Any organization acquires materials for the company’s activities not for their own sake. And the purchased valuables will not lie dead weight in the warehouse for the director to admire. They are intended for use in production, sales or administrative purposes. Therefore, purchased materials are subsequently consumed in production.

However, in the warehouse the storekeeper or warehouse manager is responsible for them, and the materials are taken into account on account 10. When the materials leave the warehouse, the situation will change: the account and the responsible person will change. In this article we will analyze the write-off of materials with step-by-step instructions for this procedure for you.

1. Accounting entries for writing off materials

2. Registration of write-off of materials

3. Write-off of materials - step-by-step instructions if not everything is consumed

4. Standards for writing off materials for production

5. Example of a write-off act

6. Methods for writing off materials for production

7. Option No. 1 – average cost

8. Option No. 2 – FIFO method

9. Option No. 3 – at the cost of each unit

So, let's go in order. If you don't have time to read a long article, watch the short video below, from which you will learn all the most important things about the topic of the article.

(if the video is not clear, there is a gear at the bottom of the video, click it and select 720p Quality)

We will look at write-offs of materials in more detail than in the video later in the article.

1. Accounting entries for writing off materials

So, let's start by determining where the purchased materials can be sent. It should be noted that materials are truly ubiquitous and there are ways to, as they say, “plug a hole” in any problem area of ​​the organization:

• - serve as the basis for the production of products
• - be an auxiliary consumable material in the production process
• — perform the function of packaging finished products
• - used for the needs of the administration in the management process
• — assist in the liquidation of decommissioned fixed assets
• - used for the construction of new fixed assets, etc.

And the accounting entries for writing off materials depend on what materials are released from the warehouse for:

Debit 20"Primary production" - Credit 10– raw materials were released for production

Debit 23"Auxiliary production" - Credit 10– materials were sent to the repair shop

Debit 25"General production expenses" - Credit 10– rags and gloves were provided to the cleaning lady servicing the workshop

Debit 26"General running costs" - Credit 10– paper for office equipment was issued to the accountant

Debit 44"Sales expenses" – Credit 10– containers for packaging finished products were issued

Debit 91-2"Other expenses" - Credit 10– materials were released for the liquidation of fixed assets

It is also possible for a situation where it is discovered that the materials listed in the accounts are actually missing. Those. there is a shortage. For such a case, there is also an accounting entry:

Debit 94“Shortages and losses from damage to valuables” – Credit 10– missing materials written off

2. Registration of write-off of materials

Any business transaction is accompanied by the preparation of a primary accounting document, and write-off of materials is no exception. The step-by-step instructions in the next paragraph contain the study of the primary documents that accompany the write-off process.

Currently, any commercial organization has the right to independently determine the set of documents that will be used to formalize the write-off of materials, so the registration of write-off of materials may vary from organization to organization.

The main thing is that the documents used are approved as part of the accounting policy and contain all the mandatory details provided for in Article 9 of Law No. 402-FZ “On Accounting”.

Standard forms that can be used when writing off materials (approved by Resolution of the State Statistics Committee of October 30, 1997 No. 71a):

• — demand-invoice (Form No. M-11) is applied if the organization has no limits on receiving materials
• — limit-fence card (Form No. M-8) is applied if the organization has established limits on the write-off of materials
• — invoice for the issue of materials to the side (Form No. M-15) is applied to another separate division of the organization.

The organization can modify these forms - remove unnecessary details and add details that the organization needs.

The invoice requirement is suitable for accounting for the movement of material assets within an organization, between financially responsible persons or structural divisions.

The invoice in two copies is drawn up by the financially responsible person of the structural unit handing over material assets. One copy serves as the basis for the handing over unit to write off valuables, and the second copy serves as the basis for the receiving unit for the receipt of valuables.

3. Write-off of materials step-by-step instructions if not everything is consumed

Usually, when preparing these documents, it is assumed that the released materials were immediately used for their intended purpose, which means they are accompanied by the postings that we discussed above - for credit 10 of the account and debit 20, 25, 26, etc.

