Features of accounting in crop production

Accounting in crop production. Cost accounting

The plant growing industry has its own specifics. The costs of obtaining products are incurred over a long period of time, and their reimbursement is associated with the timing of crop ripening. Accounting must reflect expenses for the current year's harvest and the future harvest separately. Accounting for expenses and receipt of crop products helps to solve the following main problems: increasing the gross harvest and increasing plant yields, increasing feed production. In the article we will look at how accounting is kept in crop production, costs are calculated for synthetic and analytical accounting.

Legal regulation of the issue

When organizing accounting in agriculture at an enterprise, it is necessary to develop and approve an accounting policy.
This local document should specify the types and methods of recording operations, taking into account the specific features of agricultural activities. When drawing up an accounting policy, you should be guided not only by the basic system of regulatory accounting (Law No. 402-FZ, PBU and instructions, letters and recommendations of the Ministry of Finance, the Treasury of the Russian Federation), but also by industry recommendations:

1. Recommendations for the development of UE, approved by the Ministry of Agriculture of the Russian Federation on May 16, 2005.
2. Methodological recommendations for organizing accounting in agriculture in connection with the adoption of the Federal Law of December 6, 2011 No. 402-FZ.
3. Order of the Ministry of Agriculture of Russia dated June 13, 2001 No. 654 regarding the Unified Chart of Accounts for agricultural enterprises.
4. Recommendations for drawing up correspondence accounts to reflect transactions in agricultural organizations, approved by Order of the Ministry of Agriculture of the Russian Federation dated January 29, 2002 No. 68.
5. Methodological recommendations for accounting for production costs in the agricultural sector, approved by Order of the Ministry of Agriculture of the Russian Federation dated June 6, 2003 No. 792.

Primary accounting in accounting

Accounting for costs, working and fixed assets, and production in the crop production sector is carried out using primary documentation. It is divided into accounting blocks:

1. Labor costs and their payment: accounting and waybills by mode of transport, foremen’s books, orders for transactions, time sheets.
2. Subjects of labor: acts of write-off of seed material, use of fertilizers, equipment, limit and intake cards. At the end of the month, the data from the listed documents is included in the inventory movement report, form MX-20a. (old form 265-APK)
3. Instruments of labor: calculations of depreciation and statements of its distribution.
4. Receipt of products: registers for sending goods from the field, accumulative statements of their receipt, acts of sorting, acceptance and transfer, movement, receipt of products and feed.

Registration of the movement of seeds with primary documents serves to correctly record their sowing. Accounting is designed to provide control over sowing rates. Before this, the chief agronomist develops a scheme for obtaining planting material from storage points to structural units.

Information from groups of papers is processed according to certain criteria in accordance with the approved document flow procedure for accounting objects, types of work and agricultural crops. Cumulative registers are used for this.

Accounting transactions in agriculture

Let's define standard transactions for reflecting business transactions in an agricultural enterprise:

• Dt 08 Kt 60 (75, 98, 76) - acquired fixed assets (land, combine, equipment);
• Dt 01 Kt 08 - the OS object is accepted for accounting (form 401-APK is used to put land on the balance sheet);
• Dt 20 (23, 26, 25) Kt 70, 69, 10 - accrued wages, insurance premiums, and also written off raw materials to working cost accounts;
• Dt 97 Kt 60 — spare parts for repairing agricultural machinery were purchased;
• Dt 97 Kt 70 - wages accrued to employees who carried out repair work;
• Dt 10 Kt 60 - planting material arrived at the enterprise warehouse;
• Dt 11, 19 Kt 60 - reflects the purchase of young livestock from the supplier;
• Dt 11 Kt 11 - young animals are transferred to a separate grown herd;
• Dt 94 Kt 43 - the accountant reflected the shortage based on the results of the annual inventory;
• Dt 99 Kt 68 - accrued by Unified Agricultural Tax;
• Dt 68 Kt 51 - unified agricultural tax is transferred to the budget from the organization’s current account.

Legal documents

• Law No. 402-FZ
• Recommendations for the development of UE, approved by the Ministry of Agriculture of the Russian Federation on May 16, 2005
• Methodological recommendations for organizing accounting in agriculture in connection with the adoption of Federal Law dated December 6, 2011 No. 402-FZ
• Order of the Ministry of Agriculture of Russia dated June 13, 2001 No. 654
• Recommendations for drawing up correspondence accounts to reflect transactions in agricultural organizations
• Methodological recommendations for accounting for production costs in the agricultural sector

Cost classification

The grouping of production costs is presented in the form of a diagram.

Variable costs are direct costs. They are attributed to the cost of production of the sub-industry in which they arose. They change in proportion to the volume of production, therefore they are called proportional.

Conditional variables are assigned to certain products if it is known that the need for special equipment will be higher than their availability as a result of the expansion of production.

The profitability of an organization is shown by marginal income. It is equal to the amount of revenue minus proportional costs.

Synthetic accounting

For synthetic accounting, journal order No. 10-APK is used. It contains revs. 20.1 and summarizes the cost information. Values ​​are entered into it from personal accounts, and numbers from it are entered into the General Ledger.

