In accounting, postings to account 10 (Materials) play an important role. The cost of production and the final result of any type of activity - profit or loss - depend on how correctly and timely they were capitalized and written off. In this article we will look at the main aspects of accounting for materials and posting them.

The concept of materials and raw materials in accounting

These nomenclature groups include assets that can be used as semi-finished products, raw materials, components and other types of inventory assets for the production of products and services, or used for the own needs of an organization or enterprise.

Purposes of materials accounting

• Control of their safety
• Reflection in accounting of all business transactions involving the movement of inventory items (for cost planning and management and financial accounting)
• Formation of cost (materials, services, products).
• Control of standard stocks (to ensure a continuous cycle of work)
• Revealing
• Analysis of the effectiveness of the use of mineral reserves.

Subaccounts 10 accounts

PBUs establish a list of certain accounting accounts in the Chart of Accounts that should be used to account for materials in accordance with their classification and item groups.

Depending on the specifics of the activity (budgetary organization, manufacturing enterprise, trade, etc.) and accounting policies, accounts may be different.

The main account is account 10, to which the following sub-accounts can be opened:

Subaccounts to the 10th account	Name of material assets	A comment
10.01	Raw materials
10.02	Semi-finished products, components, parts and structures (purchased)	For the production of products, services and own needs
10.03	Fuel, fuel and lubricants
10.04
10.05	Spare parts
10.06	Other materials (for example: )	For production purposes
10.07, 10.08, 10.09, 10.10	Materials for processing (outside), Construction materials, Household supplies, inventory,

The chart of accounts classifies materials according to product groups and the method of inclusion in a certain cost group (construction, production of own products, maintenance of auxiliary production and others, the table shows the most used ones).

Correspondence on account 10

The debit of 10 accounts in the postings corresponds with production and auxiliary accounts (on credit):

• 25 (general production)

In order to write off materials, they also choose their own method in the accounting policy. There are three of them:

• at average cost;
• at cost of inventories;
• FIFO.

Materials are released into production or for general business needs. Situations are also possible when surpluses are written off and defects, losses or shortages are written off.

Example of postings on account 10

The Alpha organization bought 270 sheets of iron from Omega. The cost of materials was 255,690 rubles. (VAT 18% - 39,004 rubles). Subsequently, 125 sheets were released into production at average cost, another 3 were damaged and written off as scrap (write-off at actual cost within the limits of natural loss norms).

Cost formula:

Average cost = ((Cost of remaining materials at the beginning of the month + Cost of materials received for the month) / (Number of materials at the beginning of the month + Number of materials received)) x number of units released into production

Average cost in our example = (216686/270) x 125 = 100318

Let's reflect this cost in our example:

Account Dt	Kt account	Wiring Description	Transaction amount	A document base
60.01	51	Paid for materials	255 690	Bank statement
10.01	60.01	to the warehouse from the supplier	216 686	Request-invoice
19.03	60.01	VAT included	39 004	Packing list
68.02	19.03	VAT is accepted for deduction	39 004	Invoice
20.01	10.01	Posting: materials are released from warehouse to production	100 318	Request-invoice
94	10.01	Writing off the cost of damaged sheets	2408	Write-off act
20.01	94	The cost of damaged sheets is written off as production costs	2408	Accounting information

Material assets for business needs should be understood as stationery, household materials, equipment, stamps, seals, etc. purchased by institutions (hereinafter referred to as material assets). In this article, we will consider the procedure for accepting such material assets for accounting, as well as the procedure for attributing their value to the expenses of the institution.

Acceptance of material assets for accounting

Before accepting material assets for accounting, it is necessary to determine what type they belong to: fixed assets or inventories. For these purposes, you should use the provisions of Instruction No. 157n.

According to paragraph 38 of this instruction, fixed assets must include material assets, regardless of their cost, with a useful life of more than 12 months, intended for repeated or permanent use with the right of operational management during the activities of the institution when it performs work, provides services, state powers (functions) or for management needs of institutions that are in operation, in reserve, on conservation, leased, leased (subleasing).

Material reserves should include items used in the activities of the institution for a period not exceeding 12 months, regardless of their cost (clause 99 of Instruction No. 157n).

For example, when purchasing pens, pencils, paper, markers, staplers, cleaning and detergents, light bulbs, buckets, mops, etc., they must be taken into account as inventory (clause 118 of Instruction No. 157n).

If a cooler, electricity meters, vacuum cleaners, etc. are purchased, then they should be taken into account as fixed assets, since in accordance with the All-Russian Classifier of Fixed Assets OK 013-94, approved by Decree of the State Standard of the Russian Federation dated December 26, 1994 N 359, all of them are listed in the subsection “Industrial and household inventory”.

At the same time, in controversial situations, the decision to classify material assets as fixed assets or inventories can be made by the institution’s permanent commission for the receipt and disposal of assets, based on the manufacturer’s documentation and based on certain characteristics of the acquired material assets.

For example, this commission may decide to take into account seals and stamps as part of either fixed assets or inventories, taking into account the period of their use.

So, material assets entering an institution and acquired for the economic needs of the institution should be taken into account according to the rules for accepting them as fixed assets or inventories.

As follows from paragraph 23 of Instruction No. 157n, objects of non-financial assets (including fixed assets and inventories) must be accepted for accounting at their original (actual) cost.

The initial cost of non-financial assets is recognized as the amount of actual investments in their acquisition, taking into account the VAT amounts presented to the institution by suppliers and (or) contractors (except for their acquisition within the framework of activities subject to VAT, unless otherwise provided by the tax legislation of the Russian Federation).

In particular, it may consist of amounts paid in accordance with the contract to the supplier (seller), amounts paid to organizations for information and consulting services related to the acquisition of material assets, costs of delivering them to the place of use and other costs directly related to the acquisition material assets.

To form the initial (actual) cost of material assets, account 0 106 00 000 “Investments in non-financial assets” is used. This account is intended to account for investments in the amount of the institution's actual costs in material assets upon their acquisition.

For the purpose of maintaining accounting records of investments in material assets, analytical accounting accounts are used in accordance with the object of accounting:

- 0 106 21 000 “Investments in fixed assets - especially valuable movable property of an institution”;

- 0 106 24 000 “Investments in inventories - especially valuable movable property of an institution”;

- 0 106 31 000 “Investments in fixed assets - other movable property of the institution”;

- 0 106 34 000 “Investments in inventories - other movable property of the institution.”

The autonomous institution incurred the following expenses using funds received from income-generating activities:

— a vacuum cleaner worth 10,000 rubles was purchased for household needs;

— paid for the services of a transport organization to deliver a vacuum cleaner to the institution in the amount of 1,500 rubles;

— a new seal was made by a specialized organization (due to the wear and tear of the old one) at a cost of 2,800 rubles.

The permanent commission on the receipt and disposal of assets classifies a vacuum cleaner and a seal as fixed assets (other movable property).

In accounting, these transactions must be reflected in the following entry:

Acceptance for accounting of material assets as fixed assets. According to paragraph 9 of Instruction No. 183n, the acceptance for accounting of fixed assets at the original cost formed upon their acquisition is carried out on the basis of primary accounting documents: an act of acceptance and transfer of fixed assets (except for buildings, structures) (f. 0306001), act on the acceptance and transfer of groups of fixed assets (except for buildings and structures) (f. 0306031). The specified documents in relation to fixed assets worth up to 3,000 rubles. inclusive are not compiled.

To account for the fixed assets considered in the article, the following accounts can be used:

- 0 101 26 000 “Industrial and business equipment - especially valuable movable property of the institution”;

— 0 101 24 000 “Machinery and equipment are particularly valuable movable property of the institution”;

- 0 101 28 000 “Other fixed assets - especially valuable movable property of the institution”;

- 0 101 34 000 “Machinery and equipment - other movable property of the institution”;

- 0 101 36 000 “Industrial and economic equipment - other movable property of the institution”;

- 0 101 38 000 “Other fixed assets - other movable property of the institution.”

Let's continue our example. The received seal and vacuum cleaner were accepted for accounting.

This operation must be reflected by the following posting:

Acceptance of material assets for accounting as inventories. According to clause 32 of Instruction No. 183n, the receipt of inventories is reflected in the accounting registers on the basis of primary shipping documents of suppliers (sellers), other documents confirming the receipt by the institution of material assets, formalized within the framework of customary business practices, containing the details of the primary accounting document.

If discrepancies with the data in the supplier’s documents are identified during the acceptance of material assets, a materials acceptance certificate is drawn up (f. 0315004).

To maintain accounting records of material inventories, analytical accounting accounts are used in accordance with the object of accounting and the content of the business transaction. These accounts are listed in clause 31 of Instruction No. 183n.

As mentioned above, the actual cost of inventories is formed on accounts 0 106 24 000 and 0 106 34 000, provided that they are purchased under several contracts. However, if they are acquired within the framework of one contract, then Instruction No. 183n allows for the acceptance of inventories for accounting bypassing the specified accounts. That is, inventories are immediately recorded in account 0 105 00 000.

The autonomous institution made an advance payment for office supplies (other inventories - other movable property) in the amount of 2,500 rubles. through subsidies for the implementation of government tasks. A personal account is opened in OFK. Stationery supplies have been received and accepted for accounting.

We will reflect these transactions in accounting as follows:

Issuance of material assets for use and their movement within the institution

Transfer of material assets into operation. According to clause 10 of Instruction No. 183n in accounting, the transfer into operation of fixed assets worth:

— up to 3,000 rub. inclusively reflected on the basis of the statement of issue of material assets for the needs of the institution (f. 0504210) with the following posting:

Credit to the corresponding analytical accounting accounts of account 0 101 00 000 “Fixed assets” with simultaneous reflection on the off-balance sheet account 21 “Fixed assets worth up to 3,000 rubles. including in operation."

According to clause 373 of Instruction No. 157n, the acceptance of fixed assets for off-balance sheet accounting is carried out on the basis of a primary document confirming the commissioning of the object in a conditional valuation: one object - one ruble, if approved by the institution as part of the formation of an accounting policy of a different order - according to book value of the commissioned facility;

— over 3,000 rub. reflected on the basis of the invoice request (f. 0315006) with the following entry by changing the financially responsible persons:

Reflection in the accounting of transactions for the transfer of material reserves (acquired for business needs) for operation is carried out in the registers of analytical accounting of material reserves on the basis of the statement of issue of material assets for the needs of the institution (f. 0504210).

The release of inventories can be made at the actual cost of each unit or at the average actual cost; the decision made is fixed by the accounting policy of the institution (clause 108 of Instruction No. 157n).

It should be taken into account that the use of one of the specified methods for determining the cost of issue by group (type) of material inventories is carried out continuously throughout the financial year.

Let us recall that the determination of the average actual cost is made for each group (type) of inventories by dividing the total actual cost of the group (type) of inventories by their quantity, which is formed, respectively, from the average actual value (quantity) of the balance at the beginning of the month and the received inventory during of the current month on the date of their departure (vacation).

Let us once again pay attention to the documentation of the release of material assets. Issuance of material assets for use for business needs, as well as transfer for operation of fixed assets worth up to 3,000 rubles. inclusive per unit are carried out on the basis of the statement of issuance of material assets for the needs of the institution (f. 0504210). Entries in it must be made for each financially responsible person, indicating the material assets issued.

