Inventory is the basis for the entire turnover of the company. It is these objects of labor that allow the creation of products. And it’s worth getting to know them better in order to establish smooth operation.
In the production process, most of the inventories are used as objects of labor. In each production cycle (the period from the start of the production process to the moment the finished product is released), they are completely consumed.
By the way, the cycle is the defining concept in this case. After all, only those objects that are completely lost relate to the topic under discussion. In other words, these are consumable resources, raw materials, catalysts of the procedure that are spent.
In contrast to multi-cyclic items, for example, equipment, a machine. After all, its lifespan at the enterprise is determined not by the cycle, but by the shelf life, which theoretically can be equal or even shorter than the cycle range, but is still not included in it.
Concept and classification of inventories
To understand the essence of this term, it is enough to understand the fact that these are consumables. That is, items that completely lose their total value are given to the final product. Which is the product, the result of the whole process. It turns out that these elements represent the main line of expenses - and therefore, costs. Of course, here we should add many other sources of expenses, such as transportation, registration, payment of duties and taxes, excluding VAT.
The second aspect that defines the term is one-time use. They participate in production only once. Even if there are leftovers after a cycle, it just means that not all resources were used. But once a material is used to create a product, it can no longer be reused.
It is logical to assume that this is primarily a raw material. From which the product is created. But besides it, there are many more different objects that, one way or another, are involved in the cycle. If we talk about MPZ, there are different concepts and classifications. But the main method of grouping is always the same - dividing into main and auxiliary. Further, they can be classified by role in the process, by technical characteristics and other parameters. But they always distinguish between main reserves, which form the future product, and auxiliary ones. You can further classify them by role in the process, by technical characteristics and other elements. But they always distinguish between main reserves, which form the future product, and auxiliary ones. They do not directly become part of the product, but without them the procedure will still be impossible.
What does this category include?
First of all, the main reserves. These are raw materials that become part of the product. It is noteworthy that this concept is more often used when it comes to agricultural products. In other cases, it is customary to call the base materials. Sources can be varied. Some products are created from literally a couple of items, while others require dozens or even hundreds of types. Next are the spare parts. That is, some elements that are part of it, but are not created in production or, in principle, participate in a different cycle. The last aspect is semi-finished products. Already almost finished products that are purchased from the counterparty. And also applied to the production process.
Additional objects are also included in the inventory. They are necessary for work, but the product is not created from them. They can directly affect both the substances used to apply markers and not affect it as a whole. For example, consumables for maintaining property, maintaining it, protecting it from the external environment, containers, packaging items, even workwear. At the same time, it is worth strictly separating packaging that is part of the product and those that belong to additional elements. Thus, glass containers containing gherkins are part of the product. But the cardboard box in which transportation is carried out, as well as the tape with which the boxes are fixed, are additional objects.
Inventory in accounting - concept and composition
Inventory in accounting since mid-2021, some organizations began to be assessed according to new rules. What kind of organizations these are and what assessment they use, we will consider in our material, and also recall what the concept, classification and assessment of inventories includes.
What are inventories - concept, unit, classification and valuation for accounting
The procedure for reflecting inventories (hereinafter referred to as “MPI”) in accounting is reflected in PBU 5/01 “Accounting for inventories.” According to clause 2 of this PBU, MPZ are assets used by a business entity:
- for management purposes (inventory and household supplies);
- as materials or raw materials for the manufacture of goods for sale (raw materials, basic and auxiliary materials, purchased semi-finished products and components, returnable production waste);
- for sale (finished products and goods).
Basic materials and raw materials include those assets without which the final result (product) cannot be obtained, for example wood, fittings, paint and varnish coatings, etc. (if we are talking about woodworking production).
Auxiliary materials include materials that help a product acquire consumer properties. For woodworking production, this is, for example, boxes for transporting manufactured wooden furniture, fuel that ensures the operation of machines, etc.
The concept of inventories used for management purposes also includes stationery for company employees, household supplies, work clothes, and inexpensive tools.
Finished products (such as wooden cabinet, bed and other furniture) are the result of the manufacturing process.
Goods are assets purchased for resale, such as mattresses sold as accessories to manufactured wooden beds.