The results of analytical accounts for costs and product output for the month should be equal to the account turnover. 20.1 in f. 10-APK and the General Ledger.

In automated accounting, the registers are: account analysis, balance sheet and chess sheet.

Balances in the accounts for the production and sale of crop products at the end of the year are entered from the General Ledger into the accounting reporting forms.

Analytical accounting in crop production

Analytics of crop production costs has a characteristic difference. First, they are reflected by structural units: teams, workshops, departments, and then grouped by farm.

The objects of analytical cost accounting include:

• Types of crops with identical cultivation methods;
• Types of work in progress;
• Distribution costs;
• Others.

The main register of analytics is the production report of the division f. 83-APK. It includes the following sections: on costs (DT 20.1), on receipt of products (Kt 20.1), on turnover on the account loan. 20.1. It is opened for an annual period for each structural unit.

In section 1, each accounting object is entered in a separate column. The nomenclature of costs is indicated line by line. Costs are allocated according to corresponding accounts. Information is reflected in total and quantitative terms. Figures are recorded from work and cost journals, primary records and accumulation sheets.

Distributed costs are shown as negative values ​​in the report because they correspond to a specific culture. These are the costs of soil irrigation, drainage, and unfinished production upon completion of the process.

To avoid accounting for identical costs twice, amounts with a minus sign are subtracted from the totals of the f. 83-APK horizontally and vertically.

Section 2 reflects the quantity and planned cost of products received during the month and since the beginning of the year. Here the costs of crop destruction are written off.

Section 3 contains monthly turnover according to Kt 20.1. They are entered into form 10-APK (→).

Data from f. 83-APK fall into a similar summary document for the enterprise. Each line and column contains an indicator summed up from all personal accounts of structural units.

Analytics of the production process is divided into harvest costs of adjacent years by type of work and crop.

Costs and products received are taken into account in the account. 20 by article:

1. Salary and accruals;
2. Seeds for planting;
3. Fertilizers: organic and mineral;
4. Pest control products;
5. Maintenance of fixed assets;
6. Works, services;
7. Production management procedure;
8. Loan transfers;
9. Other.

According to Dt 20.1, they show the actual costs of receiving crop products and the balance of unfinished work at the beginning of the reporting interval, according to Kt 20.1 - its output at the planned cost, write-off of differences in calculations at the end of the year and damage from natural disasters.

Calculation difference

The harvest of crop products is received according to the planned cost of primary production and summary documentation.

Actual costs are calculated at the end of the year. To do this, they close costly accounts for auxiliary industries, general business and general production expenses, calculate expenses for dead plants, and distribute costs for land improvement.

Based on the results of the reporting period, 20.1 is closed by writing off the calculation difference.

The cost is calculated by type of crop per 1 c. main and secondary products.

By-products are not calculated. Its cost is determined by standards calculated based on the costs of cleaning, transportation, stacking and other work.

When determining the cost of output, the costs of minor items are deducted from the total costs of cultivation.

The calculation difference is written off as a reversal entry (the plan is greater than the actual) or an additional posting - in case of overspending (the actual is greater than the plan).

Example #2. Accounting and calculation of calculation differences

The annual costs of growing rye amounted to 2,538,700 rubles. 10,418 quintals were received from the harvest. full grain at a standard cost of 203 rubles per centner, as well as 6,040 centners of waste containing 25% of a full-fledged product at 58 rubles per centner and straw for 230,500 rubles.

Actual costs will be: RUB 2,308,200. (2,538,700 – 230,500);

The waste contains 1,510 centners of complete grain (6,040 * 25%);

Total whole grain: 11,928 c (10,418 + 1,510);

Cost 1 c. grains in fact: 212.84 rub. (2,538,700 / 11,928);

Cost 1 c. grain waste amounted to 66.14 rubles.

The calculation difference is determined:

for grain: 102,513.12 rub. ((212.84 – 203) * 10,418);

for grain waste: 49,165.60 rub. ((66.14 – 58) * 6,040).

The actual cost of both types of products is higher than planned, so the cost difference must be taken into account by additional posting:

Dt 10, 43 Kt 20.1 in the amount of 151,678.72 rubles. (102,513.12 + 49,165.60).

Answers to questions about accounting in crop production

Question No. 1. How to reflect the loss from the sale of seeds due to a fall in market prices for them?

Dt 99 Kt 90 - loss from sale taken into account;

Dt 84 Kt 99 - the loss is written off.

Question No. 2. How to calculate the labor productivity of a combine operator?

It is necessary to determine how much time the employee actually spent producing a unit of product. It is necessary to calculate how much area the combine operator removed and how much product he threshed from it. The data is taken from the primary data.

Productivity is analyzed based on days actually worked and production per day as a percentage of the norm.

Question No. 3. How to write off the costs of purchasing apple and pear seedlings?

The purchased plants are used to grow perennial fruit trees, so their cost is charged to the fixed assets account.

Question No. 4. What is the peculiarity of determining the cost of industrial crops?

The output of flax and cotton products occurs in stages. Its cost is calculated using the transfer method. Direct costs are accumulated not by type, but by product processing cycles (processing stages). They represent accounting objects.

