Account 94 - Shortages and losses from damage to valuables

Accounting: inventory

In accounting, reflect the shortage identified during the inventory on account 94 “Shortages and losses from damage to valuables” in correspondence with property accounting accounts.
Reflect missing inventory items (inventories) at actual cost, which is determined based on accounting data. Fixed assets – at residual value. In this case, make a posting: Debit 94 Credit 01 (10, 41, 43, 50...)

– reflects the cost of the shortage identified during the inventory.

This procedure is established in the Instructions for the chart of accounts.

In the accounting accounts, reflect the shortage at the time of completion of the inventory (drawing up the act) or on the date of preparation of the annual financial statements (i.e. no later than December 31 of the reporting year) (clause 5.5 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49).

How to take into account shortages identified during inventory

The procedure and timing of the inventory is determined by the head of the organization.

However, there are cases when an inventory is required, for example:

• before drawing up annual financial statements (an exception is provided only for property, the inventory of which was carried out no earlier than October 1 of the reporting year);
• when changing financially responsible persons;
• if abuses are revealed, as well as facts of theft or damage to property;
• during reorganization or liquidation of the organization;
• in case of a natural disaster, fire or other emergency situations caused by extreme conditions.

You can conduct an inventory of fixed assets once every three years, and of library collections - once every five years.

Accounting: write-off as expenses

Accounting for the shortage depends on the reason for which it arose:

• due to natural loss (for inventories (MP));
• through the fault of the financially responsible person;
• as a result of force majeure (flood, fire, etc.).

This follows from subparagraph “b” of paragraph 28 of the Regulations on Accounting and Reporting.

The shortage and damage to valuables within the limits of natural loss norms are attributed to the costs of production and circulation on the basis of the order (order) of the head of the organization. Determine such shortages after regrading. Carry out mutual offset of shortages and surpluses:

• for the same audit period;
• from the same person being checked;
• in relation to stocks of the same name;
• in identical quantities.

Determine the value of the missing property using accounting data. Do the following wiring:

Debit 20 (23, 44…) Credit 94

– the cost of missing inventory items is written off within the limits of natural loss norms.

This procedure follows from paragraph 5.1 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49, and the Instructions for the chart of accounts.

What is a shortage?

A shortage is a discrepancy between accounting and actual values. For example, according to the accounting register, an enterprise has 100 units of equipment, but during the inventory, only 95 units were found. Shortages occur for the following reasons:

• Theft.
• Natural loss (for example, expiration of the shelf life).
• Accounting errors.
• Emergency situations (for example, accidents, natural disasters).
• Abuse by financially responsible persons.
• Errors when accepting and issuing inventory items.

How to reflect in accounting the write-off of inventory items due to their unsuitability or shortage ?

FOR YOUR INFORMATION! Account 94 also summarizes information about damage to inventory items.

Based on the results of the inventory, how can we deduct the shortfall from the employee’s wages and reflect this operation in accounting?

Accounting: compensation for damage by the guilty party

Attribute the shortage of goods in excess of the norms of natural loss, as well as the shortage of other property, to the perpetrators. In this case, the employee must compensate the organization for the entire amount of damage caused (Article 243 of the Labor Code of the Russian Federation). Determine the amount of damage based on the market price of the missing property, but not lower than its value according to accounting data (Article 246 of the Labor Code of the Russian Federation).

If the employee reimburses only the book value of the property, make the following entries:

Debit 73 Credit 94

– the shortage of property is attributed to the employee at book value;

Debit 50 (51, 70) Credit 73

– the employee’s shortfall debt has been repaid.

If an employee compensates for damage based on the market price of the missing property, make the following entries:

Debit 73 Credit 94

– the shortage of property is attributed to the employee at book value;

Debit 73 Credit 98

– reflects the difference between the market and book value of the missing property;

Debit 50 (51, 70) Credit 73

– the employee’s shortfall debt has been repaid.

As the employee repays the amount of debt due from him, write off the difference in proportion to the share of the repaid debt:

Debit 98 Credit 91-1

– the difference between the market and book value of the missing property is included in income.

This procedure follows from paragraph 5.1 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49, and the Instructions for the chart of accounts.

If a shortage is identified in the reporting year, but it relates to previous reporting periods, and the culprit is identified, take it into account as part of future income. At the same time, assign the amount of the shortfall to the guilty person. In this case, make the following entries:

Debit 94 Credit 98

– reflects the shortage identified in the reporting year, but relating to previous reporting periods;

Debit 73 Credit 94

– the shortage of property is attributed to the employee.