According to PBU 5/01, assets related to work in progress cannot be classified as inventories.
For accounting needs, the following can be used as an inventory unit:
- item number;
- group;
- party, etc.
In this case, the organization, according to clause 3 of PBU 5/01, has the right to independently choose from the listed accounting units. The main condition is that the unit preferred for accounting ensures the creation of a comprehensive information picture about the inventory.
How are inventories accepted for accounting after the amendments made to PBU 5/01?
In connection with the innovations in PBU 5/01, effective from June 20, 2016 (Order of the Ministry of Finance of Russia dated May 16, 2016 No. 64), the assessment of inventories in simplified accounting can be carried out using one of the following methods for analyzing inventories:
- Purchased inventories are at the seller's price. Other costs for their purchase can be accepted in full during the period of their implementation as costs for ordinary activities (clause 13.1 of PBU 5/01).
- Inventory and equipment used in production - at the cost of their acquisition, as well as the amount of other production and other costs incurred in the process of preparing goods for sale. At the same time, the entire amount of such costs can be taken into account as they arise in expenses for ordinary activities. This option is applicable for microenterprises, as well as other economic entities that have insignificant balances of inventories (clause 13.2 of PBU 5/01).
- Inventory and equipment used for management purposes are fully included in costs as they are purchased (clause 13.3 of PBU 5/01).
In addition, for the economic entities in question, the obligation to reserve funds to reduce the cost of material assets has been canceled (clause 25 of PBU 5/01).
An aspect of accounting reporting is the assessment of inventories owned by the organization, but in transit, or transferred to the buyer, as of the reporting date are reflected at the contract value with subsequent clarification of the actual cost (clause 26 of PBU 5/01).
Methodology for analysis and organization of accounting of inventories before amendments in 2021
Before the above amendments, persons with simplified accounting accepted inventories at actual cost (clause 5 of PBU 5/01). The exception was trade organizations that account for inventories at the cost of their acquisition or, for retail, at the cost of sales adjusted for the markup (clause 13 of PBU 5/01).
Let us recall that the composition of the actual cost depends on the method of obtaining materials:
- purchased;
- produced;
- received as a contribution to the authorized capital;
- transferred under a gift agreement or free of charge;
- purchased under an agreement, payment for which will be made in non-cash.
Accounting aspect - ways to evaluate inventories when they are written off
The considered amendments did not affect the previously existing procedure for writing off inventories - clause 16 of PBU 5/01 allows for write-offs in any of the following ways, enshrined in the accounting policy:
- at the cost of each unit - this method is typical for mineral deposits that have no analogues, for example precious metals;
- at average cost;
- at the cost of the first purchased goods - this option allows you to first write off the balance of goods at the beginning of the month, as well as the first goods received from the beginning of the month.
The amount of production inventory - calculation formula and indicators used
To determine the volume in monetary terms of inventories, the following formula is used:
MPz = Tz + Pz + Sz,
MPz - the amount of inventories;
The company's main potential is formed from current reserves to meet production needs and uninterrupted production of products. Within the current stocks there is a gradation into normalized and non-standardized.
Preparatory stocks are formed for a maximum of 2–3 days.
Safety stocks are created in case new circumstances arise that require a rapid increase in production volume with a sharp increase in demand or the resumption of an interrupted cycle due to force majeure.
Are industrial inventories an asset or a liability on the balance sheet, where do they belong and how are they reflected in the report?
Material inventories are assets, and they are reflected in the corresponding part of the balance sheet in the “Current assets” section. To record information in this area, line 210, called “Inventories,” is allocated. Its decoding is given in detailed lines from 211 to 217, namely:
- Line 211 contains data on raw materials, materials, etc.;
- 212th - reserved for agricultural enterprises engaged in livestock breeding;
- 213th - for costs of work in progress;
- 214th - for finished products and goods intended for sale;
- 215th - for shipped goods;
- 216th - contains information on future expenses;
- 217th - about other supplies and expenses.
The deadlines for submitting the balance sheet are described in the article “Deadline for submitting the balance sheet for 2017.”
