Postings for the receipt and purchase of materials using practical examples

Accounting entries

The receipt of materials into the organization is carried out under supply contracts, by manufacturing materials by the organization, making a contribution to the authorized (share) capital of the organization, receiving the organization free of charge (including a gift agreement). Materials include raw materials, basic and auxiliary materials, purchased semi-finished products and components, fuel, containers, spare parts, construction and other materials.

The following are accounting entries reflecting the receipt of materials into the organization.

• Accounting for receipt of materials under a supply agreement. Accounting entries
• Accounting for receipt of materials based on advance reports. Accounting entries
• Accounting for the receipt of materials under an exchange agreement. Accounting entries
• Accounting for receipt of materials under constituent agreements. Accounting entries
• Accounting for free receipt of materials. Accounting entries
• Accounting for the receipt of materials produced in-house

List of accounts involved in accounting entries:

Contract of sale

If materials are supplied for a fee, you will receive from the supplier or shipper:

• payment documents (bills, invoices, invoices, etc.);

• accompanying documents (specifications, certificates, quality certificates, etc.).

This is stated in paragraph 1 of paragraph 44 of the Methodological Instructions, approved by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.

When you receive materials, check whether the data in the accompanying documents corresponds to those provided for by the terms of the contract (range, quantity, prices, method and terms of shipment, etc.). Also make sure that all amounts in the settlement documents are calculated correctly.

In this case, reflect the actual cost of materials in the amount:

• payment to the materials supplier;

• transportation and procurement costs;

• costs of bringing materials to a state in which they are suitable for use (including toll processing).

Such a list is established in paragraph 68 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.

If you reflect the receipt of materials on account 10 at the actual cost of each unit, then make the following entry:

Debit 10 Credit 60 (76)

– the receipt of materials is reflected at actual cost, taking into account transportation and procurement costs.

This follows from the provisions of paragraph 80 of the Methodological Instructions, approved by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n, and the Instructions for the chart of accounts (accounts 10, 60, 76).

An example of reflecting in accounting the receipt of materials under a purchase and sale (supply) agreement. The cost of materials is formed on account 10

LLC "Proizvodstvennaya" received the materials necessary for the production of products. The cost of materials was 118,000 rubles. (including VAT – 18,000 rubles). Delivery of materials cost 59,000 rubles. (including VAT – 9000 rubles). The materials have been entered into the warehouse. The organization accounts for materials on account 10 at actual cost (without using accounts 15 and 16).

The Master's accountant made the following entries in the accounting:

Debit 10 Credit 60 – 150,000 rub. (RUB 118,000 – RUB 18,000 + RUB 59,000 – RUB 9,000) – reflects the receipt of materials, taking into account delivery costs;

Debit 19 Credit 60 – 27,000 rub. (RUB 18,000 + RUB 9,000) – input VAT included;

Debit 68 subaccount “Calculations for VAT” Credit 19 – 27,000 rub. – VAT is accepted for deduction upon receipt of a correctly executed supplier invoice;

Debit 60 Credit 51 – 177,000 rub. (RUB 118,000 + RUB 59,000) – paid for materials including delivery costs.

Reflect the receipt of materials at accounting prices with the following entries:

Debit 15 Credit 60 (76)

– the receipt of materials is reflected in the assessment provided for in the contract with the supplier or other documents;

Debit 15 Credit 60 (76)

– transport, procurement and other similar expenses are taken into account in the actual cost of materials;

Debit 10 Credit 15

– materials are capitalized at the accounting price.

Reflect deviations between the accounting price and the actual cost using the following entries:

Debit 16 Credit 15

– the excess of the actual cost of materials over their book price is reflected;

Debit 15 Credit 16

– the excess of the accounting price of materials over their actual cost is reflected.

This follows from the provisions of paragraph 80 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n, and the Instructions for the chart of accounts (accounts 10, 15, 16, 60, 76).

