To document the inventory of goods, you can use the following standard forms:
- inventory list of inventory items (form No. INV-3);
- act of inventory of shipped inventory (form No. INV-4);
- inventory list of inventory items accepted for safekeeping (form No. INV-5);
- act of inventory of inventory items in transit (form No. INV-6).
When registering inventory results, the following documents must be drawn up:
- matching statement in form No. INV-19;
- statement of accounting of the results identified by the inventory, according to form No. INV-26.
This is stated in section 2 of the instructions approved by Decree of the Goskomstat of Russia dated August 18, 1998 No. 88, and in Decree of the Goskomstat of Russia dated March 27, 2000 No. 26.
Inventory: markdown and write-off
If the fact of damage to goods is detected, the organization can:
- mark down goods for further sale;
- write off goods (if they are not subject to further sale).
If an organization plans to discount (write off) a product due to damage, the head of the organization creates a commission, the composition of which is approved by order. The commission should include:
- a representative of the organization's administration (for example, a manager);
- financially responsible person;
- sanitary inspection representative (if necessary).
The commission's decision to mark down (write off) damaged goods is made in writing. For this purpose, an act is drawn up, for example in the form:
- No. TORG-15 (issued when marking down (writing off) goods as a result of damage, breakage, scrap);
- No. TORG-16 (issued when writing off goods that are not subject to further sale, for example, when their shelf life has expired).
The act in form No. TORG-15 (No. TORG-16) is drawn up in triplicate and signed by the head of the organization. One copy is transferred to the accounting department, the second remains in the department, the third - with the financially responsible person.
This procedure for registering damage to goods is established in the instructions approved by Resolution of the State Statistics Committee of Russia dated December 25, 1998 No. 132.
In some industries, instead of form No. TORG-15 (No. TORG-16), other acts for write-off of goods recommended for use by the relevant departments may be used. For example, in relation to medical goods in pharmacies - an act in form No. A-2.18 (Section 4 of the Methodological Recommendations approved by the Ministry of Health of Russia on May 14, 1998 No. 98/124).
Reflection in accounting of losses confirmed by inventory results depends on:
- type of loss (shortage or damage);
- causes of occurrence (natural loss, perpetrator, force majeure).
For information on how to reflect in accounting the shortages identified during the inventory, see How to reflect the shortages identified during inventory .
Accounting: markdown
If an organization plans to discount damaged goods, then make the following entries in accounting:
Debit 94 Credit 41
- the cost of damaged goods is reflected (based on the act in form No. TORG-15);
Debit 94 Credit 42
For the convenience of reflecting the markdown of goods to account 41, open a separate sub-account, for example, “Goods subject to markdown”.
Debit 41 subaccount “Goods subject to markdown” Credit 94
- goods subject to markdown have been capitalized (at market value, taking into account their physical condition);
Debit 44 Credit 41 subaccount “Goods subject to markdown”
- samples of damaged goods were submitted for examination (if examination is necessary for the sale of damaged goods);
Debit 44 Credit 60
- expenses for conducting an examination are reflected (if an examination is necessary for the sale of damaged goods);
Debit 62 Credit 90-1
- revenue from the sale of goods at a discount is reflected;
Debit 90-2 Credit 41 subaccount “Goods subject to markdown”
- the cost of discounted goods is written off (the cost at which they were capitalized);
Debit 90-3 Credit 68 subaccount “VAT calculations”
- VAT is charged on the sale of discounted goods (if the organization is a VAT payer);
Debit 90-2 Credit 44
- costs associated with sales are included in the cost of sales (if an examination is required to sell damaged goods).
If damaged goods cannot be used (sold) in the future, reflect their value in accounting on account 94 “Shortages and losses from damage to valuables” in correspondence with property accounting accounts (account 41). Moreover, if goods are recorded at sales prices, then simultaneously with the fact of damage to goods being reflected on account 94, the trade margin attributable to damaged goods and previously recorded on account 42 must be reversed. This is stated in the instructions for using the Chart of Accounts (account 94, 41, 42). When reflecting the fact of damage to goods in accounting, make the following entries:
Debit 94 Credit 41
- damage to goods is reflected;
Debit 94 Credit 42
- the trade margin attributable to damaged goods is reversed (if goods are recorded at sales prices).
This procedure for reflecting damage to goods in accounting is reflected in subparagraph “b” of paragraph 29 of Order No. 119n of the Ministry of Finance of Russia dated December 28, 2001.
Accounting: losses from damage
The procedure for writing off in accounting losses from damage to goods that cannot be used (sold) depends on the cause of damage:
- natural decline;
- the fault of the financially responsible person (other persons found guilty of damage);
- force majeure circumstances.
Write off losses from damage to valuables within the limits of natural loss by posting:
Debit 44 Credit 94
- the cost of damaged goods is written off within the limits of natural loss norms.
The current norms of natural loss are presented in table.
Attribute damage to goods in excess of the norms of natural loss to the perpetrators (clause 30 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n). At the same time, make the following entry in accounting:
Debit 73 (76, 60...) Credit 94
- the amount of losses from damage to goods in excess of the norms of natural loss is attributed to the perpetrators.