Results
Inventory and equipment constitute a significant share of the assets of any organization, and therefore it is very important to organize their accounting based on PBU 5/01. The 2021 amendments to the specified PBU allow you to accelerate the write-off of expenses for inventories for organizations with simplified accounting.
Classification
In fact, inventories include almost everything on the site, in addition to human resources and equipment. Often, if we talk about technical gradation, the following types are distinguished:
- Raw materials, as already noted, depend on the specifics of the business entity.
- Semi-finished products. Moreover, acquired from outside. That is, they were not created on this site. And even if there is another plant, which is also part of this company, that supplies semi-finished products, they are still considered acquired.
- Spare elements.
- Fuel. They are used to provide energy to equipment and transportation vehicles.
- Inventory. Regardless of the price factor and dimensions.
- Tara. As well as a different way of containing, packaging, and transporting objects.
- Special clothing and equipment for employees. Including safety devices that are used once.
It is worth understanding that the most complete composition of industrial inventories is a larger list, and only its top categories are given here. Each of them at a specific enterprise is usually subdivided into dozens more points. And a third level of separation may well take place. Therefore, it is often very problematic to correctly systematize this entire array. You have to use strict accounting regulations, constantly enter data, and also carry out various checks in a timely manner. In part - inventory and audit to verify the actual availability of the subject of labor with the documentary one.
Basic
So, what does such MPZ refer to? These are all the working capital assets that are used to create a product. Two key factors necessary for production are materials and human labor.
Auxiliary
Everything you need for the smooth operation of the production process. But at the same time not participating in the creation. Often most of these items are used for storage, transportation, and protection. As well as the employees themselves involved in the work.
For clarity, let's format it like this:
| The basis | Auxiliary |
| Raw materials | Fuel |
| Materials | Tara |
| Semi-finished products | Inventory |
| Accessories | Packaging elements |
Gradation according to technical characteristics
It is not customary to separate these elements by quality and cost. The main aspect is purpose. But division is also often allowed based on technical aspects. Flammable substances belong to one category, plastic equipment to another, metal equipment to a third. The dimensions of such a classification depend entirely on how many different items are used in a particular production. Not only auxiliary, but also basic ones are divided according to technical characteristics.
You should also know about a special group. The materials include MBP. Literally, these are low-value or wearable objects. What will belong to the first is a complex question. In fact, the cost is first determined, and in the comparative characteristics the low-value ones are already identified. So, everything depends on the raw materials at the enterprise. But objects that wear out quickly are those with a service life of less than a year. Naturally, the cycle at most enterprises will be much shorter. But still, such wear-out non-consumable parts are usually taken to the MPZ.
Accounting for fixed assets worth up to 20,000 rubles. in "1C: Accounting 7.7"
The standard configuration implements the following methodology for recording fixed assets in accounting:
| Asset value | Accounting | Tax accounting |
| Up to 10,000 rubles | Reflection in the composition of the MPZ | Material costs |
| Reflection within the OS | ||
| From 10,000 to 20,000 rubles | Reflection in the composition of the MPZ | Depreciable property |
| Reflection within the OS | ||
| Over 20,000 rubles | Reflection within the OS |
Nomenclature and accounting unit
As already mentioned, it is fundamentally important to keep complete records of all the products that are used in the production cycle. In this case, each specific object is assigned its own number. General information is entered into the nomenclature, that is, into the list of basic materials that were involved.
All information is recorded before and after the creation stage. Discrepancies are verified, surpluses and deficiencies are identified. After all, according to technical regulations, it is strictly noted how many product units are spent on the creation of a particular product. After all, inventories are the organization’s production reserves, and if strict control is not maintained, then unaccounted overexpenditure will appear. As well as possible theft at the enterprise, which will directly affect the final profit and financial stability of the organization.
Accounting for fixed assets worth over 20,000 rubles
Objects costing more than 20,000 rubles are reflected in the account for accounting for investments in non-current assets, for which the documents “Receipt of fixed assets”, “Receipt of equipment” and “Transfer of equipment for installation” are intended in a standard configuration. Commissioning of such objects, as well as objects costing from 10,000 to 20,000 rubles, which, according to the organization’s accounting policies, are reflected as part of fixed assets, is carried out using the document “Commissioning of fixed assets”. When posting a document, the fixed asset is reflected in accounting on account 01 “Fixed assets”, in tax accounting - N05.01 “Initial cost of fixed assets”. Further operations are carried out using fixed asset accounting documents.
