Revaluation of goods: what it is and how to do it - reasons why it is necessary to revaluate products, sample act and order

The act of revaluation of goods is drawn up according to the sample, if it is necessary to revaluate or discount certain commodity items. The reasons may be different - the expiration date has changed or the expiration date is ending, or the product may be obsolete. The price at which products are sold should change. Every entrepreneur faces this; usually such operations are carried out every day. They help you avoid operating at a loss and respond in a timely manner to changes in the market situation. Let's understand what this process is, how it is performed and when it is appropriate.

Revaluation of goods: what is it in the store

This is an event of stable recalculation of the cost of individual items or groups of product items in order to improve their demand in the market. The score may change up or down for various reasons. Due to circumstances, the price tag may be lower than the purchase price. This usually applies to SOEs, but less often to fixed assets, work in progress and the cadastral price of land.

This is done to bring the actual value to the real market indicator. Performed in a changing environment, changes in tangible and intangible assets under the influence of competition and other temporary factors. This is necessary to get rid of old stocks of product groups, optimize taxation and take into account depreciation.

The basis for such action is the order of the manager. At their own request, employees should not carry out markdowns or revaluations.

What is a markdown act

A markdown act is a document that records a reduction in the price of commercial products for various reasons.

The approved form contains three pages.

The first is the title page. In this case, you will need to fully indicate the name of the organization and indicate the reason as a result of which the decision was made to sell products at a reduced cost. The main thing is to leave a column on the title page for approval of the markdown act by the head of the company.

On the second and third pages you will need to indicate the characteristics of the product.

Be prepared to note:

• Markdown percentage;
• Cost before and after markdown;
• Difference in cost;
• Reason for cost reduction.

You will also need to provide a detailed description of the appearance of the product. The document is drawn up exclusively in the presence of the assembled commission. Once completed, everyone must sign the completed document.

Reasons for revaluation of goods in warehouse

They can be very different, but they are necessarily described in the documents. Among the main motives officially enshrined are:

• the supplier brought a batch whose quality was worse than expected;
• The expiration or storage period is ending, you need to sell off the leftovers;
• demand or supply has changed, it’s time to adapt to changes, especially in the seasonal area;
• the VAT rate has increased or decreased or other parameters have been adjusted;
• the product has lost some of its original consumer properties;
• overcrowded warehouses, space needs to be freed up;
• everything that is stored is obsolete and no longer interesting to buyers;
• increased inflation - it is necessary to cover the emerging costs;
• sale of units that are presented as samples on the sales floor.

Do you want to implement Warehouse 15? Get all the necessary information from a specialist.

Thank you!

Thank you, your application has been accepted!

Why is a revaluation of inventories necessary?

Inventory revaluation is carried out if one of the conditions is met:

1. MPZs are outdated and not suitable for new industries.

2. MPZs have lost some of their consumer properties.

3. There was a decrease in the current market value (TRV) of the inventories.

When the TRS becomes lower than the actual one, a reserve is created in the form of the difference between them (clause 25 of PBU 5/01, approved by order of the Ministry of Finance of the Russian Federation dated 06/09/2001 No. 44n; clause 20 of the Guidelines for accounting of inventories, approved by order Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n).

ATTENTION! With simplified accounting, it is not necessary to re-evaluate and create inventory reserves.

How to quickly re-price goods

It is very important not only to recalculate the cost in a timely manner, but also to keep records of the results. Later, with the help of these accounting papers, it will be possible to track how the price changed, whether an increase or decrease was used, and for what reasons this was done.

Before you start changing price tags, you need to compare its level in the company and in the market as a whole. This will help you avoid regular financial discrepancies and take into account all the possible subtleties of pricing.

Without analyzing competitors and the current situation, revaluing products is a risky process. This can cause a drop in revenue, especially when selling below market value.

It is also worth considering how exactly the records are kept. If the organization adheres to the cost method, then it will be necessary to conduct an inventory of those groups that will be revalued.

If this is a quantitative-cumulative option, then the assessment is performed based on accounting data.

Examples

Markdown precedes revaluation

Markdown

Management reestimated the cost of fixed assets by the end of 2019.

The primary cost is 400,000. The current cost is 350,000. The amount of accumulated depreciation is 80,000.

Calculations are performed in the following order:

• The revaluation coefficient is determined to be 0.875 (350,000 divided by 400,000).
• Discounted depreciation – 70,000 (80,000 times 0.875).
• The amount of depreciation markdown is 10,000 (subtract 70,000 from 80,000).
• The amount of the cost markdown is 50,000 (subtract 350,000 from 400,000).
• The final value of the perfect markdown is 40,000 (subtract 10,000 from 50,000).

Revaluation

As of December 31, 2020, the fixed asset was revalued. The current cost is 450,000. Their original cost is 350,000. Over the past year, they have accumulated depreciation of 40,000.

Calculations are carried out in the following order:

• The total amount of depreciation is 110,000 (40,000 is added to 70,000).
• The perfect revaluation coefficient corresponds to 1.3 (450,000 divided by 350,000).
• The amount of revalued depreciation is 143,000 (110,000 multiplied by 1.3).
• The revaluation amount is 100,000 (350,000 is subtracted from 450,000).
• The additional estimate of depreciation is 33,000 (110,000 is subtracted from 143,000).
• The final value of the revaluation is 67,000 (100,000 minus 33,000).

The revaluation is reflected in accounting by the following entries:

Revaluation precedes markdown

Revaluation

By the end of 2021, additional assessment is being carried out. The primary cost is 200,000.

The current cost is 250,000. The amount of depreciation is estimated at 40,000.

