All of us at work are confronted with a huge number of objects around us: inventory, equipment, office equipment, furniture, stationery, but you never know what else ... But how are these things properly called in accounting and what is this concept? So, the topic of our conversation today is: “Materials and materials: decoding, essence, methods and rules for their assessment”. Have you started?
What is goods and materials
Goods and materials are inventory items, i.e., assets of an organization that are used as raw materials, materials in the process of production of products intended for further sale, provision of services. In other words, all that an enterprise has is inventory materials. Decryption, as you see, is straightforward. And so many believe, until it comes to accounting and evaluating these very values.
According to Federal Law No. 129- and the Regulation on Accounting in the Russian Federation, organizations must periodically conduct an inventory. That this procedure is what will be discussed later. So…
Enterprise inventory: what is it and why is it needed
What does goods and materials mean, we briefly figured out. And what is an inventory? This is a check of the real availability of inventory at the enterprise. It is carried out in order to control property and assets. The event’s final result is a comparison of the actual balance of material assets indicated in the inventory list with the accounting data at the time of the recount.
It is possible to carry out a complete inventory or selective inventory by decision of the management. Below we consider the basic rules of inventory of goods and materials.
We act in accordance with the law
For reliable accounting and reporting, organizations should take an inventory of their property, in the process of which their condition, assessment and availability are checked and documented. The timing of this event and its order are determined by management.
There are times when an inventory is required:
- When transferring property for rent, sale, repurchase.
- Before the annual report.
- When changing responsible persons.
- If shortages are detected, fire, in other extreme situations.
- In other cases, according to the legislation of the Russian Federation.
Discrepancies between the actual amount of property and accounting data found in the inventory will be reflected in the accounts in this order:
- Surplus property is paid, and a certain amount is recorded on the financial result of the enterprise.
- Deficiencies within the norm are attributed to the natural costs of production. Everything that is above the norm is exacted from the perpetrators. If the culprits are not identified or their guilt is not proven, then the shortfall is attributed to the financial result.
Reasons inventory
Before conducting an inventory, the director signs an order in the form of INV-22. It is prepared, as a rule, no later than ten days before the proposed event. This document must also indicate the reasons for the inventory. They can be different:
- Verification check.
- Change of materially responsible persons.
- Identification of theft.
- Transfer of property for sale, rental, purchase.
- In case of emergency.
Types of Inventories
- Complete. It affects all the property and obligations of the company. This is a very time-consuming process, carried out once a year before submitting an annual report.
- Partial Its purpose is the analysis of any one type of enterprise funds.
- Selective. This is a kind of partial inventory, which is carried out on discounted goods, spoiled and outdated.
There is another classification. The types of economic activity distinguish between planned, unplanned and repeated inventories. Planned spend periodically on schedule. Unscheduled - these are sudden checks. Well, repeated ones are carried out in cases of need, when there are problems with the data of the main check, to clarify some positions.
Inventory stages
The inventory process itself consists of several stages. The first is preparatory. Everything is simple here. This is the preparation of values ​​for recounting, as well as the preparation of all documents, drawing up lists of all materially responsible persons, determining the methods and dates of the event.
The second stage is actually checking the real availability of material assets and compiling inventory inventories. It should be noted that acts and inventories are compiled according to standard forms and are the primary accounting documents. You can write them by hand, or you can print them. In any case, they must be correctly designed.
Inventories indicate inventory items, their quantity and value. Errors made in the preparation of statements must be corrected in both copies. An incorrect entry is crossed out with one line, and the correct value is entered above it. All corrections are agreed between members of the commission and materially responsible persons. In the inventory records it is impossible to leave blank lines (if there is space left, dashes are put). Vedomosti is signed by all members of the commission and materially responsible persons.
If the re-registration was carried out due to the change of responsible persons, then the act at the end is signed by the new materially responsible person, confirming that he accepted the goods and materials.
The third stage - a very important one - is the analysis of inventory data and the reconciliation of information with what is listed in accounting. In fact, the difference between the actual availability of values ​​and accounting data is revealed. The management then looks for the causes of the discrepancies, if any.
Well, the fourth stage is the correct documentation. It is precisely at this stage that it is necessary to bring the results of the inventory with accounting data into clear correspondence. Materially responsible persons guilty of incorrect registration are punished.
This is how the inventory of goods and materials is carried out. The decoding of this concept and the essence of the procedure are already known to you. We also considered the stages of holding such an unloved by many (and almost all) events. And now let's talk about what really should be related to inventory items. Is all property valuable? What are the current methods for assessing inventories?
Inventory valuation methods
As already mentioned, inventory materials (the transcript is given at the beginning of the article) is a term that is used to define materials owned by the enterprise. They can also be intended for sale to the consumer or used in the production of their own products.
There are several common methods for evaluating them:
- Piece evaluation. Each unit of goods is counted individually.
- First stock method, otherwise referred to as “First to stock - first to production” (FIFO method). It is based on the assumption that those inventories that are in inventory the longest are sold or used the fastest.
- Last stock method, second name - “Last to stock - first to production” (LIFO). The assessment is based on the assumption that goods purchased last are sold first.
- The method of average cost. In this case, there is an assumption that all inventories are mixed in a random sequence, and the sale occurs at random.
- Moving Average Technique. Here it is assumed that the flow of goods is randomly mixed with each new receipt of goods, and their sale occurs in exactly the same way.
Combination of different methods
It should be noted that for the benefit of the enterprise, you can combine all sorts of methods for assessing inventory materials. If homogeneous stocks with constant prices are listed, then one method can be used. In practice, such cases are extremely rare. After all, usually the materials are very different, because they use different methods. Reserves are conventionally grouped, and each one has its own method. You decide which options to choose, the main thing is that this be enshrined in the accounting policies of the enterprise.
In our article, we discussed how materials and materials are deciphered, what methods exist for evaluating a company’s property, what is it and why is an inventory of inventories needed and how is it carried out. All these questions are not so complicated, however, a beginner in the field of accounting may experience certain problems. However, they are solved with the accumulation of experience, the main thing is to understand what should be attributed to inventory items, because this will greatly facilitate their correct accounting.