Reflection in the balance
Regardless of what specific goods received will be intended for in the activities of an economic entity, it is always taken into account in the balance sheet according to the key factor. This is the cost, the totality of the actual costs incurred by the company. Often there are no problems with the definition, because the purchase and sale agreement with the counterparty easily provides all the necessary information.
Another point is that inventories include those that have already lost their value. For example, during transportation. Or they are outdated or excluded from circulation. Then the main assessment will be the selling price, not the purchasing price.
And in addition, some materials not received through a purchase and sale agreement. In the first case, this is a direct contribution from the founders in the form of capital replenishment. When capitalizing, you should be guided by the price recommendations of the founders themselves. There are also often cases of gratuitous delivery. In the form of a share, as an option. Then, for capitalization, you will need to calculate the current market price at the time of acceptance and focus on it. Moreover, if the assessment requires additional monetary costs, such as payment for the work of an appraiser, these costs are also included in the cost of the products received.
Finished product accounting
Finished products are accounted for by name with separate accounting for distinctive features (brands, articles, standard sizes, models, styles, etc.). Finished products are accounted for at actual production costs. Product cost is the cost of its production and sale expressed in monetary terms.
The costs of producing finished products are grouped:
- by place of origin - by production workshops, sections, other structural units;
- by type of product (work, service) - to determine the cost of specific types of product (work, service);
- by type of expense - by cost elements and costing items. Elements of production costs - material costs (less returnable waste), labor costs, social contributions, depreciation of fixed assets, other costs (postal, telephone, travel, etc.). The objects of calculation are individual products, their groups, semi-finished products, the cost of which is determined. A typical grouping of costs by costing items is given in Table. 17.
Table 17
Typical grouping of costs by costing items
| N p/p | Article title |
| 1 | Raw materials |
| 2 | Returnable waste (subtracted) |
| 3 | Purchased products, semi-finished products and production services from third parties |
| 4 | Fuel and energy for technological needs |
| 5 | Wages of production workers |
| 6 | Contributions for social needs |
| 7 | Expenses for preparation and development of production |
| 8 | General production expenses |
| 9 | General running costs |
| 10 | Losses from marriage |
| 11 | Other production costs |
| Total | Production cost of products (sum of pages 1 - 11) |
| 12 | Business expenses |
| Total | Total cost of production (sum of pages 1 - 12) |
To account for finished products (GP), discount prices . The following can be used as the accounting price of GP:
— actual production cost;
— standard cost;
— negotiated prices;
- other types of prices.
The choice of accounting price is fixed in the accounting policies.
When using standard cost or contract prices, the organization takes into account deviations of standard cost from actual cost in a special subaccount to balance sheet account 43 “Finished products”. Deviations are taken into account by product range or individual groups of finished products or by the organization as a whole. The excess of the actual cost is reflected in the debit of the deviations subaccount to account 43 and the credit of the cost accounting account (20, 23 or 29). If the actual cost is lower than the book value, the difference is reflected in a reversal entry.
If finished products are written off at the time of shipment (release, etc.) at accounting prices, deviations are written off to sales accounts in proportion to the cost of products sold at accounting prices. In any case of using accounting prices, the following relationship always holds:
Cost of finished products in accounting prices + Deviations = Actual production cost of finished products.
When accounting for finished products at standard (planned) cost, balance sheet account 40 “Output of finished products” can be used. In this case, the debit reflects the actual cost of finished products, and the credit reflects the standard cost of manufactured products. The excess of the standard cost over the actual cost (savings) is reflected by the reversal entry: Dt 90/2 Kt 40. The excess of the actual cost over the standard cost (overexpenditure) is reflected by the posting Dt 90/2 Kt 40. Please note: balance sheet account 40 There is no balance at the end of the month.