An example of reflecting in accounting the receipt of materials under a purchase and sale (supply) agreement. Materials are capitalized at a book price that is less than their actual cost

Proizvodstvennaya LLC received 100 cans of paint at a price of 1,180 rubles. (including VAT - 180 rubles). Costs for delivery of materials amounted to 29,500 rubles, including VAT – 4,500 rubles. The materials have been entered into the warehouse. The accounting policy of the organization provides for the use of accounts 15 and 16. The accounting price of incoming paint is 1200 rubles.

The total cost of the received paint was 118,000 rubles. (RUB 1,180 × 100 pcs.), including VAT – RUB 18,000. (180 rub. × 100 pcs.).

The Master's accountant made the following entries in the accounting:

Debit 15 Credit 60 – 100,000 rub. (118,000 rubles – 18,000 rubles) – the receipt of materials from the supplier is reflected;

Debit 15 Credit 60 – 25,000 rub. (RUB 29,500 – RUB 4,500) – the cost of delivery of materials from the supplier is taken into account.

The actual cost of the incoming paint included the costs of its delivery. Therefore, the actual cost of the entire batch of paint was: 100,000 rubles. + 25,000 rub. = 125,000 rub.

Debit 19 Credit 60 – 22,500 rub. (RUB 18,000 + RUB 4,500) – VAT on purchased materials is taken into account, taking into account delivery costs;

Debit 68 subaccount “Calculations for VAT” Credit 19 – 22,500 rub. – VAT is accepted for deduction upon receipt of a correctly executed supplier invoice;

Debit 10 Credit 15 – 120,000 rub. (RUB 1,200 × 100 pcs.) – materials were capitalized at the accounting price;

Debit 16 Credit 15 – 5000 rub. ((1250 rub. – 1200 rub.) × 100 pcs.) – a deviation is reflected due to the excess of the actual cost over the book price;

Debit 60 Credit 51 – 147,500 rub. (RUB 29,500 + RUB 118,000) – payment was made to the supplier for received materials and to the transport company for delivery of materials.

An example of reflecting in accounting the receipt of materials under a purchase and sale (supply) agreement. Materials are capitalized at a book price that is greater than the actual cost

Proizvodstvennaya LLC received 100 cans of paint at a price of 1,180 rubles. (including VAT - 180 rubles). Costs for delivery of materials amounted to 29,500 rubles, including VAT – 4,500 rubles. The materials have been entered into the warehouse. The organization's accounting policy provides for the use of accounts 15 and 16. The accounting price of incoming paint is 1,300 rubles.

The total cost of the received paint was 118,000 rubles. (RUB 1,180 × 100 pcs.), including VAT – RUB 18,000. (180 rub. × 100 pcs.).

The Master's accountant made the following entries in the accounting:

Debit 15 Credit 60 – 100,000 rub. (118,000 rubles – 18,000 rubles) – the receipt of materials from the supplier is reflected;

Debit 15 Credit 60 – 25,000 rub. (RUB 29,500 – RUB 4,500) – the cost of delivery of materials from the supplier is taken into account.

The actual cost of the incoming paint included the costs of its delivery. Therefore, the actual cost of the entire batch of paint was: 100,000 rubles. + 25,000 rub. = 125,000 rub.

Debit 19 Credit 60 – 22,500 rub. (RUB 18,000 + RUB 4,500) – VAT on purchased materials is taken into account, taking into account delivery costs;

Debit 68 subaccount “Calculations for VAT” Credit 19 – 22,500 rub. – VAT is accepted for deduction upon receipt of a correctly executed supplier invoice;

Debit 10 Credit 15 – 130,000 rub. (RUB 1,300 × 100 pcs.) – materials were capitalized at the accounting price;

Debit 15 Credit 16 – 5000 rub. ((1300 rub. – 1250 rub.) × 100 pcs.) – a deviation is reflected due to the excess of the accounting price over the actual cost;

Debit 60 Credit 51 – 147,500 rub. (RUB 29,500 + RUB 118,000) – payment was made to the supplier for received materials and to the transport company for delivery of materials.