Internal movement of material assets. According to clause 9 of Instruction No. 183n, the internal movement of fixed assets between materially responsible persons in an institution is carried out on the basis of an invoice for the internal movement of fixed assets (f. 0306032) and is reflected in accounting by the following account correspondence:

Debit of the corresponding analytical accounts of account 0 101 00 000 “Fixed assets”

Credit to the corresponding analytical accounting accounts of account 0 101 00 000 “Fixed assets”.

An invoice for the internal movement of fixed assets is drawn up when moving fixed assets within an institution from one structural unit to another and is issued by the transferring party (deliver) in triplicate, signed by the responsible persons of the structural divisions of the recipient and the deliverer. The first copy is transferred to the accounting department, the second copy remains with the person responsible for the safety of the asset(s) of the deliverer's fixed assets, the third copy is transferred to the recipient. Data on the movement of fixed assets is entered into the inventory card (book) for recording fixed assets.

The movement of inventories within an institution between structural divisions or financially responsible persons is reflected in accounting on the basis of a demand invoice (f. 0315006) and is accompanied by the following posting (clause 35 of Instruction No. 183n):

Debit of the corresponding analytical accounts of account 0 105 00 000 “Inventories”

Let's use the conditions of examples 1 and 2. Let's agree that the vacuum cleaner, printing and stationery were put into operation. The cost of printing does not form the cost of finished products, works, or services. According to the accounting policy of the institution, a seal is accepted for off-balance sheet accounting at its book value.

Attribution of costs for the acquisition of material assets to the expenses of the institution

The institution's expenses for the acquisition of fixed assets (their cost) are taken into account in the institution's expenses in different ways.

Thus, the cost of fixed assets can be transferred to the institution’s expenses either at a time or gradually, by calculating depreciation.

In other words, depreciation can be accrued: immediately in the amount of 100% of the cost of the fixed asset (at a time) when the facility is put into operation;

— gradually in accordance with calculated depreciation rates over the useful life. Let us recall that in this case, the depreciation amount must be calculated in a straight-line manner based on the book value of the fixed asset and the depreciation rate calculated based on its useful life, and this must be done from the first day of the month following the month the object was accepted for accounting, and until the cost of this object is fully repaid or its disposal.

The depreciation rate for each item of depreciable property is determined by the formula:

K = 1/n x 100, where:

K is the depreciation rate as a percentage of the original (replacement) cost of the depreciable property;

N is the useful life of this depreciable property item, expressed in months.

The useful life of a fixed asset is the period during which it is intended to be used in the course of the institution’s activities for the purposes for which it was acquired (clause 44 of Instruction No. 157n).

According to clause 92 of Instruction No. 157n for fixed assets - movable property, depreciation is calculated in the following order:

— for fixed assets worth over 40,000 rubles. depreciation is accrued in accordance with depreciation rates calculated in accordance with the established procedure;

— for other fixed assets worth from 3,000 to 40,000 rubles. inclusive, depreciation is accrued in the amount of 100% of the book value when the facility is put into operation.

So, the costs of acquiring fixed assets necessary for the economic needs of the institution are taken into account in the institution’s expenses by calculating depreciation and are reflected in the accounting records in the following correspondence of accounts (clause 26 of Instruction No. 183n):

Debit of accounts 0 401 20 271 “Depreciation costs of fixed assets and intangible assets”, 0 109 00 000 “Costs of manufacturing finished products, performing work, services”

Credit to the corresponding analytical accounting accounts of account 0 104 00 000 “Depreciation”.

Since for fixed assets worth up to 3,000 rubles. inclusive, depreciation is not accrued, the costs of their acquisition are taken into account as expenses at a time when they are put into operation on the basis of the statement of issue of material assets for the needs of the institution (f. 0504210). This operation is reflected differently in accounting; we cited it above. However, let us recall this wiring once again:

Debit of account 0 401 20 271 “Depreciation costs of fixed assets and intangible assets”, corresponding analytical accounts of account 0 109 00 000 “Costs of manufacturing finished products, performing work, services”

Credit to the corresponding analytical accounting accounts of account 0 101 00 000 “Fixed assets”.

The cost of spent material reserves, soft equipment, and utensils that have become unusable, on the basis of primary documents for the corresponding operation and accounting object, is written off as expenses of the institution using the following correspondence accounts:

Debit of accounts 0 401 20 272 “Consumption of inventories”, 0 109 00 000 “Costs for the production of finished products, performance of work, services”

Credit to the corresponding analytical accounting accounts of account 0 105 00 000 “Inventory”.

Let's continue with the example. A 100% depreciation amount was accrued for the vacuum cleaner put into operation. This amount is included in the general operating expenses of the institution. The cost of consumed stationery was written off to overhead expenses.

These transactions should be reflected in accounting by the following correspondence of accounts:

* * *

In addition, it should be noted that the distribution of household materials (for example, detergents and cleaning products, toilet paper) for the needs of the institution should be based on the monthly need for them, however, such standards have not been approved at the legislative level. As a recommendation, we offer: in order to avoid claims from inspection bodies regarding the amount of household materials used, as well as to justify the necessary need for them, institutions need to develop and approve norms by their internal local acts.

Inventories are part of a large group of assets called inventories.

The procedure for organizing accounting of inventories is determined on the basis of:

1. Regulations on maintaining accounting and financial statements in the Russian Federation, approved by order of the Ministry of Finance of the Russian Federation dated July 27, 1998 No. 34n;

2. Accounting regulations “Accounting for inventories” (PBU 5/01), approved by order of the Ministry of Finance of the Russian Federation dated June 9, 2001 No. 44n;

3. Methodological guidelines for accounting of inventories, approved by order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n;

4. Methodological guidelines for inventory and financial obligations, approved by order of the Ministry of Finance of the Russian Federation dated June 13, 1995 No. 49.

The following assets are accepted for accounting purposes as inventories:

Used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services);

Intended for sale, including finished products and goods;

Used for the management needs of the organization.

In the process of economic activity, employees of an enterprise use objects of labor to achieve the goals set for them, i.e. objects that make up the material basis of products (works, services), and means of labor - objects intended to transform objects of labor and give them the necessary consumer properties.

Objects of labor belong to the category of means of production that are consumed entirely in any labor process and, therefore, have to be replaced for each new labor process. Objects of labor include raw materials, materials, containers, spare parts, equipment, etc. (in a general sense - just materials).

Raw materials are products of extractive industries (oil, ore, gas, etc.) and agriculture (grain, sugar beets, cotton, etc.).

Materials are products of manufacturing industries (metal, leather, flour, etc.). This group also includes semi-finished products, they can be of own production - materials that have undergone part of the processing operations (for example, yarn at textile mills, cast iron - at metallurgical plants, etc.), and purchased - similar products purchased from outside (castings, forgings - in mechanical engineering). In accounting, semi-finished products, as a rule, are separated into an independent type of expense.

Fuel is an auxiliary material, but due to its great economic importance, specific role in the production process, and significant share in costs, it is separated into an independent form. Its purpose can be technological, propulsion (fuel) and economic (for heating).

Containers are objects of labor used for packaging, storing and transporting materials and products: bags, boxes, barrels, bottles, etc.

Spare parts have a special purpose and are used to repair/replace worn parts of machines, equipment, vehicles, etc.

Other materials can include: production waste (shavings, trimmings, etc.), irreparable defects, material assets obtained from the disposal of fixed assets and damage to goods that cannot be used by the organization for further processing or as spare parts and fuel.

Construction materials - materials used in construction and installation work for the manufacture of building parts, for the construction and finishing of structures and parts of buildings and structures, as well as material assets for construction needs.

Inventory and household supplies are used by the organization in the production of products, performance of work, provision of services, or for the management needs of the organization.

Within each type, materials can be divided into larger groups based on physical properties. For example, in mechanical engineering, metals are distinguished as the main materials, which, in turn, are divided into ferrous, non-ferrous, etc. Within the enlarged groups, a list of all types and brands of materials is provided.

A systematic list of all materials used in an enterprise is a nomenclature for a specific enterprise, which covers types, homogeneous groups and subgroups, including brands and grades of materials. Each item in the nomenclature is assigned a separate item number, which is then used to reflect the movement and availability of materials for each item. In the same nomenclature, the accounting price per unit is fixed, and therefore the systematized lists of materials are called “price nomenclatures”. In synthetic accounting, the grouping of materials is reflected in account 10 “Materials”:

10-1. "Raw materials";

10-2. “Purchased semi-finished products and components, structures and parts”;

10-3. "Fuel";

10-4. “Container and packaging materials”;

10-5. "Spare parts";

10-6. "Other materials";

10-7. “Materials transferred for processing to third parties”;

10-8. "Construction Materials";

10-9. "Inventory and household supplies."

The accounting unit for inventories is selected by the organization independently in such a way as to ensure the formation of complete and reliable information about these inventories, as well as proper control over their availability and movement. Depending on the nature of the inventories, the order of their acquisition and use, a unit of inventories can be an item number, a batch, a homogeneous group, etc.

1.2 Objectives of inventory accounting

The main tasks of inventory accounting:

Control over the receipt of materials by volume and assortment into the organization;

Monitoring compliance of warehouse stocks with established standards, ensuring continuous production of products;

Control over the safety of inventories in places of their storage and movement;

Correct and timely documentation of procurement operations, receipt, release of materials and settlements with suppliers;

Identification of actual costs associated with the procurement of materials;

Timely identification of unnecessary and excess inventories for the purpose of their possible sale or identification of other opportunities for their involvement in circulation.

To complete the assigned tasks of accounting for materials, it is necessary to:

Availability of properly equipped warehouses and storerooms or specially adapted sites;

Placement of inventories in sections of warehouses, and within them in separate groups and types and sizes (in racks, on shelves, etc.) in such a way as to ensure the possibility of their quick acceptance, release and checking of availability;

Equipping storage areas with weighing equipment, measuring instruments and measuring containers;

The use of centralized delivery of materials from the organization’s warehouses to workshops (divisions) according to agreed schedules, and at construction sites from suppliers, base warehouses and picking areas directly to construction sites according to picking lists;

Establishing the procedure for the formation of accounting prices for inventories and the procedure for their revision;

Determining the circle of persons responsible for the acceptance and release of inventories (warehouse managers, storekeepers, forwarders, etc.), for the correct and timely execution of these operations, as well as the safety of the inventories entrusted to them; concluding written agreements on financial liability with these persons in accordance with the established procedure; dismissal and relocation of materially responsible persons in agreement with the chief accountant of the organization;

Determining the list of officials who are authorized to sign permits (passes) for the removal of inventories from warehouses and other storage areas of the organization.

1.3 Documentation of receipt and expenditure of inventory items

Materials and materials come to the organization from suppliers, accountable persons purchasing materials for cash, from their production (returns and waste), from the write-off of deteriorated fixed assets.

The supplier, simultaneously with the shipment of materials, sends the buyer payment and accompanying documents: payment order or payment request-order, waybill, receipt for the railway waybill, invoice, etc.

