents (invoices, waybills, invoices, certificates, etc.) are received by the enterprise from suppliers in accordance with concluded supply agreements.
The received inventories are delivered to the warehouse by the supplier, an accountable person or directly by the supplier's representative against the signature of the warehouse manager on the accompanying documents.
When receiving inventories, warehouse workers check the compliance of the actual quantity of inventories with the data in the supplier’s accompanying documents. If there are no discrepancies, then receipt orders (form No. M-4) are issued for the entire amount of incoming inventory in one copy for each type of inventory.
If, upon acceptance of inventories, a discrepancy with the data of the accompanying documents is established (shortages, surpluses, mis-grading) or an uninvoiced delivery occurs, then an act of acceptance of materials (form No. M-7) is drawn up in two copies, the act is also signed by a representative of the supplier and serves as basis for reconciling settlements with the supplier.
When registering materials received as a result of liquidation of inventories, an act is drawn up in form No. M-35.
Accounting for the movement of inventories is carried out in the warehouse in warehouse records cards (form No. M-17). A separate card is opened for each inventory item number. In connection with this procedure, warehouse accounting is called varietal accounting and is carried out only in physical terms. Card forms are issued to the warehouse manager against receipt based on the register, which indicates their quantity and registration numbers.
Entries in cards are made on the basis of primary documents on the day of the transaction. After each entry, the balance for each inventory item number is displayed.
The release of inventories into production is carried out on the basis of either a demand invoice (Form No. M-11) or a limit card (Form No. M-8). Both documents are drawn up in two copies - for the financially responsible persons of the warehouse and workshop.
The supply limit is determined on the basis of standards, based on the volume of production tasks of the workshops, taking into account the balances in the workshops (limit cards are issued in duplicate for a month or a quarter).
When releasing inventories into production, the storekeeper notes in both copies of the documents the date and quantity of inventories released and displays the remainder of the limit. After using the limit, vacation documents are submitted to the accounting department.
The release of inventories to the third party (sale) is carried out on the basis of an invoice for the release of materials to the third party (Form No. M-15), which is issued in duplicate upon presentation by the recipient of the inventories of a power of attorney (Form No. M-2).
At least once a week, accounting workers check the correctness of entries in warehouse records cards and the correctness of execution of primary documents. The remaining materials on the cards are confirmed by the signature of the inspectors.
At the end of the month, warehouse employees draw up a register of delivery of receipts and expenditure documents; all accompanying primary documents from suppliers are attached to it and transferred to the accounting department.
At the end of the month, the warehouse manager transfers the quantitative balances of inventories from the cards to the balance sheet, which is maintained according to subaccounts of materials, by groups and types of inventories.
Documents received by the accounting department are checked and taxed (evaluated) at fixed accounting prices or at actual cost. The results of the registers for income and expenses are reflected in the accumulative statements for synthetic accounts, sub-accounts and groups of materials. The data from the accumulative sheets is then used to compile turnover sheets for each warehouse.
To ensure the safety of material assets, they are carried out at least once a year, usually before preparing annual reports. inventory.
The identified surpluses are accounted for in the debit of accounts 10, 41, 43 in correspondence with the credit of account 91.
Shortages are initially reflected in the debit of account 94 in correspondence with the credit of accounts 10, 41, 43. Further write-off of shortfalls is carried out in the following order:
within the limits of natural loss norms - to the debit of accounts 23, 25, 26, 29, 44, 20;
- - in excess of the norms of natural loss, as well as in case of theft, when the culprits are identified - to the debit of account 73, subaccount 73-2;
- - in excess of the norms of natural loss, as well as in case of theft, when the culprits are not identified - to the debit of account 91, subaccount 91-2.
Disclosure of information in financial statements. Inventories are reflected in the financial statements in accordance with their classification (distribution into groups (types)) based on the method of use in the production of products, performance of work, provision of services, or for the management needs of the organization.
At the end of the reporting year, inventories are reflected in the balance sheet at a cost determined on the basis of the inventory valuation methods used.
Inventories that are obsolete, have completely or partially lost their original quality or current market value, the selling price of which has decreased, are reflected in the balance sheet at the end of the reporting year minus the reserve for reduction in the value of material assets. A reserve for reducing the value of material assets is formed at the expense of the organization’s financial results by the amount of the difference between the current market value and the actual cost of inventories, if the latter is higher than the current market value.