But this does not always happen, especially in large production. Materials transferred to the work site or workshop may not be immediately used in production. In fact, they simply “move” from one storage location to another. In addition, when dispensing materials, it is not always known what type of product they are intended for.

Therefore, those materials that are released from the warehouse but not consumed should not be taken into account as expenses of the current month, neither in accounting nor in tax accounting for income tax. What to do in this case, how to write off materials, step by step instructions below.

In such situations, the release of materials from the warehouse to the production department should be reflected as an internal movement, using a separate subaccount to account 10, for example, “Materials in the workshop.” And at the end of the month, another document is drawn up - a materials consumption act, where the direction of materials consumption will already be visible. And at this moment the materials will be written off.

Such tracking of material consumption will allow you to achieve greater reliability in accounting and correctly calculate income tax.

Please note that this applies not only to materials that go into production, but also to any property, including stationery used for administrative needs. Materials should not be issued “in reserve”. They must be used immediately. Therefore, a one-time operation to write off 10 calculators for an accounting department of 2 people, during an audit, will certainly raise questions as to what purpose they were required in such quantities.

4. Example of a write-off act

1. - or you issue and immediately write off only what is actually consumed (in this case, the requirement of an invoice is quite sufficient)
2. - or you draw up an act for writing off materials (transmitting a demand invoice, and then gradually writing off acts for writing off).

If you use write-off acts, do not forget to also approve their form as part of the accounting policy.

The act usually indicates the name, and, if necessary, the item number, quantity, accounting price and amount for each item, number (code) and (or) name of the order (product, product) for the manufacture of which they were used, or number (code) and (or) the name of the costs, the quantity and amount according to consumption standards, the quantity and amount of consumption in excess of the standards and their reasons.

An example of what such an act might look like is in the picture below. I repeat, this is just an example; the type of act will very much depend on the specifics of the enterprise. Here, as a basis, I took the form of the act that is used in budgetary institutions.

5. Standards for writing off materials for production

Accounting legislation does not establish standards in accordance with which materials should be written off for production. But paragraph 92 of the Methodological Guidelines for the accounting of MPZ (Order of the Ministry of Finance dated December 28, 2001 No. 119n) states that materials are released into production in accordance with established standards and the volume of the production program. Those. the amount of materials written off should not be uncontrolled and the standards for writing off materials into production must be approved.

In addition, for tax accounting it would be useful to remember Article 252 of the Tax Code: expenses are economically justified and documented.

The organization sets its own standards for materials consumption (limits). . They can be fixed in estimates, technological maps and other similar internal documents. Documents of this kind are not developed by the accounting department, but by the unit that controls the technological process (technologists), and then they are approved by the manager.

Materials are written off for production in accordance with approved standards. You can write off materials in excess of the norm, but in each such case you need to explain the reason for the excess write-off. For example, correction of defects or technological losses.

The release of materials in excess of the limit is carried out only with the permission of the manager or his authorized persons. On the primary accounting document - the demand invoice, the act - there must be a note about the excess write-off and its reasons. Otherwise, the write-off is illegal and leads to a distortion of the cost and accounting and tax reporting.

On the topic of expenses in the form of technological losses, you can read: Resolution of the Federal Antimonopoly Service of the North Caucasus District dated 02/04/2011. No. A63-3976/2010, letters from the Ministry of Finance of Russia dated July 5, 2013. No. 03-03-05/26008, dated January 31, 2011. No. 03-03-06/1/39, dated 10/01/2009 No. 03-03-06/1/634.

6. Methods for writing off materials for production

So, now we know what documents we need to write off materials, and we also know the accounts to which they are debited. From the documents we know how much materials were written off. Now all that’s left to do is determine the cost of their write-off. How can we determine how much the materials sold cost, and what amount will be the write-off entry? Let's look at a simple example, based on which we will study the methods of writing off materials for production.

