Accounting and tax accounting of direct production costs

Manufacturing is intended to produce products, perform work and provide services to meet people's needs. In the production process, fixed and working capital and labor are used. All costs of material and labor resources form production costs. The total costs of an enterprise for the production and sale of products (works and services) in monetary terms are called the cost of production. The cost value - one of the indicators of production efficiency - determines how much it costs the enterprise to manufacture and sell products. The lower the cost (other things being equal), the more efficient the production. Reducing costs allows the company to feel confident in a competitive market.

Direct production costs include:

Raw materials and materials;
Purchased products and semi-finished products;
Fuel and energy for technological purposes;
Payment of production workers and corresponding deductions for social needs;
Expenses for preparation and development of production;
Marriage losses.

Accounting for material costs

Raw materials are the basis for the production of products, various types of work, services, constituting the most important part of the material costs of production.

Material expenses, according to the Tax Code (Chapter 25, Article 254), include the following expenses of the taxpayer: for the purchase of raw materials and supplies used in the production of goods and forming their basis or being a necessary component in production; for the purchase of materials used: for packaging and other preparation of manufactured and sold goods (including pre-sale preparation); for other production and economic needs (testing, control, maintenance, operation of fixed assets and other similar purposes); for the purchase of tools, laboratory equipment, work clothes and other property that is not depreciable property.

The cost of such property is included in material costs in full as it is put into operation; for the purchase of components undergoing installation, or semi-finished products undergoing additional processing from the taxpayer; for the purchase of fuel, water and energy of all types, spent on technological purposes, production of all types of energy, heating of buildings, as well as costs for transformation and transmission of energy; for the acquisition of works and services of a production nature, performed by third-party organizations or individual entrepreneurs, as well as for the performance of these works (provision of services) by structural divisions of the taxpayer.

The cost of inventory items included in material expenses is determined based on their acquisition prices (without taking into account the amounts of taxes subject to deduction or included in expenses in accordance with this Code), including commissions paid to intermediary organizations, import customs duties and fees, transportation costs and other costs associated with the acquisition of inventory items.

If the cost of returnable packaging accepted from a supplier with inventory items is included in the price of these assets, the cost of returnable packaging at the price of its possible use or sale is excluded from the total cost of their acquisition. The cost of non-returnable containers and packaging accepted from the supplier with inventory items is included in the amount of expenses for their acquisition.

The classification of containers as returnable or non-returnable is determined by the terms of the agreement (contract) for the purchase of inventory items.

The amount of material expenses of the current month is reduced by the value of the remaining inventory transferred to production, but not used in production at the end of the month. The valuation of such inventory items must correspond to their valuation upon write-off.

The consumption of raw materials and materials is documented in primary documents (requirements, limit cards, invoices, etc.). These documents must contain all the necessary details confirming the direction of production costs, as well as the validity of the consumption of materials. Correctly completed primary documents are the basis for confirming the consumption of materials in production and compiling reliable registers of analytical and synthetic accounting for accounting for product costs. At the end of the accounting period, primary documents on the consumption of materials are processed, as a result of which a statement of distribution of consumption of raw materials and materials is compiled according to synthetic accounts, within synthetic accounts for accounting objects and analytical positions.

Materials released into production are assessed using one of the methods provided for in the Accounting Regulations “Accounting for Inventories” (PBU 5/01), the specification of which is contained in the accounting policy of each enterprise.

If the consumption of auxiliary materials is directly related to specific types of products, which follows from the primary documents, then the assessment is made in the same way as the main materials, and is reflected in production costs under the item “Raw materials and materials”.

Based on the list of raw materials and materials, as well as the list of distribution of the amount of transportation and procurement costs for the reporting period or the list of distribution of the deviation of the actual cost of materials from their accounting value, the actual cost of materials consumed is determined by the objects of accounting for the main production - types of products.

Depending on the option for accounting for the acquisition and procurement of materials, entries are made in the accounting accounts:

D20 K10 - reflects the actual cost of materials spent on the production of products, works, and services.
D 10 K 20 - reflects the cost of products, works, services and materials spent on production at accounting prices.
D20 K16 - reflects the amount of deviations of the actual cost from the accounting value, corresponding to the amount of materials consumed at the accounting value.

To account for semi-finished products in warehouses, and their movement in the enterprise and transfer to the side, the account “Semi-finished products of own production” is used. Analytical quantitative and varietal records are carried out at storage locations. The consumption of purchased semi-finished products and components is written off as production costs on the basis of relevant primary documents, similar to the consumption of raw materials.

Fuel and energy for technological purposes include compressed air, electricity, water and other energy resources used directly for carrying out technological operations. Process fuel and energy are included in the cost of a specific type of product based on primary documents or readings from measuring instruments (meters). If direct attribution is not possible, then fuel and energy costs are distributed indirectly in proportion to the number of hours of operation of the equipment, taking into account its power or energy consumption standards per unit of production. The reliability of determining the cost of technological fuel depends, first of all, on how equipped the workplaces are with measuring instruments and how systems for primary accounting of energy consumption for technological needs are built.

At the same time, the total consumption of fuel and energy for technological purposes, including purchased electricity and heat, is reflected on the basis of submitted invoices of energy and other organizations by the accounting entry:

D 20 K 60 - for the cost of energy for technological purposes without VAT;
D 19.3 (VAT on purchased inventories) K 60.

Accordingly, grouping costs by costing items for accounting for raw materials and materials involves identifying waste of material resources (returnable waste). The cost of returnable waste is reflected in the amount based on the nature of the waste and its assessment for a given organization in the accounting entry: D10 K 20.

The basis for such an entry is the invoice or waste acceptance certificate.

Accounting for labor costs

According to the Tax Code (Chapter 25, Article 255), labor costs include any accruals to employees in cash or in kind, incentive accruals and allowances, compensation accruals related to working hours or working conditions, bonuses and one-time incentive accruals, expenses, related to the maintenance of these workers, provided for by the norms of the legislation of the Russian Federation.