Inventories owned by the organization, but in transit or transferred to the buyer as collateral, are taken into account in accounting at the valuation provided for in the contract, with subsequent clarification of the actual cost.
In the financial statements, at least the following information is subject to disclosure, taking into account materiality:
- - on methods for assessing inventories by their groups (types);
- - about the consequences of changes in methods of assessing inventories;
- - about the cost of inventories pledged;
- - on the amount and movement of reserves for reducing the value of material assets.
Tests for paragraph 2.3
- 1. Current accounting of production inventories received by the organization is carried out at prices:
- a) actual or accounting;
- b) FIFO, average;
- c) LIFO, FIFO, average;
- d) accounting, residual.
- 2. Write-off of deviations of actual costs for the purchase of materials from their book price is reflected using the entry:
- a) Dt 10 Kt 16;
- b) Dt 16 Kt 10;
- c) Dt 16 Kt 15;
- d) Dt 16 Kt40.
- 3. Organizations that use accounts 15 and 16 to account for materials reflect materials entered into the warehouse using the entry:
- a) Dt 26 Kt 16;
- b) Dt 10 Kt 15;
- c) Dt 25 Kg 10;
- d) Dt 15 Kt 10.
- 4. The amount of VAT on received materials is reflected in accounting using the entry:
- a) Dt 19 Kt 68;
- b) Dt 68 Kt 19;
- c) Dt 19 Kt 60;
- d) Dt 60 Kt 19.
- 5. The release of materials for production needs is reflected by an entry on the credit of account 10 and the debit of the account:
- a) 20;
- b) 23;
- c) 25;
- d) 26.
- 6. The entry Dt 10 Kt 60 means:
- a) accepting payments from suppliers for disaster relief services;
- b) recognition of the organization’s debt to suppliers for materials accepted for accounting;
- c) reflection of shortage of materials;
- d) shipment of materials to suppliers.
- 7. The release of materials for management needs is reflected by an entry on the credit of account 10 and the debit of the account:
- a) 20;
- b) 23;
- c) 25;
- d) 26.
- 8. Entry Dt 20 Kt 10 means issue of materials:
- a) for the maintenance of fixed assets for workshop purposes;
- b) current repairs of fixed assets;
- c) general economic needs of the organization;
- d) technological goals.
- 9. Free receipt of materials at the current market value is reflected using the entry:
- a) Dt 10 Kt 80;
- b) Dt 10 Kt 82;
- c) Dt 10 Kt 98;
- d) Dt 10 Kt 84.
- 10. The formation of reserves for reducing the value of inventories is reflected using the entry:
- a) Dt 14 Kt 91-1;
- b) Dt 99 Kt 14;
- c) Dt91-2 Kt 14;
- d) Dt 20 Kt 14.
- 11. The release of materials for general production needs is reflected by an entry on the credit of account 10 and the debit of the account:
- a) 25;
- b) 20;
- c) 23;
- d) 26.
- 12. For the business transaction “Materials have been received from suppliers and posted to the warehouse,” correspondence of invoices is carried out:
- a) Dt 10 Kt 71;
- b) Dt 60 Kt 51;
- c) Dt 10 Kt 60;
- d) Dt 20 Kt 10.
- 13. The release of materials to correct defects is reflected by an entry on the credit of account 10 and the debit of the account:
- a) 91;
- b) 28;
- c) 25;
- d) 26.
- 14. For the business transaction “Materials necessary for the production of products were released from the organization’s warehouse to the main production,” the correspondence of accounts is carried out:
- a) Dt 21 Kt 10;
- b) Dt 26 Kt 10;
- c) Dt 20 Kt 10;
- d) Dt 25 Kt 10.
- 15. Fulfillment of obligations to suppliers is reflected using the entry:
- a) Dt 60 Kt 20;
- b) Dt 60 Kt 51;
- c) Dt 60 Kt 10;
- d) Dt 60 Kt 15.
- 16. To account for shortages and losses from damage to valuables identified by the inventory, the following synthetic account is used:
- a) score 73;
- b) score 94;
- c) score 91;
- d) score 98.