The main documents for accounting for inventory items are:

1. Power of attorney (form No. M-2 or form No. M-2a) - used to formalize the right of an official to act as a trustee of an organization to receive material assets from a supplier. The power of attorney is drawn up in one copy by the organization's accounting department and issued against signature to the recipient. The validity period of powers of attorney, as a rule, should not exceed 15 days; in exceptional cases it may be issued for a calendar month.
2. Receipt orders (form No. KO-1) are used to account for materials received from suppliers or from processing. The receipt order is drawn up in one copy by the financially responsible person on the day the valuables arrive at the warehouse. A receipt order is issued for the actual amount of valuables received. Forms of receipt orders are handed over to financially responsible persons in a pre-numbered form.
3. When centralized delivery of material assets by motor transport from the supplier’s warehouse, the cargo is registered with a consignment note (form No. TORG-12). The invoice is issued in four copies, which are provided: to the buyer, as a basis for posting materials; to the bank to pay the car depot; to the supplier for write-off of materials; transport organization to account for the operation of vehicles and payroll calculations.
4. The act of acceptance of materials (form No. M-7) is used to formalize the acceptance of material assets in cases where there are quantitative and qualitative discrepancies with the data of the supplier’s accompanying documents, as well as when accepting stocks received without documents (for uninvoiced deliveries). The act is the legal basis for filing a claim with the supplier; it is drawn up in two copies by members of the acceptance committee with the obligatory participation of the financially responsible person and a representative of the supplier or a representative of a disinterested organization. The act is approved by the head of the organization or other authorized person. One copy of the act with attached primary documents is transferred to the accounting department to record the movement of material assets, the other - to the supply department or accounting department to send a letter of claim to the supplier.
5. Each release operation, as well as acceptance, is documented with a primary document, and the quantity of materials released is measured, weighed, and counted. Release from the warehouse is carried out only by persons specifically authorized for this purpose, whose lists and sample signatures are communicated to the warehouses in advance. The release of materials consumed during the month is regularly documented using limit cards (form No. M-8). The name of the document itself indicates that issue under it is allowed within the limit, which is established based on the production program for the manufacture of a given type of product (part, semi-finished product) and the current technical norm for material consumption per unit of product. Limit cards are drawn up in the planning department or in a special group of the logistics department in two copies for a period of one month, and for small volumes - for a quarter. One copy of the limit and intake card is transferred to the consumer workshop before the start of the reporting period, the other to the warehouse.
6. The invoice requirement (form No. M-11) is used to account for the movement of material assets within the organization, their release to branches located outside the organization, and when selling inventories.
7. The release of materials to third parties is formalized by an invoice (form No. M-15), it is used to account for the supply of material assets to third parties on the basis of contracts and other documents. The invoice is issued in two copies upon presentation of a power of attorney to receive valuables, completed in the prescribed manner. The first copy is transferred to the warehouse as a basis for the release of materials, the second - to the recipient.
8. To record the movement of materials in the warehouse for each grade, type, size, a materials accounting card is used (form No. 17). The cards are a strictly accountable document and are issued to the storekeeper against signature. The financially responsible person (storekeeper, warehouse manager) makes daily entries in cards based on primary receipts and expenditure documents on the day of the transaction in kind and displays the balances. Balances on the 1st day of each month are transferred from cards to the balance book or statement, taxed at the accounting price and calculated by enlarged groups of materials, warehouses and balance sheet accounts.
9. The act on the recording of material assets received during the dismantling and dismantling of buildings and structures (form No. M-35) is used to account for material assets received in the process of liquidation of fixed assets suitable for use in carrying out work in the organization itself. The cost of such valuables reduces the loss from the liquidation of the corresponding objects.

2 Theoretical foundations of inventory audit

2.1 Audit as a form of economic control

An audit is a system of mandatory control actions for documentary and factual verification of the legality and validity of economic and financial transactions performed by the audited entity during the audited period, the correctness of their reflection in accounting and reporting, as well as the legality of the actions of the manager and chief accountant (accountant) and other persons, who are responsible in accordance with the legislation of the Russian Federation and regulations.

Very often, in practice, there are often cases when a documentary audit is mixed with a forensic accounting examination or an audit, and audit reports or audit reports are taken as an expert opinion. This happens because the purpose and subject of the examination are not clear.

The issue of distinguishing the concepts of forensic accounting, audit and revision is of great practical importance, because There are attempts to replace the audit with forensic accounting or audit, despite the fact that forensic accounting, audit and audit are forms of control, help identify facts of illegal activities of organizations, prevent cases of repeated violation of the law, they have significant differences among the distinctive features of audit the following can be distinguished:

Target attribute: an audit can be carried out by the owner, a higher organization, control and audit bodies in order to control financial and economic activities and assess the condition of the organization, ensuring the safety of assets. In exceptional cases, an audit may be carried out at the initiative of law enforcement agencies. The purpose of the audit is to identify facts of violation of the law, identify responsible persons and bring the perpetrators to justice.

Information sign: during the audit, the financial and economic activities of the organization are comprehensively examined in order to eliminate existing shortcomings and improve the state of accounting. An audit is usually accompanied by an inventory of the organization’s property and liabilities. The auditor has the right to demand all documents for verification, and the management of the organization is obliged to provide these documents.

Organizational characteristic: the audit is carried out on the basis of an order from the head of the audit body. The audit is scheduled and unscheduled. Planned audits are given in the current plans of the audit bodies, which are drawn up for the previous calendar year. The plan contains the following indicators: name and location of the audited organization; period of the previous audit; audited period; type of audit; deadline for the audit; duration of the audit in days; performers.

The main objectives of the audit are: checking the safety of property and the effectiveness of its use in the economic activities of the organization; identifying abuses, the conditions for their occurrence and developing measures to prevent abuses; checking performance discipline and assessing the effectiveness of the organization’s management personnel; research of the internal control system, identifying its bottlenecks and increasing the efficiency of its functioning.

Among the basic rules for conducting an audit are:

1. Suddenness. The auditor must use means and methods of checking their actions that are unexpected for the controlled persons. The most important condition for achieving a surprise audit is the non-disclosure of the stages of its preparation and beginning.

2. Activity. The auditor must take the initiative in searching for methods and means of verification, be highly efficient in his work, and comply with audit deadlines. Slowness in the audit in some cases makes it possible to hide violations (fill out missing documents, bring in and take out valuables, capitalize what is not accounted for, etc.).

3. Continuity. Auditors cannot leave the organization they are auditing for several days. The initiated audit actions must be carried out actively and continuously until the discovered facts are fully explained, the identified damage is compensated, and the perpetrators are brought to justice, i.e. before completing the tasks outlined in the audit program.

4. Validity. The revealed facts and conclusions of the audit must be documented, which involves additional verification of any fact cited by interested parties in their justification. It is impossible to talk about the validity of an audit if the requests of interested parties to perform any audit actions, as a result of which important circumstances may be established, in particular, data exculpating the interested parties, are ignored. Bias and the associated one-sidedness of the audit lead to the fact that individual violations remain not fully clarified.

5. Publicity. The audit should be widely publicized. From the moment the audit begins, auditors establish contact with employees of all structural divisions of the organization, announce the place and time of reception of persons wishing to talk on issues related to the audit. Initially, the results of the audit are discussed with the management of the audited organization, then the direct customer of this work (owner, management of a higher organization) is informed about them. The rule of publicity of the audit helps to eliminate any mistake made by the auditors and guides them towards an objective assessment of the materials.

The process of organizing audit work can be divided into the following interrelated stages:

1. audit planning;
2. preparation for the audit;
3. drawing up a task (program) for conducting an audit;
4. preliminary study of the audit object;
5. documentary and factual verification;
6. systematization of audit materials and drawing up an act, conclusions and proposals;
7. coordination and discussion of audit materials at the enterprise;
8. discussion and approval of the audit report and proposals thereon;
9. organizing control over the implementation of these proposals.

The audit, as a rule, covers the period from the end of the last audit to the 1st day of the current month or until the start of the inventory of cash and material resources. Audit records are kept in the audit log.

As a rule, in the process of studying even the simplest business transactions or primary documents, the auditor has to use different methods. In a specific audit situation, to solve the task, he must choose the most effective of them. Documentary control is based on several methods. The most common of these methods are:

Economic analysis of an organization's work - a method that allows us to identify the positive and negative aspects of the activities of the organization as a whole and its structural divisions. In many cases, analysis of financial and economic activities begins in the process of preparing for the audit. The results of such an analysis allow auditors to purposefully draw up an audit plan and conduct audits, having previously determined the necessary control methods. During the audit process, economic analysis data is supported by the results of inspections of primary documents, accounting registers and other economic information.

Technical and economic calculations - such calculations are compiled during the audit period. They make it possible to determine the validity of the standards for the consumption of raw materials and materials, the feasibility of labor costs. As a result of the compilation of technical and economic calculations, audits reveal facts of the application of outdated standards of material and labor costs and, as a consequence, the presence of unaccounted for raw materials, materials and finished products. Through calculations, the auditor identifies distortions in data reflecting the cost of production due to incorrect distribution of indirect costs between accounting objects.

Regulatory verification - the method is used to identify deviations of actual costs from planned or standard ones.

Logical verification - verification allows you to determine the objective possibility and purposefulness of spending money and material resources, the reality of the relationships between individual business transactions.

Arithmetic verification - the method is used to determine the correctness of calculations in documents and identify signs of theft and abuse, veiled by arithmetic operations. Incorrect arithmetic calculations can be intentional or unintentional. An arithmetic check of accounting registers sometimes reveals forgeries in order journals and statements.

Counter check - this check is a comparison of different documents or a comparison of several copies of the same document located in different divisions of the audited organization or in other organizations.

Mutual control - this type of control is necessary for comparing various documents reflecting interrelated business transactions.

Analysis of daily or operational changes in inventory balances and cash - the method is characterized by the fact that as a result of a chronological analysis of business transactions, it is possible to identify deviations from the normal turnover of material assets or cash and, as a result, to identify distortions in data on the balances generated after each transaction.

Restoring quantitative and total accounting - the method is used when auditing bases, public catering establishments, and warehouses of some organizations where quantitative accounting is not maintained, although each operation of receipt and expenditure of material assets is documented with primary documents.

Checking the correctness of the correspondence of accounts - a check is needed to establish facts of erroneous or deliberate distortion of data on the relationship of synthetic accounting accounts, which creates conditions for the theft of funds and material assets, although all primary documents can be compiled impeccably.

Checking accounting registers - the method consists in comparing data from accounting registers with data from primary documents, which makes it possible to establish the presence of false entries made in order to conceal theft and abuse. The use of this method makes it possible to clarify the accuracy and timeliness of the reflection of a business transaction in accounting.

Among the methods of actual control, the following can be distinguished:

1. Verification of audited transactions in kind. The purpose of such a check is to verify the completion of transactions for the acquisition of material assets, the veracity of the drawn up acts for the commissioning of objects after the completion of their construction or major repairs, and the availability of inventory items accepted for safekeeping.
2. Checking the facts of the final (final) operation. Such a check is recommended to be used in cases where, in order to save time, it is possible not to check documents and accounting records (for example, when there is no need to check the execution of operations throughout the entire technological cycle, but it is enough to check the actual availability of parts for which wages were accrued for the final operation).
3. Laboratory tests - the method is used at the request of the auditor in cases where it is impossible to determine the quality characteristics of raw materials, materials, finished products, construction, installation and repair work performed by other methods.
4. Expert assessment - the method consists of studying business transactions by specialists in various fields of knowledge on behalf of the auditor.
5. Control launch of raw materials and materials into production - the method is used to determine the reliability of the current standards for the consumption of raw materials and materials for the production of products or the volume of construction and installation work.
6. Control acceptance of products in terms of quantity and quality. Such acceptance is necessary to determine the reliability of the technical control department’s data on the quantity and quality of products, check signals about theft of raw materials, materials, parts, semi-finished products, finished products, the correctness of wages for workers, compliance with the conditions for storing material assets at production sites and warehouses, etc. .d.
7. On-site inspection of audited operations.
8. Checking compliance with labor discipline and use of working time by staff.