Example

Sladkoezhka LLC produces chocolate candies. Cardboard boxes are purchased for their packaging. Let 100 such boxes be purchased at a price of 10 rubles. a piece. A packer comes to the warehouse to pick up boxes and asks the storekeeper to give him 70 boxes.

So far we have no question about how much each box costs. The packer receives 60 boxes for 10 rubles, for a total of 600 rubles.

Even if 80 boxes were purchased, but the price is already 12 rubles. a piece. The same boxes. Of course, the storekeeper doesn't keep the old and new boxes separate, they are all kept together. The packer came again and wants more boxes - 70 pieces. The question is: at what price will the boxes sold for the second time be valued? It is not written on each box exactly how much it cost - 10 or 12 rubles.

Different answers can be given to this question, depending on which method of writing off materials for production is approved in the accounting policy of Sladkoezhka LLC.

7. Option No. 1 – average cost

After the packer left the warehouse with the boxes for the first time, there were 40 boxes left for 10 rubles each. – this will be, as they say, the first game. Another 80 boxes were purchased for 12 rubles. - This is already the second batch.

We count the results: we now have 120 boxes for a total amount of: 40 * 10 + 80 * 12 = 1360 rubles. Let’s calculate how much a box costs on average:

1360 rub. / 120 boxes = 11.33 rub.

Therefore, when the packer comes for the second time for boxes, we will give him 70 boxes for 11.33 rubles, i.e.

70*11.33=793.10 rub.

And we will have 50 boxes left in the warehouse worth 566.90 rubles.

This method is called average cost (we found the average cost of one box). As new batches of boxes continue to arrive, we will again calculate the average and issue boxes again, but at a new average price.

8. Option No. 2 – FIFO method

So, by the time of the packer’s second visit, we have 2 batches in our warehouse:

No. 1 - 40 boxes for 10 rubles. – according to the time of acquisition, this is the first batch – the “older” one

No. 2 – 80 boxes for 12 rubles. - according to the time of acquisition, this is the second batch - more “new”

We assume that we will issue the packager:

40 boxes from the “old” one - the first batch purchased at the price of 10 rubles. – total for 40*10=400 rub.

30 boxes from the “new” one - the second batch in time to purchase at a price of 12 rubles. – total for 30*12=360 rub.

In total, we will issue in the amount of 400 + 360 = 760 rubles.

There will be 50 boxes left in the warehouse at 12 rubles, for a total of 600 rubles.

This method is called FIFO - first in, first out. Those. First, we sort of release material from an older batch, and then from a new one.

9. Option No. 3 – at the cost of each unit

At the cost of a unit of inventory, i.e. Each unit of materials has its own cost. This method is not applicable for ordinary cardboard boxes. Cardboard boxes are no different from each other.

But materials and goods used by the organization in a special manner (jewelry, precious stones, etc.), or inventories that cannot normally replace each other, can be valued at the cost of each unit of such inventories. Those. If all our boxes were different, we would put a different tag on each one, then each of them would have its own cost.

Here are the most important questions on the topic of writing off materials: step-by-step instructions are now before your eyes. For those who keep records in the 1C: Accounting program, watch a video tutorial on writing off materials in this program.

What problematic issues do you have regarding the write-off of materials? Ask them in the comments!

You can also, which were mentioned in the article, on the issue of technological losses.

Write-off of materials step-by-step instructions for accounting

Writing off expired goods is more typical for companies involved in the trade of perishable goods (for example, food). However, it may be necessary to write off goods that have become unusable in other areas of trading activity. This material will tell you about the features of such a write-off.

IMPORTANT! If the goods are not returned to the supplier, then they will require a conclusion from the relevant state supervision authority (sanitary, veterinary, merchandising, etc.) on what should be done with these goods. It is allowed to destroy without expert assessment:

• food products that have obvious signs of spoilage and may be dangerous when consumed;
• goods whose owner cannot confirm their exact origin.

What is the procedure for writing off commodity losses, see.