As the employee repays the debt, make the following entries:

Debit 98 Credit 91-1

– the shortfall repaid by the employee is included in income.

Such rules follow from the Instructions for the chart of accounts.

Situation: is it possible to recover the shortfall from a dismissed employee? Was an agreement on collective financial responsibility concluded with the employee? The inventory was carried out after dismissal.

Answer: no, you can't.

Article 232 of the Labor Code of the Russian Federation states that termination of an employment contract does not exempt an employee from compensation for damage. But in order to prove that the shortage of property arose through the fault of the employee, it was necessary to conduct an inventory upon his dismissal. After the passage of time, it is impossible to prove the guilt of the dismissed employee. This means that it is also impossible to recover the shortage.

Accounting: write-off in the absence of culprits

If the perpetrators have not been identified or the court has refused to recover the amount of damage caused from them, write off the shortage of property to the financial results of the organization. Refer the amount of the shortfall to other expenses. A document that can confirm the absence of guilty persons can be, for example, a court acquittal, a decision to suspend a criminal case, etc. (clause 5.2 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49). Determine the amount of loss based on the value of the missing property according to accounting data. In this case, do the wiring:

Debit 91-2 Credit 94

– the loss from the shortage of property is written off due to the absence of the guilty person (refusal to recover damages).

This procedure follows from paragraph 11 of PBU 10/99 and the Instructions for the chart of accounts.

If the cause of the shortage was force majeure, take into account the shortage of property as part of the losses of the reporting year at book value. Do the following wiring:

Debit 91-2 Credit 94

– loss from a shortage of property resulting from force majeure is written off.

This procedure follows from paragraph 13 of PBU 10/99 and the Instructions for the chart of accounts.

Shortage of property written off the balance sheet

Situation: how to reflect in accounting a shortage of property that is not listed on balance sheet accounts (for example, materials written off as expenses)? The property for which the shortage was discovered belonged to the organization.

If a shortage of property is identified that is not listed on the balance sheet, the reduction of available property does not occur. However, for the organization such a shortage is recognized as damage. The procedure for reflecting such a shortage in accounting depends on the reasons for its occurrence.

A shortage of property can occur:

• due to natural loss;
• as a result of force majeure (flood, fire, etc.);
• through the fault of the financially responsible person (other guilty persons);
• for unknown reasons (the culprits were not found).

If the shortage of property not listed on balance sheet accounts occurred due to natural loss or as a result of force majeure, there is no need to reflect this with additional entries. The missing property must be written off from off-balance sheet accounting (if it was listed on off-balance sheet accounts). Apply the same procedure in cases where those responsible for the shortage have not been identified. This is explained as follows. If the shortage arose for these reasons, the organization’s accounting has no reason to take into account either expenses (the property was already previously included in expenses) or income (receipts for compensation of damage are not expected). This conclusion follows from the Instructions for the chart of accounts (account 91).

If the shortage occurred due to the fault of an employee or another guilty person, the organization has the right to recover material damages from him (Clause 1 of Article 1064 of the Civil Code of the Russian Federation, Articles 243, 248 of the Labor Code of the Russian Federation). Since the value of the property has already been written off from the balance sheet accounts, the correspondence of account 94 “Shortages and losses from damage to valuables” with the organization’s property accounts is impossible. This conclusion follows from the Instructions for the chart of accounts (account 94). In accounting, compensation for material damage resulting from a shortage can be reflected in two ways: using account 94 and without it. The organization has the right to choose any of the above options.

When using the first method (using account 94), the wiring diagram will be as follows:

Debit 94 Credit 98

– the amount of the identified shortage is reflected;

Debit 73 (76) Credit 94

– reflects the amount of damage to be compensated by the financially responsible person (other guilty person);

Debit 70 (76) Credit 73 (76)

– the cost of the damage caused is withheld from the salary (remuneration) of the guilty person;

Debit 50 (51) Credit 73 (76)

– the amount of damage is repaid to the cash desk (to the current account) of the organization;

Debit 98 Credit 91-1

– the amount of repaid damage is reflected in income.

When choosing the second method (without using account 94), make the following entries:

Debit 73 (76) Credit 98

– reflects the amount of damage to be compensated by the financially responsible person (other guilty person);

Debit 70 (76) Credit 73 (76)

– the cost of the damage caused is withheld from the salary (remuneration) of the guilty person;

Debit 50 (51) Credit 73 (76)

– the amount of damage is repaid to the cash desk (to the current account) of the organization;

Debit 98 Credit 91-1

– the amount of repaid damage is reflected in income.

If the property for which a shortage was discovered was listed in off-balance sheet accounting, write it off from the off-balance sheet account (Instructions for the chart of accounts).

