As you know, the demand for products creates its supply. However, for producer goods to become popular, they must be of high quality.
Quality is a set of characteristics and properties of a product that determine its suitability for intended use. Such a definition is present in GOST 15467-79. According to GOST R ISO 9001-2015, quality is the degree to which the set of product characteristics meets the established requirements.
However, no matter how the manufacturer strives to meet standards, some products are manufactured with defects. Such products are called marriage. The reasons for its appearance are very different: the human factor, equipment failure, etc. In any case, defective products should not come to the consumer.
Manufacturing defect
They call parts, assemblies, products, semi-finished products, the quality of which does not meet the standards or technical conditions. Such objects cannot be used for their intended purpose or can be used only after elimination of deficiencies.
The obligation to detect defective parts , products, semi-finished products, etc. is assigned to the technical control department (OTK). As a rule, in the passport or on the body of the finished product is stamped on the passage of control. Today, automated systems are widely used in the manufacturing sector. They allow you to identify marriage with minimal human involvement.
Kinds
Production defects can be:
- Fixable. This means that defects found in the product can be eliminated and the product can be used for its intended purpose.
- Final. In this case, the correction of defects is either impossible or economically impractical.
- Inner. This type of marriage is detected before the direction of production for sale.
- To the outside. This type of marriage is detected by the consumer.
Reflection in accounting
Registration of marriage in accounting is carried out on 28 accounts. The debit concentrates all the costs associated with defects identified before sending the products for sale and after sale. The loan reflects the amount payable by the guilty. Typically, deductions from the salaries of these individuals are made, entities are deprived of a premium, and other penalties are made.
The loan also reflects other amounts allocated to reduce losses. Among them, in particular, the cost of defective products at the price of their possible use.
In the formation of credit and debit turnover is determined by the total amount of losses. The marriage is written off at the cost of low-quality products from 28 accounts in the invoice. 20. The losses include the cost of goods of appropriate quality of the appropriate type.
Analytical records are kept for individual shops (units) of the enterprise, types of goods, consumable items, circumstances in which the marriage was allowed, and the entities guilty of this.
Correctable flaws
In case of detection of such defects, marriage is not debited from accounts 20 and 43. On the count. 28 reflect only the costs that are associated with the elimination of deficiencies. These include, in particular:
- The cost of additional materials, raw materials used to correct defects.
- Earnings of employees involved in the elimination of deficiencies. Its accrual is made with the corresponding deductions.
- Depreciation of the machines used to address deficiencies.
The cost structure also includes the indirect costs of the unit (workshop), in which defects in products are corrected. When distributing expenses between the various types of products that are manufactured in it and remodeled goods, 25 accounts are closed when defective products are written off .
When identifying an external fixable defect, transportation costs are also included in the cost of eliminating defects. It is, in particular, about the cost of delivering low-quality products to the enterprise, to the workshop in which they will be remade, and the return transportation of already fixed facilities.
Final flaws
In this case, when writing off the marriage, 28 accounts are debited. The value of all defective products that are not subject to correction is transferred to it. The amount received will be recognized as the cost of low-quality goods. If deficiencies are discovered prior to acceptance of the products at the warehouse, the defective product is debited from the credit of account 20. If defects in the products are detected after posting (for example, immediately before being sent to the buyer), the cost is transferred to the credit account. 43. As a rule, this account is also used to identify hidden manufacturing defects (after sale to the consumer).
If fatal flaws are found, the product is actually returned. This operation is accompanied by the formation of stroning records, through which the sale of defective products is canceled.
If goods with defects or their parts can be used (for scrap, for example), they are accounted for. 10 sub-account "Other materials" at the price of possible use.
Penalties from the perpetrators
When establishing the specific employees involved in the marriage, the amount to be recovered from them is transferred from the credit of 28 accounts to the debit of the account. 73, to the subaccount, which reflects information on calculations related to compensation for property damage. Such a scheme is applied if the employee of the enterprise is guilty of marriage.
If a third party is involved in the occurrence of defects, the amounts are transferred to debit 76 of the account, to the sub-account "Claims settlement".
"1C": cancellation of marriage
If defective products are found in the warehouse, it is necessary to draw up a “Invoice Requirement”. If an unrecoverable marriage is discovered , the document on writing off shall indicate the item of expenses: “Marriage in production”. The system substitutes 28 counts automatically. In the tabular part of the act of cancellation of marriage indicates the nomenclature group, which will be conducted analytical accounting.
In the system, you can specify which product is assigned to the marriage with an accuracy of up to a series.
If a fixable defect is identified, the product can be transferred for revision. To do this, the document "Requirement-invoice" is drawn up under the cost item.
Taxation
Losses from the write-off of defective goods can be reflected in the "other costs" that are associated with the production and sale, on the basis of sub. 47, p. 1, art. 264 Tax Code. When making these operations should take into account a number of nuances.
Firstly, it should be noted that the definition of industrial marriage is not fixed in the legislation. Therefore, this concept can be used in the sense in which it is disclosed in the regulatory documents governing the reporting.
It turns out that when writing off a marriage in trade , the costs of losses from goods with defects can include the costs of internal marriage detected at the stage of production or sale, and external defects discovered by the consumer during assembly, use, installation of the product.
Income tax
When writing off a marriage , as mentioned above, it is included in other expenses associated with the production and sale of products. In the norms of the Tax Code there are no special restrictions on the accounting for these costs. Therefore, subject to the general principles of recognition of costs for tax purposes in accordance with Chapter 25 of the Tax Code, documentary evidence, economic feasibility, non-refundable losses from defective products can be taken into account by the manufacturer in costs. Control agencies adhere to this position.