Example. According to the organization's accounting policies:
— accounting of finished products is carried out at standard cost without using balance sheet account 40;
— the actual costs of producing a unit of production are determined at the end of the month;
— accounting of finished products is kept on subaccount 43/1;
— deviations in product costs are reflected in subaccount 43/2;
— deviations are taken into account for the enterprise as a whole.
Table 18
Initial data
| Index | At the beginning of the month | Per month | At the end of the month |
| Unfinished production | — | x | — |
| Finished products | 200 units | 3,000 units | 500 units |
| Implementation | x | 2,700 units | x |
| Sales price including VAT | x | RUB 1,770 | |
| The amount of deviations in the balance of finished products | 10,000 rub. | x | x |
| Standard cost per unit of production | x | 1,000 rub. | x |
| Actual unit cost | x | 990 rub. | x |
Task: to reflect the production and sale of products in accounting. The following entries will be made in accounting:
D-t 43/1 K-t 20 - 3,000,000 rub. — finished products are accepted for accounting at standard cost (3000 units x 1000 rubles);
D-t 62 K-t 90/1 - 4,779,000 rub. — sales of finished products are reflected (2700 units x 1770 rubles);
D-t 90/3 K-t 68 - 729,000 rub. — VAT was calculated on products sold (RUB 4,779,000 x 18/118);
D-t 90/2 K-t 43/1 - 2,700,000 rub. — the standard cost of sold finished products was written off (2,700 units x 1,000 rubles);
Dt 43/2 Kt 20 - (30,000 rub.) - reversal of deviations in the cost of production ((990 - 1000) rub. x 3000 units).
In table Figure 19 shows the distribution of deviations.
Table 19
Deviation distribution
| N p/p | Index | Registration prices, rub. | Actual cost, rub. | Deviations, rub. |
| 1 | Balance of finished goods at the beginning of the month | 200 000 | 210 000 | +10 000 |
| 2 | Received from production | 3 000 000 | 2 970 000 | -30 000 |
| 3 | Total | 3 200 000 | 3 180 000 | -20 000 |
| 4 | Deviation ratio, % ((-20,000 : 3,200,000) x 100) | x | x | -0,625% |
| 5 | Products shipped | 2 700 000 | 2 683 125 (2 700 000 — 16 875) | -16,875 -(2,700,000 x 0.625%) |
| 6 | Balance of finished goods at the end of the month | 500 000 | 496 875 (500 000 — 3125) | -3,125 -(500,000 x 0.625%) |
The following entry will be made in the accounting records:
D-t 90/2 K-t 43/2 - (RUB 16,875) - reversal of deviations attributable to sold products.
Example. Let's change the conditions of the previous example in terms of accounting policies: the organization accounts for finished products at standard cost using balance sheet account 40. The following entries should be reflected in the accounting records:
D-t 43 K-t 40 - 3,000,000 rub. — finished products are accepted for accounting at standard cost (3000 units x 1000 rubles);
D-t 62 K-t 90/1 - 4,779,000 rub. — sales of finished products are reflected (2700 units x 1770 rubles);
D-t 90/3 K-t 68 - 729,000 rub. — VAT was calculated on products sold (RUB 4,779,000 x 18/118);
D-t 90/2 K-t 43 - 2,700,000 rub. — the standard cost of sold finished products was written off (2,700 units x 1,000 rubles);
D-t 40 K-t 20 - 2,970,000 rub. — reflects the actual cost of products manufactured per month (3000 units x 990 rubles);
D-t 90/2 K-t 40 - (30,000 rub.) - reversal of the excess of the standard cost over the actual cost (2,970,000 - 3,000,000).
Grade
There are two main options for how delivery can be assessed. The first way is to look at the list price. The second is for the purchase price. Typically, an organization's inventories are included (included) in general supplies. Along with all other goods that the company receives.
Registration price
In other words, the price of the object that was entered in the counterparty’s accounting sheet is taken into account. Most often, the method is used if there is no counterparty, and the organization supplies the material directly from its own branch or a second production site.
Actual cost accounting
In this case, you will have to identify the amounts of all expenses that were spent on receiving the goods. And their sources can be very different. Moreover, part of the costs that are associated with unforeseen situations do not relate to the original cost, but go to the balance of transportation costs, for example.