An example of reflecting in accounting a shortage of protective clothing written off from balance sheet accounts as expenses. The amount of the shortfall was withheld from the salary of the guilty employee

In March, OJSC “Proizvodstvennaya”, in accordance with industry standards, purchased workwear (wearing period 12 months) worth 1,180 rubles for an employee of the main production. (including VAT - 180 rubles). In the same month, the organization issued special clothing to the employee.

The accounting policy of “Master” states that workwear costing less than 20,000 rubles. taken into account in the composition of materials. At the same time, workwear, the cost of which is less than 20,000 rubles. and the period of use of which is no more than 12 months is written off as expenses at a time (accounting for such workwear is kept in special statements).

In May, one of the employees quit and did not return his work clothes upon dismissal. The manager decided to recover the shortage of protective clothing from the employee’s salary. To pay off the material damage, the cost of special clothing in the amount of 1,000 rubles was collected from the employee’s last salary.

The accountant reflected the amount of the shortfall in accounting using account 94.

In March, the accountant made the following entries:

Debit 10-11 Credit 10-10 – 1000 rub. – special clothing was issued to the employee for use;

Debit 20 Credit 10-11 – 1000 rub. – the cost of workwear is written off as expenses.

In May, the accountant made the following entries:

Debit 94 Credit 98 – 1000 rub. – the amount of the identified shortage is reflected.

Debit 73 Credit 94 – 1000 rub. – reflects the amount of the employee’s debt for compensation for damage caused.

Debit 70 Credit 73 – 1000 rub. – the cost of lost work clothes is deducted from the employee’s salary;

Debit 98 Credit 91-1 – 1000 rub. – the amount of repaid damage is reflected in non-operating income.

Redemption of shortfalls: postings

The deficiency can be repaid in different ways. As a rule, a certain financially responsible person is responsible for the missing assets. When guilt is established, the deficiency is recovered from him. For example, if there is a shortage of money in the cash register, the cashier is the culprit. What kind of posting is used to make up the cashier’s repayment of the shortage, and how does the further closure of the account take place? 94, the reader can find out in our consultation.

On the credit account 94, the write-off of shortfalls is recorded:

• within the limits of natural loss, which is calculated by multiplying the quantity (weight) of the missing product by the established standard - by production accounts;
• in excess of the norms of natural loss and if it is impossible to find the culprit for the shortage - as part of other expenses;
• at the expense of the guilty person - withholding from wages. For losses that occurred several years ago, their value as they are collected is reflected on the account. 98, then - to the count. 73, then - to account. 91;
• at the expense of profits if losses were incurred due to force majeure.

Write-off of damage in accounting for shortages and losses from damage to valuables is formalized as follows:

BASIC

The procedure for accounting for shortfalls when calculating income tax depends on the reason for which this shortfall arose:

• due to natural loss (for MPZ);
• through the fault of the financially responsible person;
• as a result of force majeure (flood, fire, etc.).

BASIC: shortage within the limits of attrition norms

Take into account the shortage within the limits of natural loss norms when calculating income tax as part of material expenses (subclause 2, clause 7, article 254 of the Tax Code of the Russian Federation). Include it in expenses at the time the inventory is completed or on the date of preparation of the annual financial statements (i.e. no later than December 31 of the reporting year). Do this even if the organization recognizes expenses on the accrual basis and if it uses the cash method. This follows from paragraph 2 of Article 272 and subparagraph 1 of paragraph 3 of Article 273 of the Tax Code of the Russian Federation. At the same time, if the organization uses the cash method, take into account the shortage if the property for which it was identified has been paid for (clause 3 of Article 273 of the Tax Code of the Russian Federation).

BASIC: shortage in excess of loss norms

Accounting for shortages in excess of natural loss norms depends on whether the guilty person is identified or not. If the guilty person is identified and the shortage is recovered from him, then the organization receives non-operating income (clause 3 of Article 250 of the Tax Code of the Russian Federation). If an organization recognizes income on an accrual basis, take into account the shortfall that the employee has compensated when calculating income tax at the time the employee admits his guilt or at the time the court decision enters into force (subclause 4, clause 4, article 271 of the Tax Code of the Russian Federation). If the decision is not appealed, it comes into force 10 days after it is made (Article 209 of the Code of Civil Procedure of the Russian Federation).

If the organization uses the cash method, take into account the amount of compensation as part of income at the time the employee compensates for damage (clause 2 of Article 273 of the Tax Code of the Russian Federation). For example, on the day an employee deposits funds into the organization’s cash desk.