The following calculations are performed:

• The perfect revaluation coefficient is 1.25 (250,000 divided by 200,000).
• Depreciation is recalculated to 50,000 (40,000 multiplied by 1.25).
• The revaluation value for depreciation corresponds to 10,000 (40,000 is subtracted from 50,000).
• The revaluation of the object itself is 50,000 (200,000 is subtracted from 250,000).
• The total value of the revaluation is 40,000 (10,000 is subtracted from 50,000).

Markdown

By the end of the next year 2021, a markdown is being made. During this year, we accumulated depreciation of 20,000. The current cost is 150,000. The cost of the operating system corresponds to 250,000.

The following calculations are performed:

• The revaluation coefficient being performed corresponds to 0.6 (150,000 divided by 250,000).
• Accumulated depreciation (total amount) – 60,000 (20,000 is added to 40,000).
• The discounted depreciation totals 36,000 (60,000 multiplied by 0.6).
• The markdown amount is 100,000 (250,000 minus 150,000).
• The total amount of markdown carried out is 64,000 (100,000 minus 36,000).

The markdown is reflected in accounting using the following entries:

How does revaluation of goods occur in retail trade?

Based on the results, a document must be drawn up that confirms the fact of a price change: an inventory-act, it reflects the changes taking place.

But it is worth noting that if accounting is kept at purchase prices, then the revaluation is usually not reflected in the accounting department using a leash.

When calculating the sales value, it is necessary to draw up an inventory report, the form of which can be found below, and make an entry that will reflect trade markups on goods.

Dt 41.2, Kt 42. And the amount after the price change is included - 67,900 rubles.

What is a markdown

A markdown is usually called a reduction in the purchase price of a product that has been received or has been on sale for some time in order to facilitate its sale.

It is advisable to carry out such a procedure if one or more factors are present:

• the product is not in great demand;
• the products are stored in a warehouse or on store shelves;
• the product went on sale with damage (to the item itself or its packaging);
• the presentation is lost;
• consumer properties are partially lost;
• obsolescence of the item for sale;
• market fluctuations that affected demand, etc.

What demands can a consumer make if defects are discovered in a discounted product ?

Both parties benefit from the discount:

• the buyer gets the opportunity to spend less money on the purchase;
• the seller sells the goods, thereby increasing his turnover.

Question: During the sale period, I purchased shoes at a store with a 50% discount. A week later the sole came off. The sales receipt stated: “The warranty does not apply to discounted goods.” Is it legal to sell a product without a warranty? And what requirements can I present to the seller if there is a defect in the product? View answer

How to Document Changes in Wholesale Trade

The main reasons for such replacements are fluctuations in demand, including seasonal demand, expiration of the sales period and increased inflation. Each seller strives to reduce costs and earn the maximum on the sale of a batch. Therefore, revaluation is often used as a means of compensating for storage and sales costs.

Types of possible revaluation:

• change to the value of the last purchase price (if purchased at free prices);
• reduction/increase to the level of the commodity producer at the time of sale (according to fixed indicators);
• adjustment in conditions of limited demand - when the expiration date expires;
• markdown of products that have lost some of their attractiveness to buyers.

It depends on the type where the proceeds from the revaluation will go. It may be used to replenish working capital or other purposes.

The shortfall is covered by the perpetrators, taken from distribution costs or from the organization’s own finances.

The implementation is formalized by an order from the head or an order received from government bodies.

The event is carried out by a specially created commission immediately after the end of the working day before the day the new prices are introduced. Often this process is accompanied by an inventory.

During the revaluation, employees remove the old and put on new price tags, and also draw up a statement of material assets. It is necessary to create it in two copies at once, since one will go to the accounting department.

What does the Law say about markdowns?

There are no strictly accepted norms for discounting goods. It is important that the Discount Regulations adopted in a particular trading organization do not contradict accounting standards and relevant government requirements:

• Federal Law of November 21, 1996 No. 129-FZ “On Accounting”;
• Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n “On approval of the Regulations on maintaining accounting records and financial statements in the Russian Federation”;
• The accounting plan, in particular, the contents of the “Inventories” account;
• Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49 “On approval of the Guidelines for the inventory of property and financial obligations”;
• Letters from the State Statistics Committee approving document forms when conducting an inventory;
• Letter of Roskomtorg dated July 10, 1996 No. 1-794/32-5, which approved the Methodological Recommendations for accounting and registration of operations for the receipt, storage and release of goods in trade organizations.

How to create a reserve in accounting to reduce the cost of goods and other material assets?

What to do before drawing up the act

In order for the paper to have legal force, a commission must first be created. She will deal with price changes. To establish it, you will need a special order from the head of the organization, which can be in free form. A chairman is also elected there; he will supervise the event and sign the documentation at the end.

It will also require a reason or reference - the reason why it all begins. We discussed the reasons for reducing or increasing the cost above; any chosen one must correspond to reality and not contradict the legislation of the Russian Federation.

Creating a document "Revaluation"

In order to revaluate a specific product, open the Warehouse -> Revaluations

(Fig.1).

Fig.1 Open the section Warehouse -> Revaluations

In the window that opens, on the top panel, click the “Create” button (Fig. 2).

Fig.2 Click the “Create” button

In the form that opens, o is entered by default. It is placed so that “zeros” are not recorded in the revaluation if the price is not set in the table.

Note! Before setting prices and carrying out revaluation, it is necessary to fill in the price currency in all used price types. (Fig.3)

Fig.3 Setting the price currency

Components of a document

The act is drawn up if there are few positions. One page is enough here. If large-scale work with a large number of products is planned, then a full inventory is formed. You can call it that - an inventory-act. In addition, an order is being prepared, without which work should not begin or any changes in price tags. Examples of standard documents are below.

