Most of the existing enterprises cannot do without their inventories in their activities, which are used to produce products, provide services or perform work. Since the refineries are the most liquid assets of the enterprise, their correct accounting is extremely important.
Liquidity is the ability of things to turn into money. MPZ in the list of such things takes one of the first places, since it is at the expense of MPZ that the enterprise makes a profit.
This article will discuss general information about the refinery, accounting entries - materials are put into production, for other needs, the disposal and sale of refineries.
What is MPZ?
Before proceeding to the description of the postings - materials were released into production and other postings, we will analyze some concepts.
MPZ recognized assets involved in the main activities of the enterprise. MPZ are determined by three criteria: their use in the production cycle, directly for sale and for other organization needs. In other words, MPZ are materials used at the enterprise. Since the MPZ refers to current assets, another important criterion that determines the MPZ is the period of their use, which should be shorter than 12 months or one production cycle.
In addition to the MPZ, a common term is also inventory holdings (inventories). Many are interested in the difference between these concepts. In fact, there is no difference between them, and in different sources, both MPZ and inventories mean the same thing. Prior to the entry into force of PBU 5/01, the term inventories was more often used to indicate reserves.
Admission and valuation of MPZ
The receipt of materials can be made through the purchase or creation of their means of the company. Upon receipt of the material, the accompanying documents and a receipt order are drawn up (not to be confused with a cash receipt order), which should contain all the basic information about goods and materials. Accounting and storage methods may also be used. These include the batch method and the varietal method. MPZ can be used for production purposes ( account 20) or their further sale. When writing off goods and materials, they must be evaluated. There are three options for evaluating the MPZ when writing off: at the unit price, at the average price, or at the price of the first at the time of purchase (FIFO).
Consumption (vacation) MPZ
Material consumption means their delivery from warehouses for further use in the production cycle or for the needs of the company. Most often, a record of the consumption of goods and materials is made on the debit of account 20. The movement of goods and materials inside the enterprise from one warehouse to another or for construction on the territory of the enterprise is regarded as an internal movement of the plant. Documentation of these business transactions involves the use of the following documents: invoice for internal movement, limit-intake card M-8, requirement-invoice M-11 and consignment note M-15. They are indicated in parentheses after the characteristics of the business transaction.
Postings - materials are released for production and for other purposes
- DBT 20 Cdt 10 - consumption of material in the DOS. production (M-8, M-11, M-15).
- DBT 23 Kdt 10 - to auxiliary production islands (M-8, M-11, M-15).
- DBT 25 Cdt 10 - for general purpose purposes (M-8, M-11, M-15).
- DBT 26 Kdt 10 - for general-purpose purposes (M-8, M-11, M-15).
- DBT 10 Cdt 10 - internal movement of goods and materials (consignment note for internal movement).
Other disposal of the plant
In addition to the usual consumption of material, there are other disposals of goods and materials. Other disposals include write-offs of the refinery and their donation. The write-off occurs in three cases: the goods and materials become unusable, aging (moral), the detection of shortage or theft of the oil refinery and their deterioration (due to force majeure circumstances too). Moral aging refers to a decrease in the liquidity of the refineries, due to the appearance on the market of new improved analogues.
Material is written off by decision of a commission specially created for this purpose, in which persons responsible for goods and materials must be present. Inspection of the refinery is carried out and an act of disposal is prepared. Donation of material should occur through primary documents for the consumption of goods and materials - invoices, statements for external expenses and others. In this case, the fact of donation is taxed, as well as the usual sale of refineries for money. Other accounting for the disposal of materials is carried out using the following documents: material debit statement (hereinafter referred to as AFM), accounting statement-calculation (hereinafter referred to as BSR), invoice (hereinafter referred to as invoice), cash receipt order (hereinafter FFP), invoice M-15, KO-1 form, sales book.
Unlike previous transactions (materials were released for production and for other purposes), there are much more transactions for the disposal of goods and materials.
Disposal transactions
- DBT 94 Cdt 10 - write-off during damage (AFM).
- DBT 20 Cdt 94 - write-off in case of damage within the limits of natural loss to expenses of the main Prospect Island (BSR, AFM).
- DBT 23 Cdt 94 - write-off with damage within the boundaries of eating. Ub for expenses aux. pr-in (BSR, AFM).
- DBT 25 Cdt 94 - write-off with damage within the boundaries of eating. Ub for general expenses (BSR, AFM).
- DBT 26 Cdt 94 - write-off with damage within the boundaries of eating. Ub for general expenses (BSR, AFM).
- DBT 29 Cdt 94 - write-off with damage within the boundaries of eating. Ub for expenses serving pr-in (BSR, AFM).
- DBT 73.2 Cdt 94 - cancellation in case of damage over the borders of eating. Ub on the perpetrators, if they are detected (BSR, AFM).
- DBT 91.2 Cdt 68.2 - restoration of VAT on spoilage over borders eats. Ub (BSR, SF).
- DBT 50 Cdt 73.2 - repayment by the culprit of debt for damage by cash (PKO, KO-1).
- DBT 70 Cdt 73.2 - repayment by the culprit of the debt for damage from wages (BDS).
- Dbt 91.2 Cdt 94 - cancellation in case of damage over the border eats. Ub if it is impossible to identify the perpetrators, or if the court refused to recover money from the perpetrators (BSR, AFM).
- DBT 99 Cdt 10 - write-offs during natural disasters (AFM).
- Dbt 99 Kdt 68.2 - VAT recovery, if it has already been deductible, upon loss of the MPZ from natural disasters (BSR, SF).
- DBT 91.2 Cdt 10 - retirement as a gift (M-15, SF).
- Dbt 91.2 Kdt 68.2 - VAT on disposal as a gift (M-15, SF, sales book).
Selling MPZ
Sale of material is carried out at the amount agreed between the seller and the buyer. The accrual and payment of taxes on the sale of material is regulated by law. When selling a refinery, an invoice should be issued for the consumption of material in the party, an agreement and an invoice must be drawn up. If the materials are transported through a third-party organization, a waybill must be issued. Documents related to operations related to the sale of a refinery: invoice M-15, invoice, bank statement (hereinafter BV), payment order (hereinafter PP), accounting statement-calculation, sales book, purchase book.
Postings for the sale of MPZ
- DBT 91.2 Cdt 10 - disposal upon sale after unloading or prepaid. The value (amount) of the transaction is reflected based on the selected valuation method of the MPZ - at the unit price, at the average cost, or FIFO (M-15).
- DBT 62 Cdt 90.1 - revenue from sales, together with VAT after unloading (M-15, SF).
- DBT 91.2 Cdt 68.2 - VAT on sales (M-15, SF, sales book).
- DBT 51 Cdt 62 - payment of the buyer after unloading or prepayment (BV, PP).
- DBT 76 Cdt 68.2 - VAT on prepayment (PP, SF, sales book).
- DBT 62 Cdt 91.1 - revenue from sales together with VAT on an advance payment (M-15, SF).
- DBT 62 Cdt 62 - prepayment for the repayment of customer debt (BDS).
- DBT 68.2 Cdt 76 - VAT on the canceled prepayment (invoice, shopping book).
On this list of transactions (materials were released for production and for other purposes, transactions for the disposal and sale of inventories) can be completed. We hope you find this article helpful.