When you have received materials not as your property, but temporarily, reflect their receipt on the balance sheet in account 002 “Inventory assets accepted for safekeeping.” For example, you can reflect the receipt of reusable packaging that needs to be returned to the supplier.

In this case, reflect the materials at the cost specified in the contract. There is no need to reflect them at actual cost, because these materials do not belong to you. Reflect the receipt of materials for safekeeping as follows:

Debit 002

– the receipt of materials for safekeeping is reflected.

Accounting for receipt of materials based on advance reports. Accounting entries

Below are accounting entries reflecting the accounting of receipt of materials from accountable persons on the basis of advance reports and the primary documents attached to them (delivery notes, invoices).

The receipt of materials from an accountable person can be reflected in two options:

• In the first option, a standard posting scheme is considered, reflecting the receipt of materials from account 71 “Settlements with accountable persons”. The disadvantage of this option is that the accounting does not reflect the supplier from whom the materials were received and for which VAT was refunded.
• In the second option, the receipt of materials is reflected in correspondence with account 60 “Settlements with suppliers and contractors” and further, the debt to the supplier is closed in correspondence with account 71 “Settlements with accountable persons”. With this reflection option, there is an additional opportunity to analyze supplies by supplier

Accounting for inventories in a warehouse

The receipt of goods at the warehouse is reflected using accompanying documents from the supplier:

• TN or TTN;
• SF;
• Universal transfer document.

According to these documents, a receipt order M-4 is created at the warehouse, and based on its indicators, form M-17 is filled out:

Since 2013, the requirement for unified forms has been abolished, but many enterprises continue to use them, since it is advisable to develop their own forms only for cases where the existing ones do not allow reflecting the necessary information.

Accounting for the receipt of materials under an exchange agreement. Accounting entries

The legal basis that determines the procedure for forming an exchange agreement is defined in Chapter 31 “Barter” of the Civil Code of the Russian Federation. The methodology for reflecting supply transactions under an exchange agreement is discussed in more detail in the article “Accounting for the purchase and sale of goods under an exchange agreement”

The cost of materials to be transferred is established based on the price at which, in comparable circumstances, the organization determines the cost of similar materials.

Below are accounting entries reflecting the accounting for the receipt of materials from suppliers under an exchange agreement with the usual procedure for transferring ownership of materials, in accordance with Article 223 “Moment of the emergence of the acquirer’s right of ownership under the agreement” of the Civil Code of the Russian Federation and Article 224 “Transfer of a thing” of the Civil Code of the Russian Federation.

Paperwork

Often, legally competent drafting of documents upon acceptance of goods and materials helps resolve disputes between the supplier and the buyer if such arise, for example, due to inadequate quality of received materials.
Let's consider the case when a supply agreement is concluded between the supplier and the buyer. If in this case inventories are transported, then the supplier must bring an invoice or bill of lading along with them.

He must also provide an invoice (remember that the invoice is the basis for payment for materials)

Next, an employee of the purchasing company (the financially responsible person) checks the composition of the delivered material with the delivery note and invoice and, if everything is in order, signs the documents (each in 2 copies) and keeps one of the copies for himself. Further, both in the purchasing company and in the supplying company, copies of these documents must be signed by an authorized person, and they must be stamped.

If the received supplies do not correspond to the description in the accompanying document or the packaging is severely damaged, it is necessary to draw up a materials acceptance report.

If everything is in order, the buying company can create a receipt note with a list of received materials.

If a materially responsible person accepts goods outside the warehouse of the purchasing company, then a power of attorney to receive materials must be issued to this person.

The delivery note is the basis document for transactions 1, 2 and 3 in the list of transactions for delivery under a post-payment agreement, a receipt order is for 1, an invoice is for 2. A bank statement is for 4.