2.2 Audit of the movement of inventory items

The main goals of monitoring transactions with material assets are to check:

Reliability of balance sheet indicators for the item “Inventories”, including such components as raw materials, costs in work in progress, finished goods and goods for resale, goods shipped and deferred expenses; linking these indicators with similar data reflected in the General Ledger, order journals and other accounting registers determined by the enterprise’s accounting policies;

Completeness and timeliness of capitalization of material assets at storage locations;

The correctness of their release for production and other purposes;

Ensuring the safety of material assets at storage locations;

Materials of the results of the annual inventory of inventory items;

Correct accounting and valuation of goods purchased for resale;

Correct formation of the value of material assets;

Documentation of the movement of material assets;

Other issues arising directly from the specifics of the activities of the organization being audited.

Audit of receipt of inventory items:

The audit can be carried out in several directions. The two most important of them are:

1) Selective documentary verification of the classification of inventory items (received during the last reporting year) as materials.

The auditor checks the validity of classifying objects as materials using a selective method. The test results are presented in tabular form, which allow you to evaluate the correctness (validity):

Application of criteria for classifying objects as materials;

Establishing the production and non-production nature of purchased materials;

Documentary registration of materials accounting (availability of invoices for receiving materials; documents confirming ownership; inventory cards for materials accounting).

2) Documentary verification of the accounting of incoming inventory items.

When auditing the receipt of materials, it should be borne in mind that primary documents on the receipt of materials play an important role in organizing the accounting of materials, since they are its basis. Control over the receipt of inventory items is carried out directly using primary documents. Materials come from suppliers, accountable persons who purchased these materials in cash, from the write-off of deteriorated fixed assets, from our own production.

The auditor checks the procedure for recording incoming materials, in particular, the presence of an approved material support plan, the presence in the supply department of statements of operational accounting of the implementation of supply contracts or a logbook of incoming goods (materials) (form No. MX-4), which indicate: registration number and agreement date; recording date; name of the supplier, date and number of the transport document; date and account number; type of cargo; date of receipt order or acceptance certificate, request to search for cargo. The auditor must also identify facts of under-delivery and over-delivery of goods by checking the actual materials received in terms of assortment, quantity, price with the data of supply contracts.

When conducting a documentary audit of accounting for incoming inventory items, the auditor should pay attention to the following points:

1. It is necessary to establish compliance of the procedure for issuing, drawing up and using powers of attorney to receive goods and materials with the requirements of regulatory documents. According to the log of powers of attorney for the receipt of goods and materials, cases of issuing powers of attorney to persons not working in the audited organization are identified, the procedure for issuing powers of attorney (completed in whole or in part, without sample signatures of the persons in whose name they are written out), the rules for issuing them (a new power of attorney is issued to one and to the same person after submitting a report on the use of a previously received power of attorney), it is determined whether there is a violation of the instructions on the procedure for issuing powers of attorney to receive goods and materials.

2. When auditing the receipt of materials to the organization’s warehouses by motor transport, the logbook of incoming materials is reconciled with the data of motor transport invoices, receipt orders and materials accounting cards. The logbook for incoming materials should be kept in the supply department, delivery notes and receipt orders should be kept in the material department of the accounting department, and materials accounting cards should be kept by the storekeeper. Signatures, date, amount, price are checked on all primary documents. The turnover of materials according to the logbook of incoming materials and primary documents is verified with the turnover of statement No. 10 “Accounting for materials in the warehouse”. If the organization has a pass system, then pass data can be taken for reconciliation, which, as a rule, is stored in the material department of the accounting department.

3. If materials are removed from the seller’s warehouse using its own vehicles, then the auditor is obliged to additionally check with the counterfoils of powers of attorney issued to the organization’s employees to receive goods and materials at the seller’s warehouse, or with the power of attorney registration log.

4. If there are acts of acceptance of materials of form No. M-7, instead of receipt orders, the auditor carries out their examination. He checks the credentials of the members of the acceptance committee who signed the act. To do this, we study the order for the main activity on the creation of an acceptance committee, which records the names and positions of the responsible persons. Next, the work of the organization’s legal service in dealing with claims to the supplier, recorded in the act, is checked.

5. When delivering goods and materials by rail, the data of the log of incoming materials (the log of registration of powers of attorney) is also verified with the data of railway invoices and receipt orders; materials accounting cards, power of attorney stubs issued to financially responsible persons to receive cargo at the freight station.

6. If an auditor, when checking information on the supply of material assets by railway, discovers commercial acts according to which goods and materials are accepted, then it is necessary to conduct an examination of the legal force of such acts. To do this, signatures, dates, and compliance of the names of material assets with the data of the railway invoice and the supply agreement are checked. Next, we examine the procedure for working with commercial acts of the organization’s claims service.

7. When auditing the receipt of materials to the organization’s warehouses from accountable persons, the reconciliation of the log of incoming materials with sales receipts, receipt orders and materials accounting cards is checked. A sales receipt is a document confirming the fact of purchase and the cost of goods purchased by an accountable person for cash. Sales receipts are attached to the advance report of the accountable person and are stored in the material department of the organization's accounting department.

8. When auditing the receipt of self-produced materials, production waste, materials left over from the liquidation of fixed assets, etc., the data in the incoming materials log book is reconciled with the data of invoices for internal movement and materials accounting cards. All such receipts to warehouses are documented with invoices for the internal movement of materials, which are issued by the delivery unit in two copies, one is the basis for writing off materials from the delivery unit, the other is sent to the warehouse and used as a receipt document. If during the audit an act of form No. M-35 is identified (“Act on the posting of material assets received during the dismantling and dismantling of buildings and structures”), the auditor checks the authority of the signatures, quantity, amount, name of inventory items. All data in the act is verified with the data in the act, form No. OS-4 ("Act for write-off of fixed assets"), form No. OS-6 ("Inventory card for recording fixed assets"). A report in form No. M-35 is drawn up if the dismantling of a building or structure is carried out by a contractor. The auditor may make a request to the contractor to confirm the data of the act using Form No. M-35. Next, the data in the act is checked against the turnover in order journals No. 11 and No. 13.

9. If it is discovered that material assets have been registered in the warehouse using the requirement-invoice form No. M-11, it is necessary to study the reasons and determine the responsibility of the officials who allowed the release of excess materials from the warehouse that are now being delivered to the warehouse. The movement of material assets from one warehouse to another is also formalized by the requirement-invoice form No. M-11. In such cases, the auditor must give an economic assessment and establish the economic feasibility of the actions of officials who allowed the movement of goods from one warehouse to another.

10. The auditor checks the completeness of capitalization in the organization’s warehouses of goods and materials by examining acts drawn up for discrepancies in quantity and quality identified during the acceptance of goods and materials received without a supplier’s invoice and a claims card.

Inspection of storage of materials in a warehouse (central warehouse):

To store material assets, organizations have a warehouse (central warehouse).

The audit work in this area depends on what type of audit is being carried out.

1) Random documentary check of registration of materials in the warehouse.

The auditor selectively checks the procedure for registering materials in the warehouse. Sources of information are a logbook for recording incoming cargo, a special storekeeper's book, which reflects materials in safekeeping, and warehouse records cards. When starting to check the safety of materials, the auditor must evaluate the procedure for maintaining a log of incoming cargo. If a special storekeeper's book is kept for materials held in temporary custody, you should study the procedure for working with this book.

The auditor should pay special attention to checking the existence of concluded agreements on full financial liability between the enterprise and warehouse employees. Contracts must define the rights and obligations of employees, their work schedule, the procedure for accepting and issuing valuables, their documentation, etc.

The procedure for working with warehouse cards is analyzed separately. It is necessary to find out whether the storekeeper has sample signatures of persons who are authorized to dispose of material assets in the warehouse, whether the storekeeper displays the balance on the card after each entry about the receipt or consumption of materials. The auditor must determine whether the cards contain weekly signatures from an employee of the material accounting department about checking the cards.

2) Checking compliance with the procedure and timing of materials inventories by the organization’s inventory commission.

The auditor determines the presence (absence) of situations in which inventory is required. When such situations are identified, the auditor is obliged to check the inventory results for each case for the period under study. In this case, the auditor must pay attention to whether inventories are carried out by a permanent commission or a commission is appointed separately for each case.

The correctness of the organization and conduct of the inventory, the completeness, reliability and accuracy of the data in the inventory of actual balances of materials, the correctness of indicating the distinctive features of materials in the inventory, as well as the correctness of registration of the inventory results, penalties imposed and changes (adjustments) made to accounting forms and registers are checked.

Inventory of goods and materials. Before checking the actual availability of property, the auditor must obtain the latest receipts and expenditure documents or reports on the movement of material assets at the time of inventory. He endorses all incoming and outgoing documents attached to the registers (reports), indicating “Before inventory on (date),” which should serve as the basis for the organization’s accounting department to determine the balances in the warehouse at the beginning of the inventory according to accounting data.

Financially responsible persons give receipts stating that by the beginning of the inventory, all expenditure and receipt documents for property were submitted to the accounting department or transferred to the inventory commission and all valuables received under their responsibility were capitalized, and those disposed of were written off as expenses. Similar receipts are also given by persons who have powers of attorney to receive property.

Members of the commission record the batches of raw materials or materials checked at the warehouse in the sequence in which the inventory is taken. Entries are made in drafts. At least two drafts are in progress. One draft is filled out by the financially responsible person, the other by one of the members of the inventory commission. As necessary, entries in the two drafts are compared. And only after the inventory is completed, an inventory list is drawn up (form No. INV-3). In the inventory list, values ​​are arranged by names and articles listed in the records, which often does not correspond to the order in which they are located in the warehouse. The advantage of the described recording method (first in drafts, then in inventory records) is that records about material assets are entered into drafts in the sequence in which they are located in the warehouse, and if any of the participants in the inventory did not enter into their a copy of a draft of some batch of raw materials, then upon re-checking it can be quickly detected at its location. In some cases, it is advisable to keep a record of material assets verified in kind by three persons: the financially responsible person, the chairman of the audit commission and the controller-auditor.

Inventory lists are filled out in at least two copies clearly and clearly, without blots or erasures. The names of inventory values ​​and objects, their quantity are indicated in the inventory according to the nomenclature and in the units of measurement used in accounting. On each page of the inventory, the number of serial numbers of material assets and the total total of the quantity in natural meters recorded on this page are indicated in words. In the inventories it is necessary to indicate the full name of the goods, containers, their nomenclature and price list numbers, articles, grades and other distinctive features provided for in the price lists, the number of places, units of measurement, gross weight, net weight or quantity, price per unit and amount, and as well as other necessary data. It is prohibited to record a mass of goods in the inventory according to the stencil marked on the container without opening it and inspecting the contents. An exception is allowed in cases where unpacking may lead to a decrease in the quality of the goods or when the goods are stored in undamaged containers from the supplier. However, in both cases, spot checking is necessary.

It is not allowed to leave blank lines in the inventory - they are crossed out. On the last page of the inventory, a note must be made about checking prices and calculating totals signed by the persons who carried out this check.

You cannot record the balances of inventory items in the inventory according to accounting data, as well as from the words of the storekeeper and other persons. Each page and the inventory as a whole, subject to the mandatory counting of natural units, is signed by all participants in the audit, including financially responsible persons. At the end of the inventory, the financially responsible persons give a receipt stating that all valuables were presented to them for inspection, the audit was carried out correctly and there are no complaints against the audit commission (auditor).