The costs of remunerating production workers with corresponding deductions for social needs are classified as direct costs. The basic and additional wages of production workers are included in the cost of a specific type of product (work, service) according to work time sheets, work orders, route sheets, shift assignments, downtime sheets, defect reports, etc., they are the basis for compiling a statement of distribution of labor costs for each structural unit, contributions to state extra-budgetary social funds and the formation of a reserve for paying regular vacations to workers. According to the statement of distribution of labor costs, an accounting entry is made for the amount of accrued wages for production workers: D 20 K 70.

At the same time, along with the inclusion of wages in the cost of production, the amount of deductions for social needs is reflected in accordance with current legislation: D 20 K 69 (calculations for social insurance and security).

In addition, a reserve for future expenses is added to the amount of costs for remuneration of production workers, which is used to pay for the next vacation of production workers, in order to eliminate fluctuations in the cost of production due to uneven payment of wages during the next vacation. A reserve for paying workers for regular vacations is created provided that the accounting policy provides for the creation of a reserve for these purposes. The amount of contributions to the reserve for vacation pay depends on the estimated amount of wages for the production worker's next vacation and the corresponding amount of social insurance contributions for the reporting period. According to this amount, the percentage of contributions to the reserve for vacation pay is determined, based on which the monthly reserve amount is calculated. Reserving the amount for upcoming vacation payments, including payments for social insurance and security, is reflected in the accounting entry: D 20 K 96 (Reserves for upcoming expenses and payments). The amount of the reserve for future expenses created to pay for regular holidays, warranty repairs of products and warranty service are included directly in the cost of production.

Accounting for costs associated with preparation of production and development of new types of products

Expenses associated with the preparation of production and the development of new types of products, directly taken into account in the cost of production as direct costs, are classified as deferred expenses. Expenses are accounted for according to a certain range of items, which is provided for by the accounting policy of the organization. The actual amount of expenses incurred is a complex value and consists of numerous costs of material, labor and other resources.

Costs incurred and documented are reflected by entries in synthetic accounting accounts:

D 97 K 10,70,69,60,76, etc.

Upon completion of new types of products, they are transferred to mass production. Costs previously recorded in account 97 (Deferred expenses) are written off in parts over a specified period (two or more years). The amount of monthly write-off of expenses for the development of new types of products is calculated depending on the volume of products produced for the entire write-off period and the actual number of products produced during the accounting period. Based on primary documents on the release of mastered products and analytical information, an entry is made to account 97 for the amount of write-off of future expenses: D 20 K 97.

Example. The costs of mastering the production of a new type of product amounted to 51,000 rubles. (materials - 30,000, labor costs for production workers - 10,000, social contributions - 6,800, services of third-party organizations - 4,200).

The types of expenses incurred are reflected in the following entries:

D 97K 10-30000 RUR, D 97K 70-10000 RUR, D 97K 69 - 6800 RUR, D 97K 60-4200 RUR)

These costs relate to the development of two types of products. According to the analytical accounting data for account 97, it was established that the costs of developing product No. 1015 are 35,000 rubles, and the costs of developing product No. 1025 are 16,000 rubles.

In the reporting period, product No. 1015 was completed, therefore, the amount of expenses for the development of product No. 1015 - 35,000 rubles will be written off to account 20. According to the estimated calculations of the business plan of this organization, the production of products No. 1015 over 2 years will be 190 units. The amount of future expenses included in the cost of production is determined by dividing the amount of expenses by the total output of the product for 2 years. In this example, development costs are written off to production as each product is released in the amount of 184.21 rubles. In the reporting period, the output of products 1015 amounted to 25 units. Then the amount of future expenses to be included in the cost of production is equal to 4605.26 rubles.

The calculation of the amount of expenses for the development of new types of products is documented in the accounting department with a certificate, on the basis of which the accounting entry is made: D20 K 97.

Thus, deferred expenses accounted for in account 97 consist of various expenses that arise in organizations in a given reporting period, but related to future reporting periods, they are included in the cost depending on the content of these expenses in accordance with current regulations.

Accounting for unproductive losses (losses from defects)

The production activity of an organization involves the possible occurrence of unproductive losses, which increase the volume of production costs. These types of unproductive expenses include losses from marriage. To identify the amount of losses from defects, account 28 “Defects in production” is used. The basis for an entry in this account is notifications and acts that document defects in production, as well as primary documents recording the production of products, suitable and rejected. Depending on the possibility of correcting a marriage, it is divided into: correctable and irreparable (final). Correctable defects are products that are technically possible and economically feasible to correct in the organization. Correctable defects include parts, assemblies, products recognized as unsuitable by the relevant services of the organization, but which can be brought to the specified quality subject to additional costs. The debit of account 28 reflects: the cost of the final defect; costs for correcting partial defects. The credit of account 28 includes: collections from those responsible for the marriage; the cost of returnable waste at the price of possible use. The amount of losses from defects is written off to cost accounting accounts: D 20 (23.25,...) K 28

Table 1: Typical accounting entries for reflecting correctable defects

An irreparable defect includes rejected products (parts) that are completely removed from production. In this regard, the organization calculates the cost of irreparable defects in accordance with cost items (materials, wages, overhead costs, etc.)

Table 2: Scheme of accounting entries for reflecting irreparable defects

Losses from defects are included directly in the cost of those products for which they were identified. Losses from external defects related to products of previous periods are included in the cost of similar manufactured products, and if there are none, they are distributed among all products of a given reporting period. External defects are products that the buyer returned to the supplier due to non-compliance with technical requirements or other irreparable defects.

Table 3: Scheme of typical postings for reflecting external defects

If the organization has a reserve for warranty repairs
	The amount of losses from defects is written off against the reserve for warranty repairs and warranty service
The accounting policy does not provide for the creation of a reserve for warranty repairs
	Losses from defects are included in the costs of the main production
	Losses from defects are included in other expenses (rejected products were sold in previous years)

Account 28 is closed monthly and the amount of losses from the defect is determined as the difference between the amount of the final defect and the costs of correcting the defect minus the amounts received as a result of compensation for the cost of the defect (deductions for the defect) and the posting of material assets. The losses from defects calculated in this way are reflected in the accounting entry: D 20 K 28

To illustrate the procedure for reflecting defects, identifying losses from defects and including them in the cost of production, I will consider an example.