What if the oil and gas plant was acquired by an accountable person? Then an advance report, which has already been discussed (in one copy), is required, as well as cash receipts and other documents confirming the fact of payment. In the process of transferring materials to the warehouse by the accountable person, a receipt order is issued.

This receipt order is the basis for posting 2 in the list of postings when materials are received through an accountable person according to the standard scheme, and a delivery note is also required for its posting. For 1 transaction - an expense order. For 3 – invoice and delivery note. For 4 - the same as for 3, and also requires a purchase book.

If the accountant uses a scheme that includes payments to suppliers, then entry 5 from this list will require an accounting statement.

If the goods were received under an exchange agreement, then invoices are required for 1, 2, 3, 4 and 5 transactions; receipt order – for 1; invoices – for 2, 3, 4, 5 and 6; accounting certificate-calculation – for 7.

Accounting for receipt of materials under constituent agreements. Accounting entries

According to the constituent agreement, the founders (participants) contribute various types of property, including materials, to the authorized (share) capital of the organization. According to clause 8 of PBU 5/01 “Accounting for inventories”, the actual cost of inventories (materials) contributed to the contribution to the authorized (share) capital of the organization is determined based on their monetary value, agreed upon by the founders (participants) of the organization .

Based on the above provisions, the receipt of materials under the constituent agreement can be reflected in the accounting below with the following entries.

Cost of products in accounting

To reliably know how much profit an organization received in the course of its activities, being able to calculate revenue and taxes is not enough. It is important to determine exactly what resources she spent on this. Resources can be very different, but they are all reduced to a common measure - money.

Cost ─ is the cost of resources that were spent on producing products, performing work, and providing services. This indicator is at the intersection of enterprise economics and accounting. This is the main difficulty ─ the accountant needs to understand the principles of calculating cost and correctly reflect it on the accounting accounts.

The content of the article:

1. Product cost accounts

2. What is the cost of production in accounting?

3. Accounting for reduced actual costs

4. Accounting for full production costs

5. Distribution of costs between types of products

6. Example of cost distribution

7. Methods for calculating production costs

8. Comparison of accounting using semi-finished and unfinished methods using an example

9. What should be included in the accounting policy

10. Cost calculation in 1C 8.3

Now let's go through all these points in more detail.

Product cost accounts

To collect costs and calculate the cost of products, the Chart of Accounts provides the following accounting accounts:

20 ─ “Main production” ─ to collect costs that are directly related to the manufacture of products, performance of work, provision of services (direct costs)

23 ─ “Auxiliary production” ─ to collect costs for products, works, services that are not typical for a given organization, but are necessary for the production of main products. For example, production of components for main production, equipment repair

25 ─ “Overall production costs (OPC)” . This account collects costs that are associated with the operation of the entire production, without reference to specific products. For example, heating of the workshop building, the salary of the head of the department and deductions for it

26 ─ “General expenses (OCH)” ─ to account for costs not related to the production process. This includes expenses for managers: salaries, building maintenance, stationery, purchased services

28 ─ “Defects in production” . This account is used to collect information about the amount of defects issued and the costs of correcting them.

29 ─ “Service industries and farms” . The account reflects the costs of non-core production. For example, dormitories, holiday homes, sanatoriums, baths, laundries, kindergartens

Account 21 “Semi-finished products of own production” differs in meaning from the above . It reflects the movement of produced semi-finished products (PF): on the debit side, receipt (release from production), and on the credit side, use.

What is the cost of production in accounting?

In economic science, there are different types of cost: planned, standard, estimated, technological, per unit of production and others. But it is important for an accountant to understand what reduced and full cost are.

Reduced (production) cost ─ these are all costs that are directly related to the manufacture of products (materials, wages, contributions to funds, energy) plus general production costs.

To calculate the full cost of production in accounting, you need to add administrative expenses to the reduced cost.

If we speak in the language of balance sheet accounts, then the reduced cost is accounts 20 + 23 + 25, and the full cost is 20 + 23 + 25 + 26.

