Today we'll figure it out account 20 “Main production”. Why is it needed, what is taken into account on it. Which entries in account 20 reflect the accounting of production costs. For greater clarity, examples of cost accounting and cost formation on accounts are given. 20. In this article we will look at accounting for production costs, typical transactions and situations for account 20.

Account 20 records the costs of the main production, that is, all the organization’s expenses related to production are reflected.

What is production? In fact, production is the process of creating the cost of finished products, and the cost of finished products is, as we found out in, the sum of all costs associated with production and sales. All these costs are collected in the debit of the account. 20 “Main production”, forming the cost.

Accounting for production costs (account 20)

Now let's talk about exactly what costs are taken into account as the debit of account 20, and what entries are reflected in accounting.

1. Direct costs, that is, those that are directly related to the production process. It could be (wiring D20 K70), used in production (wiring D20 K10), participating in the production process (posting D20 K02), social contributions from staff salaries (posting D20 K69).
2. Auxiliary production costs. An example of an auxiliary production could be a company’s own boiler room; the costs of its maintenance are taken into account in the debit of the account. 23 “Auxiliary production”, then the amount of all these costs is written off to the debit of the account. 20 “Main production” (posting D20 K23).
3. Indirect costs, that is, those associated with the management and maintenance of production, are written off from the credit of accounts 25 “General production expenses” and 26 “General expenses” (entries D20 K25 And D20 K26).
4. Defects in production are products, parts and work that do not meet established quality standards and cannot be used for their intended purpose. We’ll talk more about defects in production in. For now, I’ll just say that the defect is taken into account and written off as a debit to the account. 20 “Main production” (posting D20 K28).

Accounts 23 “Auxiliary production”, 25 “General production expenses”, 26 “General expenses” are not always used by the enterprise. These are intermediate, auxiliary accounts; they are convenient to use in large production. If the company has a small production, then there is no point in entering additional accounts; all costs can be taken into account immediately on the account. 20.

Thus, it was determined that according to the debit of the account. 20, all costs associated with the main production are taken into account, that is, the cost of finished products is formed.

This cost is then written off from the credit account. 20 to the debit of the account. 40, 43 or 90.

If the cost of finished products is taken into account at standard (planned) cost, then all expenses from the credit account. 20 are debited to the account. 40 “Release of products, works, services” (posting D40 K20).

If the cost of finished products is taken into account at the actual (production) cost, then all expenses from the credit of account 20 are written off to the debit of account 43 “Finished products” (posting D43 K20).

Products can also be immediately sent for sale, bypassing product accounts, then posting D90/2 K20.

At the end of the month, account 20 “Main production” is closed, the balance on account 20 reflects the value of work in progress, this balance is transferred to the beginning of the next month.

To reinforce the above information, I suggest looking at a couple of examples.

Video lesson Accounting for production costs. Account 20. Postings and typical examples

In this video lesson, Natalya Vasilyevna Gandeva, an expert teacher at the site “Accounting for Dummies,” explains accounting for production costs, account 20 with a description of typical entries and examples ⇓

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You can get the slides and presentation for the lesson using the link below.

Examples of production cost accounting entries

Example No. 1 of posting cost accounting in production

The organization provides services, revenue for services is 36,000 rubles. including VAT 6000 rub. Expenses associated with the provision of services: salary 8,000 rubles, material expenses 2,000 rubles. What entries are reflected in the accounting department?

Sum	Debit	Credit	Operation name
			Salary expenses included
			Material costs taken into account
			The cost of services for sale has been written off
			Services provided
			VAT charged on services provided
			The financial result is reflected (in this example, profit)

Example No. 2 of posting cost accounting in production

The company produces irons. Material expenses are 180,000 rubles, employee salaries are 200,000 rubles. Depreciation 90,000 rub. Other expenses 50,000 rub. The products are credited to the finished goods warehouse at actual cost in the amount of 1000 pieces. What kind of wiring is done in this case and what is the cost of one iron?

Cost of one iron = (180000 + 200000 + 90000 + 50000) / 1000 = 520 rubles.