It starts with a management visa; without it, the paper has no legal force. The affixed signature certifies the list for transformation and approves it. Therefore, at the top of the paper the position and full name of the head of the organization are indicated.

It is also advisable to affix a live stamp, but since 2014 this is no longer necessary. After that, their use began to be easier to approach.

At the top of the act it states:

• Date of preparation;
• Document Number;
• Full name of the chairman, his position, signature, other members of the commission;
• Date and number of the order in accordance with which the changes occur.

In some cases, a new assessment is made on the basis of another document. Then a link to it must be indicated in the body of the file.

Next is a table where a separate row is allocated for each product; it is forbidden to combine several into one. This division greatly simplifies the search.

Filling out the table takes the longest time. The easiest way is to create a file through special programs to save time when filling out. Then be sure to check it and only then certify it and accept it for use.

When everything is completed, at the end fields are filled in for the signatures of the commission members and their chairman. The financially responsible person is also indicated. The manager at the bottom no longer signs, since he has already signed in the header of the page.

Order for revaluation of goods - sample

• The name of the organization is indicated along with the form of ownership (LLC, JSC, Individual Entrepreneur).
• Then enter the city, street and house number.
• Name of the form.
• Document date and number.
• The word "I command".

Next, it is written down from what date and where the changes are installed. If this is a supermarket chain that hosts targeted promotions, then the addresses of everyone where the change will work are required.

You need to write it like this:

1. Install from 05/12/20 in the stores of Tandoor LLC, located at the following addresses: Rostov-on-Don, Voroshilovsky Avenue, 85, Rostov-on-Don, Lenina Street, 17, Rostov-on-Don, Gogolevsky Lane, 41 discount of 10% on product items that are listed in the table below.

1. Re-evaluate and print updated price tags.
2. Control of the results is entrusted to the senior seller and store merchandiser.

Director of the enterprise Ivanov I.V.

Do you want to implement “Store 15”? Get all the necessary information from a specialist.

Thank you!

Thank you, your application has been accepted.

The procedure and its documentation

The purpose of reducing the cost of finished products is the owner’s desire to sell inventory and at least partially compensate for the costs of its production, storage and subsequent sale.

Inventory

As a rule, taking measures to reduce the cost of inventory items is preceded by an inventory count, during which inventory items subject to discounting are identified.

Inventory is a check of the availability and condition of goods on a specified date by reconciling actual data with accounting data.

When conducting an inventory of inventory balances, the organization is guided by the Methodological Recommendations for the Inventory of Property and Financial Obligations, approved by Order of the Ministry of Finance of the Russian Federation No. 49 of June 13, 1995.

Before starting an inventory, the enterprise determines:

• composition of the commission that will participate in the inventory;
• timing and reasons for conducting inventory reconciliation.

The commission counts the quantity of inventory, measures it and determines its weight, and identifies changes in the gradation of product quality and the presence of defects.

Attention! Reconciliation of inventory balances with accounting data is mandatory in the presence of persons bearing financial responsibility for their availability and condition.

The results of the activities carried out are reflected in the inventory report according to the unified form INV-3.

The annex to INV-3 is a statement of identified deficiencies . There is no unified form for this act; each enterprise develops it independently and approves it in its accounting policies. The act must reflect:

1. name or article number of the product;
2. its quantity;
3. unit cost;
4. identified defects (for example, damage, scrap, inability to sell goods for a long time at a given price, etc.);
5. the impact of defects on the consumer properties of the product.

The final data identified by the commission during inventory reconciliations are displayed in the statement of results identified by the inventory, according to the INV-26 form.

This statement indicates the discrepancies between the actual results of the reconciliation and the accounting data, as well as the amount of detected damage to the property being inspected.

Drawing up an order

The inventory commission first of all analyzes the discrepancies and suggests to the management of the enterprise ways to eliminate the discrepancies identified during the inventory process. The commission draws up all conclusions and decisions in a protocol with the obligatory indication of information about the commodity units subject to markdown.

The main document justifying the reduction in price of goods is the order. There is no special form for the order; it is drawn up randomly. The order specifies the list of goods subject to markdown and the amount of reduction in the value of the goods.

It is imperative to indicate the reasons for the price reduction , because... markdown of goods and materials is a necessary measure in order to sell goods and at least to some extent compensate for the costs of the enterprise.

If the markdown occurs due to damage to the goods, then the tax authorities, as a rule, have no questions about this justification. It is much more difficult to justify the markdown procedure if there is no demand for the product. The reasons for the markdown in this case may be the following:

• the appearance of cheaper analogues on the market;
• reduction in market prices for similar products;
• decreased consumer demand for seasonal goods;
• partial loss of original consumer properties (typical for sample goods).

Reference. The order specifies the deadline for conducting an analysis of the demand for these goods and their current value, as well as the composition of the commission that will revaluate the goods.

Determining the market value of inventory items

As a rule, the responsibilities for determining the actual market price of goods subject to markdown are assigned to the marketing or sales department. The organization can turn to an independent expert or conduct the analysis on its own.

To calculate the current market price, the organization has the right to use any information sources (clause 20 of the Guidelines for accounting of inventories, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n).

This could be statistical data, competitor prices, information from magazines, newspapers or the Internet. The results of the study of market prices on the date of markdown of inventory items must be documented.

How much can you discount and how to calculate it?

The reduction in cost of inventory items occurs based on an analysis of market prices as of the current date. However, not all product groups can be assessed based on competitor data. Then the decision on the amount of reduction in the price of a commodity unit is made taking into account the costs of production and storage of goods.