Accounting for reduced actual cost

Stage 1

During a period, usually a month, costs are collected in the debit of the corresponding accounting accounts 20, 23, 25, 26 with the credit of such accounts as:

• 02, 05 ─ depreciation of fixed assets and intangible assets is calculated
• 10, 16 ─ materials are written off for the production of main products, performance of work, provision of services, for the needs of auxiliary production, workshop and administration
• 69, 70 ─ salaries of workers and management and arrears of contributions to extra-budgetary funds are calculated
• 60, 76 ─ services of third parties are reflected
• 68 ─ taxes are charged that are included in the cost price, for example, property tax, transport tax

Read the detailed article on writing off materials for production . And here you can read about utility accounting .

Once the costs have been collected, they need to be distributed. This means adding to the direct costs on account 20 those amounts from other accounts that relate to the production of products (works, services).

Stage 2

If one workshop has both main and auxiliary production, then first you need to distribute the entire amount of ODA between them. And make the wiring:

Dt 20 ─ Kt 25 and Dt 23 ─ Kt 25

If there is no auxiliary production, then everything that is collected in the debit of account 25 must be written off to the main production.

As a result, the balance of account 25 will become zero.

Stage 3

After two stages of collection and distribution, the costs were collected on accounts 20 and 23. Next, you need to analyze what was done in auxiliary production and, depending on this, write off the costs from account 23:

• if the entire output of auxiliary production was used in the work of the main one and there is no work in progress, then you need to post Dt 20 ─ Kt 23 for the entire amount of costs collected on the account
• if there is “work in progress” left in auxiliary production, then it must be left in account 23, and only the difference between accumulated costs and the amount of work in progress must be written off as a debit to account 20
• if finished products were manufactured in auxiliary production or services were provided to third parties, then only that part of the costs that relates to the work of the main production is written off to account 20. The rest needs to be closed to accounts 43 “Finished products” and 90-2 “Cost of sales”

Stage 4

Before this stage, all costs that relate to the production of main products (works, services) are in the debit of account 20. If there is work in progress, then its value should remain in the balance of this account. And all those costs that relate to the production of the current period must be written off from the credit of account 20 to the debit of account 43 when transferring finished products to the warehouse or 90-2, if the customer accepted the work or services and signed the Certificate of Completion.

As a result of such calculations, a reduced actual cost of manufactured products, works, services and work in progress will be formed in accounting.

Stage 5

Costs collected in the debit of account 26 must be completely written off in the debit of account 90-8 “Administrative expenses”.

Accounting for full production costs

To determine the full production cost in accounting, you need to go through the same steps as when determining the reduced cost, but along with account 25, you need to similarly distribute the costs that were collected on account 26 between the main and auxiliary production.

When production costs are included in accounting, there should be no balance on account 26 after the distribution of costs.

Distribution of costs between types of products

In order to distribute costs, you need to determine the basis that will be the basis for calculations. Typically used as a base:

• workers' wages or standard hours
• raw material costs
• machine hours
• energy costs in physical or monetary terms, for example, kW for electricity, Gcal for heat, cubic meters for water
• other indicators

The main criterion for choosing an indicator is that it can be determined for all types of products (works, services). The bases for the distribution of ODA and OHR may differ.

Next, based on the selected indicator, it is necessary to carry out a proportional distribution of costs collected in accounts 25 and 26 by type of product produced.

Cost Allocation Example

The flour mill produces flour from various grains: wheat, rye, rice. The basis for cost distribution is workers' wages.

The amount of ODA for the month is 50 thousand rubles, the amount of OCR is 60 thousand rubles.

The reduced actual cost will be:

• wheat flour 15+16.7 = 31.7 thousand rubles, 1 kg ─ 52.83 rubles.
• rye flour 10+10 = 20 thousand rubles, 1 kg ─ 28.57 rubles.
• rice flour 25+23.3 = 48.3 thousand rubles, 1 kg ─ 60.38 rubles.