I hope the issue of accounting for the costs of main production no longer causes difficulties, let's move on. In the next article we will continue the topic of production, we will deal with.

In the process of carrying out activities, an economic entity produces a number of certain production costs, as a result of which it is planned to receive income. These costs involve a time dimension. To account for them, account 20 is used in accounting; here the amounts of expenses are accumulated and, when the process is completed, are written off to the appropriate account.

Existing standards establish that all costs for the production of products, provision of services or performance of work until the completion of the established process are subject to reflection on account 20.

Here the accumulation of expenses associated with the main activity for which the company was created occurs. Therefore, it is called account 20 “Main production”.

All costs accumulated on this account are called work in progress. This is due to the fact that the invoice reflects them until the moment when they form the cost of the product.

This account is used in almost every enterprise, regardless of the field of activity, with the exception of trade. These can be industrial, agricultural enterprises performing construction and installation work, transport and communications, etc.

If a company creates finished products, then closing account 20 means that it is produced. For works and services, closing the 20th account implies that the entity has provided or fulfilled the obligations stipulated by the agreements.

Attention! For small businesses, a simplified accounting procedure is provided, which implies that all company expenses should be taken into account in account 20. Other accounts (23,25,26) are not applied in this case.

Accounting for information about costs incurred on account 20 is carried out on the basis of supporting documents and is used by management to manage the business entity.

What is included in the account

Account 20 reflects all costs associated with the main activity of the company.

Therefore, the following expenses should be taken into account on the account:

• Material costs are the cost of raw materials, materials, semi-finished products, fuel and others spent on production, that is, what forms the basis of the finished product.
• Costs of services and work of third-party companies involved in the creation of the finished product.
• Remuneration of key personnel with mandatory contributions to extra-budgetary funds.
• Depreciation charges for fixed assets involved in the creation of the finished product.
• Indirect costs that are superimposed on the cost of the finished product - costs of auxiliary production, non-production, factory overhead, sales costs, etc. - they should be reflected on account 20 in the case when the accounts for their accounting are closed at the end of the reporting period.
• Other costs for the production of finished products (taxes, duties, etc.)

The first items relate to direct costs - those that are directly related to production. The cost of the above expenses accumulates while the production process is taking place, and upon its completion they are all written off from account 20 to the cost of the finished product, work, service.

Attention! If the product did not pass technical control and was recognized as a manufacturing defect, the costs of its production previously recorded on account 20 should be written off to the production defect account (usually 28).

Characteristics of account 20 “main production”

Account 20 according to the current one is active, since it reflects the company’s assets. It has a debit balance reflecting the cost of work in progress, that is, costs that have not yet formed the cost of a product or service.

Debit turnover reflects the expenses incurred by a business entity for the production of finished products, provision of services or performance of work. The credit of the account records the cost of production written off for finished products.

The balance at the end of the reporting period is determined by summing the balance at the beginning and the turnover on the debit side of the account and subtracting from it the turnover on the credit side of the account.

Attention! Many business entities, especially those who provide services and work, have a balance of 0 at the end of the reporting period for account 20.

However, this rule does not apply to organizations engaged in production activities. For them, this indicator reflects the products launched into production.

Account 20 “Main production” is intended to summarize information about the costs of production, the products (works, services) of which were the purpose of creating this organization. Specifically, this account is used to record costs:

for the production of industrial and agricultural products;

for the implementation of construction and installation, geological exploration and design and survey work;

for the provision of services to transport and communications organizations;

to carry out research and development work;

The debit of account 20 “Main production” reflects direct costs associated directly with the production of products, performance of work and provision of services, as well as costs of auxiliary production, indirect costs associated with the management and maintenance of the main production, and losses from defects. Direct costs associated directly with the production of products, performance of work and provision of services are written off to account 20 “Main production” from the credit of inventory accounts, settlements with employees for wages, etc. Expenses of auxiliary production are written off to account 20 “Main production” from the credit of account 23 “Auxiliary production”. Indirect costs associated with the management and maintenance of production are written off to account 20 “Main production” from accounts 25 “General production expenses” and 26 “General expenses”. Losses from defects are written off to account 20 “Main production” from the credit of account 28 “Defects in production”.

