In accounting on the balance account 44 ("Costs to sell") during the reporting period, information is collected and stored about the costs incurred by the organization. They are associated with the sale of goods, services, works, products. The account is active, calculating.
In industry
When accounting in the industrial sector, account 44 displays information on the costs of packing and packaging of products or products, their delivery to the customer, loading and unloading, deductions for intermediary services, payment of rental warehouse space, for example, in another region, fees to advertising agencies and other similar costs.
In trade
Enterprises that carry out commodity circulation, one way or another, will regularly incur sales costs. In trade organizations, such costs may include: remuneration, payment for the transport of goods, rent, advertising, and the like.
In agriculture
In organizations involved in the agricultural sector (milk, agricultural crops, leather processing, meat processing, wool), account 44 summarizes the following costs:
- general procurement;
- for the maintenance of poultry and livestock;
- on payment of rent of reception and procurement points.
Other expenses may also be included here.
Account structure
The debit of account 44 during the reporting year shows the amount of production costs.
The loan records the write-off of these costs. The sum of distribution costs attributable to goods sold per month is fully or partially debited at the end of the reporting month. This happens depending on the procedure provided for by the accounting policies of the economic entity. Partial charges for transport are subject to distribution between the goods sold and their balances at the end of the month.
The costs of implementation include:
- sub-account 44.1 is used to display the costs incurred in the sale of manufactured products, which are displayed at debit;
- sub-account 44.2 is used mainly by enterprises engaged in the field of trade and public catering.
Account 44. Postings
Consider the main postings:
- Deb.44 / Cr.02 accrued depreciation of fixed assets used in trading activities.
- Deb.44 / Cr.70 payroll workers.
- Deb.44 / Cr.60 reflects the cost of auxiliary works and intermediary services of third parties.
- Deb.44 / Cr.68 reflects the amount of fees and taxes.
- Deb.44 / Kr.05 accrued amortization of intangible assets.
- Deb.44 / Cr.60 transportation costs (VAT not included).
- Deb.19 / Cr.60 reflects the amount of VAT on transport costs.
- Deb.44 / Cr.71 written off travel expenses of trade workers.
- Deb.44 / Cr.94 written off the shortage of goods within the limits of natural attrition.
- Deb.90.2 / Cr.44 at the end of the month the costs of the sale are written off.
The calculation of the cost of sales (account 44)
The full cost of products sold during the reporting period is formed by adding up the costs of the sale and the factory cost.
If at the end of the month only part of the goods is sold, then the sum of the costs of the sale is distributed in proportion to their cost between the unrealized and sold products.
The distribution coefficient is the ratio of the sum of the costs of the sale to the value of the shipped products.
Distribution of costs for the sale. Example.
In the reporting month, the organization shipped finished products in the amount of 240 thousand rubles at production costs, and sold - 170 thousand rubles. At the end of the month, selling expenses amounted to 100 thousand rubles.
Task: to distribute the costs of the sale.
- Distribution coefficient: 100 000/240 000 = 0.4167.
- Charged the cost of sales of products sold.
Debit 90.2 Credit 44
170,000 x 0.4167 = 70,839.
- The costs of selling the shipped products are calculated:
100 000 - 70 839 = 29 161 or (170 000 - 100 000) x 0.4167 = 29 169.
Advertising Costs
Almost all interested in profit organizations are engaged in advertising their products or activities. Today, there are many different ways to do this:
- place commercials, ads in the media;
- distribution of product catalogs, booklets;
- sponsoring holiday events, etc.
Also, account 44 takes into account the costs of an advertising campaign. The method of writing off such expenses is determined based on the accounting policies of the enterprise:
- It is distributed between the sold products and the finished products stored in the warehouse.
- Reflects the cost of advertising in the cost of goods sold.
Such expenses (advertising costs) are allowed to be fully taken into account in the cost of production that has already been sold.
The manufacture or purchase of gifts that the company gives to participants of promotions during their holding is normalized. For tax purposes, the amount of such expenses may not exceed 1% of the revenue of the organization (company) for the reporting period. The norm is valid for all advertising costs that are not included in the list of standardized expenses.
Example
The LLC sponsored City Day by paying for the performance of famous performers by transferring five hundred thousand rubles. This is considered advertising. Therefore, such a contribution is taken into account accordingly. Such expenses are standardized.
The LLC has earned 47,200,000 rubles (including VAT 7 million 200 thousand rubles) for the reporting period. The standard cost of advertising is 400 thousand rubles: (47,200,000 - 7,200,000) x 1%.
The amount exceeding the standard is: 500,000 - 400,000 = 100,000 rubles.
LLC taxable profit will be able to reduce only by 400 thousand rubles.
During the reporting period (or month), sales costs are recorded in the ledger and then written off to the debit of
account 90 of subaccount 2 “Sales” (as a result, the cost of resources sold is formed) from the loan of 44 accounts.