Full cost of production:

• wheat flour 15+16.7+20 = 51.7 thousand rubles, 1 kg ─ 86.17 rubles.
• rye flour 10+10+12 = 32 thousand rubles, 1 kg ─ 45,717 rubles.
• rice flour 25+23.3+28 = 76.3 thousand rubles, 1 kg ─ 95.38 rubles.

Another article on the site will help you when preparing transactions for the sale of finished products .

Methods for calculating production costs

Process method . To determine the cost per unit of production, all costs of the period are summed up and then divided by output in physical terms.

This method is suitable for industries with the same type of small product range, short cycle times and no work in progress. Vivid examples are energy, heat and water supply.

Custom method . For each unit, batch of the same type of product or service, a separate order is opened, where costs are collected specifically for this issue. With this method, you need to determine the basis for distributing overhead costs between orders.

Until the final production of the product or transfer of the work results to the customer, all costs on the order are taken into account in work in progress.

The cross-cutting method is used in cases where the production of products occurs in several stages. All processing stages, except the last one, produce semi-finished products, and only the last one produces finished products.

The transverse calculation method is divided into two types: semi-finished and unfinished.

In the first case, the cost of the PF is determined, with which it is transferred to the next stage of processing. It will be included in the cost of the PF of the next processing stage under the item “Raw materials and materials”.

The non-semi-finished type of cross-distribution accounting involves only the physical transfer of PF between processing stages, and the costs of their production form the cost of production in accounting.

The company can choose any method for calculating production costs. Usually, when choosing, they focus on technological processes, ease of collecting data for work analysis and other factors. For example, an organization calculates costs by workshop; in this case, the semi-finished accounting method is more suitable.

Comparison of accounting using semi-finished and non-semi-finished methods using an example

Matryoshka LLC produces flannel. It is made in several stages: processing cotton fibers into yarn, producing fabric, and applying a design.

Processing costs:

• fiber processing. Materials ─ 100 rubles, salary with accruals ─ 50 rubles, electricity ─ 60 rubles, ODA ─ 40 rubles
• fabric production. Materials ─ 10 rubles, salary with accruals ─ 40 rubles, electricity ─ 50 rubles, ODA ─ 60 rubles
• fabric dyeing and design. Materials ─ 60 rubles, salary with accruals ─ 20 rubles, electricity ─ 70 rubles, ODA ─ 50 rubles

There is no work in progress.

Semi-finished method

The output of each stage is the raw material for the next.

No-semi-finished method

The costs of all stages are collected on account 20:

Dt 20 ─ Kt 10 ─ 100+10+60

Dt 20 ─ Kt 69.70 ─ 50+40+20

Dt 20 ─ Kt 60 ─ 60+50+70

Dt 20 ─ Kt 25 ─ 40+60+50

Dt 43 ─ Kt 20 ─ 610

As a result, the cost of production in accounting turned out to be the same for both calculation methods. This is how it should be: all production costs “fell” into the cost of production.

What should be included in the accounting policy

In the accounting policy (by the way, there is a separate article on the website) it is necessary to specify:

• cost collection method
• type of cost (reduced or full)
• when using reduced cost, it is better to indicate that all administrative expenses at the end of the period are written off to account 90
• indicator that is used as a basis for the distribution of ODA and OHR

Cost calculation in 1C 8.3

How production accounting is kept in 1C Accounting 8 ed. 3.0 using subconto products:

How can a program take into account finished products without using planned cost:

Cost is an important indicator of a company’s performance and the basis for pricing. Regulatory acts do not establish a uniform procedure for collecting and distributing costs; there are many options. And each organization must decide for itself which way it will choose to calculate its cost. The accountant can only keep records correctly within the chosen option.

Tell us in the comments about the difficulties you encountered when accounting for costs. And, of course, ask questions.

Cost of products in accounting

Accounting for free receipt of materials. Accounting entries

In accounting, according to clause 16 of PBU 9/99 “Income of the organization,” income in the form of gratuitous receipt of property is recognized “as it is generated (identified).”