Regulatory regulation
Record keeping must be carried out in accordance with the legislation of the Russian Federation. There are 4 levels of regulatory documents in total:
- Federal laws . The legal framework, accounting principles and other nuances are regulated by Law No. 402-FZ “On Accounting”.
- Standards . They supplement and correct the information specified in Law No. 402. Accounting for inventories is based on the following regulatory documents of this level: PBU 5/01 establishes the essence of accounting for inventories, their composition, classification and evaluation methods;
- PBU 10 regulates the rules for writing off inventories;
- PBU 9 establishes the procedure for determining the financial result of a sale;
- The chart of accounts contains information about accounting accounts.
- instructions for inventory of property No. 49;
- job descriptions;
Failure to comply with the requirements established in all of the listed regulatory documents is regarded by the inspection authorities as a direct violation of the law. Inconsistencies and deviations from the rules are punishable by fines and other sanctions.
All the nuances of this procedure can be gleaned from the following video:
What are provisions for doubtful debts in accounting - see this material. You can find the procedure for writing off accounts payable here.
Cost components
So, let's take a more specific look at how you can understand how much money an enterprise has incurred. To enter each product item received, during capitalization you need to identify a cumulative figure that takes into account expenses regardless of the source. After all, inventories in production are an item that requires increased control.
- Direct payment to the supplier. That is, the fulfillment of their contractual obligations under the purchase and sale transaction. The size is calculated, naturally, based on the price specified in the initial contract.
- Various trade duties that have been added. Their volumes already depend on logistics. From the path the product took until it was delivered to the production site.
- Delivery price.
- Taxes that have not been refunded.
- Costs for various consulting, security and other services. Which may be required during the delivery process.
- The cost of remuneration of hired workers who carried out loading, unloading, and sorting in the warehouse.
- Payment for intermediary services.
This is a sample list. In each specific case it can be supplemented, become larger or smaller. It all depends on the length and complexity of the path that the goods have traveled.
Inventory accounting
Considering the fact that any losses under this item entail large losses, including production shutdown, it is necessary to control availability in all ways. This means constantly checking the availability of the necessary units on site, as well as building a competent spending strategy. In other words, you need to constantly know how many consumables are left and how to use them correctly.
And for this task, software products from Cleverence will be useful. They allow you to simplify both processes to an elementary component. Smart programs know what is included in production inventories, how to properly account for them, and put them on the balance sheet. In a couple of clicks, they do a job that would take hours. Moreover, software and equipment are adapted to any specificity. And unlike many analogues, they are perfectly adapted specifically to our legislation and requirements for accounting and tax reporting.
For example, you can choose specialized software for data collection terminals with a built-in barcode scanner “Sklad 15”. It is designed to automate all commodity accounting operations in warehouses, regular and address storage. You can carry out operations such as inventory, arrival at the warehouse, as well as work with cells and pick up orders.
How to organize warehouse and accounting for the movement of raw materials (briefly)
Accounting for operations related to the movement of property at a specific facility is organized in the most convenient way consistent with the specifics of its functioning.
At large manufacturing enterprises
For such facilities, materials typically make up a significant portion of the assets. This is characterized by a wide range of industrial products, a large number of them at all stages of product manufacturing, and impressive production volumes. Therefore, the organization of inventory accounting at such facilities is a thoroughly thought-out branched system.
At the central warehouse
Large business entities usually have a central warehouse. The main person responsible for the “fate” of materials here is the storekeeper. Full financial responsibility is assigned to him.
Each type, type or variety of MPZ is assigned a nomenclature code - an individual numerical combination. Using this code, the storekeeper creates a material label. It lists the main characteristics of the resource: name, number, unit of measurement, cost and availability standard. The sheet is attached to the location of a specific type of asset.
Also, for similar pools of resources, accountants (or supply chain employees) create warehouse accounting registers (M-17). Important characteristics such as the name of the asset, its type, brand, storage warehouse number, unit of measurement, accounting price and some others are indicated here. In the accounting service, each such card is endorsed by the signature of the person responsible for registration and numbered. The forms are then listed in order in a special register.
The storekeeper receives the cards and enters information in the fields left for warehouse accounting. Supervision of property in a warehouse occurs using one of the options below.
