Inventory (MPI) in accounting are assets that (clause 2 of PBU 5/01):
- 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.
We will tell you about synthetic and analytical accounting of inventories in our consultation.
Synthetic accounting of inventories
The main synthetic accounts that are used for accounting of inventories (Order of the Ministry of Finance dated October 31, 2000 No. 94n):
- 10 “Materials;
- 41 "Products";
- 43 “Finished products”.
Account 10 summarizes information about the availability and movement of raw materials, supplies, fuel, spare parts, inventory and household supplies, containers, etc. assets of the organization (including those in transit and processing).
Account 41 is used to summarize information about the availability and movement of inventory items purchased as goods for sale. This account is used mainly by organizations engaged in trading activities, as well as organizations providing public catering services, for synthetic accounting of goods.
Organizations conducting industrial, agricultural and other production activities use account 43 to summarize information about the availability and movement of finished products.
Inventory and equipment are accepted for accounting at actual cost (clause 5 of PBU 5/01). The procedure for determining the actual cost of inventories depends on the source of their receipt. Thus, the actual cost of inventories purchased for a fee is recognized as the amount of actual costs for their acquisition, excluding VAT (paragraph 1, clause 6 of PBU 5/01), and inventories received free of charge is their current market value on the date of acceptance for accounting accounting.
Postings for accounting of inventories
The following main entries can be distinguished, reflecting the acceptance of inventories for accounting and their write-off:
Analytical accounting of inventories
Analytical accounting of inventories is carried out, as a rule, by their storage locations and individual items (types, varieties, sizes, etc.).
Inventory accounting is an important part of a properly organized company. The process of accepting, writing off and moving inventories must be recorded in accounting registers.
How to do this correctly will be discussed in this article.
Why is this procedure needed?
Any production organization should timely reflect the receipt, write-off and movement of inventory. This need is determined by current legislation.
If an enterprise does not monitor changes in the number of these assets, then sooner or later it will face the following difficulties:
- it will be impossible to determine the debt to suppliers;
- it is impossible to calculate the price of finished products, since the cost is unknown;
- theft is possible, since the volume of inventories is not controlled, the company does not monitor the safety of raw materials;
- accounting principles are violated, and accordingly, reporting becomes unreliable.
Regulatory regulation
Record keeping must be carried out in accordance with the legislation of the Russian Federation. There are 4 levels of regulatory documents in total:
- Federal laws. The legal framework, accounting principles and other nuances are regulated by Law No. 402-FZ “On Accounting”.
- Standards. The information specified in Law No. 402 is supplemented and corrected. Inventory accounting is based on the following regulatory documents of this level:
- PBU 5/01 establishes the essence of accounting for inventories, their composition, classification and evaluation methods;
- PBU 10 regulates the rules for writing off inventories;
- PBU 9 establishes the procedure for determining the financial result of a sale;
- The chart of accounts contains information about accounting accounts.
- Guidelines. These documents are advisory in nature. These include:
- instructions for inventory of property No. 49;
- instructions for accounting for inventories No. 44;
- other similar documents.
- Instructions. This level includes all documents related to inventory accounting created in the organization, for example:
- job descriptions;
- standards for write-off of materials and raw materials;
- order on accounting policies;
- order establishing the composition of the inventory commission;
- calculation cards.
Failure to comply with the requirements established in all of the listed regulatory documents is regarded by the inspection authorities as a direct violation of the law. Inconsistencies and deviations from the rules are punishable by fines and other sanctions.
All the nuances of this procedure can be gleaned from the following video:
Accounting procedure
All operations related to the acquisition, movement and consumption of inventory items must be correctly documented using accounting accounts. Correspondence depends on the type of transaction, counterparty and type of asset.