Based on accounting data and inventory lists, the accounting department, under the supervision of the chairman of the inventory commission, draws up collation sheets for the inventory of inventory items (form No. INV-19). If inventory items are taken into account in physical and monetary terms, then the amounts of their surpluses and shortages in the matching statements are indicated in accordance with the assessment in accounting. If the price is not indicated in the accounting, but there is information about the quantity and total cost of inventory items, it is determined by dividing the total cost of inventory items by their quantity and checked against the list price. Where they keep records only by cost, for example in stores, the inventory results are documented in an inventory act.

There are cases when, according to book data, the balances of material assets are indicated either in quantitative or monetary terms, or the price received does not correspond to the price list or the price indicated in the supplier’s documents. This data is transferred to matching statements and discrepancies are displayed: surpluses or shortages. This situation often leads to concealment of shortages, embezzlement and theft. To eliminate this shortcoming, before drawing up a comparison sheet, it is necessary to check whether the accounting price of materials corresponds to their price according to the price list or supplier documents. If there are deviations, you need to identify the reason and establish the correspondence of these prices. Typically, inventory balances based on book data, either in quantitative or monetary terms, are obtained as a result of incorrect taxation of incoming and outgoing documents.

The comparison sheet and the inventory report must be signed by all members of the inventory commission. The accountant signs for book balances in the accounting department.

As a result of the inventory, misgrading may be identified. In this case, mutual offset of surpluses and shortages from re-grading can be allowed only as an exception for the same audited period, with the same financially responsible person and in relation to inventory items of the same name. Financially responsible persons give detailed explanations based on the inventory results, including re-grading.

If, when setting off shortages with surpluses by re-grading, the value of the missing valuables is higher than the value of the valuables found in surplus, this difference in value is attributed to the guilty parties. For the difference in value from misgrading to shortages that were not caused by the fault of financially responsible persons, the protocols of the inventory commission must provide comprehensive explanations as to the reasons why such a difference is not attributed to the guilty persons.

For all other identified discrepancies, financially responsible persons provide written explanations. The facts stated in these explanations must be carefully verified; they must be taken into account when determining the final results, if these results are confirmed by checks, or rejected.

Material assets transferred for processing to third-party organizations are inventoried by mutual reconciliation of the balances of these material assets listed in the accounting records of the audited organization and contractor organizations. To do this, the auditor, in a memo, informs the contracting organization about the indicators it has with a request to confirm them. Sometimes it is advisable to request from the contracting organization information about the number of inventory items being processed in order to compare them with the accounting data of the audited organization.

Inventory statements are compiled separately for materials in transit, material assets accepted for storage or processing, and materials transferred for processing to third parties.

Sometimes, during inventory, inventory items that are not suitable for use are discovered. They are recorded in separate inventories. The inventory commission establishes the reasons for damage to inventory items and the persons responsible for this. If a decision is made to write off inventory items, they are received at the price of possible use, and the difference between the book value and the value at the price of possible sale is attributed to the officials responsible for the damage or to the financial results.

When offsetting shortages and surpluses as a result of regrading, amount differences may arise. Shortages are attributed to financially responsible persons, surpluses are attributed to the identification of the causes and culprits of the occurrence. In practice, there are amount differences that arise as a result of incorrect application of prices due to the fault of accounting or due to rounding.

Particular care should be taken to check the legality and size of the applied norms of natural loss for individual materials, the correctness of calculation of the amount of natural loss and its write-off (whether materials were written off under the guise of natural loss before a shortage of this type of inventory was established).

All inventory documents: an order to conduct an inventory, receipts, draft inventories, inventory lists, written explanations and statements of financially responsible persons, as well as matching statements - must be stapled together and presented to the inventory commission for consideration and decision-making based on the inventory results, which must be reflected in the accounting records of the month when the inventory was taken within 10 days after the end of the inventory.

Registration of inventory results. Upon completion of the inventory, the inventory list must contain all the necessary details and not have unauthorized (not properly completed) corrections. Authorized corrections are made by the inventory commission to all copies of the inventory.

If the auditor identifies materials that have not been registered, as well as materials for which the accounting registers do not contain or contain incorrect data, the inventory must include correct information and technical indicators for these materials.

The work of the auditor is documented in a protocol. The protocol reflects: the results of inventory, checking the condition of the warehouse and ensuring the safety of materials. In the protocol, based on the compiled comparison statements (form No. INV-19), the auditor gives his conclusions on the results of the inventory and proposals for eliminating identified shortages, writing off shortages within the limits of natural loss, capitalizing surpluses, etc.

Correct execution (drawing) of matching statements is very important. This work is carried out in two directions: accounting data and calculations carried out in inventories are verified. Accounting data is displayed on the day of inventory based on data on the 1st day of the month and submitted receipt and expense documents. The accountant of the organization must confirm the credentials (it is most convenient to do this directly on the matching sheet itself). The data reflected in the inventory is confirmed by the persons who verified the actual data.

Inventory lists are compiled by divisions of the organization. A correspondence table is provided separately: department, financially responsible person, total cost of entrusted materials, which indicates the presence (absence) of a liability agreement.

Unaccounted for materials identified by the inventory must be valued taking into account market prices.

Detected shortages of materials are subject to write-off in accordance with the established procedure. The auditor carefully checks each case of writing off missing materials. At the same time, violations of the current procedure for assigning the cost of missing materials to perpetrators, the procedure for repaying this debt and recording all write-off transactions are often revealed.

Audit of disposal of materials to third parties:

If excess materials are purchased, they can be sold to another organization. In this case, materials are released from the warehouse (central warehouse), which is documented by an invoice for the release of materials to the third party (form No. M-15).

During such an audit, a complete documentary check of the registration of the sale and donation of materials is carried out.

Complete documentary check of registration of sales of goods and materials. Since when an organization transfers materials into the ownership of another legal entity or individual under a purchase and sale agreement or in exchange for another product under an exchange agreement, the release is issued with an invoice in form No. M-15, the auditor checks the correctness of execution of these documents (agreements and invoices). Agreements must comply in form and content with the requirements of current legislation.

Particular attention should be paid to the selling prices of materials - the organization must approve selling prices for them. The auditor examines the effectiveness of the pricing policy and the actual compliance by officials with the discipline of selling prices for materials.

The sale of materials purchased by the organization's supply department is not always economically feasible. The very fact of selling materials is a consequence of either the lack of a system for planning and rationing of inventories, or improperly organized production. The auditor must give an economic assessment of the actions of officials of the organization, on whose initiative excess materials are purchased, which are subsequently subject to sale. When illiquid items are discovered in a warehouse (central warehouse), the organization needs to raise the question of their speedy sale and try to determine the reasons for their occurrence.

The auditor can check the organization's access system. To do this, the provision on the access system is checked with the actual access procedure in force in the organization.

Complete documentary verification of registration of donation of goods and materials. The auditor is obliged to determine the compliance of the act of donation with the current legislation (in form and content): whether the agreement of donation (free transfer) of materials is correctly drawn up; Have invoices been issued for the release of materials? The auditor must remember that donations between commercial organizations are not permitted.

For each fact of donation, it is mandatory to identify the person who signed the donation agreement and the competence of his actions.

Also, the auditor can additionally check such material assets as: fuels and lubricants, containers, spare parts, production and household equipment, tires.

3 Audit of the movement of inventory items using the example of Gamma-Motors LLC

3.1 Brief description of Gamma-Motors LLC

Gamma-Motors LLC, operating in the field of wholesale and retail trade in motorcycle equipment. Using this organization as an example, I will show how the process of auditing the movement of inventory items occurs.

The organization's regular clients are various dealer organizations and retail clients in Moscow and regions of the Russian Federation.

Gamma-Motors LLC has existed on the Russian market for 12 years (since 1996) and has now gained the trust and respect of a huge number of customers.

3.2 Accounting at Gamma-Motors LLC

To organize and maintain accounting records, Gamma-Motors LLC has created an accounting department that keeps records, draws up reports and monitors compliance with financial discipline.

The accounting policy of the enterprise is formed in accordance with generally accepted rules and features of the company's activities. The set of selected methods, forms and organization of accounting ensures compliance with the basic requirements for accounting policies.

The enterprise prepares accounting and statistical reports in the manner prescribed by the legislation of the Russian Federation. Tax and other government bodies, which are entrusted by the legislation of the Russian Federation with checking the activities of the enterprise, carry out this within the limits of their competence. The results of the inspections are reported to the enterprise.

The source of the formation of financial resources of an enterprise is profit - this is income received from the sale of goods.

To record inventory, primary documentation is used that meets the requirements of the basic provisions for accounting for materials.

Gamma-Motors LLC uses the following forms of primary documents to systematize and fully present information on inventory accounting (Table 1).

Table 1 - Primary documents for organizing inventory accounting at Gamma-Motors LLC

	Form number	Form name	Form approval date
		Power of attorney
		Receipt order	Approved by Resolution of the State Statistics Committee of the Russian Federation dated August 18, 1998 No. 88
		Consignment note	Approved by Resolution of the State Statistics Committee of the Russian Federation dated December 25, 1998 No. 132
		Certificate of acceptance of materials	Approved by Resolution of the State Statistics Committee of the Russian Federation dated October 30, 1997 No. 71a
		Invoice for issue of materials to the side	Approved by Resolution of the State Statistics Committee of the Russian Federation dated October 30, 1997 No. 71a
		Material accounting card	Approved by Resolution of the State Statistics Committee of the Russian Federation dated October 30, 1997 No. 71a
		Invoice	Approved by Decree of the Government of the Russian Federation dated December 2, 2000 N 914 (as amended by Decree of the Government of the Russian Federation dated February 16, 2004 N 84)

3.3 Audit of the movement of inventory items in Gamma-Motors LLC

On September 6, 2008, the management of Gamma-Motors LLC, represented by General Director Dmitry Sergeevich Damaev, decided to conduct an unscheduled audit of inventory in the organization.

The purpose of the audit was to determine the degree of safety of material assets belonging to the organization, as well as to identify facts of violation of accounting discipline, identify responsible persons and bring the perpetrators to justice.

The audit was carried out on the basis of an order from the management of Gamma-Motors LLC.

Type of audit: random documentary check with inventory taking at the organization's warehouse.

The commission included:

Pavlov Kirill Anatolyevich - wholesale sales manager;

Alexey Mikhailovich Nikolaev - retail sales manager;

Ostrovsky Roman Mikhailovich - retail sales manager.

The head of the audit commission is Dmitry Sergeevich Damaev.

The audit was carried out on the basis of the provisions of Order No. 42n of the Ministry of Finance of Russia dated April 14, 2000 “On approval of the Instructions on the procedure for conducting audits and inspections by the control and audit bodies of the Ministry of Finance of the Russian Federation” and departmental legislative documents.

The Audit Commission was obliged to check:

1) the correctness of documentation of the movement of material assets;

2) full reflection and reality of the existence of material assets;

3) determining the legality of the transactions carried out and the correctness of their reflection in accounting to assess the impact on the reliability of the organization’s financial statements.

To achieve the main goals of the audit, it is necessary to solve a whole range of interrelated tasks, the main of which are:

Establishing the safety of storage conditions for valuables;

Studying the state of internal control over the receipt and disposal of material assets;

Checking the correctness of the completeness of the receipt of materials;

Timeliness of inventory and identification of results.