Varietal accounting method
This type of control is carried out by grade of stock. The time of receipt and price are not taken into account. The storekeeper operates only with natural values.
In the accounting department, an M-17 form is created for each grade of MPZ. Documents according to the register are transferred to the warehouse areas. In them, the storekeeper makes notes on the movements of property throughout the month. He produces them at the time of the transaction based on the primary documents received from the sellers. After the necessary entries are made, the “primary” is transferred to the accountants.
This type of accounting does not make it possible to track the cost of inventories. But it is possible to obtain up-to-date data on the state of assets in the organization at the right time. Another advantage of the varietal option is the most efficient operation of warehouse areas.
Batch method of warehouse accounting
This option involves monitoring the property both by the names of its elements (in M-17 forms) and by batch. A batch is considered to be goods of the same type received under the same document. The batch method involves storing them in a warehouse in separate places. And for accounting purposes, special batch cards are being developed that contain convenient columns for reflecting information specifically for this type of asset.
In the receipt fields of such a sheet, information about the receipt of goods and materials is entered on the basis of primary documents from sellers. The expense fields contain information about the issue of batch items. After complete consumption of raw materials from the batch, the document is closed. His next destination is accounting.
In the workshops, in production
At the production levels of large organizations, storerooms are often organized. The financially responsible person in these departments is the storekeeper. If there is no such unit on staff, an agreement on financial responsibility is signed with the foreman, shop manager, section manager or other employee of the production area.
It is believed that valuables arriving at the site are accountable to the responsible employee. This person keeps a material report on the assets entrusted to him for a month. At the end of the period, the totals for the document are calculated and it is transferred to the accountants. An organization can develop its own convenient form or use a unified version - form MX-20 or MX-20a.
This form indicates the balances of inventories at the beginning, reflects their receipt and release in accordance with the primary documents (they are attached to the form), and summarizes the results. Here, if available, standards for the names of property elements are recorded (if they are developed by the competent services).
The peculiarities of the division of control of inventory between accountants and warehouse workers determine the existence of accounting methods, described in detail below.
Quantitative-cumulative accounting option
This method assumes that both accountants and warehouse workers immediately control resources in both total and numerical terms.
There are two types of techniques.
- In warehouse areas, property is controlled only in kind. Notes are regularly made on the cards about its movements. At the end of the period, these forms are accepted by accountants. In the accounting department, quantitative and total accounting cards have been created for each name of the industrial plant. This method partially replicates the accounting carried out in a warehouse. The cards show monthly turnover and compile results based on the “primary” data obtained from the warehouse. Data from the cards is transferred to statements for warehouses and structural inclusions of the facility. Information from these documents is combined into a consolidated turnover sheet. Its data is then verified with the accounting data for account 10 “Materials”. Regular reconciliation of information on warehouse cards and cards maintained by accountants is also required.
- This type of methodology does not involve maintaining quantitative-total control cards. Information from the “primary” data coming from warehouse territories is processed, and at the end of the month, the resulting information is transferred to the turnover sheets. These “turnovers” are also combined into a general statement for the structural parts of the object and its results are compared with the information from the cards maintained in the warehouse.
Balance method of accounting for materials
This methodology assumes that in warehouse units resources are controlled only by quantity (in terms of nomenclature codes), and accountants carry out only total supervision.
Storekeepers maintain quantitative control cards for inventories throughout the month. Then the information goes to the accounting department. There, resources are not taken into account by name; control is carried out according to subaccounts to account 10 “Materials”.
The numerical characteristics of balances are recorded in balance books. Based on their results, a summary statement is formed, the information of which is regularly compared with the information of synthetic accounting.
Analysis
The analytical work is often very extensive. Data such as the average value of all values, their rates of growth or decline, and key points of sharp changes in the value and volume of production are taken as starting points. It reveals how the quality of inventories affects the duration of turnover, which specific positions are currently most important for the company, and where additional purchases need to be made.
All this work is very voluminous, but as already mentioned, products from Cleverence will greatly simplify it. After all, the company’s applications already know all the basic methods of calculations and conducting detailed analysis. You just need to enter the required numbers.