The maximum markdown size is calculated using the formula:

Ruts=(RTz/Rtsb)x100 , where

• Ртз - expenses for storage and servicing of finished products.
• Rsb is the initial or so-called basic retail price of a product.

Example:

The cost per unit of goods is 500 rubles, and the base retail price is 850 rubles, then the maximum possible markdown amount will be 58.8% (500/850x100). If the cost of inventory is reduced by a larger percentage, the organization will incur losses from the production and storage of this product.

The maximum amount of reduction in the cost of products is calculated and indicated in the markdown order as the recommended maximum possible limit for reducing the price of the product.

Drawing up an act for products of inadequate quality

To document the fact of markdown of inventory items, the unified form MX-15 “Act on markdown of inventory items” is used.

The depreciation act on inventory items is drawn up in two copies:

• one copy of the act is transferred to the accounting department;
• the second remains with the financially responsible person, and in the case of transfer of finished products to a trading organization, it is attached to the delivery note.

The act states:

1. the percentage of reduction in the price of the product;
2. the cost of goods and materials before and after markdown and the difference between these two prices;
3. the reason for the markdown of a product unit (for example, a decrease in demand, loss of quality, product breakdown, etc.);
4. signs of a decrease in its quality (for example, seasonality, the product is out of fashion, poor color, etc.).

In the columns “Difference in price” and “Amount of markdown” the indicators are summed up and their total is recorded on the last page of the act. Members of the commission and the financially responsible person endorse the act, after which it is approved by the head of the organization.

How to fix errors

We figured out how to re-price a product. But what if there was an inaccuracy or some column needs to be corrected?

Usually the process is carried out in the 1C program or similar. There is a form and some fields are filled in automatically. In cases where you have to fill out everything manually, it is important to try not to make mistakes. All empty lines are crossed out using a ruler.

But if you need to correct something, you need to cross out the error, and then write the correct value on the side or top. Then all members of the commission and the head himself sign next to the correction. If the MOL is present when drawing up the act, then he also puts his signature.

How does the markdown procedure work?

Step 1 – solution. First, the management of the organization decides to reduce the selling price of the product. This can be done as a result of analyzing the renewal of the assortment and studying economic reports, as well as as a result of requests from heads of structural divisions who want to correct the current situation.

Step 2 – inventory. Having discovered an item that can no longer be sold at the current price, management must take inventory of it. This must be done not only according to the requirements of the Law, which obliges to carry out an inventory in the event of damage to goods (Clause 2 of Article 12 of Federal Law No. 129). Inventory is absolutely necessary in retail trade, since accounting cannot always know how much and what kind of goods are left in a particular outlet. Inventory takes place according to general rules:

• creation or activation of a permanent inventory commission (based on the order of the manager);
• checking the actual availability of goods (materially responsible persons take part);
• recording the quantity and condition of goods;
• entering the information received into the inventory list (INV-3 form);
• drawing up a comparison statement (form INV-19), which will contain data on all identified discrepancies with accounting indicators;
• summing up the inventory results - drawing up an accounting sheet (form INV-26) and an order based on the inventory results.

Step 3 – markdown or write-off. If a product has completely lost its value, it must be written off. If you can still sell it, you need to re-evaluate it downwards. To do this, the following actions are carried out: the manager issues an order on revaluation, and on its basis a revaluation act (the form can be developed by the organization independently), which must include:

• names and articles of goods subject to markdown;
• characteristics defining these goods;
• quantity according to inventory data (in accepted units of measurement);
• both prices – old and established;
• reasons for which the markdown was made.

Change of price tags

We have figured out how to revaluate goods in a store, now it’s worth understanding how and in what order the tags themselves are changed.

The “priority” principle applies here. First, everything that goes “up” changes, and then those positions that go “down” change. In addition, it is forbidden to simply cross out the old price and write a new one next to it by hand. It is recommended to print up-to-date information each time and change the sign on the rack or any other place where customers find out the information. We have already talked about the form in which price tags should be. Cleverence offers Shop 15 software, which will help carry out revaluation from the software and data collection terminal accurately and quickly.

Write-off of goods

Damaged goods that are not subject to further sale are written off from the register. Write-off of commodity losses is carried out on the basis of an act of form No. TORG-16****

**** This form was approved by Decree of the State Statistics Committee of Russia dated December 25, 1998 No. 132.

Reflection in tax accounting

For profit tax purposes, losses from damage during storage and transportation of inventories within the limits of natural loss norms approved in the manner established by the Government of the Russian Federation are equated to material costs (subclause 2, clause 7, article 254 of the Tax Code of the Russian Federation).

note

The procedure for approving norms of natural loss during the storage and transportation of inventories is covered by Resolution of the Government of the Russian Federation of November 12, 2002 No. 814 (hereinafter referred to as Resolution No. 814).

Based on paragraph 1 of this resolution, the norms of natural loss used to determine the permissible amount of irrecoverable losses from shortages and (or) damage to inventories are developed taking into account the technological conditions of their storage and transportation, climatic and seasonal factors affecting their natural loss, and are subject to revision as necessary, but at least once every five years.

Norms of natural loss are developed by the relevant ministries for various types of goods and products. Thus, the norms for the natural loss of food products in the field of trade and public catering during the storage and transportation of inventories are developed and approved by the Ministry of Industry and Trade of the Russian Federation (clause 2 of Resolution No. 814). Currently, the norms for the natural loss of food products in the field of trade and public catering are approved by order of the Ministry of Economic Development of Russia dated September 7, 2007 No. 304.