Among the documents subject to verification are primary documents, registers of synthetic and analytical accounting, and reporting:

1. Order "On the accounting policy of the organization";

2. Contracts for the supply of inventory items;

3. Powers of attorney;

4. Waybills (waybills, etc.);

5. Log books of received and issued invoices;

6. Purchase Book and Sales Book;

7. Agreements on liability;

8. Product certificates;

9. Registers of synthetic and analytical accounting for accounts 41 “Goods”, 45 “Goods shipped”;

10. General ledger;

11. Order journals;

12. Oral statements by employees and third parties;

13. Results and inventory of goods of the inspected organization (inventory lists);

14. Accounting statements.

3.3.1 Audit of receipt of inventory items

To ensure the normal course of the financial activities of the organization, it is necessary to regularly and uninterruptedly supply Gamma-Motors LLC with material assets.

Gamma-Motors LLC receives material assets through the following channels: from suppliers; accountable persons who purchased these materials in cash.

When auditing the receipt of materials, it should be borne in mind that primary documents on the receipt of materials play an important role in organizing the accounting of materials, since they are its basis.

The main sources of information when checking operations for the receipt of inventory items will be:

Primary documentation for accounting of material assets;

Receipt documents for material assets (waybill, receipt order (form No. M-4), materials acceptance certificate (form No. M-7), IBP MB-2 accounting card, powers of attorney (form No. M-2 and M-2a);

Agreements for the acquisition of valuables, because The organization enters into contracts for the supply of materials.

The audit began with an acquaintance with the accounting department, which is responsible for accounting for transactions related to the receipt of materials. If an enterprise is inspected by a higher organization or control and audit bodies, then usually at this stage it is established who keeps the accounting records for the movement of values; what regulatory documents does the accountant of this site use; to whom does this accountant report? who checks him on the work performed; what internal control methods are used (inventory, documentation), but since the audit is carried out by employees of Gamma-Motors LLC, they already know this information. Therefore, initially the audit commission checked:

The correctness of the execution of agreements on liability with storekeepers, to whom the valuables are transferred to the account;

Availability of document registers (invoice register);

Availability of orders for a permanent inventory commission;

Are the deadlines for conducting an inventory of material assets met?

Is the procedure for recording inventory results followed?

Compliance of the procedure for issuing, drawing up and using powers of attorney to receive goods and materials with the requirements of regulatory documents. According to the log of powers of attorney for the receipt of goods and materials, cases of issuing powers of attorney to persons not working in the audited organization are identified, the procedure for issuing powers of attorney (completed in whole or in part, without sample signatures of the persons in whose name they are written out), the rules for issuing them (a new power of attorney is issued to one and to the same person after submitting a report on the use of a previously received power of attorney), it is determined whether there is a violation of the instructions on the procedure for issuing powers of attorney to receive goods and materials.

Checking this data showed that all transactions are processed correctly and in accordance with established rules. The inspection did not reveal any violations.

1. Audit of storage of inventory items in a warehouse

The safety of goods depends on storage conditions, so the next stage of control is to check the condition of the warehouse facilities in a given organization. Gamma-Motors LLC rents one warehouse space where all material assets are stored. The audit commission decided on the need to conduct an inventory of the organization’s warehouse, so the next stage of the audit should be an inventory of material assets. For this purpose, the General Director of Gamma-Motors LLC issued an Order to conduct an inventory of form No. INV-22 (Appendix No. 1). The main task of inventory is to find out whether accounting data coincides with the actual presence of certain values. The order appointed an inventory commission and indicated exactly what valuables the commission would inventory. After creating the order, the head of the organization handed the text of the order to the members of the inventory commission, and the chairman of the commission was given a control seal.

Before starting the inventory, the audit commission is obliged to:

Check whether the inventory is carried out by a permanent commission or whether the commission is appointed separately for each case. At Gamma-Motors LLC, the commission is appointed without changing persons.

Make a list of valuables to be inventoried;

Check that the distinctive features of material assets are indicated correctly in the inventory.

Before checking the actual availability of property, the audit commission received the latest incoming and outgoing documents at the time of the inventory. She endorsed all incoming and outgoing documents with the indication “Before inventory on _____ (date),” which should serve as the basis for the organization’s accounting department to determine the balances in the warehouse by the beginning of the inventory according to accounting data.

And the financially responsible persons, before the start of the inventory, gave receipts stating that by the start of the inventory, all expenditure and receipt documents for material assets had been submitted to the accounting department and all assets received under their responsibility were capitalized, and those disposed of were written off as expenses.

The Audit Commission organized a review of the results of previously conducted inventories.

When checking the results of previously conducted inventories, special attention was paid to:

Checking the composition of inventory commissions in terms of their completeness and competence, as well as ensuring that the same employee is not appointed as chairman of the commission twice in a row. The need for a thorough analysis of the composition of inventory commissions was due to the fact that the quality of inventory largely depends on it.

Checking the availability and contents of receipts received from materially responsible persons before the start of each inventory;

Checking the design of each page of the inventory list;

Checking the correct and complete name of each product and its other distinctive features;

Is the number of serial numbers of inventory items and the total total of the number of physical indicators indicated in words?

Is the total cost of goods indicated;

Is each page signed by all members of the commission;

Checking inventories for erasures, corrections in the quantity of goods and their prices, not certified by the signatures of all members of the commission;

Checking the presence of marks on price checks on the last page of the inventory list, and calculations of the results signed by the persons who carried out these checks;

According to the acts of the results of checking the values, the following were checked: the correctness of the transfer of accounting and actual balances into them, the determination of the final results of the inventory, the correctness of their execution, the timeliness of their preparation;

Checking inventory records for the presence of entries of out-of-stock goods. If there were such additions, they can be identified through a control comparison.

No violations were identified during the verification of the results of previously conducted inventories.

After carrying out the above procedures, an inventory procedure was started, during which materially responsible persons must be present, in this case they are Alexander Sergeevich Kostrichkin - warehouse manager and Arseniy Anatolyevich Budnik - retail sales manager. Some auditors make a mistake when they decide, for whatever reason, to conduct an inventory in the absence of the financially responsible person. If, as a result of the inspection, a shortage of valuables is established, the responsible person, who was not present during the inspection, may subsequently challenge the results of the inventory and challenge the fact of the shortage.

Before the start of the inventory, the materially responsible person is Kostrichkin A.S. compiled a report on the receipt and release of goods as of the start date of the inventory in two copies. One copy was transferred to the accounting department of the enterprise, and the other to the audit commission. S Kostrichkin A.S. a receipt was taken stating that all documents related to the movement of goods had been submitted to the accounting department, and that they had no assets at their disposal that were not capitalized or written off for sale.

During the inventory, the audit commission must:

Determine whether the warehouse premises were used for their intended purpose;

Check whether storage facilities meet the requirements and how they are secured;

Are materials stored correctly?

Ensure that procedures are carried out accurately by the inventory commission;

Request a recount of values, if necessary;

Record the inventory results for each type of goods in inventory lists compiled at the location (storage) and for the materially responsible persons in the units of measurement accepted in accounting.

The actual presence of all valuables in the organization was verified by counting.

During the inventory process, all materials checked in the warehouse were recorded by members of the commission in the sequence in which the inventory was taken. The entries were made in drafts. There were two drafts going on. One draft was filled out by the financially responsible person A.S. Kostrichkin, the other - by the chairman of the commission - Damaev D.S. As necessary, entries in the two drafts were compared. And only after the completion of the inventory, which lasted for 2 days, an inventory list form No. INV-3 (Appendix No. 2) was drawn up. Because the inventory was carried out within two days, then the warehouse was sealed each time after the commission left. The inventory lists were filled out in two copies clearly and clearly, without blots or erasures:

One copy was transferred to the accounting department for drawing up a matching statement;

The second copy remained with the person responsible for the safety of valuables (Kostrichkin A.S. - warehouse manager).

The names of inventoried values ​​and objects, their quantity were indicated in the inventories according to the nomenclature and in the units of measurement adopted in accounting. On each page of the inventory, the number of serial numbers of material assets and the total total of the quantity in natural meters recorded on this page were indicated in words. The inventories indicated: the full name of the valuables, their quantity, units of measurement.

Inventory assets arriving at the company during the audit period were arrived by storekeepers in the presence of a commission. Data about them was entered into a separate inventory “Inventory assets received during inventory.”

The values ​​released during the audit period were also reflected in a separate inventory “Inventory assets released during the inventory period.” In the expenditure documents, the chairman of the commission made a corresponding note and put his signature.

The inventory of the warehouse did not reveal any valuables that did not belong to the organization.

In the inventory lists, all unfilled lines were crossed out, and on the last page of the inventory a note was made about checking prices and calculating the totals, signed by the persons who carried out this check.

Each page and the inventory as a whole was signed by all participants in the inventory, including financially responsible persons. At the end of the inventory, the financially responsible persons gave a receipt stating that they had been presented with all the documents drawn up during the verification of values, the inventory was carried out correctly and they had no complaints against the audit commission.

The inventory is kept in the company archives for at least five years.

Based on accounting data and inventory records, the accounting department, under the supervision of the chairman of the inventory commission, compiled collation sheets for the inventory of inventory items of form No. INV-19 (Appendix No. 3).

No violations were identified during the preparation of the comparison sheet. The accounting data coincides with the facts.

The comparison sheets were drawn up in duplicate and signed by all members of the inventory commission. One copy of the statement remained in the accounting department, and the second copy was handed over to the employee responsible for the safety of valuables (Kostrichkin A.S. - warehouse manager). The statements are kept in the company archives for five years.

All inventory documents: an order to conduct an inventory, draft inventories, inventory lists, as well as matching sheets - were stapled together and submitted to the inventory commission for consideration and decision-making based on the results of the inventory. Based on all of the above documents, the audit commission drew up a protocol. The protocol reflected: the results of the inventory, checking the condition of the warehouse and ensuring the safety of materials. In the protocol, based on the compiled reconciliation statements, form No. INV-19, the audit commission gave its conclusions on the results.

The final stage of the audit was the preparation of an audit report (Appendix No. 4). This document is based only on specific facts and references to relevant documents and contains a consistent presentation of the identified shortcomings, violations and abuses. All facts in the audit report were presented in such a way that for each of them it was possible to have documented answers to the following questions:

The object of the violation and the content of the violation;

Violator (indicating financially responsible persons);

Time of violation (period of violations);

Method of violation;

What caused the violation (reasons and conditions contributing to the violation);

The amount of damage caused.

To avoid clutter, the audit report contained only the facts and the final result of these violations - no violations were found.

1. Definition

In accordance with the International Accounting Standards (IAS), which is consistent with the Russian accounting system, inventory assets are assets that:

• held for resale in the normal course of business
• are in the process of production for further sale; or
• exist in the form of materials or supplies that will be consumed in the process of production or provision of services

According to the above definition, inventories are divided into three categories: raw materials, work in progress and finished goods. Raw materials are unprocessed items that will be used in the production process, work in progress refers to items whose production is partially completed, and finished goods are finished goods that are ready for sale.

According to IAS, inventories reported in financial statements are generally classified according to the categories above (Raw Materials, Work in Process and Finished Goods). The Russian accounting system defines seven categories of inventory items reflected in the balance sheet.

These include:

• raw materials and components,
• animals for growing and fattening,
• low-value and high-wear items, taking into account accumulated wear and tear,
• unfinished production,
• finished products,
• goods for resale,
• and goods shipped.

For IAS purposes, the classification adopted in Russian accounting, with the exception of goods shipped, can be grouped into the following categories: raw materials, work in progress and finished goods. Goods shipped should be excluded from the inventory classification for IAS purposes as this category will be treated as a receivable under accrual accounting. More detailed information can be found in the Accounts Receivable or Sales sections of this manual.