Question No. 5. How to write off losses within the limits and in excess of the norms of natural loss?

Dt 20 Kt 94 - within limits;

Dt 91 Kt 94 - above the norm in the absence of the culprit.

So, based on the characteristics of the production cycle for obtaining crop products, accounting in this area is necessary to obtain information about costs for adjacent years, types of work, cost items, and business units.

Accounting in agriculture - main features

The agricultural industry has a number of specific nuances. First of all, this is the variety of legal forms of economic entities - from peasant farms to large agricultural enterprises. In addition, this is an inextricable connection between production and land, the implementation of several types of activities simultaneously and the constant presence of high risks of death or partial loss of work results.

Accounting in agriculture has the following characteristics:

• The main production tool is land. Plots are accepted for accounting in physical terms - hectares, and when investing in capital objects - in cost terms.
• A variety of economic sectors - accounting becomes more complicated, since each type of activity requires its own specifics when reflecting operations.
• Seasonality – uneven load throughout the year.
• A high share of intra-production turnover requires reflection of inventories used within the enterprise for its own purposes.
• A large volume of agricultural machinery requires careful accounting of fixed assets.

Analytics is performed depending on the purpose of accounting. As a rule, this is a reflection by type of product, structural divisions, farms, teams, etc. A separate reflection of plots is required - by method of acquisition, type of land, use and purpose of the plots.

Debit 90.2 Credit 43

Cost of sales. Finished products

• The write-off of finished products for sale is reflected; It is carried out, depending on the adopted accounting policy, at actual cost (see below for postings Option A) or planned/standard (see Options B and C).

Wiring diagrams:

Option A. If finished products are delivered to the GP warehouse at actual (production) cost

• Dt 20 Kt 02, 05, 10, 68, 69, 70, etc. – production costs are collected;
• Dt 43 Kt 20 – finished products are delivered to the finished products warehouse; Balance Dt 20 – products at the WIP stage.
• Dt 90.2 Kt 43 – write-off of finished products for sale, at actual cost;
• Dt 62 Kt 90.1 – invoice presented to the customer;
• Dt 90.3 Kt 68 – VAT
• Dt 90.9 Kt 99 – financial result.

Option B. If finished products are delivered to the GP warehouse at standard/planned cost. Scheme without using count 40

• Dt 20 Kt 02, 05, 10, 68, 69, 70, etc. – production costs are collected;
• Dt 43 Kt 20 - finished products are delivered to the finished products warehouse, where they are capitalized at the accounting (planned or standard) cost; Next, at the end of the month, a calculation is made of the deviations of the actual value from the accounting value and the corresponding amount is written off with an additional entry:
• Dt 43 Kt 20 - in case of overexpenditure, or the same entry in red reverse in case of savings. Balance Dt 20 – products at the WIP stage.
• Dt 90.2 Kt 43 – write-off of finished products for sale, at actual cost;
• Dt 62 Kt 90.1 – invoice presented to the customer;
• Dt 90.3 Kt 68 – VAT
• Dt 90.9 Kt 99 – financial result.

Option B. If finished products are delivered to the GP warehouse at standard/planned cost. Scheme using count 40

• Dt 20 Kt 02, 10, 69, 70... etc. – production costs are collected;
• Dt 40 Kt 20 – actual production costs are written off;
• Dt 43 Kt 40 – products are written off to the finished goods warehouse at standard/planned cost;
• Dt 62 Kt 90.1 – shipment (transfer) of products to the buyer;
• Dt 90.2 Kt 43 – write-off for sale at standard (accounting) value;
• Dt 90.2 Kt 40 - write-off of the amount of deviations attributable to the cost of products sold, in the case where the actual cost turned out to be higher than the standard cost; in the opposite case (when the actual cost is lower than the standard cost), this is reflected by reverse posting: Dt 40 Kt 90.2 or also Dt 90.2 Kt 40, but reversed in red.

Accounting in agriculture: general principles

For agricultural enterprises, all general principles and accounting rules in force in the Russian Federation are applicable. This:

• Federal Law “On Accounting” dated December 6, 2011 No. 402-FZ;
• chart of accounts approved by order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n;
• PBU complex;
• other regulatory documents governing accounting in the Russian Federation.

Features of reflecting agricultural operations in accounting are associated with their special characteristics:

• seasonality;
• long production cycles;
• a large share of turnover within the enterprise, etc.

Accounting in agriculture - general principles

As in companies in other fields of activity, the accountant of an agricultural organization is obliged to ensure reliable collection and synthesis of information about objects (property or not), liabilities and financial and economic transactions. Objects and liabilities include the company’s capital and reserves, property (fixed assets, inventories, goods and GP, intangible assets), debts to the budget, counterparties, personnel, financial institutions, and other business activities.

Accounting in agriculture is regulated by the following laws:

1. Law No. 402-FZ of December 6, 2011
2. Chart of accounts No. 94n.
3. RAS – are applied depending on the accounting object.
4. Methodological recommendations - approved by Order No. 68 of January 29, 2002, Order No. 654 of June 13, 2001.
5. Other regulatory documents.

Land as the main means of production in agriculture

Land holds a special place in agriculture. This is the main object of fixed assets and the main subject of labor application. At the same time, land has significant differences from other means of production:

• does not wear out or depreciate;
• when used correctly, it can improve its properties (for example, in terms of increasing fertility);
• is not a human-made object;
• the land plot cannot be manufactured, replaced, or moved.

All this leads to the peculiarities of land accounting:

1. Land plots can be used by an enterprise on the right of ownership, use or lease. Accordingly, accounting should be conducted in such a way that analytics on this aspect are provided both on the balance sheet and on off-balance sheet accounts.
2. When registering the land, it is valued:

• by purchase costs;
• the value of the property exchanged for the land plot (in case of exchange);
• market value on the date of capitalization (if received free of charge);
• agreement of the parties (with a contribution to the management company).

If none of the above methods are suitable, the land is valued at the standard price.

IMPORTANT! The definition of the standard price of land is given in Art. 25 of the Law of the Russian Federation “On Payment for Land” dated October 11, 1991 No. 1738-I. The standard price is a value that is determined based on the potential income from a specific land plot over the estimated payback period.

1. Land analytics is provided in terms of at least:

• existing agricultural land (they, in turn, are divided by use: arable land, perennial crops (orchards, vineyards), pastures, hayfields, etc.);
• fallow lands (resting to restore fertility);
• areas of forests and tree and shrub plantings (protective strips for other land use objects);
• lands under water and at the stage of reclamation;
• lands under roads, runs and clearings;
• lands for public buildings;
• other lands depending on their purpose and use.

In relation to agricultural land plots, the land tax rate is set by municipalities. It cannot exceed 0.3% (clause 1, clause 1, article 394 of the Tax Code of the Russian Federation). The rate is significantly lower than for other categories of land. Is the reduced rate maintained if the land is leased? What if the land is idle? Find out the expert opinion of ConsultantPlus by getting trial access to the system for free.

For the formula for calculating land tax, see.

1. Accounting is carried out using standard accounts and postings for non-current assets. For example, the acquisition of a plot of land into ownership is reflected as follows:

• Dt 08 Kt 60, 76, 75, 98 - ownership of land acquired;
• Dt 01 Kt 08 - the land was accepted for balance according to the act.

NOTE! For operations with land, there are separate forms of primary registration, approved by order of the Ministry of Agriculture of the Russian Federation dated May 16, 2003 No. 750. For example, for the capitalization of agricultural land (land), form 401-APK is used.

Features of accounting in agriculture

The organization of accounting at enterprises specializing in the production of agricultural products must be correlated with the specifics of the activities of such companies. All stages of the technological cycle are most influenced by natural factors:

• the inability to separate production cycles from land resources, their condition and area;
• dependence on living organisms, their health and development;
• seasonality of production due to climatic conditions.

Is a peasant farm always an agricultural producer ?

In accounting, land resources are divided by type of land. They are reflected in natural meters (hectares are taken as the unit of measurement). Capital investments made in land plots are shown in accounting transactions in monetary terms.

FOR REFERENCE! Agricultural activity is characterized by the presence of a large set of industries. Each direction of production has its own specifics.

The complexity of organizing an accounting system is due to the need for accounting personnel to have knowledge and skills to work in a certain industry with a narrow specialization. Accounting difficulties are associated with the uneven distribution of the amount of work in different months and the non-standard type of cost division. Costs for keeping animals or growing plants are distributed based on the type of product. From one plant variety or one breed (species) of animal, several types of finished products are obtained, which, at the discretion of the enterprise management, can be used in several ways.

How are insurance costs calculated in agriculture ?

Costs depending on the production period are not tied to the calendar year. The expenses incurred by the company in the past period provide the results of its activities in the present. Expenses that are made in the current period will be able to pay off next year after the harvest.

How does an agricultural production cooperative take into account share and membership fees ?

The specifics of accounting are associated not only with the complexity of dividing costs and the variety of production cycles. Additionally, the accountant must organize control of the movement and operation of agricultural machinery and equipment. Accounting activities are reflected in registers by structural units (teams, farms).

How to withhold personal income tax when paying in kind in agriculture ?

Land accounting

The peculiarity of recording the main asset of agricultural enterprises - land - is that it is not subject to depreciation. Land cannot become obsolete physically or morally; it is not subject to wear and tear. If land plots are operated in compliance with technology and established standards, they do not lose their original characteristics. In some cases, there is an improvement in the quality of land resources.

Land must be used by the organization based on ownership. If it is not there, then a use or lease agreement must be drawn up.

IMPORTANT! Land is assessed at the time of capitalization according to the amount of costs incurred for its acquisition or according to the amount of the market price (if the land was received free of charge). When exchanging an allotment for other assets, its price is equal to the total value of the exchanged objects.

If the land is a contribution to the authorized capital, its price can be determined by agreement of the parties. If it is impossible to accurately determine the price range, you need to focus on standard cost indicators.

Accounting of land is carried out in the context of their purpose and stages of operation. Resources that are at the stage of rest and reclamation are shown separately. Analytics should reflect the breakdown of assets by agricultural category. Additional subaccounts take into account protective strips, areas under roads, and public buildings.

FOR REFERENCE! Primary documentation for agricultural enterprises differs from standard forms. Specialized forms were approved by Order No. 750 dated May 16, 2003.

Seasonality

The seasonal nature of the activity requires the creation of a special classification system for accounting expenses. They should be represented by assets, deferred costs and current expenses. During forced downtime due to climatic conditions or production specifics, no direct sales costs are generated.

Depreciation charges on assets should be based not on monthly standards, but on the total amount at the end of the season. For example, if the downtime phase lasts 7 months a year, then the depreciation period will be the remaining 5 months in the season. Monthly deductions will be determined by dividing the annual rate by 5.

NOTE! The Tax Code of the Russian Federation does not provide for a seasonal mechanism for calculating depreciation. As a result, temporary tax differences appear between accounting data and tax accounting.

When evaluating products, two types of cost are used: planned and actual. Throughout the year, with a shifted production cycle, accounting transactions show the planned cost indicator. The actual final value is displayed once on the last day of the annual interval. The resulting deviations in the amount of cost should be written off to account 90 (if the products have already been sold by that time) or to account 43 (in relation to goods remaining in warehouses).

When recording agricultural crops, difficulties arise at the stage of dividing the harvested crop into categories with different purposes:

• some of the products can be reserved for use in the upcoming sowing campaign;
• a certain percentage of the harvest can be used to supplement the diet of animals that are being fattened or raised;
• A separate group includes products that will be sold as an independent product.

Typical wiring

The chart of accounts with analytical sub-accounts for recording transactions in the agricultural industry is given in Order of the Ministry of Agriculture dated January 29, 2002 No. 68. This regulatory document provides for standard correspondence accounts:

• D08.7 - K60 - the record reflects the fact of the acquisition of adult livestock (productive and working), classified as the main herd.
• D01.4 – K08.7 – purchased livestock is accounted for at the purchase price.
• D11.2 – K01.4 – cattle were culled from the main herd with subsequent fattening.
• D01.5 - K08.8 - this posting shows the incoming batches of perennial young plantings.
• D20.3 - K01.4 - correspondence is relevant for situations when culled animals are not fed for fattening, but are sent to slaughter.
• D08.6 – K11.1 – the fact of transfer of young animals to the main herd is recorded.
• D10.1 – K20.1 – purchased grain is received for its further use in the production of mixed feed.
• D10.1. – K23.7 – the entry reflects the arrival of raw materials in the form of horse hair or wool (after molting).
• Manure and droppings are accounted for as debit 10.2 and credit 20.2.
• Horse manure should be shown in the debit flow of account 10.2 and the credit flow of account 23.7.
• D10.7 (8 or 11) – K40 – capitalization of feed, seed material and equipment that were created by our own production line.
• D91 – K11 – dead animals that were not included in the insurance contract were written off.

How differences in agricultural industries affect accounting in them

Industry differences lead to the fact that the classification of the same types of activities for accounting purposes in agriculture may differ.

For example, for an enterprise producing compound feed, sowing and harvesting the corresponding crops, hay production will be the main activities. And for an enterprise specializing in fattening cattle, the same production of hay on existing hayfields will become an auxiliary production.

Accordingly, accounting will be provided in different ways:

• the feed manufacturer will take into account its costs for harvesting hay on account 20;
• and the owner of a meat farm - on account 23;
• Accounting for milk in agriculture is carried out on sub-accounts opened to accounts 20 “Milk Processing” and 10 “Milk” as a raw material.

Typical accounts postings

Accounting in agriculture involves the formation of the following standard records:

• D08-7 – K60 – purchase of working or productive livestock.
• D19 – K60 – reflection of VAT on purchased livestock.
• D01-4 – K08-7 – capitalization of livestock at the purchase price.
• D11-2 – K01-4 – the main herd cattle were culled and put on fattening.
• D20-3 – K01-4 – rejected cattle are slaughtered without being fed.
• D10-2 – K20-2 – posting of litter and manure.
• D20-1 – K10-8 – write-off of the cost of seeds spent on planting and sowing.
• D20-2 - K11 - reflection of the cost of dead bees, animals and birds (if the guilty workers were not identified) and attributing it to the cost of cultivation.
• D43 – K10 – the share of seeds and feed was transferred to commercial agricultural production. products.
• D43 - K20-2 - capitalization of milk that was received from the main dairy herd.
• D90 - K10 - write-off of the cost of seeds and feed that were sold to company employees.
• D90 – K68 – VAT accrual on sold seeds and feed.
• D90 – K43 – write-off of the cost of sold finished goods of livestock and crop production.
• D71 – K90 – assigning the cost of goods sold on the market to the seller’s account.
• D08 – K60, 75, 98, 76 – purchase of land or agricultural equipment.

Similar articles

• Accounting for costs of auxiliary production
• Cost in accounting
• Production cost accounting
• Production process accounting
• Fixed Asset Accounting

The nuances of accounting for seasonal production

Due to climatic conditions, the activities of most agricultural enterprises are seasonal. This leads to the fact that the enterprise has periods of activity and downtime. And if everything is more or less clear with the lack of income during the off-season, then what about expenses?

During the downtime period, it is important to correctly classify expense items for accounting purposes:

• on assets;
• expenses related to future periods;
• current expenses.

As can be seen from this classification, it is assumed that during the idle period the agricultural enterprise has no direct costs associated with the sale of products, since there is no sales. Note that direct costs in agriculture include:

• direct material costs for the production process;
• expenses for remuneration of employees employed in the main production (including contributions for their compulsory insurance);
• depreciation of fixed assets used in the main production.

Thus, all expenses incurred during the shutdown period to support operations in the next season are accounted for either as assets or as expenses incurred in the current period but related to future ones.

The exception is permanent indirect costs, such as administration salaries. They are expensed monthly.

Example 1

Kombikorm LLC, operating in central Russia, incurred the following expenses in February 2021:

• purchased a new combine;
• repaired 2 existing combines using our own resources;
• purchased seeds of a new variety of fodder corn;
• paid salaries to the manager and accountant.

The following entries were made in the LLC accounting:

• Dt 08 Kt 60 - the purchase of a new combine is reflected;
• Dt 97 Kt 60 - spare parts and materials were purchased for the repair of 2 old combines;
• Dt 97 Kt 70 - salaries were accrued to the technicians who carried out the repairs;
• Dt 97 Kt 69 - insurance premiums are charged on amounts related to equipment repair;
• Dt 10 Kt 60 - planting material (seeds) has been capitalized;
• Dt 26 Kt 70, 69 - administration salaries and insurance premiums are accrued.

Regarding wages, it should be borne in mind that labor relations with seasonal workers also have their own specifics. In our article we will not dwell in detail on seasonal workers.

You can read more in the article “Art. 59 of the Labor Code of the Russian Federation: questions and answers.”

To conclude the topic of seasonality, we cannot help but touch upon the calculation of depreciation in agriculture.

For accounting purposes, depreciation of fixed assets used seasonally must be accrued during the season. That is, the annual norm must be invested in the season (clause 19 of PBU 6/01, approved by order of the Ministry of Finance of Russia dated March 30, 2001 No. 26n). For example, if the activity is carried out for 5 months a year, then for each month of the season you need to write off 1/5 of the annual depreciation rate.

IMPORTANT! For tax accounting purposes, the situation with depreciation of fixed assets is different. Clause 3 Art. 256 of the Tax Code of the Russian Federation does not provide for the exclusion of fixed assets from depreciable property due to their seasonal use. Just as the Tax Code of the Russian Federation does not provide for seasonal depreciation using the method used in accounting. For tax purposes, depreciation in agriculture is calculated in accordance with the Tax Code of the Russian Federation, which leads to the formation of temporary tax differences during seasonal work.

Accounting in agriculture - typical entries:

• D 08 K 60 (75, 98, 76) – reflects the acquisition of land and agricultural equipment.
• D 01 K 08 – the land is put on the balance sheet (form 401-APK is used).
• D 20 (23, 26, 25) K 70, 69, 10 - reflects the accrual of earnings, insurance premiums, and the write-off of raw materials to working cost accounts.
• D 97 K 60 – spare parts were purchased for equipment repair.
• D 97 K 70 - reflects the accrual of earnings for repair workers.
• D 10 K 60 – planting material has been received into the warehouse.
• D 11, 19 K 60 – young livestock from the supplier were registered.
• D 11 K 11 – young animals were transferred to a grown herd.
• D 94 K 43 - reflects the shortage discovered during the annual inventory.
• D 99 K 68 – accrued to the Unified Agricultural Tax.
• D 68 K 51 – tax transferred from the cash account.

Separation by production cycles

Another feature of agriculture is that the production cycle often does not coincide with the reporting year. An example is the cultivation of winter crops, which are sown in the fall of one year and harvested in the spring or summer of the next.

As a result, in the accounting of agricultural organizations, it is accepted to differentiate production costs by periods (years):

• costs of past periods (years) for the current harvest;
• expenses of the current period for the future harvest;
• expenses of the current period for the harvest in it.

To organize the distribution of direct costs, analytical subaccounts are opened on account 20. For example, 20/production of the reporting year and 20/production of the next year.

An additional nuance exists for distributed expenses. They are independent intermediate objects of cost accounting (see paragraph 44 of the methodological recommendations of the Ministry of Agriculture of Russia, approved by Order of the Ministry of Agriculture dated 06.06.2003 No. 792). That is, during the year, these expenses are taken into account in separate analytical accounts, and at the end they are distributed to cost analytics by year - for the harvest of the current year and the future.

Another nuance of cost formation, arising from the biological characteristics of agriculture, is the use of planned and actual costs.

A shifted production cycle is characterized by cost accounting at planned costs during the calendar year. The actual cost is determined once on the last day of the year through a special calculation. Identified deviations between fact and plan include:

• for products already sold in the reporting year - to the account of 90;
• the balance of finished products in warehouses - to account 43.

Example 2

Agronom LLC decided to sow winter wheat in 2021. In addition, the LLC also sows other grain crops. In 2021, it was discovered that about 20% of the winter crop crop was lost as a result of frost.

In September 2021, the LLC made the following entries: Dt 20 (harvest 2019) Kt 10, 70, 69 - for the amount of direct actual costs for sowing winter crops - 1,000,000 rubles.

In December 2021, the LLC calculated the actual cost for 2021:

• Dt 20 (harvest 2019) Kt 20 (depreciation of fixed assets) - 200,000 rubles. (depreciation of used fixed assets distributed among types of crops for the current year’s harvest is written off);
• Dt 20 (harvest 2020) Kt 20 (depreciation of fixed assets) - 100,000 rubles. (distributed depreciation is written off for next year’s harvest);
• Dt 43 Kt 20 (harvest 2019) - 200,000 rubles. (deviations of the fact from the plan are written off to the account of finished products of the current year).

In May 2021:

• Dt 20 (harvest 2020) Kt 10, 60, 70, 69 — 400,000 rub. (the costs of harvesting winter crops are taken into account at the planned cost);
• Dt 43 Kt 20 (harvest 2019) - 1,500,000 (1,000,000 + 100,000 + 400,000) rub. (the current cost of the winter crop harvest in 2018 has been formed);
• Dt 91 Kt 20 (crop loss - 2020) - RUB 300,000. (the loss from the destruction of crops is reflected in the accounting);
• Dt 90 Kt 43 - 1,500,000 rub. (the cost of sold winter crops has been written off).

In December 2021, the LLC will need to complete calculations for the 2021 winter crop harvest:

• Dt 20 (harvest 2020) Kt 20 (depreciation of fixed assets) - 100,000 rubles. (distributed depreciation of fixed assets for the 2021 season was written off);
• Dt 90 Kt 20 (destruction of crops) - 300,000 rubles. (the cost of the sold crop was reversed for the amount of loss from the loss of crops);
• Dt 90 Kt 20 (harvest 2020) - 100,000 rub. (the cost of the sold crop was adjusted by the amount of distributed expenses).

Since crop production in the Russian Federation does not always lead to profit, the state provides financial support to this category of agricultural producers. Subsidies are allocated for specific purposes and must be accounted for separately from other financial flows. How to properly organize such accounting and what nuances to take into account in order to avoid unnecessary taxes and claims from fiscal officials? Get free trial access to the ConsultantPlus system and read the answers to these and other questions in expert advice.

Accounting in agriculture: principles, nuances, features

Accounting at any agricultural enterprise is carried out in accordance with general rules and principles. Specialists of specialized departments are guided by the relevant regulations: Federal Law No. 402 (06.12.2011) with updates and additions, current PBUs, charts of accounts approved by the Ministry of Finance.

The accounting of an agricultural enterprise must comply with current standards. It is ongoing. If agricultural activities are temporarily suspended, records have not been kept for some time, or other problems have occurred, you should resort to restoring accounting.

Accounting for fixed assets

As for the specifics of accounting in agriculture, it is determined by many factors. One of the main ones is the use of land as the main means of production. This product has special properties. It:

• is a natural object (not created by man);
• cannot be moved or replaced;
• does not depreciate, does not wear out.

Also among the special properties of land as the main means of production is its ability to improve properties (for example, fertility). A business entity can use land as an owner, tenant or user. In each case, the analytics of the main means of production on the balance sheet and off-balance sheet accounts will have certain specifics.

In accounting, the recording of land is of particular importance. It is assessed at the market value on a specific date, the value of the property (relevant for barter transactions), and the actual costs of acquisition. Evaluation by agreement of the parties is also allowed.

To reflect transactions with fixed assets in the agricultural sector, standard accounts and entries for non-current assets are used. So, when receiving ownership of a plot of land, entries are made reflecting:

• direct acquisition of ownership (Dt 08 KT 98, 75, 76, 60);
• acceptance of the site on the balance sheet (Dt 01 Kt 08).

An accountant of an agricultural enterprise should pay attention to the fact that confirmation of land transactions involves the use of special forms of primary documentation. They are approved by orders of the Ministry of Agriculture.

Main and auxiliary productions

There are many enterprises operating in the agricultural industry. The specialization of each of them largely determines the specifics of accounting. In particular, the same activities may be classified differently for accounting purposes.

A simple example is making hay. For an agricultural enterprise specializing in livestock farming (feeding), such production will be auxiliary, and for a company that harvests the relevant crops and produces feed from them, it will be the main one.

Accounting, accordingly, must be provided in different ways.

The costs of the main production are taken into account by the agricultural enterprise on account 20. If the production is auxiliary, account 23 is used. It is also widespread to open sub-accounts to optimize accounting procedures and systematize the reflected data.

Seasonality affects accounting

Speaking about agricultural production, one cannot fail to note its pronounced seasonality. The latter is due to the climatic characteristics of the regions where this activity takes place.

From a legal point of view, the seasonal factor affects the alternation between periods of inactivity and activity. That is, the lack of income during the off-season is quite logical.

But it is extremely important to correctly classify consumable items during downtime.

The following expenses should be reflected in accounting during the off-season:

• current;
• future periods;
• associated with assets.

If an enterprise does not have sales of products as a financial and economic operation, then direct costs do not appear in accounting. With the beginning of the activity period, their recording is resumed. Direct costs include:

• depreciation of fixed assets;
• costs directly for production processes;
• remuneration of workers involved in the main production.

Indirect costs, which include, for example, administration salaries, must be constantly reflected in the accounting of an agricultural enterprise.

The reflection of depreciation costs also has seasonal specificity. The annual depreciation rate, according to current regulations, is invested in the season.

That is, for accounting purposes, depreciation charges are used only during the period of activity of the enterprise. Tax accounting of depreciation differs from accounting. The principle of seasonality does not apply here.

Accordingly, for an agricultural enterprise, the presence of a temporary tax difference during the seasonal work cycle is the norm.

Production cycle accounting

Agricultural activities can also be called specific from an accounting point of view because the actual production cycle does not always coincide with the reporting year. Many businesses face this phenomenon. This is especially true for companies engaged in the cultivation of winter crops (sowing is carried out in the fall of the current year, the harvest is harvested in the next).

In order to optimize accounting in agriculture, it is customary to differentiate expenses by period:

• current (costs for harvest within one calendar year);
• future (current costs for next year's harvest);
• past (costs of the previous period for the current year's harvest).

Direct production costs are distributed on account 20. To display costs by period, the corresponding sub-accounts are opened.

The distribution of expenses also has some peculiarities. Expenses are recognized as intermediate independent accounting objects. At the end of each reporting period, they are usually distributed into cost analytics by year.

Costs in shifted production are accounted for primarily at planned costs.

If the production cycle of an agricultural enterprise fits into the current year, the actual cost of manufactured products can be formed.

Often one enterprise implements several production cycles simultaneously. The results of one of these cycles can be used in another. Such transactions are classified as intra-business turnover and are reflected accordingly in the accounting accounts. In this case, atypical entries are used for the debit of account 20 and the credit of accounts 20, 43.

In general, the more complex and multidirectional the activities of an agricultural enterprise, the more nuances the accounting will have.

Source: https://xn--80abgj3a5ames.xn--p1ai/articles/vedem-bukhuchet/bukhuchet-v-selskom-khozyaystve-printsipy-nyuansy-osobennosti/

On-farm turnover in agriculture

Agricultural enterprises often use the results of a production cycle in the next or parallel production cycle. For example, part of the agricultural crop, which is a finished crop product, can be left as seed material. Some of the vegetables grown for sale can be used as an additive to animal feed during growing and fattening.

Such operations require special reflection in the accounting accounts of on-farm turnover. A part of the cost of the main production or finished product is transferred back to the same production cycle or another main production.

Atypical wiring is as follows:

• Dt 20 (analytics 1) Kt 20 (analytics 2);
• Dt 20 (analytics 2) Kt 43 (analytics 1).

Read more about accounting for intra-farm turnover.

Accounting in agriculture has a large number of nuances. Despite the fact that it is maintained using general principles and a general chart of accounts, the accounting procedure for individual items may differ significantly from the procedure in other industries. This is primarily due to the specifics of agricultural activities, which depend on natural biological cycles, climatic conditions and the use of land as the main asset.

You can find more complete information on the topic in ConsultantPlus. Full and free access to the system for 2 days.

One of the most important indicators of the production activity of an enterprise is the sale of finished products, since it completes the turnover of funds that were spent on its production. In addition, it is the sale of finished products that allows us to resume a new cycle of the production process. Therefore, it is important to correctly keep records of sales of finished products and correctly form accounting entries.

Importance of Accounting in Agriculture

The objects of accounting include: property, capital of the enterprise, debt of and to debtor organizations and individuals, economic actions.

The main goal of accounting at agricultural enterprises is to analyze, interpret and use the data obtained to find a progressive direction and make competent coordination decisions.

Accounting data is used at three stages of management.

Accounting also performs a control function, its essence lies in monitoring the implementation of planned standards, assessing profitability, preventing failures in the production process, preventing unreasonable waste of resources and saving household funds.

Sale of finished products or change of ownership

Finished products are considered to be products that represent the final result of the production cycle, are fully processed, completed, have passed the necessary tests, meet standards or technical parameters, have been shipped to customers or delivered to a warehouse.

Sales of finished products can be carried out:

1. Based on the conclusion of a supply agreement.
2. Through our own sales divisions (shops, kiosks).

The date of transfer of ownership of manufactured products is the date of their transfer to the buyer. When transferring finished products, accompanying documentation is drawn up - invoices and delivery notes, acceptance certificates, which confirm the change of ownership.

Basic rules for creating transactions when selling products

The procedure for generating transactions for the sale of finished products depends on two circumstances:

1. The first operation was shipping;
2. The first transaction was payment.

The first option entails the occurrence of receivables from the manufacturer, since the moment of payment for the product occurs later than its actual shipment.

The second option demonstrates the occurrence of accounts payable on the part of the manufacturer, since the shipment is carried out much later than the payment made.

Please note that the procedure for writing off finished products depends on the chosen method:

• at actual cost;
• at planned (standard) cost.

Postings for accounting for sales of finished products