The use of independently developed norms of natural loss for profit tax purposes is not provided for, because this contradicts paragraph 2 of Resolution No. 814. Similar explanations are given, in particular, in letters of the Ministry of Finance of Russia dated July 21, 2010 No. 03-03-06/1/471 and Federal Tax Service of the Russian Federation for Moscow dated November 17, 2008 No. 19-12/106707

Losses from damage in excess of natural loss norms are taken into account depending on whether the guilty party is identified or not.

Let’s say that the persons responsible for the damage to the goods have not been identified, or the court has refused to recover the amount of damage caused from them. In this case, losses from damage, as economically unjustified expenses, should be taken into account as expenses that do not reduce taxable profit, based on paragraph 49 of Article 270 of the Tax Code of the Russian Federation.

If the guilty person is identified, then the amounts of compensation for damage that he admitted or must pay on the basis of a court decision that has entered into legal force are reflected in non-operating income (clause 3 of Article 250 of the Tax Code of the Russian Federation). Income is recognized using the accrual method - at the moment the guilty person recognizes the obligation to compensate for the damage or at the time the court decision enters into force (subclause 4, paragraph 4, Article 271 of the Tax Code of the Russian Federation), with the cash method - at the time the guilty person compensates for the damage (clause 2 Article 273 of the Tax Code of the Russian Federation). (we wrote about this above)

Let us note that the guilty person must bear full financial responsibility on the basis of Article 243 of the Labor Code. The amount of damage caused to the employer due to damage to property is determined by actual losses, which are established based on market prices prevailing in the area on the day the damage was caused, but not lower than the value of the property according to accounting data, taking into account the degree of wear and tear of this property (Article 246 of the Labor Code RF).

The amount of damage to goods if there is a culprit can be included in other non-operating expenses in full on the basis of subparagraph 20 of paragraph 1 of Article 265 of the Tax Code. In this case, losses from damage in accordance with the requirements of paragraph 1 of Article 252 of the Tax Code must be justified and documented, for example, a matching sheet, an explanatory note from the employee. Similar explanations are given in the letter of the Ministry of Finance of Russia dated April 17, 2007 No. 03-03-06/1/245.

If the summer heat has led to an emergency, then losses from damage to goods can be taken into account in full as part of non-operating expenses on the basis of subclause 6 of clause 2 of Article 265 of the Tax Code of the Russian Federation.

For your information

An emergency is a situation in a certain territory that has arisen as a result of an accident, a dangerous natural phenomenon, a catastrophe, a natural or other disaster that may result or has resulted in human casualties, damage to human health or the environment, significant material losses and disruption of people’s living conditions (clause 1 of article 11 of the Tax Code of the Russian Federation, article 1 of the Law of December 21, 1994 No. 68-FZ).

The validity of losses fully included in non-operating expenses must be documented, for example, by a certificate from the hydrometeorological bureau, which must contain information that, as a result of strong summer heat, a natural disaster occurred in a specific location of inventory items, and an indication of a specific damage caused by high temperature (see resolutions of the FAS North Caucasus District dated September 25, 2009 in case No. A32-48446/2004-12/930-2008-56/32-58/385, FAS North-Western District dated 21 December 2009 in case No. A42-5562/2008, dated December 11, 2006 in case No. A56-13533/2005 and the Federal Antimonopoly Service of the Ural District dated October 20, 2009 No. F09-7662/09-S3.

Under the accrual method and under the cash method, losses from damage to goods are included in expenses at the time the fact of damage is registered. Moreover, if the company uses the cash method, losses are taken into account provided that the damaged goods are paid for (clause 1 of Article 272 and clause 3 of Article 273 of the Tax Code of the Russian Federation).

"Recovered" VAT

Amounts of “input” VAT based on suppliers’ invoices are subject to deductions in respect of goods that are purchased to carry out transactions recognized as objects of taxation (subclause 2, clause 2, article 171, clause 1, article 172 of the Tax Code of the Russian Federation). Operations for the disposal of goods for reasons not related to sale or gratuitous transfer are not subject to VAT taxation (Articles 39 and 146 of the Tax Code of the Russian Federation). This means that VAT amounts on goods used in such operations are not subject to deductions. When writing off the cost of goods as expenses in the form of losses from damage, the amounts of “input” VAT on them that were previously accepted for deduction are subject to restoration. The Russian Ministry of Finance provided similar explanations in a letter dated July 4, 2011 03-03-06/1/387.

It is necessary to restore VAT for payment to the budget in the tax period in which goods began to be used for operations that are not recognized as an object of VAT taxation (paragraph 4, subparagraph 2, clause 3, article 170 of the Tax Code of the Russian Federation).

In tax accounting, VAT amounts recovered in connection with transactions not subject to VAT are generally included in other expenses associated with production and sales (subclause 1, clause 2, subclause 2, clause 3, Article 170, Clause 1 of Article 264 of the Tax Code of the Russian Federation). However, if the expense in the form of the cost of damaged valuables is not taken into account for profit tax purposes, then the amount of VAT recovered as a result of writing off these valuables is also not taken into account for tax purposes on the basis of paragraph 49 of Article 270 of the Tax Code of the Russian Federation.

Accounting for revaluation of goods

The right program will help you:

• monitor shelf life;
• work simultaneously with any number of warehouses;
• keep all accounting records - write off, register, accept, carry out inventory and re-evaluate;
• generate and issue related documentation - accompanying papers, invoices, orders;
• create reports and view them from anywhere in the world.

offers installation of the best software for the job. Our employees will help you choose software that optimizes your organization’s business processes. For example, routine warehouse operations can be accelerated through Warehouse 15. This will help to automate all commodity accounting operations.

Revaluation and accounting of reserves for reduction in the value of inventories

Recently, the procedure for regulating the results of revaluation of materials has undergone significant changes. According to the Accounting Regulations “Income of the organization” and “Expenses of the organization”, the amounts of revaluation and depreciation of current assets are considered as other financial results and are included in operating income and expenses.