The credit of account 20 “Main production” reflects the amounts of the actual cost of products completed by production, work performed and services performed. These amounts can be written off from account 20 “Main production” to the debit of accounts 43 “Finished products”, 40 “Output of products (works, services)”, 90 “Sales”, etc.

The balance of account 20 “Main production” at the end of the month shows the cost of work in progress.

Analytical accounting for account 20 “Main production” is carried out by types of costs and types of products (works, services). If the formation of information on expenses for ordinary activities is not carried out on accounts 20 - 39, then analytical accounting on account 20 “Main production” is also carried out by divisions of the organization.

Account 20 “Main production” corresponds with the accounts:

by debit

on loan

02 Depreciation of fixed assets 04 Intangible assets 05 Amortization of intangible assets 10 Materials 16 Deviation in the cost of material assets 19 Value added tax on acquired assets 20 Main production 23 Auxiliary productions 25 General production expenses 26 General expenses 28 Defects in production 41 Products 43 Finished products 60 Settlements with suppliers and contractors 68 Calculations for taxes and duties 69 Calculations for social insurance and security 70 Settlements with personnel for wages 71 Settlements with accountable persons 75 Settlements with founders 80 Authorized capital 86 Targeted financing 96 Reserves for future expenses 97 Deferred expenses

10 Materials 11 Animals for growing and fattening 15 Procurement and acquisition of material assets 20 Main production 21 Semi-finished products of own production 28 Defects in production 40 Release of products (works, services) 43 Finished products 45 Items shipped 76 Settlements with various debtors and creditors 79 On-farm settlements 80 Authorized capital 86 Targeted financing 90 Sales 91 Other income and expenses 94 Shortages and losses from damage to valuables 99 Profit and loss

Accounting— a system for analytical collection, registration and synthesis of information about all business operations carried out by the enterprise.

Turnover balance sheet (“turnover” in accounting language) – register, combining and systematizing all accounting information in one document.

How to understand the information that OSV provides, and what information does each line of this form contain?

What it is

one of the most important cumulative accounting registers, reflecting the status of various accounting accounts on a specific date.

From the name of the document you can understand that its structure includes information about turnover and balances for one or more accounts. That is, the document contains information about the balance at the beginning of the period, about movements for a specified period of time and the result formed based on the results.

This document accumulates information about all transactions performed by the company. Information from the SALT is subject to the accounting rules and accounting policies of the organization. The form requires strict adherence to instructions, without initiative deviations.

Application

It was previously noted that the statement is a register of information about the facts of quantitative and qualitative changes in aspects of the company’s economic activities. Note several main functions of OSV:

• identifying inaccuracies and distortions in accounting;
• bringing together information about the state of the enterprise;
• source for assessing profitability;
• factor determining development paths;
• monitoring the correctness of accounting and accounting records;
• assessment of the company's profitability by external users;
• control over the distribution of cost indicators.

The statement can be compiled at any time required(per day, month, quarter, year), for a specific account or for a combination of several.

The “turnover” form must contain necessary details:

1. Title of the document.
2. Name of the organization.
3. Compilation period.
4. BU information.
5. Price indicators.
6. Position and description of the person responsible for the information specified in the form.

The document can be drawn up both on paper and electronic media.

In accounting there are three types of "turns":

1. Analytical- for a specific account.
2. Synthetic– summarizing information in aggregate across several.
3. Chess– a general register of all transactions from the company’s activity process register.

Let us briefly describe each of these types.

The structure of this SALT consists of a collection of movements and results for an analytical accounting account opened to a specific synthetic account. Allows you to identify errors summary data comparison method.

The final results for account turnover according to analytics are necessarily equal to the final data for the synthetic account.

The cost values ​​of the indicators are accumulated in the form of monetary expression only.

And with the combined use of quantities (natural, monetary, quantitative) it is used summary structured statement.

Synthetic

This form reflects all synthetic accounts in order of numerical increase. The document is the source for the formation of the balance sheet.