For more information on how to recover damages if an employee of the organization is found guilty of damage, see:
- How to deduct the amount of material damage from an employee’s salary ;
- How to record the deduction of material damage from an employee’s salary .
This procedure follows from paragraph 5.1 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49, and the Instructions for the chart of accounts.
Situation: is it possible to recover the cost of compensation for damage to goods from a dismissed employee? A liability agreement was concluded with the employee. The inventory was carried out after dismissal.
Answer: no, you can't.
Article 232 of the Labor Code of the Russian Federation states that termination of an employment contract does not exempt an employee from compensation for damage. But in order to prove that damage to goods occurred due to the fault of the employee, it was necessary to conduct an inventory upon his dismissal (clause 27 of the Regulations on Accounting and Reporting). After the passage of time, it is impossible to prove the guilt of the dismissed employee. This means that it is also impossible to recover the cost of damage from damage.
If the perpetrators have not been identified or the court has refused to recover the amount of damage caused from them, write off the damage to goods to the financial results of the organization. Refer the amount of damage to other expenses. A document that can confirm the absence of guilty persons can be, for example, a court acquittal, a decision to suspend a criminal case, etc. (clause 5.2 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49). Determine the amount of loss based on the cost of the damaged goods according to accounting data. In this case, do the wiring:
Debit 91-2 Credit 94
- loss from damage to goods is written off due to the absence of the person at fault (refusal to recover damages).
This procedure follows from paragraph 11 of PBU 10/99 and the Instructions for the chart of accounts (account 94).
If the cause of damage to goods was force majeure, take into account the cost of damaged goods as part of the losses of the reporting year at the balance sheet (accounting) value. Do the following wiring:
Debit 91-2 Credit 94
This procedure follows from paragraph 13 of PBU 10/99 and the Instructions for the chart of accounts.
The shortage was identified before the goods were registered
If the organization reveals a shortfall in delivery (damage) when accepting goods (i.e. before registering the goods), then there is no need to conduct an inventory. To document the fact of such shortage (damage) by trade organizations, Resolution of the State Statistics Committee of Russia dated December 25, 1998 No. 132 provides standard forms:
- No. TORG-2 (if goods of Russian origin are received);
- No. TORG-3 (if imported goods are received).
In some industries, instead of form No. TORG-2 (No. TORG-3), other acts may be used. For example, in relation to medical goods in pharmacies - an act in form No. A-1.2 (Section 4 of the Methodological Recommendations approved by the Ministry of Health of Russia on May 14, 1998 No. 98/124).
Documents that record the fact of shortage or damage are the basis for filing a claim with the supplier (Articles 518, 519 of the Civil Code of the Russian Federation).
Accounting shortage of goods before registration
Reflection in accounting of shortages and damage to goods identified before the goods are registered (upon acceptance) depends on the reasons for their occurrence:
- natural decline;
- fault of the carrier (supplier);
- force majeure circumstances.
The current norms of natural loss are presented intable .
Calculate the total amount of losses from shortages (damage) of goods identified during their acceptance using the formula:
Write off standard losses as follows:
Debit 94 Credit 60
- the cost of losses is reflected within the standard;
Debit 44 (16) Credit 94
- the amount of losses of goods is written off within the limits of natural loss norms.
If damaged goods can be sold (at a discount), they are accounted for at their possible sale prices.
Such rules are established by subparagraph “a” of paragraph 58 of the instructions approved by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.
Calculate the amount of losses from shortages (spoilage) in excess of the norms of natural loss using the formula:
If, according to documents, the product is listed in a store or warehouse, but is actually missing, the store needs to write it off and balance the balance. Let's figure out how to do this in different situations.
How to take inventory
The inventory is carried out in order to bring factual and documentary data into conformity. Often, organizations conduct inventory only formally, but inventory is useful because it helps to understand what surpluses and shortages there are, what condition the goods are in, identify ways to reduce costs and tax risks.
When to take an inventory
when transferring property for rent, redemption, sale;
when transforming a state or municipal unitary enterprise;
when preparing annual financial statements;
when changing financially responsible persons;
upon detection of facts of theft, abuse, damage to goods;
in case of a natural disaster, fire or other force majeure;
during liquidation or reorganization of an organization, etc.
What is checked during inventory?
It is mandatory to check:
intangible assets;
fixed assets;
financial investments;
inventory items;
work in progress and deferred expenses;
cash, monetary documents and strict reporting document forms;
settlements with suppliers, buyers, tax authorities and funds, settlements with other debtors (creditors);
reserves for future expenses and payments, estimated reserves;
assets and liabilities of the company.
To learn more
How to write off shortages during inventory
To write off an item that is out of stock, first you need to take inventory. This procedure will help determine the correct amount of shortfalls owed. The method of writing off goods will depend on the cause of the shortage, as well as whether or not the person at fault is identified.
Once the inventory has been completed and the reason for the write-off has been determined, you can:
write off the costs to the norms of natural loss (reserve), and if the person responsible for the shortage is identified, then recover the cost of the goods from him. As a last resort, if the guilty person has not been identified, and the shortage cannot be written off without questions from the tax office, open a criminal case.