If an organization revaluates materials, then its result, as identified, is written off directly to account 91 “Other income and expenses”:

§ additional valuation – Debit 10 Credit 91 ;

§ markdown – Debit 91 Credit 10 .

In analytical accounting, a separate sub-account is opened to accumulate data on the revaluation. Subsequently, the result from the revaluation of materials goes to the profit and loss account as part of the balance of other income and expenses. Thus, he participates in the formation of the final financial result of the organization.

If necessary, a similar procedure can be applied to take into account the results of revaluation of other types of working capital: balances of work in progress, inventories of finished products, goods, etc.

Inventories for which the market price has decreased during the reporting year, or they have become obsolete or have completely or partially lost their original qualities, are reflected in the balance sheet at the end of the reporting year at the current market value, taking into account the physical condition of the inventories. A decrease in the value of inventories is reflected in accounting in the form of a reserve accrual.

For this purpose, synthetic account 14 is used, which is called “Reserves for reducing the value of material assets.” It is intended to clarify the evaluation of materials. The mechanism for its use is similar to the operation of accounts for other valuation reserves (reserves for doubtful debts, for the depreciation of investments in securities).

Before drawing up the annual report, the actual cost of procurement of materials is compared with their current market value (possible sale value).

The calculation of the current market value of inventories is carried out by the organization on the basis of information available before the date of signing the financial statements. When calculating, the following is taken into account:

– and a change in price or actual cost directly related to events after the reporting date that confirm the economic conditions existing at the reporting date in which the organization conducted its activities;

– assignment of inventories;

– the current market value of finished products, in the production of which raw materials, materials and other inventories are used.

A reserve for reduction in the value of material assets is not created for raw materials, materials and other inventories used in the production of finished products, works, or provision of services, if as of the reporting date the current market value of these finished products, works, services corresponds to or exceeds its actual cost .

The organization must provide confirmation of the calculation of the current market value of inventories.

When the actual cost is lower than the current market value, the actual cost is taken as the balance sheet valuation of materials. If the current market value is lower than the actual cost, then the materials are shown on the balance sheet at the current market value, and a loss from the reduction in the value of inventories is recognized in the income statement.

A reserve for a decrease in the value of material assets is created for each unit of inventory accepted in accounting. It is allowed to create reserves to reduce the cost of material assets for certain types (groups) of similar or related inventories. It is not allowed to create reserves to reduce the cost of material assets for such enlarged groups (types) of inventories as basic materials, auxiliary materials, finished products, goods, inventories of a certain operational or geographic segment, etc.

Recognizing the realizable value as a balance sheet valuation of materials does not change their value in accounting. For the amount of reduction in the cost of materials, reserves are formed at the expense of the profit of the reporting year. Transactions with carry-over balances of material assets in the next period are recorded without taking into account the decrease in their value in the balance sheet.

In accounting for the amount of reserves for a decrease in the cost of materials, an entry is made in debit 91 “Other income and expenses” and credit 14 “Reserves for a decrease in the cost of material assets.” At the beginning of the next reporting period, the balance on account 14, carried over from the previous period, is closed by reverse entry.

If, in the period following the reporting period, the current market value of inventories, for the reduction of the value of which a reserve was created in the reporting period, increases, then the corresponding part of the reserve is included in the reduction in the value of material expenses recognized in the period following the reporting period.

The accrued reserve is written off to increase financial results (account “Other income and expenses”) as the inventories related to it are used or sold.

Thus, the balance on account 14 “Reserves for impairment of the value of material assets” represents the difference between the actual cost and the current market value, relating exclusively to materials at the end of the reporting period. When closing this account, it is assumed that all carry-over balances of material assets will be completely used up during the next reporting period.

5.14. Inventory of inventories

The safety and correct registration of operations on the movement of inventories are confirmed by the results of periodically conducted inventory.

The main purpose of inventory is to identify the actual availability of inventory in physical and monetary terms.

During the inventory process, the safety of inventory items is checked; correctness of their storage, release, condition of weighing and measuring instruments; the procedure for keeping records of the movement of inventory items.

The head of the organization or his deputy, or the chief accountant organizes and manages the inventory. The inventory work is carried out by a commission consisting of competent persons, which is appointed by order of the head of the organization.

At the time of the inventory, the accountant draws up an inventory list of inventory items in warehouses (form No. inv-3). Warehouse operations are not carried out during this period; In this inventory, the warehouse manager gives a receipt that all warehouse documents are recorded in materials accounting cards and submitted to the organization’s accounting department.

To identify inventory results, a book of material balances can be used, which provides special columns for recording material balances in kind according to inventory records.

In all cases, discrepancies identified as a result of inventory (surpluses or shortages) are documented through the preparation of matching statements and assessed at actual cost. Valuables found to be in surplus are subject to capitalization with a reduction in general business expenses ( Debit 10 Credit 26 ). The shortage of valuables is written off to account 94 “Shortages and losses from damage to valuables” with a decrease in their value and quantity in the accounts of material assets (account credit 10).

By decision of the head of the organization, the amount of the shortage within the limits of natural loss norms is attributed to production costs: debit 25.26 credit 94 “Shortages and losses from damage to valuables.” Shortages in excess of natural loss norms (at retail prices) are attributed to financially responsible persons:

Didn't find what you were looking for? Use the search:

How to revaluate if accounting is carried out at purchase prices

If the company has chosen this method of accounting for products, then these markdowns will not be recorded in accounting unless it is higher than the amount of the trade margin. This should be stated in the accounting policy.