In tax accounting, according to paragraphs. 1 clause 4 of Article 271 “Procedure for recognizing income under the accrual method” of the Tax Code of the Russian Federation, income in the form of gratuitous receipt of property is recognized on the date the parties sign the property acceptance and transfer act.

According to clause 9 of PBU 5/01 “Accounting for inventories”, “the actual cost of inventories received by an organization under a gift agreement or free of charge ... is determined based on their current market value as of the date of acceptance for accounting.”

Based on the above provisions, the gratuitous receipt of materials can be reflected in the accounting below using the following entries.

Receipt upon liquidation of fixed assets

Document the materials received during the liquidation of fixed assets with a demand invoice. Do this except when you are eliminating buildings and structures. In this case, an act is drawn up on the recording of material assets received during the dismantling and dismantling of buildings and structures. In this case, in the first case, you can use the unified form of claim-invoice No. M-11, and in the second - an act in form No. M-35. Both forms were approved by Decree of the State Statistics Committee of Russia dated October 30, 1997 No. 71a.

However, you have the right to use independently developed forms. True, for this they must contain all the necessary details. The choice of form is confirmed by the manager with an order to the accounting policy.

This follows from the provisions of paragraph 57 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n, Article 9 of the Law dated December 6, 2011 No. 402-FZ and paragraph 4 of PBU 1/2008.

Determine the actual cost of such materials based on their market price. The market price will be the price at which the organization can sell this type of materials. The price can be confirmed by the opinion of an independent appraiser. Or you can prepare your own materials and calculations. Such rules are established by paragraph 9 of PBU 5/01.

Reflect the receipt of materials from the liquidation of fixed assets by posting:

Debit 10 (15) Credit 91-1

– materials were received from the liquidation of fixed assets at market price.

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

An example of reflecting in accounting the receipt of materials from the liquidation of fixed assets

Alpha LLC liquidated a metal-cutting machine, which was accounted for as part of fixed assets. When dismantling the machine, spare parts and scrap ferrous metals were obtained. Market price of materials (possible sale price) – 3000 rubles. The organization accounts for materials on account 10 at actual cost (without using accounts 15 and 16).

Alpha's accountant made an entry in the accounts:

Debit 10 Credit 91-1 – 3000 rub. – materials received from the liquidation of fixed assets were capitalized.

Accounting for the receipt of materials produced in-house

According to the methodological instructions, materials are accepted for accounting at actual cost. The actual cost of materials when manufactured by the organization is determined based on the actual costs associated with the production of these materials. Accounting and formation of costs for the production of materials are carried out by the organization in the manner established for determining the cost of relevant types of products. Those. The procedure for reflecting materials produced in-house in accounting depends on the methodology for calculating the cost of products used in the organization.

Currently, the following types of assessment of finished products are used:

• At actual production cost. This method of assessing finished products (manufactured materials) is used relatively rarely, as a rule, in single and small-scale production, as well as in the production of mass products of a small range.
• Based on the incomplete (reduced) production cost of products (manufactured materials), calculated based on actual costs without general business expenses. Can be used in the same industries where the first method of product evaluation is used.
• At standard (planned) cost. It is advisable to use in industries with mass and serial production and a large range of products.
• For other types of prices.

Below we will consider two options for recording the receipt of materials produced in-house in accounting.

Types of materials

Materials (raw materials) at the enterprise can be:

• Own;
• Tolling;
• Finished products;
• Workwear.

In addition, an organization can divide materials by type of use (for production needs, household needs, etc.):

Purchased materials are accepted:

• At actual cost, that is, at the amount of costs incurred for their purchase, delivery, production (excluding VAT);
• At the enterprise's discount prices.

Manufactured materials are accepted for accounting using one of the following methods:

• At average cost;
• At cost per unit of inventory;
• By cost of first in time acquisitions (FIFO):