Example. In November, during the manufacture of product No. 1012, a worker of the organization made a defect, which was recorded in the defect report, as well as in the shift production report. The Technical Control and Standards Service determined that this defect cannot be corrected. Its cost is 450 rubles. Deductions from the worker's wages for marriage were made in the amount of 50 rubles. in accordance with current legislation and depending on the degree of his guilt. The cost of returnable waste at the market price is 120 rubles.

These business transactions are reflected in synthetic accounting accounts as follows:

Cost of rejected product No. 1012: D 28 K 20 - 450 rub.
Deductions from the worker's wages: D 70 K 28 - 50 rub.
Capitalization of returnable waste at market price: D 10 K 28 - 120 rub.
Write-off of losses from defects to the cost of production: D 20 K 28 -280 rub. (450-50-120).Using an example, the work discusses the procedure for accounting for internal defects.

External defects discovered by the buyer are processed significantly later than the date of shipment of the products. Therefore, the cost of such products is already reflected as the release of finished products in the debit of account 43 and the credit of account 20. Irreparable external defects are assessed at the full production cost, i.e. includes general business expenses. The basis for classifying already sold products as external defect is only a bilateral act, which specifies in detail the reasons for recognizing the product as unfit. Moreover, losses from external defects should also include transportation costs that were included in the buyer’s invoice and transportation costs for returning the defective product.

The register for recording defects in production is a statement, the basis for the compilation of which are primary documents: an act for the final defect, a certificate from the accounting department for the amount of deductions from wages, invoices for the warehouse, a certificate-calculation from the accounting department about the amount of final losses from the defect.

Accounting for costs as part of the cost of production

Direct costs associated with the production of a certain type of product can be directly and directly attributed to its cost based on primary documents and are highlighted as separate items in calculations. Primary documents are pre-grouped by areas of material consumption, and the data they contain is reflected in the statement of distribution of material consumption for each structural unit of the organization. If several types of products are produced from one type of material assets, then the consumption of materials is distributed between the costs of each type of product. Such distribution can be made in proportion to the consumption of material assets according to the standards established per unit of production; established flow coefficient; quantity or weight of manufactured products, etc.

The actual cost of materials is determined based on the cost of their acquisition, including payment of interest on the loan provided by the resource supplier, commissions paid by supply organizations, the cost of commodity exchange services, customs duties, and transportation costs carried out by third-party organizations.

At enterprises, current accounting of material assets is carried out at discount prices, at average purchase prices, at planned (standard) cost, etc. Deviations of the actual cost of materials from the average purchase price or from the planned (standard) cost are taken into account in separate analytical accounts for groups of materials. It is allowed to determine the actual cost of basic materials using the following methods: by average cost; at the cost of the first purchases (FIFO); at the cost of the most recent purchases (LIFO). The company describes the chosen method for estimating materials used in production in its accounting policy.

The release of materials into production is carried out using such primary documents as limit or limit-fencing cards. They take into account: type of operation, warehouse number, materials issued, receiving workshop, cost code, item number and name of materials sold, unit of measurement and limit for monthly consumption of materials, which is calculated in accordance with the production plan for the month and current consumption standards. To document the replacement of materials when they are released in excess of the approved limit, documents are drawn up in a special way in order to note the fact of deviation from the established operating mode.

The material supply limit may vary. In this case, different registration is possible: at some enterprises, when the limit is specified, a new limit card is issued to replace the old one, at others, an order is given to change the limit, which is attached in writing to the corresponding card.

The release of materials into production for occasional consumption is documented by requirements.

Write-off of materials to cost accounts is carried out on the basis of an expense document. At each enterprise, a circle of officials is determined who are responsible for the use of materials in production and the preparation of relevant documentation. For example, the consumption of materials undergoing cutting is documented using cutting sheets (or cards). They indicate the amount of material supplied to workplaces, the number of suitable semi-finished products produced, defects and waste generated during cutting, as well as consumption rates for one semi-finished product. Based on the cutting results, deviations from the norms are determined in sheets or cards, indicating the reasons and culprits for these deviations. To account for the consumption of materials that are not cut, a material use card is drawn up. It is written out for each item of material and contains information about the movement of material during the reporting period. Based on the production accounting documents, data on the name, code and quantity of products made from this material are entered into the card.

The total actual material consumption for the reporting period is determined by the formula:

RF = He - P- V - Ok, where
RF - actual material consumption for the reporting period, rub.;
It is the balance of material at the beginning of the reporting period, rub.;
P - documented receipt of material during the reporting period, rub.;
B - internal movement of material during the reporting period (return of material to the warehouse, transfer to other workshops, etc.), rub.
Ok - the balance of material at the end of the reporting period, determined according to inventory data, rub.

The result of documenting the movement and consumption of basic materials and calculations performed is recorded by posting: D20 K10

The second element of direct costs is the wages of the main production workers with the corresponding charges on it. To calculate the wages of time-paid employees, data from time sheets are used. Involvement of employees in overtime work is documented in the appropriate lists approved by the management of the enterprise.

In the conditions of small-scale and individual production, the main primary document for recording production is the work order for piecework. In mass production, the primary documents for recording workers' output are route sheets or maps. They record the launch into production and processing of a batch of blanks in accordance with the established technological process. When a batch of parts is transferred from the workshop, it is transferred along with them to the route sheet. When a batch of parts is split up, new route sheets are issued, which can be used as independent documents or in combination with reports or tear-off coupons.

In mass and large-scale production, to determine the output of each worker per shift or billing period, an operational census of balances, unprocessed parts or unassembled products is carried out at the end of the shift or billing period. Workers' output is defined as the balance of parts or workpieces at the beginning of the shift, increased by the number of parts transferred to the workplace during the shift, minus the balance of unused or unassembled parts (blanks) at the end of the shift. The output of each worker calculated in this way is documented in reports or output accounting sheets.

After multiplying the piece rate by the actual output achieved, the amount of the accrued wages of the piece worker is obtained. Calculations performed and executed in a similar way allow the following entry to be made in accounting: D 20 K 70. At the same time, settlements with the unified social tax are carried out.