Depending on the rules of the accounting policy of the enterprise for the purposes of taxation, the costs associated with the production and sale of products can be attributed to both indirect and direct costs. The relevant provisions are fixed in clauses 1, 2 318 of the article of the Tax Code.
Indirect costs are fully included in the costs of the current period. Direct costs form the tax base for the sale of products in the value of which they are already taken into account.
Accordingly, in the accounting policy of the enterprise for tax purposes, it is necessary to fix the rules for accounting for the costs of marriage. In particular, it is advisable to develop a methodology for determining the cost of defective products.
VAT
In paragraph 3 of paragraph 170 of the article of the Tax Code there is an exhaustive list of situations in which the "input" tax, legitimately accepted for deduction, must be restored.
It is worth noting that in this norm there is no such reason as the cancellation of a marriage that is not suitable for subsequent use (without identifying the perpetrators). At the same time, according to control departments, the “input” tax in the case under consideration should be restored in the period of writing off products. After all, they will not be used for transactions that are recognized in the Tax Code as a taxable item.
As for judicial practice, it develops in favor of enterprises. As indicated that in accordance with Article 23 of the Tax Code, the payer is required to deduct established taxes to the budget. Accordingly, the obligation to pay VAT legally accepted for deduction should be enshrined in law.
Meanwhile, taking into account the explanations of the Ministry of Finance, some experts believe that the decision not to restore the tax when writing off the marriage may lead to disagreements with the Federal Tax Service.
Return Operations
Their accounting can be carried out in various ways. For example, an enterprise may recalculate its profit tax base for the period in which a defective product was sold. Since the contract between the seller and the acquirer will be terminated, the payer has the right to reduce the profit by the amount of income from the sale of the marriage. The amount of costs can be reduced by the cost of the product returned by the buyer.
The second option is to attribute the costs in the form of the cost of production to losses from the identified defect. In this case, the cost will be the amount that must be returned to the buyer of low-quality products.
As explained by the Ministry of Finance, the cost of manufacturing defective goods, the company has already taken into account in the sale. Consequently, the price of the returned product is recognized equal to zero.
Compensation for damage
In deciding on compensation for harm, the fact of the identification of the perpetrators will be essential. They can be not only employees of the enterprise, but also third parties. For example, equipment was stopped due to a power outage, substandard materials were received from the supplier, etc.
Claims to third parties are sent in the manner prescribed by the Civil Code. Compensation for damage by employees of the enterprise is carried out according to the rules established by the Labor Code. As established by Article 241 of the Code, if an agreement was not concluded with the employee on the mat. responsibility, you can recover from it an amount that does not exceed the average monthly salary.
Retention is carried out on the basis of the order of the head of the enterprise. The order is issued within a month from the date of determination of the final amount of property damage. If this period is missed, and also if the employee evades compensation for harm, the employer has the right to apply to the court.
Documenting
If defective products are identified, an act is drawn up. The standardized form of this document is not approved. Accordingly, the company may have developed its own act form. The form of the document is fixed in the accounting policy.
If internal marriage is detected, the document is filled in by the employees of the technical control department. If an external defect is detected, the act is drawn up by the consumer.
Features of the act
The following details shall be present in the marriage identification act:
- The name of the company.
- Location address.
- Contact details.
- Title of the document.
The text indicates information about the product in which the defect is revealed, the reasons for the marriage, the perpetrators.
The document must be executed in 3 copies. The first is transferred to the accounting department, the second to the division where the low-quality goods were released, the third receives a materially responsible employee. If an external marriage is detected, a consumer claim is attached to the act.
The confirmation of the fact of revealing a marriage is carried out by a special commission.
Quality Management Mistakes
Some manufacturers do not quite understand the goals of accounting for manufacturing defects. They believe that the occurrence of defective products is a natural process, without which production activities can not do.
Meanwhile, the creation of a competent accounting system allows you to timely identify the circumstances that cause the appearance of deficiencies in the goods. Accordingly, based on the available data, the manager can take measures to reduce the number of defective products.
Quite often, shop managers complain about the obsolescence of equipment. By this they explain the appearance of marriage and believe that buying modern machines can improve the situation. However, not every enterprise has the means to do so. Of course, working on old equipment is also impossible. The best way out of the situation could be the modernization or rental of machines.
Managers and technologists often say that identifying the causes of marriage can be difficult. Of course, different situations may arise at the enterprise in which it is really problematic to determine the circumstances of the occurrence of defects. But in most cases, it is possible to identify the causes of the production of products with defects by grouping them according to common features. Typically, the causes of defects are violations of technology, negligence, oversight of responsible persons.
When grouping signs of substandard products, proper accounting of products is of particular importance.
Remedy Methods
They depend on the causes of defects in the products. If the shortcomings are associated with the use of low-quality materials, you should identify the supplier of such raw materials. In addition, it is necessary to create a system of control of the values received by the enterprise. A clause on liability for the supply of low-quality raw materials should be included in the agreement with suppliers.
If defects are associated with the operation of machines, it is necessary, first of all, to determine the period of their maintenance. In the workshops, it is necessary to establish personal responsibility for the operation of equipment, non-compliance with operating rules. It is important to identify on which machine the defect is made.
If the production of defective products is related to the lack of professionalism of personnel, the employee motivation system should be reviewed. For example, the company may establish additional bonuses and incentives to minimize marriage. The introduction of automated process control makes it possible to reduce the influence of the human factor on the production process. Currently, such systems are used in all large industrial enterprises.