The write-off procedure is determined by the company's management. Internal company regulations should establish:

• the procedure for identifying and withdrawing from sale expired goods;
• the procedure for sending them for recycling or destruction;
• the procedure for documenting the entire process.

As a general rule, the identification of goods unfit for sale is activated. The act indicates: names of goods (according to accounting nomenclature), quantity, location at the time of expiration. A separate section of the act must indicate the further fate of expired goods - disposal, destruction or return to the supplier.

The unified album of primary forms (approved by Goskomstat on December 25, 1998) for such purposes proposes the TORG-15 form for recording the fact of damage and TORG-16 for recording withdrawal from circulation and the decision on destruction or disposal.

Look for forms and samples of filling out forms for write-off in the articles:

• “Unified form No. TORG-15 - form and sample” ;
• “Unified form No. TORG-16 - form and sample” .

In this case, the business entity is allowed to develop forms for writing off inventory items independently, taking into account the requirements for the preparation of primary documents, which are specified in Art. 9 of the Law “On Accounting” dated December 6, 2011 No. 402-FZ.

The transfer of goods for disposal to a specialized company is formalized in the same way as sales (invoice, UTD, etc.).

To better understand the principle of using a particular account, it is best to consider situations using an example.

Example

On March 31, 2019, we carried out an inventory at the central warehouse of the supermarket chain. Based on the results of the inventory, the following was revealed:

• a batch of rice cereal with an expiration date until 03/20/2019 worth 12,000 rubles;
• a batch of buckwheat with an expiration date until 04/05/2019 worth 16,000 rubles.

1. Based on the expiration dates, it was decided to withdraw both batches from sale.

An entry was made in the accounting: Dt 41 / Expired goods (hereinafter referred to as ISG Goods) Kt 41 / Goods for sale

1. Both goods had no external signs of damage. Therefore, samples of both cereals were sent for examination.

Expenses for expert analysis (1,770 rubles including VAT) and the cost of transferred samples were reflected in accounting:

Dt 91 Kt 76 — 1,500 rub. — examination;

Dt 19 Kt 76 - 270 rub. — VAT on examination services;

Dt 91 Kt 41 / ISG products - 100 rub. — cost of samples (a sample was taken from each product costing 50 rubles, 2 × 50 = 100).

1. Based on the results of the examination, buckwheat groats were allowed to be disposed of, while rice groats were ordered to be destroyed.

3.1. A third-party organization was hired to destroy the rice grains, and they billed RUB 2,360 for their services. (including 360 rubles VAT). The accountant recorded the following entries:

Dt 94 Kt 41 / ISG products - 11,950 rub. (12,000 - 50);

Dt 91 Kt 94 — 11,950 rub. — the cost of destroyed goods is written off;

Dt 91 Kt 76 — 2,000 rub. — expenses for the services of a third-party destruction organization are taken into account;

Dt 19 Kt 76 — 360 rub. — VAT on services provided by a third party.

3.2. Buckwheat was sold to an animal shelter for 8,000 rubles. The following entries were made in accounting:

Dt 62 Kt 90 - 8,000 rub. — revenue from sales accrued;

Dt 90 Kt 68 / VAT - 1,220 rub. — VAT on sales;

Dt 90 Kt 41 / ISG products - RUB 15,950. (16,000 - 50).

Tax nuances of writing off goods

Subp. 49 clause 1 art. 264 of the Tax Code of the Russian Federation provides for the inclusion in expenses for calculating income tax of other expenses related to production and sales. Expenses must meet the criterion of economic justification in accordance with Art. 252, 265 Tax Code of the Russian Federation.

If identifying, removing from circulation, recycling or destroying expired goods is a legal responsibility of the seller, the results of these operations may reduce the tax base for income taxes. These conclusions are also confirmed by letters from the Ministry of Finance, for example letter dated May 26, 2016 No. 03-03-06/1/30409.

see also “[INCOME TAX]: Redemption and disposal of overdue funds is an expense. But there is a condition..." .