Table 4: Scheme of accounting entries and necessary documents:

To correctly formulate the cost, the accountant distributes expenses into direct and indirect expenses. We will look at what these include in detail. This will help you record all transactions without errors and correctly calculate income tax.

The current accounting legislation does not establish an exact list of expenses related to direct expenses. According to the Instructions for the application of the Chart of Accounts for accounting the financial and economic activities of organizations (Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n), the cost of inventories and expenses directly related to the production of products are written off directly to account 20 “Main production”.

Thus, the organization, in its accounting policies for accounting purposes, independently determines which expenses are considered direct. Look,

Direct and indirect costs

Costs can be grouped according to different criteria: by type of expense, by place of origin, by economic role in the production process, etc.

Let's consider the classification of costs according to the method of their inclusion in the cost of products (works, services). On this basis, expenses are divided into direct and indirect costs.

Direct expenses

Direct costs are costs associated with the production of a particular type of product (performing certain works, providing certain services), which can be directly included in the cost of these products (works, services).

These include, in particular, costs:

• for raw materials and basic materials;
• purchased products and semi-finished products;
• fuel and electricity;
• remuneration of main production workers (with deductions);
• depreciation of production equipment.

Indirect costs of the company: what they include

Indirect costs are costs that are associated with the production of several types of products (works, services). They cannot be directly attributed to a specific type of product. Therefore, they are distributed by type of product indirectly (conditionally) according to the indicators provided for in the organization’s accounting policies, using pre-calculated coefficients. This is where the name comes from indirect costs. What they include: general production and general business expenses.

Direct and indirect costs: distribution by product type

Recall that cost sharing direct and indirect costs depends on industry characteristics, production organization and the adopted cost accounting method (cost calculation).

At first glance, it may seem that it is not at all difficult to distribute direct costs by type of product. The main thing is to establish a correspondence between the products produced and the direct costs incurred. However, if several types of products are produced in one workshop using the same equipment using the same materials, it is not so easy to distribute direct costs. In this case, direct costs are distributed in proportion to the standards developed by employees of the technological and planning departments.

The process of allocating indirect costs in production can occur in two stages. At the first stage indirect costs distributed according to the place of their origin, in particular between workshops, divisions or departments. At the second stage, they are redistributed by type of product. An important point in this process is determining the distribution base (indicator). For example, to distribute administration salaries, the number of employees can be used as such a base, for heating and electricity - the area of ​​the premises, for water supply - the area of ​​​​the premises or the number of employees, for sales and marketing costs - direct costs. In any case, the distribution of indirect costs should not require much effort and calculations.

Distribution method indirect costs between types of products, works and services should be enshrined in the accounting policies of the organization.

We will show how different methods of distributing indirect costs can affect the financial result and its reflection in the financial statements.

Example 1

In September 2014, Uyut LLC produced 300 chairs of type A and 250 chairs of type B. Direct costs for the production of chairs A amounted to 225,000 rubles, and for the production of chairs B - 425,000 rubles. The amount of indirect costs is 120,000 rubles. In the same month, Uyut LLC sold 200 chairs A and 100 chairs B.

Let's distribute indirect costs in two ways. In the first case, we will take direct costs as the distribution base. In the second case, we distribute indirect costs evenly per unit of production.

First way

Amount of indirect costs:

• for chairs A - RUB 41,538. ;
• for chairs B - RUB 78,462. .

• chair A - 888 rub. [(RUB 225,000 + RUB 41,538) : 300 pcs.)];
• chair B - 2014 rub. [(RUB 425,000 + RUB 78,462) : 250 pcs.)].

Cost of sales:

• chairs A - RUB 177,600. (888 rub. x 200 pcs.);
• chairs B - 201,400 rub. (RUB 2014 x 100 pcs.).

Total cost of sales - 379,000 rubles.

Second way

Amount of indirect costs:

• for chairs A - RUB 65,455. ;
• for chairs B - RUB 54,545. .

Cost per unit of production:

• chair A - 968 rub. [(225,000 rub. + 65,455 rub.) : 300 pcs.];
• chair B - 1998 rub. [(RUB 445,000 + RUB 54,545) : 250 pcs.].

Cost of sales:

• chairs A - RUB 193,600. (968 rub. x 200 pcs.);
• chairs B - RUB 199,800. (RUB 1,998 x 100 pcs.).

Total cost of sales - 393,400 rubles.

Thus, the cost of sales in the first and second cases differs by 14,400 rubles. (RUB 393,400 – RUB 379,000). Consequently, the financial result reflected in the financial statements will also be different. In this example, when indirect costs are distributed in proportion to direct costs, sales revenue (profit) will be greater than when indirect costs are distributed evenly per unit of production.

Cost accounting and costing methods

The main methods of cost accounting and cost calculation are order-based, incremental (process-based) and standard. The choice of cost calculation method depends on the type of production, its organization, the technology used and the characteristics of the product (work, services).

The custom method is used if a unit of product (work, service) has characteristic properties, and the product is produced in separate batches, the number of which can be determined. The object of cost accounting (calculation) with this method is individual orders for one product or series of products.

For each order, a registration card is opened, which reflects the direct and indirect costs incurred during the execution of the order (contract). The cost per unit of production is calculated by dividing the amount of costs accumulated for a separate order by the number of products (works, services) in physical terms.

Some organizations are large technological industries (for example, mining and ferrous metallurgy enterprises), consisting of a number of structural divisions. The latter produce products (semi-finished products) completed by this technology, but are interconnected by a single production process. Moreover, each of these divisions represents a separate cycle (redistribution, process). The cost accounting method, built on the basis of calculating these individual stages (processes), is called cross-distribution (process-by-process). First, the cost per unit of production of each stage is determined. Then, by summing up the cost of production units for each processing stage, you can calculate the cost of the final finished product.

With the normative method, the organization creates and approves a system of standards and norms, according to which calculations of the normative (standard) cost of products (works, services) are made, and also the costs associated with deviations from existing standards and norms are identified and taken into account. The actual cost of production is determined by adjusting the standard cost for deviations from the norms for each cost item.