Acquisition of oil and gas plant
The purchase of raw materials and materials by an organization at its own expense is formalized as follows:
Inventories can be accepted as a contribution to the authorized capital of the company. This operation is reflected in the correspondence of accounts:
Assets can also be received free of charge. This operation must be recorded in the accounting registers:
| Operation | Debit | Credit |
|---|---|---|
| Inventory accepted at market value | 10 | 98.2 |
| Transport costs included | 10 | 76 |
| The cost of inventories was written off when they were transferred to production | 98.2 | 91.1 |
Materials may be received by a company as surplus found during inventory. Such MPPs are drawn up as follows:
Materials, raw materials, goods can be purchased by an organization in exchange for its products. This practice is not widespread, but insolvent enterprises use this method. The procedure is completed by posting:
Write-off
Disposal is formalized in the event of sale, transfer or loss of objects. Most often, inventories are written off in connection with sales to customers. The process goes like this:
Inventory may be lost by an organization as a result of emergency situations. The cost of materials is written off to profit after taking inventory:
The gratuitous transfer of assets is formalized as follows:
| Action | Debit | Credit |
|---|---|---|
| Disposal of inventories due to gratuitous transfer is reflected | 91.2 | 10 |
Shortage
Companies must regularly and timely conduct inventories of materials, raw materials and finished products. If theft or loss was discovered during the inspection, they should be recorded in one of the following invoices.
If the culprit cannot be identified, the entire amount of damage must be taken into account as part of the costs:
If the person responsible for the theft is identified, the following entries are made:
Shortages can be detected not only during inventory, but also during the process of receiving supplies of goods and raw materials:
| Operation | Debit | Credit |
|---|---|---|
| Losses were written off within the amount stipulated in the agreement | 94 | 60 (76) |
| A claim has been made for the remaining amount | 76.2 | 60 (76) |
| The claim is satisfied | 51 (52) | 76.2 |
| Amounts that are not subject to return according to the terms of the agreement are taken into account | 10 | 94 |
| Amounts written off in case of impossibility of collection | 94 | 76.2 |
| Damage included in expenses | 91.2 | 94 |
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 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 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 recognized as 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 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 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.
The actual cost of inventories received by an 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.
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 contracts 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 sold, products, works, services 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”, based on the payment documents received by the organization from suppliers, 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.”
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 and other similar expenses, except 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 contracts 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) in the authorized capital 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 materials (goods) are received 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 about 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 using 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 the 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 is established with the data of the accompanying documents (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 for 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 employees check the accuracy of the entries in the warehouse records cards and the correctness of the 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 incoming and outgoing 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 reflected initially as 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. The 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.
Inventory inventories (MPI) are part of the property that is responsible for the production of various products, provision of services, and is also used in the management activities of an enterprise or organization.
Classification of MPZ
According to accounting regulation No. 5/01, inventories are divided into the following groups:
- raw and basic materials. This group includes production facilities that are responsible for the manufacture of goods or form its basis;
- auxiliary materials that act on raw materials to improve the consumer qualities of the product, or to maintain the technical equipment of the enterprise;
- purchased semi-finished products. In this case, they are a kind of procurement raw materials, the processing of which produces finished products;
- recurrent balances of the enterprise. This is waste materials resulting from the production of a finished product. Many enterprises incidentally produce various consumer goods from such residues;
- fuels and lubricants. Which, in turn, are classified according to their purpose into: household (for heating the premises), motor (for refueling automobile and agricultural vehicles) and technical (for servicing various mechanisms);
- packaging materials. Used for packaging, transportation and preservation of manufactured goods;
components for various equipment and specialized equipment used, which are used to replace failed parts.
The main tasks that the accounting of industrial inventories involves are as follows:
- constant supervision of the entire production cycle;
- control over product storage;
- correct execution of the necessary documentation;
- accurate determination of the cost of finished products;
- control over surpluses or shortages of a certain group of inventories;
- compliance with all standards provided for by state legislative acts.
This systematization allows for accounting reporting of income, expenses and balances of material assets in a particular organization.
Analysis of inventories
Inventory and equipment are taken into account at their actual cost. Which is the amount of money spent by the enterprise on the purchase of necessary production materials.
In addition, actual costs may be incurred for the following purposes:
- payment of funds in accordance with the agreement concluded between the organization and the supplier;
- payment for all kinds of services provided and necessary information provided to the enterprise;
- payment of customs taxes;
- payment of non-refundable fees;
- various incentives that are paid by the brokerage institution through which tangible production assets were obtained;
- expenses incurred as a result of the preparation and transportation of the necessary production products;
- payment for insurance of purchased inventories.
Actual expenses cannot include costs incurred when purchasing general business material assets. The real initial cost of inventories when produced directly by the enterprise is formulated by the costs associated with the production of these reserves.
If the real cost is obtained by introducing values into the authorized capital of the enterprise, then it is determined using a financial analysis carried out and agreed upon by the participants of this organization.