2. Differences between IAS and Russian accounting standards

The differences listed below are divided according to 3 categories of inventory: raw materials, work in progress, and finished goods. Within these three categories, differences between IAS and the Russian accounting system are manifested in the classification of low-value and wear-and-tear items, accounting procedures when changing accounting periods, accounting for uninvoiced supplies, valuing items at the lower of cost and net realizable value, valuing work in progress and finished goods with taking into account production costs and using various cost accounting systems, as well as the distribution of overhead costs.

2.1. Raw materials and materials - Classification of low-value and high-wear items

According to the Russian accounting system, inventory items reflected in accounting, the cost of which does not exceed a certain amount (established by the Ministry of Finance), and the useful life of which does not exceed one year, are defined as “low-value and wearable items.” According to the requirements of the Russian accounting system, depreciation on low-value and wear-and-tear items is also accrued over the useful life of these assets.

The difference that exists between IAS and the Russian accounting system in relation to inventory items, defined as low-value and wearable items, is that some of such items are not intended for sale, but are spare parts and parts used in repairs and maintenance production equipment of the enterprise. For IAS purposes, such items of inventory that are not held for sale must be classified as either inventory or property, plant and equipment, depending on their cost and useful lives. If the cost of the SBP is insignificant and the useful life is short (less than 1 year), such SBP can be classified as inventory and will be charged to expenses as they are written off in production. If the value of the property is significant and the expected useful life exceeds one year, such property should be classified as property, plant and equipment and depreciation on it should be calculated in accordance with its useful life. An example of such property are molds used in casting, as well as spare parts for equipment.

2.2. Raw materials and supplies - Uninvoiced deliveries

Uninvoiced deliveries are a common practice for medium and large Russian companies. The reason for such deliveries is poor communication between supplier and customer, insufficient control over confirmation of deliveries and receipts, as well as technical difficulties associated with the transportation process.

Despite the fact that in Western companies there are also cases of receiving goods without sufficient supporting documentation, they most often have internal control procedures sufficient for the receipt and accounting of goods received, which allow solving this problem. As a rule, the company promptly identifies goods received without an invoice or bill of lading. In this way, undocumented receipts are identified and the corresponding purchase price is determined.

The result of such deliveries is a distortion of inventory balances, accounts payable or asset sales. Without knowing the true value of the goods received, the company itself is forced to estimate their value. Often, the lack of documentation at Russian enterprises complicates the accounting process also because there are requirements for the availability of adequate documentation. Often, Russian companies tend not to record the amount of assets if they do not have documents on hand with which they could confirm a particular balance.

Despite the fact that according to IAS, inventory items should be accounted for at the acquisition price, this is in many cases not suitable for Russian enterprises. Therefore, in cases where there is an uninvoiced product and it is impossible to contact the supplier to determine the correct purchase price, the Russian enterprise should account for such receipts either at the standard price or at the price of similar goods. The standard price, or the price for similar goods, must be comparable to the price of the purchased goods.

2.3. Valuation of inventory assets at net realizable price

According to IAS, inventories should be stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the normal course of business, less the estimated cost of completion and estimated selling costs.

Inventories are recorded at net realizable value when it is assumed that the cost of such items cannot be recovered. It may turn out that it will be impossible to reimburse the cost of inventory items if such inventory items have been damaged, or they are completely (or partially) outdated, or if their prices have fallen. In addition, it may not be possible to recover the cost of inventory if estimated completion costs or estimated selling costs increase. The practice of writing down inventories to net realizable value is consistent with the theory that assets should not be carried at a value in excess of what is expected to be realized from their sale or use.

Write-off of inventories to net realizable value is usually carried out on an individual basis. However, in some cases it may be appropriate to group similar or related types of inventory.

If the circumstances that previously resulted in inventory being written down to net realizable value no longer exist, the amount of the write-down is reversed so that the new value represents the lesser of cost and the revised net realizable value.

All amounts of inventory written off to net realizable value, as well as all losses on inventory, should be reflected as expenses of the period in which such write-off was made or such losses occurred.

According to the “Regulations on Accounting and Reporting in the Russian Federation,” partial or complete write-off of obsolete or damaged items is allowed. Many Russian enterprises have not made such write-offs part of their practice due to the unreasonably harsh approach of the tax inspectorate. Tax authorities often challenge the legality of markdowns on inventories and require special accounting for discounted inventories, and also require personal responsibility for the amounts of markdowns on inventories reflected in the balance sheet and the associated losses reflected in the income statement.

Methods for determining the cost of inventory, such as the standard price accounting method, can be used at your own discretion if their results are close to the actual cost. When calculating using standard prices, the average level of consumption of materials and supplies, labor and resources is taken into account. They are regularly reviewed and, if necessary, modified to take account of current conditions.

2.4 Work in progress and finished goods - valuation based on production costs

Production costs are the costs incurred in connection with the acquisition of inventory items (material assets) for resale, or their production. According to IAS, production-related costs of an industrial enterprise are those costs that are associated with products and are included in the valuation of work in progress and finished goods; they are then included in the cost of goods sold when calculating the sales result.

Expenses of the reporting period are those costs that are not included in the assessment of inventory and, therefore, are considered as expenses of the period during which they were incurred. Therefore, periodic costs are not included in inventory.

The Russian accounting system also has the concept of production costs and periodic costs, but there are no principles for their practical application in assessing work in progress and finished products.

According to IAS, work in process and finished goods include all production costs. Manufacturing costs include three cost components: direct material costs, direct labor costs, and manufacturing overhead costs.

Direct material costs have three characteristics: (1) they are included in the cost of finished goods, (2) they are used exclusively for the production of products, (3) there is a clear and easily traceable connection between them and the product. Some materials may form part of the finished product, but establishing a connection between such materials and the product can be extremely costly and time-consuming. For this reason, such materials are accounted for as indirect material costs and are included in manufacturing overhead.

Direct labor costs include the labor costs of all workers directly involved in the process of processing materials into finished products. As with direct material costs, direct labor costs for manufacturing products include only labor costs directly associated with those products. Indirect labor costs consist of the cost of services that are fundamentally or practically impossible to relate to the products produced, and which are included in manufacturing overhead costs.

Manufacturing overhead includes all manufacturing costs except those recorded as direct material costs and direct labor costs. Manufacturing overhead is an expense that must be incurred but is either fundamentally or practically impossible to attribute to specific units of output produced.

According to the Regulations “On Accounting and Reporting in the Russian Federation,” work in progress in mass and serial production can be reflected in the balance sheet at standard (planned) production costs or at direct expense items, as well as at the cost of raw materials, materials and semi-finished products. In accordance with this Regulation, Russian enterprises do not receive specific instructions regarding the recording of work in progress and finished goods for all items of production costs (including direct and indirect production costs), and regarding the exclusion of periodic costs.

In addition, according to Russian regulations, the cost of finished products usually includes a certain part of periodic costs.

Such costs must be excluded from the cost of finished products and charged to expenses for the corresponding period.

2.5. Valuation of inventory items - cost accounting options

Within cost accounting systems used by businesses, the identification of costs associated with the production process is based on either actual cost accounting or standard cost accounting. When accounting for actual costs, the system collects data on the actual costs of materials, labor and manufacturing overhead, while when accounting using the standard cost method, the system collects both actual and standard costs for these elements of production. Standard costs are entered into the accounting system in order to determine the standard, or “standard,” cost of finished products. Costs actually incurred during the period are then compared with standard values ​​to aid management's decision-making process and determine whether production costs are being properly controlled.

Standard cost is a carefully verified cost amount that is valid under certain conditions. There are many ways to calculate standards, but the only ones that are of real value are those that are not simply calculations based on extrapolation of historical trends. Typically, technology and manufacturing studies are undertaken to determine the quantities of materials, labor, and other services needed to produce a product. When setting standards, it is also necessary to take into account general economic conditions, since such conditions affect the cost of materials and other services that the enterprise must purchase.

At the end of the accounting period, deviations from the norm must be reflected in accounting. Such variances can be (1) treated as losses due to poor performance and written off to cost of goods sold, or (2) allocated by adjusting entries to the cost of work in progress or finished goods. The alternative chosen by management for writing off deviations should depend on the extent to which the established standards are reasonably achievable, and whether deviations are monitored by the enterprise's employees.

The difficulties faced by Russian enterprises using a standard cost accounting system lie in the economic conditions, the result of which are constantly changing standards and untimely accounting of deviations. Since prices change rapidly due to inflation, the standards established by enterprises are often inaccurate. If the cost accounting system uses incorrect standards, significant accounting variances arise that must be allocated. Since the most likely source of variances is changing prices, variances should be attributed to the cost of inventories (work in progress and finished goods) and cost of goods sold.

Such distribution is often reflected untimely, as a result of which inventory balances and the cost of goods sold are distorted.

The following are sample procedures that a business can use to set standards for three cost elements: direct material costs, direct labor costs, and overhead costs.

1. Determination of materials required for production of products

Technologists must determine the acceptable amount of materials needed to produce a product. Specifications must be supported by the results of quantitative measurements and timing undertaken to determine the quantities of materials, labor and other services required to produce the product. The acceptable quantity of material must include acceptable losses, such as stamping waste. Depending on the nature of the waste, it can be recycled to reduce the amount of materials consumed in the production of products.

2. Establishment of standard prices for materials

This should be the responsibility of the purchasing department. Standard prices for materials should be based on reasonable forecasts of average prices for the next accounting period. In individual cases where prices for individual materials are volatile, it may be necessary to revise target values ​​more than once during a period.

3. Determination of the standard cost of materials

The standard cost of materials is determined by multiplying the standard (allowable) quantity by the standard price of the material. In cases where recycled waste is also used, the procurement department should also apply the standard cost of waste treatment.

4.Determination of acceptable time for operations

The permissible time for carrying out operations can be determined on the basis of the timekeeping performed and the corresponding regulatory tables adopted in the industry.

5. Determination of standard labor rates depending on the nature of the operation

The determination of complexity categories for various production processes is based on various factors and their significance for the work being performed. Such complexity categories provide the basis for determining standard labor costs, which, like material standards, remain unchanged during the accounting period.

6. Establishment of standard overhead costs

This value is predetermined by dividing the budgeted production overhead costs by the standard production rates.

When calculating the amount of overhead costs (based on the estimated annual amount of overhead costs and standard production indicators), Russian enterprises whose capacity exceeds the actual production needs, as a rule, include all actually incurred overhead costs in production costs.

Whenever actual costs or overheads differ from the calculations used to determine the standard value, overhead reimbursement variances will occur. Typically, any deviations are reflected as costs of the accounting period. Many Russian enterprises include such deviations in the cost of goods sold, and not in the costs of the accounting period.

3. Information needs

The following information and procedures will assist in the preparation of financial statements in accordance with IAS:

• It is necessary to divide all costs incurred by the enterprise into production costs and periodic costs. Businesses may need to open sub-accounts to follow the IAS classification without changing existing Russian accounting rules.
• It is necessary to conduct quarterly inventories, and such conduct should be monitored by employees who are not directly responsible for the physical safety of inventory items. During the inventory, it is necessary to identify those valuables that are damaged, completely or partially obsolete, or whose sales prices have decreased.
• It is necessary to prepare an analysis of account 16 “Variances in the cost of materials” containing the following information:
• The initial auditor-certified balance on this account must be zero.
• Account movement during the period
• Closing balance
• For each major account transaction, determine whether deviations arose due to:
  • inadequate standard
  • excess defects or consumption of materials
• If the standard is inadequate, the standard should be revised and the deviations should be attributed to inventory accounts
• In any other case, deviations should be written off to the profit and loss account (costs for the period)

4. Eliminate differences

The following example demonstrates the separation of production costs and periodic costs, as well as the distribution of variances:

4.1 Recalculation of work in progress

Due to the existing differences between IAS and the Russian accounting system in terms of the assessment of work in progress and finished goods, it is necessary to redistribute part of the overhead costs to include them in work in progress in order to bring them into line with IAS.