Eg, if the shortage of goods corresponds to the norm of natural loss, no one should pay for it. If the shortage is higher than the norm - the guilty person will be held accountable for this. In the latter case, based on the results of the inspection, a document is drawn up in which the culprit is indicated. If the culprit cannot be determined, then the shortage will be written off as a loss to the company.
The LiteBox online cash register with a cash register program and inventory system helps you keep track of balances in real time. You can group the remaining goods (by manufacturer and other criteria), unload them in parts (for example, only dairy products) and carry out partial reconciliation without closing the store during hours when there are no customers. This allows you to save time and money on paying employees.
Creating an “Inventory” document in the LiteBox inventory system
How to write off expired goods
Article 472 of the Civil Code of the Russian Federation defines ban on the sale of expired goods. Stores that sell perishable goods (for example, food) most often encounter “overdue” write-offs. But sometimes the need to write off a product that has become unusable also appears in other organizations: for example, when selling cosmetics or medicines that are supposed to be disposed of after their expiration date.
When writing off, use the TORG-15 form to document the fact of damage and TORG-16 to record the withdrawal from circulation and the decision on destruction or disposal. TORG-15 is created in triplicate and submitted for signature to the participants of the inventory commission, which includes a representative of management, a financially responsible person and, if necessary, a representative of sanitary supervision. One copy is transferred to the accounting department to write off losses from the financially responsible person, the second is given to the financially responsible person, and the third is left in the unit being inspected.
Creating a document “Write-off of goods” in the LiteBox commodity accounting system
In the LiteBox system (starting from version 2.9.3), labeled alcoholic products are written off in accordance with the requirements of Rosalkogol.
At the same time, there is a ban on repeated write-off of products with the same excise stamp.
LiteBox automatically sends a request to the accounting journal, which is maintained in the program based on sales and write-offs at the cash register. If this excise stamp was already indicated in previously issued write-off documents (starting from EGAIS version 2.9.3), the system will notify the user.
How to write off a product if it has become unusable
During the inventory, damaged and expired goods may be identified, which are subject to seizure and deregistration.
-
after expiration date;
-
due to the fault of the employee;).
The write-off of goods depends on the reasons why they are subject to disposal:
due to an unforeseen situation (fire, accident, flood, etc.How to write off a “non-existent” product from the warehouse? A write-off report must be drawn up for goods that are unfit for sale.
For write-off, the same forms are used as for expired goods - in the TORG-15 form the fact of damage to the goods is recorded, and in the TORG-16 form - its withdrawal from circulation and a decision on the method of liquidation.
Write-off report in the LiteBox inventory system 
How to write off product samples
Write-off of samples must also be taken into account and carried out according to documents. If they are transferred free of charge to partners, sales agents, or displayed on store shelves, the accountant creates a subaccount for this in the “Goods” account.
The transfer of samples is issued with an invoice for the release of materials in the form M-15. Documents are drawn up in accordance with the agreement with the future client.
To do this, you can draw up an agreement or do without it. In the second case, you need to draw up primary documents for the transfer and acceptance of samples, and indicate the reasons for this transfer in internal documents.
If samples are needed in order to organize a tasting, fill out an invoice in the TORG-13 form (for internal movement) and save it for reporting. The document is signed by an employee who gives tasting samples to store visitors.
As you know, the sale of spoiled products or goods is prohibited by the law “On the Protection of Consumer Rights”: they can only be resold for further processing or destroyed, but in any case they must be written off. Read more about the rules for writing off goods that have become unusable in our material.
How to write off goods correctly
If a product’s expiration date has passed, then simply removing it from the shelf and “forgetting” will not work. According to paragraph five of article five of the Law of the Russian Federation “On the Protection of Consumer Rights,” products damaged for any reason must be removed from trade, and then disposed of or destroyed, if necessary.
Damaged goods that may later be used for purposes other than their intended purpose must be disposed of. For example, they are resold to other companies for further processing and with permission for such actions from state control authorities.
Items that are prohibited from disposal must be destroyed. For example, drugs or chemicals.
In general, spoiled goods in significant quantities are identified, as a rule, after an inventory procedure - cases of damage, loss of consumer qualities of goods, obsolescence or expiration of their shelf life, etc. are not uncommon.
In general, commodity losses can be standardized (arising as a result of inevitable physical and technological processes, such as shrinkage, weathering, melting, crumbling, etc.) and non-standardized (breakage, scrap, spoilage, shortages arising due to improper storage of goods , negligence of financially responsible persons, this also includes all types of losses due to accidents, etc.)
In other words, if for the first type of losses in a store, norms are established for the so-called natural loss, within the limits of which losses are written off in tax accounting, then damage from non-standardized losses should be written off from the perpetrators.
For tax accounting of abnormal commodity losses in the event of emergencies or natural disasters, documentary evidence of these events is a prerequisite.
For example, if there was a fire in a store and inventory items were burned in the fire, then the taxpayer needs to obtain a fire report, a corresponding certificate from the Office of the State Fire Service, a protocol for examining the scene of the incident, and an inventory report after the fire occurred.
In order to carry out inventory quickly and inexpensively, automate the work of the store using the Business.Ru Retail program. You will be able to quickly upload the necessary documents and perform transactions for writing off/receiving goods in “a couple of clicks”!
Documentary confirmation of commodity losses: act in form TORG-15
All commodity losses of the enterprise must be reflected in accounting documents. For this purpose, there are unified forms of primary documentation for recording trade operations. These are the “Act on damage, damage, scrap of goods and materials” in the form TORG-15 and the “Act on write-off of goods” in the form TORG-16.
The first document - an act in the TORG-15 form is used to identify facts of damage, damage or breakdown of goods, which will subsequently be discounted and written off.
The act must be filled out with the participation of a special commission, which should include representatives of the company administration, a financially responsible person, etc.
The act must be drawn up in triplicate. One of the copies is transferred to the financially responsible person, the second remains in the department where the losses were identified, and the third copy is necessary for accountants, since this document is the basis for writing off losses of goods and materials from the financially responsible person or from the person found guilty of damage to the goods.
Let us remind you that the act in form TORG-15 is approved by the head of the enterprise. Further in this act there is the following wording: “The commission inspected the inventory items subject to write-off (write-off) as a result of (name of the cause) and established...”
Next is a table with fifteen columns that must be filled out. The first column indicates the name and characteristics of the product, then its code, name in units of measurement, code according to OKEI (All-Russian Code of Units of Measurement), the fifth column indicates the article number of the product, then its grade or category, quantity (weight), in the eighth column - the accounting price per unit of goods, and in the ninth - the amount for the entire volume of goods.
Next, four columns are combined into the section “Subject to markdown”, where in the columns you need to enter data such as the quantity (weight) of the product, the new price - that is, the cost of the product after its markdown, then the total cost of the entire batch of damaged products at the new price and the amount of the markdown in the 13th column.
Write-off of goods after inventory
It is necessary and important to correctly draw up and fill out this document - this will allow the taxpayer to minimize tax losses when writing off damaged goods, and if the case goes to court, then this document will be the first thing people will pay attention to.
When filling out the act, you must pay attention to the full name of the product, as well as information about its supplier.
One of the most important points in the document is the reason for the write-off or markdown of goods. The attention of inspectors during a tax audit or judges when considering disputes regarding compensation for losses is drawn to this information.
The fact is that identifying the causes of damage to goods allows you to attribute losses to normalized or non-standardized expenses, and then correctly reflect this data in tax accounting.
As we saw above, the 14th column of the act in the form TORG-15 is “Characteristics of the defect”. It should also not be ignored, since this section confirms the fact of damage to goods and explains how much their consumer properties are impaired.
For example, if the consumer properties of a product are partially lost, then the issue of selling it at reduced prices may be considered. Also, filling out this column is another piece of evidence of damage to the company.
It is also important to correctly fill out the section of the act, consisting of four columns, called “Subject to markdown.” These points are important because it is on their basis that changes are made to accounting documents.
According to experts, it makes sense to take the act in the TORG-15 form as a basis and make a link to it.
Documentary confirmation of commodity losses: act in form TORG-16
The write-off of goods in an organization is formalized using a special unified act in the form TORG-16, approved by Resolution of the State Statistics Committee of Russia No. 132.
Just like the act in form TORG-15, the act in form TORG-16 is drawn up in three copies: one remains in the accounting department, the second is sent to the department where the low-quality goods were identified, and the third copy is transferred to the financially responsible person or other person, which will be found guilty of losses of goods and materials. All members of the commission sign the act, confirming the fact of damage to the goods.
Let us remind you that goods are written off when their further sale is impossible. The head of the organization approves the drawn up act with his seal and signature.
On the first page of the act on the write-off of goods, the grounds for drawing up the act (number of the order or instruction for the company) must be indicated, and below, in the columns of the table, data such as the date of receipt and the date of write-off of the goods, the number of the invoice and the date of its preparation are entered.
On the second back page of the form using the TORG-16 form, fill in the following data: name of the product, its code, units of measurement, quantity (pieces), weight of one piece of the product, its net weight, then the price per piece of the product, the cost of all damaged goods of this name .
In the “note” column, you should also enter the reason for the write-off – “expiration of the sales period.” Next, a dash is again placed on all unfilled rows of the table.
All members of the commission sign this act in form TORG-16, and below is the manager’s decision on which account to attribute the cost of the written-off goods to.
In other words, in order to ensure that the tax authorities do not have questions about the write-off of damaged goods of the company, accountants must necessarily record the losses in an act of the commission based on the inventory results, and then issue an order specifying the reasons for the losses. This document must be certified by the head of the company.
How to account for spoiled goods
Damaged product found
Goods deteriorate for various reasons. For example, products lose their consumer qualities due to improper storage, glass products may break, etc.
If the goods are damaged, an inventory must be taken. This is indicated in paragraph 2 of Article 12 of the Law of November 21, 1996 No. 129-FZ “On Accounting”. The inventory results are recorded in the statements (form No. INV-26). This form was approved by Decree of the State Statistics Committee of March 27, 2000 No. 26. In addition, an act on damage, damage, scrap of inventory items is drawn up (form No. TORG-15), and if the goods are not subject to further sale, an act on its write-off (form No. TORG-16). These forms were approved by Decree of the State Statistics Committee of December 25, 1998 No. 132.
Your actions
The further fate of a low-quality product depends on its type and degree of damage.
As a rule, damaged goods are either simply written off, sold at a discount, or destroyed.
Write-off
For example, a seller broke a crystal vase when decorating a window. In this case, the cost of the damaged goods within the norms is attributed to expenses, in excess of the norms - at the expense of the guilty parties. This rule is established in paragraph 28 of the Regulations on Accounting and Reporting, which was approved by Order of the Ministry of Finance dated July 29, 1998 No. 34n. Since the vase can no longer be sold, the company draws up a statement of inventory results (Form No. INV-26), an act of damage to goods (Form No. TORG-15) and an act of write-off of goods (Form No. TORG-16).
As a rule, the culprit is an employee of the company. In most cases, he can be held only to limited financial liability. That is, an amount is withheld from him that does not exceed his average monthly earnings (Article 241 of the Labor Code). Cases of full financial liability are given in Article 243 of the Labor Code. In particular, these include damage to goods by an employee while intoxicated.
If the perpetrators are not identified or the court refuses to recover from them, the damaged goods are written off as a financial result.
Selling second-class goods
In some cases, low-quality goods are sold. To attract buyers, the price of “second-class” products is usually reduced.
For example, when decorating a retail space, the varnish surface of a furniture set is damaged. In this case, the amount of damage must be recorded in the statement of inventory results (form No. INV-26), the reduced price and the amount of markdown on the damaged goods - in the act of damage to inventory items (form No. TORG-15).
For a discount on damaged goods, you should place an order:
Revenue from sales of goods at reduced prices is reflected taking into account the discount. This is indicated in paragraph 6.5 of PBU 9/99 “Income of the organization.” This operation is documented by the following entries:
Debit 62 Credit 90-1
– revenue from the sale of goods is reflected taking into account the discount;
Debit 90-2 Credit 41
– the cost of goods is written off;
Debit 90-3 Credit 68 subaccount “VAT calculations”
– VAT is charged on goods sold.
Please note that tax authorities pay attention if a product is sold at a price lower than the market price. However, paragraph 3 of Article 40 of the Tax Code states that when determining the market price, discounts are taken into account if they are associated with a loss of quality in goods. Therefore, a company cannot be fined if it sold damaged goods at a lower price.
Food products that are unsuitable for human consumption can be used as animal feed. That is, firms can sell them, for example, to an agricultural organization. But this will require an examination. The regulation on the procedure for conducting it was approved by government decree No. 1263 of September 29, 1997 (hereinafter referred to as the Regulation on the examination). The decision to use spoiled products for animal feed is made exclusively by representatives of the state veterinary supervision. The company is obliged to report to this department within three days after the transfer of spoiled products for animal feed (clause 16 of the Regulations on the examination). To do this, it submits a document (or a notarized copy thereof) that confirms the fact of transfer of spoiled products.
Destruction
If, according to experts, the products cannot be sold, then they must be destroyed. In this case, it is necessary to have a commission formed by the owner of the damaged product together with the organization responsible for its destruction. If products that can cause disease in humans or animals are destroyed, representatives of government supervision and control are included in the commission.
The fact of destruction is confirmed by the act. One copy of it must be submitted within three days to representatives of state supervision. This is stated in paragraph 17 of the Regulations on the examination.
Accounting for damaged goods
The cost of damaged goods, as well as the amount of losses for partially damaged valuables, are reflected in account 94 “Shortages and losses from damage to valuables.” In this case, companies that record goods at purchase prices make an entry in their accounting:
Debit 94 Credit 41
– loss from damage to goods is reflected.
If a retail trade organization keeps records of goods at sales prices, then first it writes off the cost of the damaged goods and then reverses the trade margin:
| Debit 94 Credit 42 |
– the trade margin attributable to the damaged goods has been reversed.
Debit 44 Credit 94
– the cost of damaged goods is reflected within the limits of natural loss;
Debit 73-2 Credit 94
– the cost of damaged goods is attributed to the guilty person.
The deduction of the cost of damaged goods from the employee’s salary is reflected by the entry:
Debit 70 Credit 73-2
– the cost of damaged goods is withheld from the employee’s salary.
If the perpetrators are not identified or the court refuses to collect from them, the damaged goods are written off to account 91-2 “Other expenses.” The cost of destroyed expired goods also applies to the same account:
Debit 91-2 Credit 94
– the cost of destroyed expired goods is reflected as part of other expenses.
As we have already noted, in some cases, low-quality goods can be sold to an agricultural organization. But before that, it needs to be examined. In accounting, such an operation can be reflected as follows.
Example
A merchandiser at the trading company Dar LLC discovered spoiled products in the warehouse. Their cost was 9,000 rubles.
Based on the results of the examination, the head of “Dar” decided to donate the spoiled products to feed animals. The cost of the examination was 944 rubles. (including VAT 144 rubles). In agreement with the State Veterinary Service, the spoiled products were sold to an agricultural organization for animal feed at a price of 7,552 rubles. (including VAT 1152 rub.).
Dara's accountant reflected these transactions as follows:
Debit 44 Credit 60
– 800 rub. (944 – 144) – expenses for examination are reflected;
Debit 19 Credit 60
– 144 rub. – reflects the amount of VAT on the examination;
Debit 62 Credit 90-1
– 7552 rub. – products sold;
Debit 90-2 Credit 41
– 9000 rub. – the cost of spoiled products is written off;
Debit 90-2 Credit 44
– 800 rub. – expenses for examination are written off;
Debit 90-3 Credit 68 subaccount “VAT calculations”
– 1152 rub. – the amount of VAT on sold spoiled products is reflected;
Debit 99 Credit 90-9
– 3400 rub. (7552 – 9000 – 800 – 1152) – the amount of loss from the sale of spoiled products is written off.
If the expiration date has expired
Many products must have their expiration date indicated. The list of such goods is given in Government Decree No. 720 dated June 16, 1997.
Products whose expiration date has expired are withdrawn from circulation. Next, an examination is carried out. Based on its results, the expired product is either disposed of (for example, given to animal feed) or destroyed. This is stated in paragraph 2 of the Regulations on conducting an examination.
In accounting, examination operations, transfer of expired products to agricultural organizations or their destruction are reflected in a manner similar to that used for damage to goods.
Subtleties of tax accounting
Losses from spoilage during storage of goods reduce taxable profit. This follows from subparagraph 2 of paragraph 7 of Article 254 of the Tax Code. However, it says here that such amounts are taken into account as part of tax expenses only within the limits of natural loss rates, which are approved by the government. Let us note that this department entrusted the development of attrition standards to the relevant ministries (industry, agriculture, health, etc.). This is stated in government decree No. 814 of November 12, 2002.
Currently, only norms for the loss of grain, as well as oilseeds (Order of the Ministry of Agriculture dated January 23, 2004 No. 55), chemical products (Order of the Ministry of Industry and Science dated January 31, 2004 No. 22) and metal cargoes when transported by rail have been approved (Order of the Ministry of Industry and Science dated February 25, 2004 No. 55).
What about other companies, such as trading companies? The position of the tax authorities is set out in the manual for calculating income tax, which was approved by order of the Ministry of Taxes of December 20, 2002 No. BG-3-02/729. Paragraph 5.1 of the manual states that natural loss rates can be taken into account only if they are approved by the government. The Ministry of Finance expressed a similar opinion in letter dated November 6, 2003 No. 04-02-03/140.
It turns out that due to the sluggishness of officials, firms cannot reduce their income tax. However, some organizations believe that if there are no approved standards, then losses from damage to goods can be taken into account when calculating income tax in the actual amount. True, such a position will most likely have to be defended in court. Let us note that similar proceedings have already taken place and the arbitrators sided with the firms. An example is the case considered by the Federal Arbitration Court of the North Caucasus District, dated March 30, 2004 No. F08-1059/2004-413A. The conclusion of the judges is as follows: a company should not be deprived of the right to reduce income taxes due to the inaction of officials.
In our opinion, the provisions of subparagraph 2 of paragraph 7 of Article 254 of the Tax Code apply to cases when damaged goods are written off (for example, a tea set broke when moving it from a warehouse sales floor) or destroyed (when the goods cannot be sold).
The situation will be different if the product, although at a discount, is sold. In this case, the negative difference between the proceeds from the sale of the product and its purchase price is recognized as a loss and taken into account when calculating income tax. This is indicated in paragraph 2 of Article 268 of the Tax Code.
The cost of expired goods, which, according to experts, cannot be sold and the company had to destroy it, in our opinion, is not taken into account as expenses when calculating income tax. Since in this case the conditions of paragraph 1 of Article 252 of the Tax Code are not met. It says here that expenses must be economically justified and carried out for activities that are aimed at generating income. And destroyed goods, as a rule, do not generate income.
Problems with input VAT
When purchasing goods for resale, a company usually pays the supplier VAT, which it then reimburses from the budget. If a product has deteriorated and it was not possible to sell it, tax officials believe that the refunded VAT must be restored and paid to the budget. They base their position on the fact that the company does not use this product for resale (subclause 2, clause 2, article 171 of the Tax Code).
However, judges do not always support the opinion of inspectors. An example is the case considered by the Federal Arbitration Court of the Far Eastern District (resolution of June 23, 2003 No. F03-A51/03-2/1178). Tax officials tried to convince the judges that, under the guise of depravity, the company could use the goods for its own needs. But this argument was found to be unfounded. In addition, the arbitrators noted that the provisions of subparagraph 2 of paragraph 2 of Article 171 of the Tax Code do not link VAT refunds on purchased goods with their sale.
First of all, you must complete all the necessary documents, since without them you do not have the right to make accounting entries. To identify shortages of goods or determine that the shelf life has expired, carry out an inventory, that is, a check. To do this, issue an order appointing members of the inventory commission and establishing inspection deadlines (form No. INV-22).
Prepare the results of the inventory in the form of a comparison sheet (form No. 22), draw up an inventory of inventory items (form No. INV-03). If you find a defect during the inspection process, fill out an act of write-off of goods (form No. TORG-16) or an act of damage to goods and materials (form No. TORG-15). After this, you must approve the act, that is, sign.
In accounting, reflect these transactions as follows:
D94 K41 – reflects the cost of goods unsuitable for sale;
D94 K19 – the amount of VAT on unsuitable goods has been repaid;
D19 K68 – VAT accrued for payment to the budget has been restored;
D91.2 K94 – the amount of the shortfall has been repaid for other expenses.
However, I would like to make an amendment. Some accountants wonder whether it is necessary to reinstate the tax when writing off expired goods. Article 170 of the Tax Code of the Russian Federation (clause 3) lists those situations when a company is obliged to restore VAT. There is no clause about writing off expired goods. It follows that the company has the right to deduct and there is no need to restore the tax.
What about income tax? Can costs incurred as a result of disposal of the product be included? The Ministry of Finance does not give an unambiguous answer to this question (letter dated 07/08/08 No. 03-03-06/1/397, letter dated 06/09/09 No. 03-03-06/1/374). However, if we turn to the Tax Code, namely Article 264, we can conclude that the company has the right to take expenses into account. After all, the goods were purchased or manufactured for further resale, and not for write-off purposes.
If your organization sells a particular product, and you find that some of the product has already expired, such products must be written off. But the question arises - how to do this correctly?
Instructions
Draw up an act of write-off of goods in triplicate according to form No. TORG-16 (approved by Resolution of the State Statistics Committee of Russia dated December 25, 1998 No. 132).
If you have the appropriate software, it will make your life much easier. But to do this, when posting the goods, enter information about the expiration date of the goods. After this, you can generate a list of expired goods automatically. Attach the act of removal of goods from the sales floor or from the register of expired goods printed from the program.
Complete the TORG-16 form.
Reflect in the organization's accounting records the withdrawal of goods from sale by posting Debit 41, subaccount “Expired Goods” Credit 41, subaccount “Goods in the trading floors” or subaccount “Goods in warehouses”.
However, if you are selling perfumes and cosmetics, then remember that paragraphs 2 and 18 of the Regulations on the examination of low-quality and dangerous food raw materials and food products, their use or destruction establish that perfumes and cosmetics, the shelf life of which has already expired, must be removed from circulation, subjected to examination, recycling or destruction. And since this disposal is mandatory, from a tax point of view, the legislation recognizes such operations as justified from an economic point of view.
Materials in accounting are accounted for at the actual cost of their acquisition or production. When accounting for material assets, the account 10 is used " Materials", to which corresponding sub-accounts can be opened.
Instructions
To process materials without any payment documents, use the document acceptance certificate. Reflect the receipt with the following entries: D10, K60 “Settlements with suppliers”, 20 “Main production” or 23 “Auxiliary production” (if they were made by you), or 76 “Settlements with debtors and” and others. Upon purchase, must be accompanied by an invoice from, as well as waybills.
Next, you need to reflect the release of these materials into production. When moving them to the warehouse, the financially responsible person must quality, quantity, certificates and issue a receipt in form No. M-3 or M-4, on the basis of which you will make an entry in. After receiving the above documents, make the posting: D20 K10
Video on the topic
note
When materials are received without any accompanying documents, the accountant should enter them at the amount specified in the contract with subsequent clarification of the cost of the purchased materials.
Helpful advice
If there is a shortage of materials and discrepancies with the received documents, the accountant must make the following entry: D94 “Shortages and losses from damage to valuables” K60 or 76. You should also clarify the amount of value added tax, this is done by posting: D19 K94.
Materials are debited to account 10. When written off, this account is credited for the amount of disposed assets. Materials are written off in several cases - as they are released from the warehouse for production needs, when sold externally, in cases of damage (natural loss) or loss from the warehouse, and some others.
Instructions
If materials are transferred to production, credit account 10 and debit account 20 “Main production” with the same amount. Perform write-offs once a month based on storekeeper reports. The issue of stocks must be confirmed by an invoice. The latter can only be issued to persons authorized to receive materials from the warehouse. A list of such persons is issued by order of the enterprise, and must be kept in warehouses along with samples of their signatures.
Materials can be implemented. In this case, debit account 90 “Sales” for the amount to be written off. Sales are carried out from the warehouse on the basis of contracts, agreements, written orders. An invoice is issued for materials sold. The release of organizations occurs strictly by power of attorney for receipt, in the prescribed manner.
Materials written off as a result of damage, natural loss, or loss. In this case, debit the amount to account 94 “Shortages and losses from damage to valuables.” The shortage is identified based on the results, as well as directly by the storekeeper. In the latter case, the storekeeper must file a note. Based on the identified shortage, a special commission draws up a report. Based on this act, write off the materials through account 94 to other accounts. To account 73 “Settlements with other things” - if the culprit is identified, to accounts for production and sales expenses - in case of natural loss, to financial results - if it is impossible to identify the culprit and collect debts for shortages and thefts.
Video on the topic
Helpful advice
Materials can also be written off and attributed to account 08 “Investments in non-current assets”, used in the sale of finished products (account 44 “Sales expenses”).
Expenses related to write-offs of materials are also included in the corresponding accounts.