This also implies the possibility of deducting VAT paid for services related to the examination, recycling or destruction of expired goods.

IMPORTANT! Accounting for expenses on written-off goods is possible only with correct documentation of each stage, from identification to write-off.

Results

The procedure for writing off expired goods has its own nuances in terms of documentation, the need for an examination and accounting for expenses (losses) from write-off for tax purposes.

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 while 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 party.

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 rubles).

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. – the amount of VAT on the examination is reflected;

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 companies. 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.

Any business organization has to write off goods in the warehouse from time to time. This may be preceded by various reasons: damage to goods, loss of their consumer qualities, obsolescence, as well as lack of demand for it in the market.

All goods must be accounted for, and their movement is carried out in accordance with regulations. The primary documentation reflects the receipt of goods and materials, their movement and release, which has a quantitative and cost expression. All primary documents are drawn up in accordance with the requirements of the Regulations on Accounting and Reporting of the Russian Federation containing mandatory or additional details.

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In case of movement of goods from the supplier to the consumer, shipping documents are drawn up in accordance with the terms of delivery of goods. Received goods are received at the warehouse, and the application of a stamp certifies their quality and quantity. Records of primary documentation are kept in the Goods Receipt Journal. To release goods from the warehouse, there are:

• limit-fence cards (form M-8),
• invoices for the release of goods (form M-15).

The correctness of the receipt and write-off of goods, as well as the preparation of reports, must be monitored by an accountant. The goods should not leave the warehouse without paperwork. All reports of materially responsible persons on the movement of goods are stored for 3 years.

In case of shortage of goods

Shortages that arise for various reasons: due to theft, abuse of materially responsible persons, accounting errors, natural loss, misgrading and other factors, are identified as a result of an inventory, which makes it possible to control the safety of property and the efficient use of resources.

An example of writing off goods in the Class365 system

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To carry out this procedure, a materials write-off act is filled out. This specific document transfers the materials used to the category of unused materials. The text block should decipher the reason for drawing up the act, which indicates the name, units of measurement, quantity, price and the immediate reason why the goods are transferred to another category. Documents based on the results of the inventory must be signed by all members of the commission and approved by the head.

Write-off of balances from the warehouse is carried out using the “cost of each unit” method, that is, it must be written off at the cost at which it was purchased. Some entrepreneurs establish a method suitable for their accounting policies. When closing or reprofiling a trading organization, unsold balances are also subject to write-off.

The cost of warehouse balances is calculated using three methods:

• on average - used in synthetic accounting and when maintaining inventory records manually;
• batch - used in analytics, is more complete and accurate, includes FIFO, LIFO, manual and combined accounting methods;
• at fixed prices - used for retail trade.

If the product is out of stock

To take into account identified deficiencies in tax accounting, there is a provision of the Tax Code. To reflect shortages that do not exceed the norms of natural loss, there is clause 2, clause 7, article 254 of the Tax Code of the Russian Federation. This provision does not apply to shortages or damage during transportation and storage of goods.
When collecting shortfalls from guilty persons, clause 3 of Article 250 of the Tax Code of the Russian Federation is provided.
If there is documentary evidence of expenses incurred, then the taxpayer will reduce income by the amount of these expenses in accordance with paragraph 1 of Article 252 of the Tax Code of the Russian Federation. The following serve as identification documents:

• inventory list
• certificate confirming the shortage
• commission conclusion
• explanatory letter.

If these documents are available, the amount of the shortage is taken into account in full as part of the organization’s expenses.
As the main production department, the warehouse influences the operation of the entire company, as well as its competitiveness. To improve customer service, it is necessary to automate it.

Warehouse automation reduces time and labor costs for order picking, improves quality (eliminates mis-grading and incomplete picking), allows for the best use of warehouse space, organizes and optimizes the work of warehouse workers, the movement of goods and document flow, and ensures transparency and controllability of supply chains.