To recalculate work in progress, you must do the following:

1. The balance of work in progress should include part of the costs reflected in Russian accounting as indirect costs. For example, the wages of warehouse workers are usually classified as manufacturing overhead costs, while the wages of a shop manager are classified as expenses for the reporting period. Then the same procedure is applied to account 26 “General business expenses” and account 43 “Commercial expenses”.
2. At different stages of the manufacturing process, the product is at different levels of completion. Consequently, not all processing costs, e.g. labor and overhead are consumed in the production process, and work in process usually includes only a portion of such costs. The enterprise determines the moments at which such expenses are incurred, depending on the production technology. “Technological process maps”, usually used at Russian enterprises, make it possible to establish this degree of consumption of processing costs. If such maps are not used, management should use similar documents or reasonable estimates.
3. As products move through the various stages of the manufacturing process, the value of work-in-process increases; for example, the value of work-in-process at the finishing stage may be twice the value of work-in-process at the front-end stage. To ensure that the value of work in process is comparable for purposes of inclusion in cost of goods sold and inventory, all work in process is restated using equivalent units. An equivalent unit is an artificial unit of measurement that allows the transformation of work in progress into homogeneous units of finished products, equivalent in terms of the amount of consumed processing costs.

Let us assume that there are two production stages in the production of irons: casting and assembly. There is no balance of work in progress at the beginning of the accounting period. 900,000 irons were put into production, and the balance of work in progress shows 150,000 irons in the casting stage. For simplicity, it is assumed that all materials have been released into production before the start of the first stage, 50,000 units are 100% labor and 80% overhead complete, the remaining 100,000 irons are 50% labor and 40% completed. - regarding overhead costs. The total cost of raw materials is 9 billion rubles, labor costs during this period amounted to 3 billion rubles, production overhead costs amounted to 3 billion rubles.

For direct material costs included in work in progress, the number of equivalent units is:

	900,000 - 150,000 =	750,000 irons
Started and not finished:		150,000 irons
		900,000 irons

Regarding labor costs:

Started and completed during the period:	900,000 - 150,000 =	750,000 irons
Started and 100% finished:		50,000 irons
Started and 50% finished:	100,000 * 50 % =	50,000 irons

(50,000 irons 100% complete is equivalent to 100,000 irons 50% complete) Total: 850,000 irons

Regarding production overheads:

Started and completed during the period:	900,000 - 150,000 =	750,000 irons
Started and 80% finished		40,000 irons
Started and 40% completed:	100,000 * 40 % =	40,000 irons
		830,000 irons

With this method of recalculating work in progress, it is necessary to compare it with the actual results of calculation for work in progress in accordance with Russian accounting rules and correct any discrepancies that arise. Let's assume that, in accordance with Russian accounting, the result was 1.288 million rubles; Therefore, the following adjustment must be made:

4.2. Redistribution of accounting period costs when assessing finished products

Let's assume that the Utyug enterprise includes part of the expenses of the accounting period in the cost of finished products. At the end of 1995, the balance of finished products amounted to 18.320 million rubles. For simplicity, we assume that at the beginning of the period there was no balance in finished goods. The enterprise did not keep constant records of the valuation of finished products, and the calculation of the cost of finished products was made as follows:

• an inventory was carried out at the end of the year, thus identifying the balances of finished products in the warehouse;
• the costs incurred in the production of these finished products were determined in accordance with the standards adopted by the enterprise;
• unit costs were determined using the estimated prices applied by the purchasing department for raw materials, the labor and wages department for direct labor costs, and the planning department for other costs.

Based on such records, it was determined that of the finished products reflected in accounting in the amount of 18.320 million rubles, 8.039 million rubles. refer to the costs of the reporting period that were included in the valuation of finished products. Accordingly, the following adjustment was made:

	"General running costs"
	"Finished products"

4.3. Auxiliary departments and services

The expenses of three auxiliary departments of the Utyug enterprise - the technological service department, the transport department and the sales department - are distributed among the main production departments in accordance with direct labor costs as follows:

	Distribution base	Labor costs incurred	Maintenance costs	Fare	Sales expenses	Total expenses
Total expenses			300 million rubles.	600 million rubles.	60 million rub.	300 + 600 + 60 = 960 million rubles.
	Labor costs	1 billion rub.	300 * 1 / (1+2) = 100 million	600 * 1 / (1+2) = 200 million	60 * 1 / (1+2) = 20 million	100 + 200 4+ 20 = 320 million rubles.
	Labor costs	2 billion rubles	300 * 2 / (1+2) = 200 million	600 * 2 / (1+2) = 400 million	60 * 2 / (1+2) = 40 million	200 + 400 + 40 = 640 million rubles.

Based on management's decision, for Russian accounting purposes, sales expenses are directly related to production activities. Thus, for IAS purposes, it is necessary to reflect sales expenses as costs of the accounting period without allocating them between departments, units of production, work in progress and finished goods. It is necessary to create a new classification of such periodic costs. According to calculations made by the management of the Utyug enterprise, part of the sales costs included in the balance of work in progress is 5 million rubles, and those included in the cost of finished products are 7 million rubles. The following adjustments need to be made:

	"General running costs"
	"Unfinished production"
	"Finished products"

The following example explains a technique that can be used to correctly classify low-value and high-wear items:

It is possible to identify those low-value and wear-and-tear items that need to be classified and written off as expenses for IAS purposes by using the system of subaccounts provided for in the Russian accounting system. Between account 10 “Raw materials and supplies” and account 12 “Low-value and wear-and-tear items,” the enterprise itself has the right to create sub-accounts for grouping various types of inventory items. For example, you can create a subaccount 10-5 to account for spare parts for equipment. In the process of preparing financial statements in accordance with IAS principles, the classification of such a sub-account should be reclassified as property, plant and equipment, unless the inventory is of insignificant value. If the cost of inventory is insignificant, and the installation of spare parts does not lead to a significant increase in the output of the equipment, they must be written off as expenses.

5. Requirements for the provision of information in financial statements

According to IAS, the following information must be provided in relation to inventory items:

1. accounting policies used to evaluate inventory, including the formula for calculating costs;
2. the final balance of inventory, as well as balances according to the classification adopted by the enterprise;
3. the balance of inventory items accounted for at net realizable value;
4. the amount of any reverse entries or writedowns that are recorded as income for the relevant period due to an increase in net realizable value;
5. circumstances or events that led to reverse postings or markdowns of inventories due to an increase in the net realizable price;
6. the balance of inventory items pledged as security for obligations.

Information on the balances of various types of inventory and the magnitude of changes in the positions of such assets is of interest to users of financial statements.

In the event that the cost of inventory is determined based on the most recent LIFO purchases, the financial statements must reflect the difference between the amount of the balance of inventory reflected in the balance sheet and:

1. the lesser of the amount obtained by calculations either by the cost of the first FIFO purchases in time, or by the average cost method, and the net realizable price; or
2. the lesser of cost at the balance sheet date and net realizable value.

Financial statements must contain information on:

1. the cost of inventory written off during the period; or
2. operating expenses (classified by type) affecting profit, reflected as expenses of the corresponding period.

What is goods and materials?

Inventory and materials are inventory items. Inventory assets include materials, own-produced products, and goods. In this chapter we will look at accounting methods, price formation and other important aspects related to inventory accounting.

Registration of receipt of inventory items at the warehouse

To formalize the acceptance of goods in terms of quality, quantity, weight and completeness in accordance with the rules for acceptance of goods and the terms of the contract, a certificate of acceptance of goods is used. This is a unified form N TORG-1. The act is drawn up by members of the selection committee authorized to do so by the head of the organization.

The receipt of goods and materials at the warehouse is documented by delivery notes, acts, specifications and other documents, which are usually issued in two copies, one of them is intended for the seller, and the other remains in the warehouse. A warehouse accounting card is created for products received at the warehouse. Release from the warehouse is formalized by an invoice order, which consists of two parts: an order for release and an invoice, issued in duplicate and serving as the basis for writing off products from the warehouse as expenses. Primary accounting documentation for recording products, inventory items in storage areas has unified forms that are approved by the State Statistics Committee of Russia.

So, you have purchased the goods. What documents do you need to obtain from the supplier, and which ones do you need to prepare yourself? This is discussed in detail in this section.

Firstly, any delivery of goods purchased both by bank transfer and in cash is accompanied by a consignment note (Form N TORG-12). The consignment note is drawn up by the supplier in two copies, and in the case where the shipper and the supplier are different legal entities, then in triplicate.

One copy remains with the supplier and the shipper; one copy of the consignment note is transferred to the purchasing organization and is the basis for the posting of these values.

Documents must contain the following mandatory details:

• - name of the document (form), form code;
• - date of compilation;
• - content of a business transaction;
• - business transaction indicators (in physical and monetary terms);
• - names of positions of persons responsible for carrying out a business transaction and the correctness of its execution, personal signatures and their transcripts.

If, upon acceptance of goods, a discrepancy in quantity or quality is revealed in comparison with the data in the supplier’s accompanying documents, a Certificate of the established discrepancy in quantity and quality upon acceptance of goods is drawn up. This is a unified form. When accepting imported goods, an Act is drawn up in form N TORG-3, when accepting domestically produced goods - an Act is drawn up in form N TORG-2. The act in form N TORG-2 is drawn up in four copies, in form N TORG-3 - in five copies. The executed acts are the legal basis for filing a claim with the supplier or sender.

Acts on acceptance of goods by quantity are drawn up in accordance with the actual availability of goods, data contained in transport, accompanying or payment documents, and when accepting them by quality and completeness - the requirements for the quality of goods provided for in the agreement or contract.

Acts are drawn up based on the results of acceptance by members of the commission and an expert of the organization entrusted with conducting the examination, with the participation of representatives of the supplier and recipient organizations or a representative of the recipient organization with the participation of a competent representative of a disinterested organization.

Acts are drawn up separately for each supplier for each consignment of goods received under one transport document.

Inventory assets for which no discrepancies in quantity and quality have been established are not listed in the acts, about which a note is made at the end of the act with the following content: “There are no discrepancies for other inventory items.”

The use of outdated and arbitrary forms is not permitted.

In terms of accounting automation, the details of primary documents can be recorded in the form of codes.

Entries in primary documents must be made in ink, ballpoint pens, using typewriters, mechanization and other means that ensure the safety of these entries for the period of time established for their storage in the archive.

It is prohibited to use a pencil for notes.

Free lines in primary documents must be crossed out.

In addition to the delivery note, the supplier is required to issue an invoice within five days after shipment of the goods. The invoice is issued in two copies, one of which remains with the supplier and is recorded in the journal of issued invoices. Based on the received invoice, the buyer makes an entry in the invoice register. Subsequently, the received invoice is entered by the buyer into the purchase book.

The invoice also has a unified form and must contain all the details indicated in it. In addition, pay attention to the sequence of the given columns in the invoice. The appearance of this document undergoes changes quite often, but its content and even the sequence of details must remain unchanged, otherwise the invoice will lose its validity.