Sources:
- write-off of materials from warehouse
Organizations involved in the sale of finished products often encounter problems with stale goods expired, or simply damaged during storage and transportation. According to current legislation, expired and damaged goods must be disposed of. This procedure must take place according to the standards established by the state.
Instructions
When overdue goods We are food products, it is necessary to conduct an examination in order to determine the possibility of disposal. Only those products whose origin has not been confirmed can be disposed of, that is, they have clear signs of poor quality and pose a threat to human health. In this case, the owner goods must change the properties of food products to prevent their use.
In most cases, unsuitable goods are discovered during shipment and are reflected in inventory reports. To write off overdue goods it is necessary to draw up an act of damage, scrap or damage to commercial valuables. The act is drawn up and signed by the members of the commission.
Businesses selling grocery products must constantly monitor the expiration date of all food products, as their shelf life quickly expires. If a company wants to resell damaged goods at reduced prices, it is necessary to conduct an examination and sell them in the generally accepted manner.
The established procedure for writing off overdue goods does not exist. If damaged goods are identified during an inventory count, entries can be made in the general scheme for reflecting the inventory result. That is, write off the “Goods” account from the credit to the “and losses” account debit. If the goods need to be destroyed, they are written off from the credit of the "Shortages from Loss" account to the debit of the "Other Income and" account. All expenses for examinations, transportation, storage and disposal are also debited to the “Other income and expenses” account.
The law provides for the organization's liability for violation of sanitary rules, as well as for the sale and use of expired products.
note
The owner pays all costs for storage, examination and disposal independently.
Helpful advice
In tax accounting, writing off expired goods does not reduce the taxable profit of the enterprise, so it is more profitable to resell them.
Sources:
- Where to put and how to take into account expired goods
The need to write off goods arises after conducting any type of inventory of the enterprise’s property and identifying the presence or absence of expired, defective, lost goods, taken for samples or for personal needs.
Instructions
Start by drawing up a draft order from the head of the enterprise for an inventory to be carried out by a commission, which must necessarily include financially responsible persons. Approve the order to conduct an inventory with the head of the enterprise.
Together with the commission, conduct an inspection (inventory) of the property and goods of the enterprise. Register the quantitative and qualitative availability of property, goods and the degree of its further suitability. Establish the reasons for the unsuitability of property or goods.
In case of disposal of goods, be sure to draw up an act on the disposal of the goods, recording the complete disposal (act form TORG-15 or TORG-16). For each division of the enterprise, draw up an act for writing off the goods, signed by all members of the inventory commission (Act Form TORG-15 or TORG-16). If you are writing off broken, damaged or scrap goods, use the TORG-15 act, if you are writing off expired goods, use the TORG-16 act.
Approve the act of writing off the goods. The act is approved by the head of the enterprise or an official appointed by him.
Make accounting records of transactions for writing off goods based on inventory acts of inventory items. Include the costs incurred for inventory and write-offs in the article “Organizational expenses” as part of operating expenses for a given period.
Complete the entry for the write-off of goods as follows:
– make an entry reflecting the cost of identified unsuitable goods (Debit 94 Credit 41);
Indicate previously paid VAT if you decide (Debit 94 Credit 19);
Record the restored VAT accrued for payment to the budget (Debit 19 Credit 68);
Make a record of writing off unusable goods for other expenses (Debit 91 subaccount 2 “Other expenses” Credit 94).
Sources:
- write-off of goods posting
Most retail stores have on their shelves samples goods. In perfume stores, for example, there are so-called “samples” that are not for sale. However, they cost a certain amount, and therefore their purchase and expense must be reflected in accounting documents.
Instructions
Samples of products can be given free of charge to sales agents, or simply displayed on shelves. In the accounting of a company such samples must be reflected in account 41 “Goods”, and a separate sub-account must be opened for them.
Transfer free samples according to the invoice for the release of materials to the third party using the NM-15 form. Expenses in the form of the cost of samples donated free of charge are recognized as other expenses for accounting purposes. In accounting, reflect other expenses in the debit of account 91 “Other income and expenses”, subaccount 91-2 “Other expenses”, in correspondence with the credit of account 41/ samples.
If samples products are not transferred to other persons, but are written off for tasting, for example, then issue an invoice in the TORG-13 form for internal movement goods. It is signed by the storekeeper and the seller or other person who will issue samples goods to store visitors for the purpose of tasting them. Write-off of used products from the accountable person who conducted the tasting, as well as from the accounting account goods carried out on the basis of a separate act with mandatory details.
The Tax Code provides for the calculation and payment of VAT on gratuitously transferred goods, That's why samples also fall under this category and tax must be paid on them based on the cost of similar products.
When transferring samples to a third party, documents for the transfer of product samples are drawn up in accordance with an agreement with the future buyer. This can be either an agreement for the supply of product samples or a preliminary agreement. In addition, the transfer of samples can be carried out without concluding an agreement - it is enough to complete all other primary documents for the transfer and receipt of samples. In this case, the seller should specify the rationale for such a transfer in internal documents.
All materials at the enterprise are written off for various needs. Primary documents become the basis for write-off. At the moment, there are several ways to write off material, and the management of a company or enterprise must choose any of these methods and write off all materials in one way.