A set of warehouse management system tools will allow you to make the right decisions and make the most efficient use of company resources.

If the product is damaged or expired

Products that have expired, are stale, damaged during transportation or storage, require disposal in accordance with the law. State regulations have been established for this procedure. Product examination is carried out.

If low-quality goods that pose a threat to health or unsuitable products are identified, acts are drawn up that reflect this and signed by members of the commission.
There is no established procedure for writing off expired goods due to their expiration date. If this is identified during the inventory process, a record is compiled according to the general scheme for reflecting the results.
As a result of the inventory, a shortage may also be identified, then in accounting and tax accounting the amount of this product is attributed to:

• costs associated with circulation or production within the limits of natural loss;
• the number of persons guilty of this is in excess of the norms of natural loss;
• other expenses of the organization - without identifying the perpetrators.

The actual presence of inventory items is entered into the inventory list (INV-3 form). To reflect the identified deviations between accounting data and actual availability, the INV-19 matching statement is intended. The final data is transferred to the INV-26 statement.

How to simplify warehouse accounting?

Business automation software Class365 is an indispensable assistant in working with warehouse operations. The online solution allows you to work anywhere, from any device with Internet access, without being tied to a work computer.

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• acceptance, write-off, inventory, revaluation of goods 2 times faster
• automatic issuance of accounting and accompanying documents, invoices, orders
• 1-click reports, analysis of illiquid goods
• control of an unlimited number of warehouses
• batch accounting
• address storage of goods
• control of product shelf life

Thus, working with the warehouse can be much faster and easier. To do this, you just need to register in the Class365 online program and receive a link to log into your account.

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Our organization is engaged in the wholesale trade of medical products. Some products have an expiration date. Please tell me: 1) is it possible to write off expired goods at the expense of profit in accounting? .e. the full amount can be written off or is there a limit on write-off. 4) can the amount of written-off goods be taken into account in expenses when calculating profit under OSNO. 5) what documents need to be drawn up when writing off.

1) If damaged goods cannot be used in the future, reflect their value in accounting on account 94, account 41, account 94, account 42, and must be reversed. 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).

When writing off expired goods, the posting:

Debit 91-2 Credit 41 - the actual (purchase) cost of expired, low-quality goods is written off at the expense of other expenses of the organization.

2) No, you can’t. The cost of paid for damaged goods can be taken into account as part of material costs only if the damage occurred during storage or transportation. And only if the losses do not exceed the norms of natural loss.

3) Losses from shortages (spoilage) during storage and transportation can be taken into account in expenses only within the limits of natural loss rates (in the same manner as for calculating income tax) and (or) technological losses (during transportation) (clause 7 Article 254 of the Tax Code of the Russian Federation). In this case, goods for which a shortage (damage) has been identified must be paid for ().

4) Losses from damage to goods can be taken into account only within the limits of natural loss norms (sub-clause, clause 7 of Article 254 of the Tax Code of the Russian Federation). Take into account the shortage within the limits of natural loss norms when calculating income tax as part of material expenses (subclause 2, clause 7, article 254 of the Tax Code of the Russian Federation).

When calculating income tax, the purchase price of goods for which their expiration date has expired can only be taken into account for certain types of goods. This applies to food products, perfumes, cosmetics and tobacco products, products and products for oral hygiene and medicines.

5) To document the inventory, use, for example, an inventory list of inventory items (form No. INV-3). When registering inventory results, the following documents must be drawn up:

Matching statement according to form No. INV-19;

Statement of records of results identified by inventory, according to form No. INV-26.

There is no unified document form to reflect the write-off of goods. Therefore, an organization can develop such a document independently or use form No. TORG-16 (if necessary, having previously modified it, for example, by excluding unnecessary indicators). The act in form 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.

To carry out the write-off of goods, the head of the organization creates a commission, the composition of which is approved by order.