If you plan to change the price tag by more than a similar markup, then it is necessary to reduce the book value of the products. In this case, the difference between the amount at which goods are discounted and the interest rate must be reflected on the accounts. Additionally, the restored VAT, which previously reduced the debt to the budget, should be recorded.

How will it look like:

The last field must be reflected on the accounts. The following wiring is used for this:

Dt 91 Kt 41.2 200

The amount of restored VAT will be 800 (4000*20%). It is written as follows:

Dt 68 Kt 19 800

After this, the restored VAT must be written off against financial results:

Dt 91 Kt 19.3 800

Then it is sent to the budget as taxes:

Dt 68 Kt 51 800

But this is not the only reason why a product may fall in value. Sometimes the reason is an emergency, fires, loss of consumer properties or inflation.

Markdown of goods. Consider the nuances

In the process of trading companies, situations often arise when a product ceases to be in demand or loses its consumer properties and has to be discounted. But this procedure has a number of nuances. To figure this out, we analyzed legal norms, arbitration practice, and explanations from financiers. Accounting of transactions

The specific accounting procedure for markdowns depends on what method of valuing goods is recorded in the store’s accounting policy - at purchase or at sales prices.

GOODS ARE ACCOUNTED AT PURCHASE PRICES

Let's assume that they decided to mark down the product due to a decrease in demand, and the amount of the markdown is within the limits of the trade markup.
In this case, the selling price of goods will only decrease. Therefore, the markdown is not accompanied by any additional accounting entries. EXAMPLE 1
In April 2010, the Melissa department store purchased a batch of blouses (100 pieces) at a price of 1,900 rubles.
Initially, the selling price was set at 3,540 rubles. (including VAT). At this price, 80 blouses were sold during April. However, subsequently the demand decreased significantly, and in June 2010 the company’s management decided to discount the blouses and set the retail price for the remaining ones at 2,360 rubles. (including VAT). At this price in June 2010, two blouses were sold. The accounting policy stipulates that goods are accounted for at purchase prices. To simplify the example, “input” VAT on purchased goods is not considered. A department store accountant makes entries like this. In April 2010: DEBIT 41 CREDIT 60
- 190,000 rubles.
(1900 rubles/piece x 100 pieces) - blouses have been capitalized; DEBIT 50 CREDIT 90 subaccount “Revenue”
- 283,200 rubles.
(RUB 3,540/piece x 80 pieces) - revenue from the sale of blouses is reflected; DEBIT 90 subaccount “Cost of sales” CREDIT 41
- 152,000 rub.
(RUB 1,900/piece x 80 pieces) - the purchase price of the blouses sold was written off; DEBIT 90 subaccount “VAT” CREDIT 68 subaccount “Calculations for VAT”
- 43,200 rubles.
(RUB 283,200 x 18%: 118%) - VAT is charged on goods sold. In June 2010: DEBIT 50 CREDIT 90 subaccount “Revenue”
- 4720 rubles.
(RUB 2,360/piece x 2 pieces) - revenue from the sale of discounted blouses is reflected (at the new selling price); DEBIT 90 subaccount “Cost of sales” CREDIT 41
- 3800 rub.
(RUB 1,900/piece x 2 pieces) - the purchase price of the blouses sold was written off; DEBIT 90 subaccount “VAT” CREDIT 68 subaccount “Calculations for VAT”
- 720 rubles.
(RUB 4,720 x 18%: 118%) — VAT is charged on goods sold. In practice, situations are possible when the amount of markdown on goods exceeds the trade markup. This will happen, for example, if the current market value of goods (at which they can be sold) is lower than the actual cost. However, it is impossible to change the cost at which inventories are recorded (clause 12 of PBU 5/01). Therefore, in such cases, the company should create a reserve to reduce the value of valuables. The procedure for this is as follows. On December 31, the firm identifies items that can be sold at a price below their actual cost. On the same day, the difference between the purchase price of goods, at which they are listed on account 41, and their current market value is determined. A reserve is created for the amount of this difference to reduce the cost of goods, and an entry is made in accounting: DEBIT 91 subaccount “Other expenses” CREDIT 14
- the creation of a reserve to reduce the cost of goods is reflected.
A reserve is created for each unit of inventory listed in accounting. At the end of the year, the cost of discounted goods is shown in the balance sheet minus the created reserve (the balance of account 14 is not reflected separately in the balance sheet liability). This procedure is provided for in paragraph 25 of PBU 5/01. Subsequently, as the goods for which a reserve was created for a decrease in value are sold (or as their market price increases), the following entry is made: DEBIT 14 CREDIT 91 subaccount “Other income”
- the amount of the reserve for a decrease in the value of goods is written off. Let’s say that during the inventory it turned out that the product has completely or partially lost its original qualities. As a result, its selling price is set at a level below the actual cost. In such a situation, in our opinion, it is advisable to reflect the markdown as losses from damage. The algorithm of actions will be as follows: - write off the purchase price of goods from the credit of account 41 to the debit of account 94 “Shortages and losses from damage to valuables”; — capitalize goods at the price of possible sale (lower than the actual cost) on the debit of account 41 in correspondence with the credit of account 94; - write off the debit balance of account 94 to other expenses (posting to the debit of account 91 in correspondence with the credit of account 94).