Direct expenses: accounting entries

In accounting, direct expenses of production organizations are reflected in the debit of accounts 20 “Main production” and 23 “Auxiliary production”:

DEBIT 20 (23) CREDIT 02, 04, 05, 10, 60, 68, 69, 70

Direct production costs are written off.

Direct expenses also include losses from marriage. The write-off of the defective amount to production costs is reflected as follows:

DEBIT 20 CREDIT 28

Losses from defects were written off for main production.

Indirect costs: accounting entries

To reflect indirect expenses in organizations, accounts 25 “General production expenses”, 26 “General business expenses” and 44 “Sales expenses” are used.

General production expenses. The debit of account 25 accumulates such indirect expenses as:

• expenses for the maintenance and operation of machinery and equipment;
• depreciation charges and costs for repairs of fixed assets and other property used in production;
• costs for heating, lighting and maintenance of premises;
• rent for premises, as well as for machinery and equipment used in production;
• remuneration of workers engaged in production maintenance.

This is reflected in accounting as follows:

DEBIT 25 CREDIT 02, 04, 05, 10, 60, 69, 70

Expenses for servicing main and auxiliary production facilities have been accrued.

At the end of the month, upon distribution, overhead costs are written off:

• in the debit of account 20 - in terms of costs included in the cost of production of the main production;
• in the debit of account 23 - in terms of costs related to the cost of production of auxiliary production.

Let us recall that the basis for the distribution of such expenses (as enshrined in the accounting policy) can be: the salary of production workers producing a specific type of product; the cost of raw materials supplied for the production of products of this type; the amount of direct costs related to products of this type.

General expenses. Account 26 collects the following indirect expenses:

• administrative and management expenses;
• expenses for maintaining general business personnel;
• depreciation charges and expenses for repairs of fixed assets for management and general economic purposes;
• rent for general business premises;
• expenses for payment of information, auditing, consulting services.

This is reflected as follows:

DEBIT 26 CREDIT 02, 04, 05, 10, 60, 68, 69, 70, 76

General business expenses have been accrued.

The organization also establishes the procedure for writing off general business expenses independently and enshrines it in its accounting policies. There are two ways to write off such expenses.

In the first case, they are written off to the main production. That is, they are distributed by type of product (work, service) and are included in their cost as well as general production expenses. As a result, the debit of account 20 reflects the full production cost of products (works, services).

In the second case, the organization can attribute the entire amount of general business expenses incurred during the reporting period to products sold (to account 90). This is stated in paragraph 9 of PBU 10/99. Then account 20 reflects the reduced cost of production.

Full production cost consists of partial production cost and general business expenses.

The method of writing off general business expenses affects the financial result of the organization. If general business expenses are distributed between sold and unsold products, then not all general business expenses incurred are written off, but only those that are included in the cost of goods sold. When using the second method, general business expenses are written off entirely to products sold.

Example 2

Start LLC produces two types of products: tables and chairs. In September 2014, the total amount of general business expenses of the organization amounted to 600,000 rubles. Start LLC forms the full cost of production. According to the company's accounting policy, the basis for the distribution of such expenses is the salary of workers engaged in the production of each type of product. In September 2014, the salaries of workers involved in the production of tables and chairs amounted to 400,000 and 160,000 rubles, respectively.

At the end of the month, the accountant of Start LLC distributed general business expenses as follows.

The production of tables accounts for the amount of general business expenses, which is equal to 428,571 rubles. .

The production of chairs accounts for general business expenses in the amount of 171,429 rubles. .

In accounting, these transactions are reflected as follows:

DEBIT 20-1 CREDIT 26

RUR 428,571 - general business expenses related to the production of tables are written off;

DEBIT 20-2 CREDIT 26

RUB 171,429 - general business expenses related to the production of chairs were written off.

If Start LLC calculates reduced costs, then the accountant on September 30, 2005 must write off the entire amount of general business expenses to account 90:

DEBIT 90-2 CREDIT 26

600,000 rub. - general business expenses are written off as cost of sales.

Selling expenses. Industrial enterprises use account 44 to reflect on it indirect costs associated with the sale of products, works, and services:

DEBIT 44 CREDIT 10, 68, 69, 70, 76

Accrued business expenses.

At the end of the month, these expenses are written off in the part attributable to products sold, to the debit of account 90 (cost of sales). Certain types of selling expenses (for example, packaging and transportation costs) are allocated to individual products shipped based on their weight, volume, production cost or other relevant indicators.

Finished product accounting

The amount of actual costs (direct and indirect) associated with the production of products (performance of work, provision of services) incurred by the organization in the current month, reduced by the amount of costs attributed to work in progress, constitutes the production cost of products (work, services).

The full or partial production cost generated on account 20 is written off to the debit of accounts 43 “Finished products”, 40 “Release of products, works, services” and 90 “Sales”.

Finished products are reflected in accounting at actual or standard (planned) production costs. The chosen option for accounting for finished products is fixed in the accounting policy of the organization for accounting purposes.

If an organization reflects finished products at actual cost, then the costs of their production are reflected in account 43:

DEBIT 43 CREDIT 20

The actual production cost of finished products is reflected.

When accounting for finished products at standard cost, the actual costs collected on account 20 related to finished products are written off to the debit of account 40:

DEBIT 40 CREDIT 20

The actual production cost of products released from production, work delivered and services provided is reflected.

The cost of finished products at standard cost is reflected on the credit of account 40 in correspondence with account 43. By comparing debit and credit turnover on account 40 on the last day of the month, the deviation of the actual production cost from the standard is determined. The amount in excess of the actual cost over the standard cost is written off from account 40 to the debit of account 90. Savings - the excess of the standard cost over the actual cost - is reflected by a reversing entry in the debit of account 90 and the credit of account 40.

Every month, to determine the financial result, the cost of products sold (work, services), as well as commercial expenses, are written off to the debit of account 90.

When generating the Financial Results Report (Profit and Loss Statement), approved by , the line “Cost of Sales” reflects all costs included in the cost of products sold (work, services).

