Commercial enterprises are created with the aim of obtaining the maximum amount of profit. For this, various types of economic activity are used, for example, wholesale and retail trade in acquired goods, provision of services, own production. Depending on the chosen field of activity, a system of maintaining all types of accounting is selected.
Production
The enterprise engaged in production activities in the selected area applies the classical system of tax and accounting. Management notes, charts and reports are formed in parallel according to a generalizing principle in accordance with the requirements of the owners of the organization. In the implementation of production activities, each company forms the cost of production. To account for the costs used 20 account. The presence of auxiliary production facilities or an extensive system of production shops and the administrative building requires the use of accounts 23, 26, 29, 25, which collect all the costs related to the cost of the main product.
Accounting
Account 20 “Main production” in accounting is intended to reflect all production, general business expenses. It is active, synthetic, balance sheet, account closure occurs at the end of the production cycle. Typically, a 20 account has no balance. The balance sheet may reflect the amount of work in progress at a specific date. If the company simultaneously produces several different types of products, then account 20 is maintained for each analytical position separately. Credit account is used to write off the full (production) cost of production. The debit shall reflect the sum of all expenses for its issue.
Types of production costs
During each reporting period, costs are generated in monetary terms. Account 20 reflects in this case the cost of production. They can be divided into several groups:
- basic and invoices;
- complex and one-component;
- indirect and direct;
- one-time and current;
- constants, variables, conditionally variable.
The total cost is calculated by summing the calculation costs, which are posted to account 20 "Main production". These include:
- Current assets (materials, purchased semi-finished products, raw materials).
- Third party services used for the main production cycle.
- Remuneration of workers.
- Contributions to pension and extrabudgetary funds.
- Utilities (electricity, water, heat).
- Overhead costs.
- General running costs.
- Marriage.
- Depreciation of non-current assets.
- The costs of modernization and implementation of new technologies.
- Other expenses.
- Cost of sales (commercial).
Selling costs are not included in the production cost of production, as they are the costs of implementation. 20 account may not contain this article, according to the provisions of the accounting policy of the enterprise, it may increase 44 account (this is typical for trading companies).
Indirect costs
On accounts 25, 23 and 26 of the accounting, during any reporting period, the costs of auxiliary, economic and administrative proceedings are collected, which are an integral part of the production of a certain type of product. For the effective functioning of all divisions of the enterprise, it is necessary to make timely accrual of remuneration to their employees with appropriate deductions, update and repair non-current funds, and ensure uninterrupted supply of materials and raw materials.
The content of the administrative and managerial staff of the enterprise is associated with large amounts of costs that must be borne by the organization’s own and borrowed funds or (which happens much more often) laid down in the cost of finished products. All of these costs are summarized in the debit of synthetic
active accounts 23, 29, 25, 26. After closing the reporting period, the monetary expression of the debit turnover is debited to account 20. In this case, the costs can be distributed in proportion to a certain indicator (amount of materials used, salary, number of types of manufactured products) or transferred to the cost of one of the manufactured types of products in full. At the beginning of the next reporting period, account data should not have a balance, the amount of work in progress is shown as the balance at the end of the period for debit of account 20.
Document flow on the 20th account
Production is an internal process of the enterprise, therefore, the basis of the workflow are accounting calculations and certificates, internal regulatory acts of the organization. The issue of tangible assets to any unit is accompanied by a corresponding invoice, the end of the production cycle is documented, and a payroll sheet is used to include labor costs . Using the accounting calculation (reference), the following indicators are included in the prime cost: indirect distributed costs , depreciation (depreciation amount) of fixed assets and intangible assets, auxiliary production costs, deferred expenses, waste from scrap, returnable waste (subtracted from the cost of production).
20 debit account
The following transactions are reflected in the debit of synthetic account 20.
| Dt accounts | Ct bills | Contents of operation |
| 20 | 10, 15, 11 | Charged to main production materials |
| 20 | 02.05 | Accrued depreciation for fixed assets and intangible assets used for primary production |
| 20 | 23, 26, 25, 29 | The costs of auxiliary production, ODA, OXR, incorrigible marriage are written off to OP |
| 20 | 70, 69 | Accrued salaries to employees, deductions from the amount to the respective funds |
| 20 | 96 | Created reserve for OS modernization |
| 20 | 97 | Written off part (estimated) of deferred expenses |
The turnover for the reporting period is summed up and transferred to the cost of manufactured products. After this, the closure of 20 accounts.
Credit account 20
20 loan account contains information on the total (production) cost of manufactured products, semi-finished products, the cost of services rendered. In the process of closing the period, it is transferred in accordance with the accounting policy of the enterprise to accounts 43, 40, 90. Correspondence on credit 20 of the account is presented below.
| Dt accounts | Ct bills | Contents of operation |
| 10, 15 | 20 | Return of materials from production |
| 40, 43, 45, 90 | 20 | Capitalized finished products |
| 94 | 20 | Shortage detected on the results of an inventory of work in progress |
Automated Accounting
Organizations conducting accounting and tax accounting in a specialized program greatly simplify the process of reporting, interim analysis of activities and can at any stage evaluate the movement of assets. Most often, various versions of the "1C" program are used, which is equipped with standardized documents and configured for effective use in the current legislation of the Russian Federation. Also, some versions of the program allow you to conduct parallel accounting and tax management accounting, generate a number of non-standard reports for full disclosure of information.
Account 20 in "1C" is formed on the basis of the standard documents. At the stage of preparation for accounting, it is necessary to configure the program in accordance with the requirements of the accounting policies of the enterprise and the applicable tax systems. Separately configured analytical accounting and algorithm for closing accounts. Costing accounts must be closed in strict sequence, complex expenses are distributed in proportion to the indicator specified in the program. First of all, at the end of the period, the depreciation of fixed assets employed in all production and administrative divisions is calculated, then the costs of account costs 23, 26, 25 are transferred. 20 the account is closed only if all the preliminary registers are correctly filled and the program is optimally configured.