GOODS ARE ACCOUNTED AT SALES PRICES

If the markdown does not exceed the amount of the trade margin, then the accountant makes a reversing entry in the debit of account 41 in correspondence with the credit of account 42 “Trade margin”.
EXAMPLE 2
Let's use the conditions of example 1, but assume that goods are recorded at sales prices.
With this option, the trade accountant needs to make the following entries. In April 2010: DEBIT 41 CREDIT 60
- 190,000 rubles.
(1900 rubles/piece x 100 pieces) - purchased blouses are capitalized; DEBIT 41 CREDIT 42
- 164,000 rub.
((3540 rubles/piece - 1900 rubles/piece) x 100 pieces) - reflects the trade margin on purchased blouses; DEBIT 50 CREDIT 90 subaccount “Revenue”
- 283,200 rubles.
(RUB 3,540/piece x 80 pieces) - revenue from the sale of goods is reflected; DEBIT 90 subaccount “Cost of sales” CREDIT 41
- 283,200 rub.
— sold goods are written off (at sales price); DEBIT 90 subaccount “Cost of sales” CREDIT 42
- 131,200 rub.
((3540 rubles/piece - 1900 rubles/piece) x 80 pieces) - the trade margin on goods sold has been reversed; DEBIT 90 subaccount “VAT” CREDIT 68 subaccount “Calculations for VAT”
- 43,200 rubles.
— VAT is charged on goods sold. In June 2010: DEBIT 41 CREDIT 42
- 23,600 rubles.
((3540 rub/piece - 2360 rub/piece) x 20 pieces) - the trade margin on the remaining blouses when they are marked down has been reversed (reduced); DEBIT 50 CREDIT 90 subaccount “Revenue”
- 4720 rub.
(RUB 2,360/piece x 2 pieces) - revenue from the sale of discounted blouses is reflected (at the new selling price); DEBIT 90 subaccount “Cost of sales” CREDIT 41
- 4720 rub.
— sold goods are written off (at sales price); DEBIT 90 subaccount “Cost of sales” CREDIT 42
- 920 rub.
((2360 rubles/piece - 1900 rubles/piece) x 2 pieces) - the realized trade margin was reversed; DEBIT 90 subaccount “VAT” CREDIT 68 subaccount “Calculations for VAT”
- 720 rubles.
— VAT is charged on goods sold. If the amount of the markdown exceeds the trade margin (that is, the selling price of the goods becomes lower than their actual cost), then you first need to reverse the entire amount of the trade margin: DEBIT 41 CREDIT 42
- the trade margin on discounted goods is reversed.
Further, we believe that an accountant can apply a technique that allows one to avoid using account 14. The fact is that the idea of ​​valuing goods at sales prices is as follows: the balance of account 41 should always correspond to the value of the balance of goods at sales prices. And this is impossible if the accountant does not write off the remaining amount of the markdown (above the previously applied markup). Therefore, from our point of view, the difference between the actual cost of goods and their new sales value must be shown as follows: DEBIT 91 subaccount “Other expenses” CREDIT 41
- reflects the markdown of goods in excess of the trade margin. If we approach the situation formally, such an entry violates the requirements of paragraph 12 of PBU 5/01 (prohibiting changes in the actual cost of goods). However, if the established accounting rules do not reliably reflect the property status and financial results of the organization, the accountant may not apply these rules with appropriate justification. This conclusion follows from paragraph 4 of Article 13 of the Federal Law of November 21, 1996 No. 129-FZ “On Accounting”. Therefore, this option for reflecting transactions must be provided for in the accounting policies of a trading company. And also subsequently disclose this fact in an explanatory note when preparing annual reports.

Features of tax accounting

In tax accounting there are no concepts of “trade margin”, “accounting for goods at sales value”, “markdown of goods”.

HOW THE FINANCIAL RESULT IS FORMED

Trading companies determine the financial result (profit or loss) according to the universal rule set forth in subparagraph 3 of paragraph 1 of Article 268 of the Tax Code of the Russian Federation. Namely: when selling purchased goods, income from the sale is reduced by the cost of their acquisition (determined by one of the four permitted valuation methods), as well as by the amount of expenses directly related to the sale. This means that if a product was discounted, but its sale price still remained higher than the purchase price, a profit from the sale will be generated in tax accounting. If, as a result of the markdown, the selling price of the goods has become lower than the amount of expenses for its acquisition, then the company receives a loss. It is recognized in tax accounting in accordance with paragraph 2 of Article 268 of the Tax Code of the Russian Federation.

MARKET PRICES FOR GOODS

We must not forget about the provisions of Article 40 of the Tax Code of the Russian Federation. Thus, if the actual price deviates from the price level used by the company for identical (homogeneous) goods by more than 20 percent, controllers have the right to charge additional taxes. They will calculate them based on market prices. However, this does not mean that the tax authorities will be able to make additional assessments in any case (it may turn out that the actual prices that the company uses correspond to market prices). Indeed, paragraph 3 of Article 40 of the Tax Code of the Russian Federation specifies that when determining the market price, discounts caused by: seasonal and other fluctuations in consumer demand for goods must be taken into account; loss of quality or other consumer properties of goods; expiration (approximation of the expiration date) of the shelf life or sale of goods. All these three factors can be the reason not only for the announcement of sales and discounts on certain goods, but also the basis for their markdown.

What about “input” VAT?

There is no need to restore the “input” tax previously accepted for deduction when marking down goods. If the sales price reduced by the amount of the markdown exceeds the actual cost of goods, then no questions arise at all. But even in cases where the product is ultimately sold at a price lower than its purchase price, the entire amount of “input” tax should be considered legally accepted for deduction. After all, the deduction is made on the basis of the supplier’s invoice when goods are accepted for registration - regardless of the exact price at which this product is subsequently resold to end customers. And among the grounds for VAT restoration (listed in clause 3 of Article 170 of the Tax Code of the Russian Federation), markdown of goods (sale below the purchase price) does not appear.

The article was published in the journal “Accounting in Trade” No. 6, June 2010.