The basic requirement of SALT is compliance with double entry rules: credit turnover of one account is equal to the debit turnover of another corresponding account.

If you look at the correct statement compiled according to all the criteria, you can see that the turnover of all three columns is the same in the context of the graph.

The debit balance at the end of the period for SALT is included in the balance sheet asset, and the loan balance is included in the liability.

For a visual representation, here is an example:

Chess

Chess sheet – one of the variations of “turnover” on synthetic accounts. Schematically, it is depicted in the form of a diagonal correspondence of accounts: accounts are listed vertically by debit, and horizontally by credit. The number of columns and rows is equal to the number of accounts that have an opening balance and turnover for the time interval under consideration.

The opening balance is posted to the accounts. All results of business transactions are posted in the tabular section once at the intersection of columns with corresponding accounts. Then the totals are displayed for rows and columns separately. The result in the lower right corner should converge, that is the sum of the debit turnover coincides with the credit data.

Indicators

"Return" allows you to as soon as possible conduct a detailed analysis of information collected on accounting accounts. Before considering the SALT, you need to study the structure of accounting accounts (NU).

Highlight three groups of accounts: active, passive and active-passive. The procedure for collecting and systematizing for a particular group is individual. To correctly understand the information from the statement, you need to know the parameters for maintaining accounts, which of them may have a balance, and which must certainly be closed within a certain period. For example, account 20 must be closed monthly, accounts 90 and 91 do not require this procedure in the context of subaccounts, and, meanwhile, the final balance is not formed for them.

Timely verification of the correctness of the reflection of information makes it possible to eliminate errors and create a balance sheet that reflects the real picture of the organization’s financial position.

The main benefit of SALT is speeding up the reporting process, as well as in efficiency of providing information to external users.

Areas of use

Let's consider several examples of using OSV data:

1. The head of the company instructs the accountant to promptly provide information on revenue for the quarter. It is enough for a specialist to create a consolidated SALT and look at the credit turnover on account 90.01. The information will contain the volume of sales for the requested period, excluding VAT.
2. The company applied to a credit institution to obtain a loan. To assess the profitability and solvency of the company, the bank requested SALT for the last reporting period. The solvency analysis service will be able to obtain information on existing loans and borrowings (credit 66 and 67 accounts), determine the presence of accounts payable from the borrower, and estimate the profit of the enterprise (account 99).
3. The financial director needs to draw up the actual budget and indicate the amount of VAT payable, but the declaration has not yet been generated. It is the SALT that will allow you to calculate in a few minutes preliminary data on the VAT debt to the budget at the end of the period. To do this, it is enough to use the formula VAT = 90.03 + Dt 76 (AB) – Kt 76 (VA) – Kt 19. Account 90.03 displays VAT on the sales amount, debit 76 (AB) - advances issued, Kt 76 (VA) - advances from buyers, Kt.19 – the amount of tax to be deducted.

Turnover balance sheet - an indispensable source of analytical information, which allows you to quickly evaluate aspects of business activity, make adjustments to accounting data, and increase profitability. The form provides simplicity of periodic reporting, thereby giving the ability to economically distribute labor resources.

The skills of reading OSV in reports generated in 1C can be found below.

Business enterprises are created with the aim of obtaining the maximum amount of profit. For this purpose, various types of economic activities are used, for example, wholesale and retail trade in purchased goods, provision of services, and in-house production. Depending on the chosen field of activity, a system for maintaining all types of accounting is selected.

Production

An enterprise engaged in production activities in its chosen area uses a classic tax and accounting system. Management certificates, diagrams and reports are generated in parallel according to a general principle in accordance with the requirements of the owners of the organization. When carrying out production activities, each company forms the cost of manufactured products. Account 20 is used to summarize costs. The presence of auxiliary production or an extensive system of production shops and administrative buildings requires the use of accounts 23, 26, 29, 25, which collect all costs related to the cost of the main type of product.