If, according to the accounting policy of the organization, general business expenses from the credit of account 26 are completely written off to the debit of account 90, that is, for products sold, then they are reflected in the line “Administrative expenses”.

Expenses written off from the credit of account 44 to the debit of account 90 are reflected in the line “Business expenses”.

Direct expenses from the trade organization

Goods purchased by a trading organization are accounted for at the cost of acquisition on account 41 “Goods”. These costs are direct.

In accordance with paragraph 13, trading organizations may include transportation costs as part of sales expenses and reflect them on account 44 “Sales expenses.” In this case, transportation costs accumulated on account 44 are distributed monthly between the goods sold and the balance of goods in the warehouse. The amount of direct expenses related to the balance of goods in the warehouse is established based on the average percentage for the current month, taking into account the carryover balance at the beginning of the month.

The procedure for calculating the specified amount is as follows.

The amount of direct expenses attributable to the balance of goods in the warehouse at the beginning of the month and incurred in the current month is determined.

The cost of goods sold in the current month and the cost of the balance of goods in the warehouse at the end of the month are established.

The average percentage is calculated as the ratio of the amount of direct costs (data from point 1) to the cost of goods (data from point 2).

The amount of direct expenses related to the balance of goods in the warehouse is determined. It is equal to the product of the average interest and the cost of the balance of goods at the end of the month.

The amount of direct transportation costs attributable to the goods sold is written off from account 44 to the debit of account 90.

The procedure for reflecting transportation costs for the delivery of goods to the warehouse of a trading organization must be approved in the accounting policy.

Let's look at an example of how to distribute transportation costs in accordance with the algorithm described above.

Indirect costs for a trading organization

In addition to direct transportation costs, trading organizations reflect indirect costs in the debit of account 44 “Sales expenses”:

• for wages;
• rent;
• maintenance of buildings and structures, premises and equipment;
• advertising;
• delivery of goods to the buyer;
• related to the storage and processing of goods;
• entertainment expenses, etc.

Expenses accumulated on account 44 are written off to the debit of account 90.

Let us recall that in the Statement of Financial Results the purchase price of goods sold is reflected in the line “Cost of sales”. The line “Commercial expenses” reflects commercial expenses written off from the credit of account 44 to the debit of account 90, including direct transportation costs allocated to products sold.

Each enterprise expends certain resources when producing products or providing services. All its expenses are divided into direct and indirect. Direct costs include costs associated directly with the process of manufacturing a product or providing a service and included in the cost price using the direct method. Like other production costs, they are grouped by place of origin (sites, workshops, other structural units), cost carriers (type of product or service) and type of expense (economically homogeneous elements).

Labor costs;

Deductions from salary;

Depreciation charges;

Other expenses related to the main activity.

Let's take a closer look at what these economic elements include. Material costs include the entire cost of materials expended (except for products of own production):

Basic materials, raw materials;

Purchased semi-finished products, components;

Fuel, electricity;

Spare parts;

Construction materials;

Auxiliary materials.

Direct costs for material resources are reduced by the amount of the cost of all return waste (remains of raw materials, material resources arising during the production of products or services).

Production costs are divided into direct and indirect. All of them, if justified and confirmed, ultimately reduce the tax base for profits, but at different times.

Let's see how to correctly classify your production costs and what to follow. After all, the correct division of such expenses will help make accounting as safe as possible in the event of a tax audit.

Why is it necessary to divide costs into direct and indirect?

Dividing the expenses of the current period into direct and indirect is required to correctly determine the moment of recognition of expenses as expenses that reduce the income of the current period:

• direct costs are written off to reduce the tax base only after the sale of products in the production costs of which they are taken into account. The generated amount of direct expenses of the current month is subject to monthly distribution between work in progress (work in progress) and products manufactured during the month (work performed, services provided). Then the amount of direct costs attributable to finished, shipped and sold products in the current month is calculated. Articles 318, 319 of the Tax Code of the Russian Federation.

There is no clear methodology for allocating direct costs to the balances of work in progress and manufactured products in the Tax Code. Specific rules for such distribution are developed by the organization, taking into account the specifics of production;

• indirect costs are written off as a reduction in the tax base immediately - in the month in which they arose (without reference to the sale of products).

Please note that if certain costs are associated with generating income over several reporting periods, then it is necessary to distribute such expenses between different periods based on the principle of uniform recognition of income and expenses, and only then take them into account when forming a “profitable” base, based on whether they are are they direct or indirect and clause 1 art. 272 Tax Code of the Russian Federation. The Ministry of Finance recommends that, for example, lease payments be recognized evenly (if they relate to several periods) Letter of the Ministry of Finance dated 02/09/2016 No. 03-03-06/1/6519, costs for product certification and Letter of the Ministry of Finance dated March 18, 2013 No. 03-03-06/1/8186, costs of acquiring rights to software products when the contract specifies the period for granting non-exclusive rights Letter of the Ministry of Finance dated August 31, 2012 No. 03-03-06/2/95. It is also necessary to gradually recognize as a cost of the current period a one-time payment under an insurance contract clause 6 art. 272 Tax Code of the Russian Federation.

Thus, the smaller the list of direct expenses, the larger the list of indirect ones, which means that your costs will be taken into account faster when calculating taxable profit.

The list of direct expenses must be justified

In ch. 25 of the Tax Code of the Russian Federation, the lists of both direct and indirect expenses are open. The organization itself chooses which group of expenses to classify certain expenses into, and enshrines this in its accounting policies for tax purposes. Letters of the Ministry of Finance dated February 10, 2016 No. 03-03-06/3/6878, dated May 25, 2010 No. 03-03-06/2/101 (clause 3). Approved lists can be changed, but not more than once every 2 years Articles 318, 319 of the Tax Code of the Russian Federation.

However, there are direct costs that are directly mentioned in paragraph 1 of Art. 318 of the Tax Code. This:

• costs of raw materials or materials used in the production of goods, components, semi-finished products - those costs that are named in subparagraph. 1, 4 p. 1 tbsp. 254 Tax Code of the Russian Federation;
• expenses for remuneration of personnel involved in the production process, as well as corresponding contributions to compulsory social insurance;
• depreciation amounts of fixed assets used in production.

Typically, organizations expand this list of direct costs to include costs:

• for services of third-party organizations directly related to the production of products (costs of processing raw materials on a toll basis, subcontracting work, etc.);
• for rent and utility payments for production premises;
• for insurance of production equipment and premises.

There are expenses that, based on their essence, may seem direct, but in tax accounting they can easily be classified as indirect. A striking example of this is the depreciation bonus. It (unlike ordinary depreciation) can be taken into account as an indirect expense, regardless of how and where the equipment is used, including when the depreciation bonus is accrued during reconstruction, completion or modernization and clause 3 art. 272 Tax Code of the Russian Federation; Letters of the Ministry of Finance dated August 20, 2014 No. 03-03-06/1/41628, dated May 28, 2013 No. 03-03-06/1/19228, dated December 14, 2011 No. 03-03-06/2/198.

In most cases, in order to remove some expense from the list of direct expenses (which are mentioned in Chapter 318 of the Tax Code of the Russian Federation as indicative), compelling reasons are needed. Otherwise, tax claims are guaranteed. The inspectors believe that the mechanism for allocating production costs must contain economically sound indicators determined by the technological process. Letters of the Ministry of Finance dated August 30, 2013 No. 03-03-06/1/35755; Federal Tax Service dated February 24, 2011 No. KE-4-3/2952@.

If you approve an unreasonably narrow list of direct expenses in your accounting policy, the inspectors will not like it. Thus, one organization engaged in the production of automobiles took into account as direct expenses only materials (basic, returnable waste, purchased components and semi-finished products of its own production) and transportation and procurement costs. Everything else was accounted for as indirect costs. The inspectors considered that without equipment and workers it would be impossible to produce cars. This means that the list of direct expenses must include depreciation of fixed assets used in production, labor costs for personnel involved in the production process, as well as insurance premiums. And the court supported the inspection Resolution of the Federal Antimonopoly Service of the Northern Territory of October 15, 2013 No. A56-63786/2012.

In addition, tax authorities believe that if any expense cannot be attributed to a specific production process for the manufacture of any type of product (performance of work, provision of services), this does not mean that such an expense should be taken into account as indirect. The organization must, in its accounting policies, determine a reasonable mechanism for allocating such expenses to Letter of the Ministry of Finance dated December 7, 2012 No. 03-03-06/1/636. In other cases, the general rule applies: only when there is no real possibility of including individual costs in direct costs, using economically justified indicators, the organization can attribute such costs to indirect costs. Letter of the Federal Tax Service dated February 24, 2011 No. KE-4-3/2952@.

According to the tax authorities, it is necessary to develop a distribution methodology even if you have several types of activities. They won’t let you write off all expenses as indirect without disputes. But sometimes the courts take the side of taxpayers. Once the following case was considered: a fishing enterprise took into account the costs of purchasing fuel and profit as indirect. The inspectorate insisted that they should be counted as direct, since without them it would be impossible to catch fish, process it and deliver it. However, the company was also engaged in the production of fish products from purchased raw materials, as well as in the rental of ships with crew. The court agreed that the organization did not have the opportunity to classify the disputed costs as direct expenses. Resolution of the Federal Antimonopoly Service No. F03-5521/2013 dated 09.12.2013.

Disputes also arise when by-products appear spontaneously in the course of the main activity. Thus, one organization produced the main products (the mineral copper pyrite ore) and by-products (low-grade sulfur pyrite ore). At the same time, the extraction of the latter was forced. In accounting and tax accounting, the cost of by-products was determined only in the amount of expenses for its crushing and transportation. The inspection considered that all direct costs for ore extraction should be allocated to the extraction of both main and by-products. Note that with this approach, the cost of low-grade ore would be comparable (or even exceed) the cost of valuable ore, which is economically incorrect. The court did not support the inspectors. He pointed out that the Tax Code does not have a rule on determining the various compositions of direct costs in the production of main and by-products. Therefore, all direct costs of ore extraction are associated with the extraction of the main products and Resolution of the AS UO dated December 1, 2014 No. F09-7773/14.

Sometimes, in order to determine the importance and degree of participation of a particular type of cost in the production of products, an expert is needed. So, one day, tax officials, having studied the technological regulations, discovered that natural gas was used as a coolant in the production process. From this they concluded: the costs of purchasing gas should be taken into account as direct ones. But the cement production organization included them in indirect costs. The court supported the organization, pointing out that the tax authority made its conclusion without having special knowledge in the field of chemical technology and without involving an expert. Natural gas is not the basis and necessary component of cement, so it can be taken into account as an indirect consumption. Resolution of the AS ZSO dated December 18, 2014 No. Ф04-13294/2014.

Comparison with accounting

The basis for the tax list of direct expenses can be taken from the accounting list of costs included in the cost price. After all, it is from accounting that one can see how much this or that expense is related to the production of products. For example, insurance premiums from the salaries of production workers are taken into account as direct expenses in tax accounting if they are included in the cost of production in accounting. Letters of the Ministry of Finance dated May 30, 2012 No. 03-03-06/1/283, dated May 14, 2012 No. 03-03-06/1/247.

In accounting, the goal is to calculate the real costs of producing one product. The list of costs included in the cost of production may include only direct costs (in accounting, these are expenses that are directly needed for the production of products: raw materials, materials, wages of production workers, depreciation of production equipment, etc.). Or, the cost of production may include other types of expenses - general production and general economic expenses - in a certain proportion.

In accounting, there are several ways to calculate cost (for example, it can be full or truncated). The method chosen by the organization must be indicated in the accounting policies.

If in accounting the list of costs included in the cost price is too short, then there may also be problems when transferring it to tax accounting policy. Thus, in one legal dispute, an enterprise producing pasta determined a truncated cost in accounting, the formation of which was based on the distribution of costs into variable (direct) and fixed (indirect). Indirect costs included those associated with the production of several types of products, including the costs of maintaining and operating equipment, general production and general business expenses. The inspection considered this a mistake. However, the court agreed with the company’s arguments Resolution of the Federal Antimonopoly Service of August 4, 2014 No. A36-4628/2013, because accounting for depreciation as an indirect expense complies with industry accounting guidelines Methodological recommendations, approved. Ministry of Agriculture and Food 01/12/2000.

For other controversial situations that arise when classifying costs as indirect costs, read the article:

But, as a rule, the list of accounting direct expenses is wider than the list of tax direct expenses in paragraph 1 of Art. 318 Tax Code of the Russian Federation. Therefore, if you use an accounting list for tax accounting, there should be no claims against you from the inspectors. Letter of the Ministry of Finance dated March 2, 2006 No. 03-03-04/1/176.

For example, if an organization produces only one type of product, then it is better to consider all production costs as direct tax expenses. Only general business expenses (for example, salaries of the directorate, accounting department and office rent) can be considered indirect tax expenses.

However, construction organizations have difficulties with the tax classification of general business expenses as direct or indirect:

• one construction company classified as direct all types of costs that arise at the initial stage of construction of a real estate project, including the amount of land tax and rent for office space. All these costs were taken into account after the completed residential building was commissioned. The tax authorities did not like this, but they were unable to prove that the disputed expenses should have been written off as indirect in the period of their occurrence. Resolution of the Federal Antimonopoly Service of June 26, 2014 No. A72-5730/2013;
• in another case, the tax authorities, on the contrary, did not like the fact that the construction organization took into account general business expenses (including salaries of management personnel) as indirect. They demanded the distribution of these costs among the facilities under construction. The controversial general business expenses were associated with holding exhibition and presentation events aimed at attracting the attention of investors to the project, that is, they were associated not only with construction activities. Therefore, the tax court did not support Resolution of the Federal Antimonopoly Service No. A32-39866/2011 dated August 05, 2013.

If you change your accounting policy from the next year and some direct expenses become indirect, you will not be able to write off all accumulated direct expenses related to work in progress at a time as of January 1 of the year (in which the change in accounting policy comes into force). tax base Letters of the Ministry of Finance dated September 15, 2010 No. 03-03-06/1/588, dated May 20, 2010 No. 03-03-06/1/336. Such accumulated costs must still be written off as products are sold and Art. 313, paragraph 2 of Art. 318 Tax Code of the Russian Federation.

In the process of conducting any business activity, two large categories of costs arise. These are direct and indirect costs. They have different effects on the cost of the final product, and their analysis allows us to judge the effectiveness of the actions taken. Let's look into this difficult issue.

Direct costs

When calculating the cost of products, any accountant will separate the costs that the company required to manufacture the goods from those that were not in demand. For example, the cost of wood for a sofa will be decisive in determining the final price, but the amount of rent for the premises cannot be transferred entirely to it alone. In this way, direct and indirect costs are determined.

Direct costs are those on which the cost of the final product completely depends. They cannot be carried forward or split into parts. If flour, water, sugar, cottage cheese and eggs are needed to make a cottage cheese cake, then the price of each component will be included in the calculation.

This category also includes wage costs for personnel directly responsible for production and depreciation of production equipment.

Indirect costs

The opposite of direct costs is indirect. They are also included in the cost of production, but not completely, but only in certain parts. In fact, the final price also depends on them, but the company does not spend money on them when producing one unit of goods.

Indirect costs, in turn, can be fixed or variable. Constant ones practically do not depend on the quantity of products sold, shipped or stored. For example, these are the costs of paying administrative staff or renting production premises. Variables may change. For example, if you need to ship more products, you will need additional transport, gasoline, etc.

Analysis of direct costs of raw materials and materials

As a rule, indirect costs occupy an insignificant share in the cost of production, while the purchase of raw materials for further processing is estimated at approximately 70% of the price of future finished products. It is very important in this matter to estimate the total amount of costs, which directly depends on the volume of output.

To substitute into the above formula, you will need the following data:

• uVP - volume of products;
• Ud i - specific gravity in the total volume of a particular material;
• UR i - mass of materials consumed per unit of production;
• C i is the cost of this material.

Indirect Cost Analysis

Calculation of various indicators related to indirect costs is very important for analyzing the effectiveness of an organization. As a rule, data is taken for five, six or even ten years and compared with current indicators. This approach allows you to assess in which direction the enterprise is moving - development or decline.

Indirect costs are those that fall into one of the following groups:

1. Costs associated with the operation and use of equipment not involved in the main technological process.
2. General business expenses.
3. Expenses related to business activities or improving productivity.

Indirect costs for maintenance and operation of equipment

In this category, indirect costs are those that include depreciation, repair costs and upgrades of all machines and technological equipment that in one way or another affect the creation of the final product.

Some units during their operation are designed for long-term use, regardless of the amount of work on them. Costs of this type are called semi-fixed. Other equipment wears out depending on how many parts are made on it. Costs for such machines will be classified as semi-variable.

Determination of indirect costs for equipment maintenance will be included in the cost of production. To do this, use the formula given below.

• where Z ck - adjusted costs;
• Z 0 - planned amount of costs;
• VP - change in production volume;
• Kz is a coefficient that is calculated by a correlation method, indicating the dependence of costs on the volume of output.

Other parameters to analyze

If you need to find out which items are overspending or saving too much, the following parameters are used.

First of all, they look at depreciation costs. They increase in several cases:

• too frequent equipment repairs;
• recent machine updates;
• revaluation due to inflationary processes.

As practice shows, depreciation rarely decreases.

Another parameter is specific depreciation, calculated per unit of production. This indicator directly depends on the volume of goods produced. The more there are, the lower the amount of depreciation costs attributable to the price of a unit of production.

The amount of expenses for internal movement of goods increases when new batches are released, fuel prices rise, or machines become worn out.

The amount of wear and tear on inventory involved in the production process is calculated as the product of the number of products produced and the level of consumption per product.

General expenses analysis

In the process of analyzing various general business expenses, accounting report data for various periods is used. Let's say you need to find out how the salary of a personnel officer has changed over the last year. To do this, subtract from the last amount the one that falls at the beginning of the period under study. The difference in numbers is analyzed and the reasons for the increase or decrease are determined.