Situation: is it possible to include shortages identified during inventory as expenses when calculating income tax? Material damage due to shortages shall be compensated by the person at fault.

Answer: yes, you can.

At the same time, material damage leads to a decrease in the economic benefits of the organization, that is, it is an expense. In order to take into account the shortfall in expenses, its size must be justified and documented (clause 1 of Article 252 of the Tax Code of the Russian Federation). The justification is that when an employee compensates for the shortage, the organization also receives income (clause 3 of Article 250 of the Tax Code of the Russian Federation). Documentary evidence of expenses is a matching statement, an explanatory note from the employee and other documents. If these requirements are met, then the amount of the shortage (at actual cost) can be included in other non-operating expenses in full (subclause 20, clause 1, article 265 of the Tax Code of the Russian Federation).

This position is confirmed by letters of the Ministry of Finance of Russia dated August 27, 2014 No. 03-03-06/1/42717, dated April 17, 2007 No. 03-03-06/1/245.

An example of how shortages of inventories are reflected in accounting and taxation. The culprit has been identified. The organization applies a general taxation system

In the first quarter, Alpha LLC carried out an inventory of the raw materials warehouse. The basis for the inventory was the dismissal of the materially responsible person - storekeeper P.A. Bespalova. The inventory ended on March 15th. As a result, a shortage of raw materials was identified. Its cost according to accounting data was 20,000 rubles. The market value of raw materials was 30,000 rubles.

For tax purposes, the organization uses the accrual method. The reporting period for income tax is a month.

On March 15, Alpha’s accountant made the following entry:

Debit 94 Credit 10 – 20,000 rub. – reflects the cost of the shortage of raw materials identified during the inventory.

Since the guilty person has been identified and Bespalov has admitted his guilt, he compensates for the damage. By decision of the head of the organization, the market value of the missing raw materials is collected from Bespalov. Therefore, on March 15, the accountant made the following entries in accounting:

Debit 73 Credit 94 – 20,000 rub. – the shortage of raw materials is attributed to the storekeeper at book value;

Debit 73 Credit 98 – 10,000 rub. (30,000 rubles – 20,000 rubles) – reflects the difference between the market and book value of the missing raw materials.

Bespalov contributed 15,000 rubles to pay off the debt. March 30 and April 16. Therefore, on March 30 and April 16, Alpha’s accountant made the following entries:

Debit 50 Credit 73 – 15,000 rub. – the debt for the shortage was repaid by Bespalov;

Debit 98 Credit 91-1 – 5000 rub. (10,000 rubles × (15,000 rubles : 30,000 rubles)) – the difference between the market and book value of the missing raw materials is included in income.

When calculating income tax for March, the accountant took into account:

• the amount that the employee must reimburse (RUB 30,000) as part of non-operating income;
• the amount of loss from shortage (RUB 20,000) as part of other non-operating expenses.

If the perpetrators have not been identified or the court has refused to collect the amount of damage caused from them, take into account the shortage of property when calculating income tax as part of non-operating expenses. In this case, the fact that there are no perpetrators must be documented by an act of the authorized agency. This is stated in subparagraph 5 of paragraph 2 of Article 265 of the Tax Code of the Russian Federation.

At what point, when calculating income tax, can the amount of the shortfall be included in expenses if the persons responsible for the theft have not been identified? For more details, see How to reflect the disposal of depreciable property in tax accounting.

If the cause of the shortage was force majeure, take into account the shortage of property as part of non-operating expenses (subclause 6, clause 2, article 265 of the Tax Code of the Russian Federation). Include it as an expense at the time the inventory is completed or at the date of preparation of the annual financial statements. Do this even if the organization recognizes expenses on the accrual basis and if it uses the cash method. This follows from paragraph 1 of Article 272 and subparagraph 1 of paragraph 3 of Article 273 of the Tax Code of the Russian Federation. At the same time, if the organization uses the cash method, take into account the shortage if the property for which it was identified has been paid for (clause 3 of Article 273 of the Tax Code of the Russian Federation).

In all cases of shortage of excisable goods (except for shortages within the limits of natural loss), the moment of its discovery is considered the date of sale for the purpose of calculating excise taxes (clause 4 of Article 195 of the Tax Code of the Russian Federation).

The question of the need to restore input VAT on lost property is controversial.

We document the inventory results in postings

The final stage of the inventory is the reconciliation of accounting data, and often there is a need to write off shortages or, on the contrary, to capitalize excess values.

How to reflect in postings the identified shortages during inventory

The shortage must be reflected on account 94 in correspondence with the account for the property being written off:

• Dt 94 K 10(41,43,01)

Next, we proceed in one of two ways:

1) The perpetrators have not been identified (not found).