Inventories can be assessed in one of the following ways:
- at the average initial cost;
- at the original cost of each product separately;
- FIFO (at cost 1st according to the procurement period;
- LIFO (at cost of subsequent purchases according to the purchase period).
The first method of analyzing inventories is the most popular among accounting workers of organizations located in the Russian Federation.
Documentary formation of operations for moving inventories
All economic procedures must be carried out with the help of supporting documentation. This package of documents consists of primary accounting acts, which are primarily intended for accounting at the legislative level.
Basic documentation on the movement of inventories must be drawn up under the clear guidance of the first manager and chief accountant of the enterprise, who are responsible to the regulatory authorities for the correctness of their preparation.
If production assets come from manufacturers, then the warehouse manager is obliged to check the received goods for compliance with the accompanying documents of the supplier. If there are no disagreements, on the same day the warehouse manager must draw up a single copy of an act (receipt order in form No. M-I) for all goods received. If the delivered products do not coincide with the documents provided for them, the storekeeper, together with the authorized person of the supplier, draws up a report in form No. M-71 in two samples.
Also, receipt acts are drawn up when inventories are received by an enterprise from an individual working in this organization. Such valuables are mainly purchased in cash at retail outlets. Such purchases must also be confirmed by supporting documents (checks, certificates, acts).
Acts in form M-11 are issued if inventories are moved within the organization (from one site to another or from a warehouse to a workshop). In such cases, the order to issue invoices must come from supply workers.
Inventory accounting
The movement and balance of material assets is subject to mandatory accounting at the enterprise. Which is carried out by warehouse and accounting department employees.
These responsible persons, in order to legally and correctly maintain records of existing valuables, must perform the following actions:
- Accounting employees open warehouse cards;
- after which information about the material located is entered into the card;
- the completed card is transferred from the accounting department to the warehouse;
- The warehouse manager records entries in the prepared cards about receipts, expenses and balances of material assets;
- At the same time as the cards, the storekeeper fills out the sort accounting book.
All basic documentation for inventory accounting comes from all departments and workshops of the enterprise to the accounting department. Where, after a scrupulous check, all received accounting documents are sent to a computer.
There are two options for accounting for inventories using cards, which record all accounting transactions based on primary documents: in the first case, the accounting department creates
- card exclusively for a specific variety and type of incoming products. These cards keep records both in kind and in monetary terms. After the expiration of the monthly period, such cards must be verified and correspond to the accounting cards in the warehouse;
- in the second case, all negotiable documents are folded according to assortment numbers. At the end of the reporting period, the final figures are calculated and subsequently entered into the statements.
Which option is more convenient is determined by each company independently. The only important thing remains a true reflection of the financial activities of the enterprise.
What is it and who should do it at the enterprise? Read about this in our material.
Synthetic or generalized accounting of inventories
Synthetic accounts that are used to account for material inventories:
- 004 – products accepted for commission;
- 003 – MPZ taken for processing;
- 002 – MPZ accepted for storage;
- 16 – discrepancy in inventory value;
- 15 – purchase of necessary materials;
- 14 – revaluation of values;
- 11 – agricultural animals being fattened;
- 10 – materials.
To keep records of purchases or procurement of material and production assets in accounting, two types of accounting are used:
- the first type implies the reflection of incoming materials according to the debit “10 – materials” and credit accounts “60 – financial payments to contractors and suppliers”, “76 – repayment of credit debt”. Thus, inventories are taken into receipts regardless of the receipt of settlement documentation. And at the beginning of the reporting month, unpaid financial resources will be taken into account as a receivable debt to contractors or suppliers;
- the second type determines the use of additional synthetic accounts: “15 – purchase of necessary materials” and “16 – discrepancy in the cost of inventories”.
Inventory of material assets of the enterprise
Regulatory legal acts in force in the country provide for a mandatory inventory of property. Which is carried out for the truthfulness and literacy of accounting.
During the inventory, special attention is paid to the presence and condition of inventories, which must be confirmed by relevant documents.
The legislation provides that the period for conducting the inventory can be determined personally by the head of the enterprise, except if:
- the property changes owner;
- annual reporting is prepared;
- there are facts of damage or theft of property;
- there are force majeure circumstances provided for by legislative acts.
If the inventory carried out shows a shortage of material assets, then the responsibility lies with the official exercising control over the correctness of accounting of the enterprise's inventories.