Accounting

Account 20 “Main production” in accounting is intended to reflect all production and general business costs. It is active, synthetic, balance sheet, and the account is closed at the end of the production cycle. As a rule, the 20th account has no balance. The balance sheet may reflect the amount as of a specific date. If an enterprise simultaneously produces several different types of products, then accounting account 20 is maintained for each analytical item separately. The account credit serves to write off the full (production) cost of production. The debit reflects the amount 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:

• main and invoices;
• complex and single-component;
• indirect and direct;
• one-time and current;
• constants, variables, conditionally variable.

The total cost is calculated by summing up the calculation costs, which are posted to account 20 “Main production”. These include:

1. Current assets (materials, purchased semi-finished products, raw materials).
2. Services of third parties used for the purposes of the main production cycle.
3. Payment of workers.
4. Contributions to pension and extra-budgetary funds.
5. Utilities (electricity, water supply, heat supply).
6. Marriage.
7. Depreciation of non-current assets.
8. Expenses for modernization and introduction of new technologies.
9. Other expenses.
10. Sales costs (commercial).

Selling costs are not included in the production cost of products, as they are sales costs. Account 20 may not contain this item; according to the provisions of the enterprise’s accounting policy, it may increase account 44 (this is typical for trading companies).

Indirect costs

Accounts 25, 23 and 26 of accounting during any reporting period collect costs for auxiliary, economic and administrative proceedings, 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 timely accrue wages to their employees with appropriate deductions, update and repair non-current funds, and ensure the uninterrupted supply of materials and raw materials.

The maintenance of the administrative and managerial staff of an enterprise is associated with large amounts of costs, which must be covered from the organization’s own and borrowed funds or (which happens much more often) included in the cost of the finished product. All listed costs are summarized in the debit of synthetic 23, 29, 25, 26. After the closing of the reporting period, the monetary expression of the turnover in debit is written off to accounting account 20. In this case, costs can be distributed in proportion to a certain indicator (the amount of materials spent, 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, these accounts should not have a balance; the amount of work in progress is reflected as the balance at the end of the period in the debit of account 20.

Document flow for 20 accounts

Production is an internal process of the enterprise, therefore document flow is based on accounting calculations and certificates, internal regulations of the organization. The release of tangible assets to any department is accompanied by a corresponding invoice, the end of the production cycle is documented in a report, used for inclusion in labor costs. Using an accounting calculation (certificate), the following indicators are included in the cost: distributed, depreciation (depreciation amount) of fixed assets and intangible assets, costs auxiliary production, deferred expenses, losses from defects, returnable waste (subtracted from the cost of products).

Debit account 20

The following entries are reflected in debit 20.

Dt accounts	CT account	Contents of operation
20	10, 15, 11	Materials written off as main production
20	02, 05	Depreciation was accrued for fixed assets and intangible assets used for main production
20	23, 26, 25, 29	The costs of auxiliary production, experimental work, operational maintenance, and irreparable defects were written off to the OP
20	70, 69	The salaries of the employees were accrued, deductions were made from the amount to the relevant funds
20	96	A reserve has been created for OS modernization
20	97	Part of the (estimated) expenses of future periods is written off

Turnover for the reporting period is summed up and transferred to the cost of manufactured products. After this, account 20 is closed.

Account credit 20

20 loan account contains information on the full (production) cost of manufactured products, semi-finished products, and the cost of services provided. 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 for credit 20 of account is presented below.

Automated accounting

Organizations that maintain accounting and tax records in a specialized program significantly simplify the process of reporting, interim analysis of activities and can assess the movement of assets at any stage. Most often, various versions of the 1C program are used, which are equipped with unified documents and configured for effective use under the current legislation of the Russian Federation. Also, some versions of the program allow you to conduct parallel accounting and tax management accounting, and 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 processed. At the stage of preparation for accounting, it is necessary to configure the program in accordance with the requirements of the enterprise's accounting policy and the applicable taxation systems. Analytical accounting and the account closing algorithm are configured separately. Calculation accounts must be closed in strict sequence; complex expenses are distributed in proportion to the indicator specified in the program. First of all, when closing a period, depreciation of fixed assets occupied in all production and administrative departments is calculated, then the costs are transferred to the cost of account 23, 26, 25. 20 account is closed only if all preliminary registers are correctly filled out and the program is optimally configured.