You can write off the shortage within the approved norms of natural loss as expenses for the main activity. Shortage during wiring inventory:

• Dt 20 (23,25,26,44) Kt 94

If natural loss rates for certain types of property are not established or the shortage exceeds them, then it is charged to other expenses and reflected by posting:

• Dt 91.2 Kt 94

It is important to remember that in tax accounting it is impossible to recognize expenses in excess of the norms of natural loss (Article 254 of the Tax Code of the Russian Federation).

2) The perpetrators are identified, the damage is compensated at their expense.

In this situation, an important role is played by the presence and content of an agreement on financial liability, as well as the norms of the Labor Code of the Russian Federation, which contain instructions on the maximum amount and procedure for deducting amounts from employees’ wages. If the guilty person is not an employee of the organization and agrees to compensate for the damage (it is better to draw up an agreement on voluntary compensation for damage), then you can deposit the money into the cash register or into a current account. The accountant will reflect the shortage by posting:

• Dt 73 Kt 94 – the shortage is attributed to the guilty person;
• Dt 50 (51) Kt 73 – the guilty person compensated for the shortage.

If compensation for the shortfall is determined at a market value exceeding the book value, then the excess amount is reflected in the following entries:

• Dt 73 Kt 98 - the difference in the cost of the shortage is reflected;
• Dt 98 Kt 91 - the difference is attributed to other income.

If a person does not plead guilty and does not agree to compensate for the damage, then the shortfall is written off as other expenses (as in the case of an unidentified culprit) and awaits a court decision.

How to reflect in postings identified surpluses during inventory

As a rule, surpluses are detected less frequently during inventory. They are accounted for at market value, which must be confirmed in one of the following ways:

• A company certificate compiled on the basis of an analysis of prices for similar property (invoices from suppliers, advertisements for the sale of similar objects in the media, a certificate from statistical authorities, etc.);
• A certificate prepared by an independent appraiser (more preferable).

Excess valuables at market prices are included in other income and capitalized using the following entry:

• Dt 10 (41,01,50) Kt 91.1

Re-grading

If the audit reveals a shortage of one value and a surplus of another, this fact must also be reflected in accounting.

Situation: During an inventory of the spare parts warehouse, a shortage of three bushings costing 4,500 rubles per piece was revealed, and a surplus in the form of three injectors costing 6,700 rubles per piece.

Let's reflect in accounting:

simplified tax system

If a simplified organization has chosen as an object of taxation income reduced by the amount of expenses, when calculating the single tax, include only the amount of the shortfall within the limits of natural loss norms (subclause 5, clause 1 and clause 2, Article 346.16 of the Tax Code of the Russian Federation). Please take into account the shortfall if the property for which it was identified has been paid for (subclause 1, clause 2, article 346.17 of the Tax Code of the Russian Federation).

If an organization pays a single tax on the difference between income and expenses, expenses in the form of amounts of damage caused in excess of the norms of natural loss do not reduce the tax base. These costs are not in the list of expenses that can be taken into account when calculating the single tax (Clause 1, Article 346.16 of the Tax Code of the Russian Federation).

If a simplified organization has chosen income as an object of taxation, then do not take into account the amount of the shortfall when calculating the single tax. This is not provided for by clause 3 of Article 346.21 of the Tax Code of the Russian Federation.

If the shortage of property is compensated by the guilty person, take it into account as part of the income when calculating the single tax, regardless of what object of taxation the organization has chosen (paragraph 3, paragraph 1, article 346.15, paragraph 3, article 250 of the Tax Code of the Russian Federation). Include the shortfall in income at the time of compensation for damage to employees (clause 1 of Article 346.17 of the Tax Code of the Russian Federation). For example, on the day an employee deposits funds into the organization’s cash desk.

Examples of accounting entries for account 94

Example 1. Lack of funds

When conducting an inventory at Dandelion LLC, a shortage of RUB 5,000.00 was identified. The shortage of funds was written off to the responsible person A.A. Vasilkova.

The accountant of Dandelion LLC generated the following entries for account 94:

Example 2. Shortage within the limits of natural loss and above the norms

When conducting an inventory as of December 1, 2016. LLC "Dandelions" identified a shortage of cherry plum of 5.00 kg for a total amount of 2,500.00 rubles. Of which RUB 2,000.00. written off as natural loss, and RUB 500.00. for excess losses at the expense of the wages of A.A. Vasilkov, responsible for storage.

The accountant of Dandelion LLC generated the following entries for shortages within the limits of natural loss and above the norms: