Proper warehouse accounting and document flow allows you to effectively conduct business in modern conditions. Almost any trade or manufacturing organization has a warehouse - with large or small areas, with a wide or minimal range of goods, raw materials or supplies placed there. In all cases, regardless of the scale of the enterprise, effective accounting of warehouse assets is necessary - let’s look at what it is and by what means it can be carried out.
Accounting methods for inventory items
When releasing materials from the warehouse, in addition to quantitative valuation, valuation is used. In accounting, there are several methods for calculating estimated indicators:
- At average cost. When applying this method, first the cost of a certain group of material (or type) at the beginning of the month is added to the cost of received inventory items. The quantity by group or type is also summed up. By dividing the first amount by the second, the average cost of a unit of inventory is determined. Next, the number of units written off per month is multiplied by this average cost and the amount to be written off is obtained. This is how materials that are similar in properties and usage characteristics are written off.
- FIFO. This method assumes that inventory items are used sequentially, in the order in which they are received at the warehouse. Next, the materials that were the first to be transferred, for example, to production, are valued at the cost of the first goods and materials received at the warehouse, taking into account their balance in the warehouse: first, the quantity is written off at the cost of the balance, then the remaining unwritten quantity is written off at the cost of the first batch, then, if necessary, the second and etc. The remaining materials are assessed at the cost of the last received batch. FIFO is used when there are relatively stable prices for inventory items.
- Based on unit cost of inventory items. The method is used to account for particularly valuable items or hazardous substances and consists of recording each receipt of such materials. Upon release, the same price applies as upon arrival at the warehouse. The method is also used for small volumes of warehouse operations.
What documents are used to document the internal movement and release of materials into production ?
the write-off of construction materials in accounting ?
On a note! The LIFO method is the opposite in meaning to the method, i.e.
according to the cost of the last received batch, then the penultimate one, etc. FIFO has lost its importance today, since its use is justified in conditions of high inflation.
Equipment
To optimize the accounting of goods in a warehouse, it is necessary to pay special attention to the equipment of the warehouse. What a warehouse is equipped with has a decisive impact on the rationality of distribution of goods and the correctness of their storage.
First of all, proper arrangement of the warehouse allows you to hide the acceptance of goods, its unpacking and documentation from unnecessary eyes. The consumer is presented with already neatly laid out product units.
One of the most important elements of storing goods is the temperature at which material assets are stored in the warehouse. Reasonable selection of equipment sometimes decides a lot in the successful development of entrepreneurial activity.
Proper equipment of loading and unloading areas is of great importance. These types of zones represent a space-platform where unloading or loading from vehicles occurs. This is where the goods are accepted and the accompanying documentation is reviewed.
Ordering of goods is often carried out through shelving. These universal structures are actively used for storing goods. They can be lined up in separate rows of sections where goods of different grades and types are distributed.
When using racks, warehouse space is used rationally, no matter how it is built. This type of shelving is used if goods are placed on and removed from the shelves manually.
The dimensions of the goods usually determine which racks to choose for storage. There are many types of racks on which you can store different sizes of goods. For large or long product units, cantilever racks are suitable. There are designs adapted for preserving perishable products.
Documentation
An organization can use standardized forms of documentation to record the disposal of materials from a warehouse, or it can use independently developed forms. Their presence is reflected in the accounting policies.
Unified forms of primary documents for the release of goods and materials for production needs are:
- limit-fence card (according to f. M-8);
- demand-invoice (according to Form M-11);
- invoice (form M-15);
- invoice for internal movement (form TORG-13 or a form developed by the organization).
All forms are standard and can be used regardless of the industry.
Documents confirming other disposals from the warehouse (for example, gratuitous transfer, write-off of shortages, damage, theft) can serve as various acts for the write-off of MC, signed by members of a commission created in the organization, TTN, applications for leave to the outside.
The sale of goods and materials is formalized taking into account the applicable taxation system, the specifics of current legislative acts, etc. The release to buyers, legal entities or individuals, is carried out on the basis of contracts with them.
An invoice is issued for the release of goods and materials to the third party, and, if necessary, an invoice and other documents for sale. Transportation of goods and materials from the warehouse is issued by TTN.
Is it necessary to use expensive software and hardware systems?
If you are tired of preparing warehouse cards for goods and want to automate some of the work, then it is better to turn to computer technology. Many people are horrified by the prices of the most famous programs. After all, for some of them you have to pay quite large sums. For large companies this is not a problem, but what about smaller objects? In this case, you can use simpler solutions.
For example, a program like Excel. Warehouse accounting in it can be organized for any production or trading organization where it is important to ensure accounting of the quantity of materials, raw materials and finished products. Of course, if we are talking about a very significant scale, then Excel may not be so convenient. But for small and medium-sized companies its functionality is sufficient. In particular, if you fill out documents as accurately and in detail as possible, enter data in both quantitative and monetary terms, follow the chronology of recording transactions, and do not disdain additional information. In this case there should be no problems. That is, you just need to think through the process of working with this software.
Account correspondence
Postings are generated depending on the purpose of the release of materials from the warehouse.
For production and management purposes:
- Dt 20, 23, 29 Kt 10 - materials were transferred to the main, auxiliary, and service production.
- Dt 25, 26 Kt 10 – materials were transferred for general production and general economic needs.
- Dt 10 Kt 10 – internal movement of goods and materials from the warehouse to the storerooms of departments, workshops, and production facilities.
Other write-offs:
- Dt 94 Kt 10 - materials were written off based on the commission’s report.
- Dt 20, 23, 29, 25, 26 Kt 94 - amounts are attributed to the expenses of production - main, auxiliary, servicing, maintenance and experimental work (these entries reflect disposal due to shortages, losses, spoilage within the limits of natural loss norms).
- Dt 73/2 Kt 94 - the shortage is attributed to the guilty persons (above the natural loss norms).
- Dt 50, 70 Kt 73/2 - the guilty person repaid the debt by depositing the amount into the cash register or deducting it from wages.
- Dt 91/2 Kt 68 – VAT, previously presented for deduction on goods and materials, was restored for shortages in excess of the norms of natural loss.
- Dt 91/2 Kt 94 - if inventory items are lost in excess of the norms of natural loss, but there is no possibility of recovering the cost from the culprits (the culprit has not been identified or has been acquitted in court).
The gratuitous transfer of goods and materials is attributed to Dt 91/2 , and loss due to force majeure, natural disasters - to Dt 99, with Kt 10. In this case, it is necessary to restore VAT with a posting similar to the one above.
Implementation:
- Dt 91/2 Kt 10 – disposal from the warehouse.
- Dt 62 Kt 90/1 (with VAT), Dt 91/2 Kt 68 – the sale of inventory items and VAT on them is recorded.
- Dt 50.51 Kt 62 - the buyer paid for the materials.
If there is an advance payment, then:
- Dt 50, 51 Kt 62/2 – the prepayment amount is reflected.
- Dt 76 Kt 68 – VAT is charged on prepayment.
- Dt 91/2 Kt 10 – disposal from the warehouse.
- Dt 62/1 Kt 91/1, (with VAT), Dt 91/2 Kt 68 – the sale of inventory items and VAT on them is recorded.
- Dt 62/1 Kt 62/2 – offset of prepayment for inventory items.
- Dt 68 Kt 76 – crediting VAT on the repaid prepayment amount.
About the changes being carried out
When is optimization needed? And also what should its measure be? Very often, enterprises are not limited to having only one warehouse. Industrial companies may own several of these facilities. Often warehouses are located nearby. In this case, it is important to ensure organic and continuous communication.
Also, in such cases it is very difficult to do without specialized software. A popular approach is to allocate a central warehouse. If you need something that is not very often used, then you need to turn to other objects. And/or they number the storage facilities in which the bulk of the necessary materials or products are located.
Very often, separate storage facilities are provided for workshops. They house everything that is necessary for production. This is done in order to prevent the complete consumption of the necessary resources and not to stop the process. Intermediate warehouses can also be set up. They are used for short-term storage of products or materials.
Tax accounting
The write-off of materials for production is involved in the formation of costs for NU purposes (Article 318-1 of the Tax Code of the Russian Federation).
If materials from the warehouse are not immediately written off for production, but are transferred to responsible persons in workshops or departments (their internal movement occurs), then there is no need to rush to write them off to production accounts. This may lead to an overestimation of the costs of the current period and raise questions from officials of the fiscal authority during the next audit, if the basis of the NU is accounting indicators.
In this case, it is also advisable to draw up a statement of expenditure of goods and materials, which directly reflects the expenditure in production - as a justification for costs for the Federal Tax Service.
An act may not be drawn up if the limit card or other vacation documents indicate that inventory items will be used immediately (for example, writing instruments in the accounting department).
However, many organizations use an approach in which they always draw up the specified document, regardless of whether the purpose of the vacation is indicated in the primary vacation documents or not. It is recognized as the safest from the point of view of tax audits and claims from Federal Tax Service officials.
The gratuitous transfer of goods and materials is subject to value added tax under Art. 146-1 Tax Code of the Russian Federation.
Results
Inventory and materials are written off from the warehouse at a cost calculated depending on the method used: FIFO, at unit cost or at average cost.
Postings are formed depending on the nature of the movement of materials - internal or external.
For the purposes of NU, it is advisable to document the consumption of materials with a certificate of consumption of goods and materials. The use of this document excludes overestimation of costs for materials in calculations based on the results of the month, and, consequently, claims from the Federal Tax Service.
For accounting purposes, write-offs are recorded using both unified forms of primary documents and those developed by the organization independently.
Optimization issues
Availability and correct distribution must always be taken into account. This allows you to organize comfortable and convenient work. Someone uses a goods warehouse card for this purpose. It allows you to keep records of the receipt and issue of products, noting who and when, and how much was transferred.
Some people think that a goods inventory card is a thing of the past and an outdated solution. And it is better to use available computer technologies, where the documents created can simply be supported by an electronic digital signature. We should also not forget about quality equipment. Thus, scales and other measuring instruments must be regularly checked for accuracy and be well calibrated.
Where to begin?
Once you have decided on the purpose of the future warehouse, it’s time to start looking for suitable space. It just so happens that most of the premises designed for these needs are located in industrial zones of cities.
This was partly facilitated by privatization, when fairly “solvent” gentlemen simply bought out entire buildings from dilapidated factories and subsequently began leasing out space. You need to be prepared for the fact that the location of the warehouse too far from your office may create some discomfort in interacting with future employees in this area.
- In any case, remote warehouses have one advantage - rental costs can be significantly lower (generally high) than in areas located closer to the city center.
To find the right place, you can use two well-known methods:
- Search for information on the Internet. Here you can count on a fairly wide range of offers;
- Drive around the city and pay attention to the signs. As a rule, in especially “hot” places they are posted even with the rental price per 1 m2 indicated;
- Find out from friends. It is quite possible that they themselves were looking for the right premises not long ago;
- Choose a location close to future customers (you probably already know exactly who you will sell your products to).
Regardless of where the warehouse will be located and what the owner will charge for rent, it is important to take into account its future “decoration”. On the Internet you can find a huge number of standard layouts, one of which can be applied to your area. The image above shows a standard plan designed for responsible storage of products - just our case!