Elena Popova, State Advisor of the Tax Service of the Russian Federation, 1st rank

How to reflect damage and shortage of goods in accounting and taxation

Inventory: identifying shortages and damage

The discovery of a shortage (damage) of goods is the basis for conducting an inventory ().* An exception to this rule is a shortage (damage) of goods detected before the goods are registered. The fact of shortage (damage) can also be revealed during the inventory process carried out for other reasons.

For information on what conditions must be met when conducting an inventory of goods, see table.

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 according to form No. INV-19;
• statement of accounting of the results identified by the inventory, according to form No. INV-26.

For more information on filling out these forms, see the table.

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).

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 in accounting and taxation the shortages identified during the inventory.

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, ,). 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);

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.

The current norms of natural loss are presented in the table.

Attribute damage to goods in excess of the norms of natural loss to the perpetrators (clause 30 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 withhold from wages material damage caused to the organization;
• How to reflect in accounting and taxation the deduction from wages of material damage caused to the organization.

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).

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
– loss from damage to goods resulting from force majeure is written off.

BASIC: income tax

The procedure for accounting for shortages (damage) when calculating income tax depends on the reason for which this shortage (damage) arose:*

• due to natural loss (technological losses during transportation);
• through the fault of the financially responsible person (other guilty persons);
• as a result of force majeure (flood, fire, etc.).

Losses from damage to goods can be taken into account only within the limits of natural loss and technological losses during transportation (subclause 7 of Article 254 of the Tax Code of the Russian Federation).*

Take into account the shortfall within the limits of natural loss norms when calculating income tax as part of material expenses (subclause 2, clause 7, article 254 of the Tax Code of the Russian Federation).*

Accounting for shortages in excess of natural loss norms depends on whether the guilty person is identified or not.

If the guilty person is identified, then reflect the shortfall collected from him as part of non-operating income (,).

If the perpetrators have not been identified or the court has refused to collect the amount of damage caused from them, take into account the shortage of property when calculating income tax as part of non-operating expenses. In this case, the fact that there are no perpetrators must be documented by an act of the authorized agency. This procedure follows from the provisions of paragraph 2 of Article 265 of the Tax Code of the Russian Federation. For more information about documentary evidence of expenses in this case, see How to take into account non-operating expenses when calculating income tax.

If the shortage (damage) of goods arose as a result of force majeure, then such losses can also be taken into account when calculating income tax in full (subclause 6, clause 2, article 265 of the Tax Code of the Russian Federation).

Situation: Is it possible for a trade organization to take into account, when calculating income tax, the purchase price of goods for which their expiration date has expired, as well as the cost of their disposal (destruction) costs?

Yes, you can, but only for certain types of goods.*

In this situation, the organization must independently decide whether to include in the calculation of income tax the purchase price of destroyed goods and the costs of their disposal or not. Taking into account the position of regulatory agencies, a reduction in taxable profit due to these costs may lead to disagreements with inspectors. In arbitration practice, there are examples of court decisions made in favor of organizations (see, for example, the decision of the Supreme Arbitration Court of the Russian Federation dated May 19, 2008 No. 6127/08, decisions of the Federal Antimonopoly Service of the Moscow District dated February 1, 2008 No. KA-A40/14839-07 -2, dated October 11, 2007 No. KA-A40/10338-07).*

Include losses from damage (shortage) of goods as expenses at the time of documenting the fact of shortage (damage) of goods or on the date of preparation of the annual financial statements (i.e. no later than December 31 of the reporting year). Do this even if the organization recognizes expenses on the accrual basis and if it uses the cash method. This follows from paragraph 1 of Article 272 and paragraph 3 of Article 273 of the Tax Code of the Russian Federation. Moreover, if the organization uses the cash method, take into account the losses if the goods for which the fact of shortage (damage) is revealed are paid for (clause 3 of Article 273 of the Tax Code of the Russian Federation).

If damage from shortage (damage) of goods is compensated by the person at fault, then the organization receives non-operating income (). If an organization recognizes income on an accrual basis, take into account income in the form of compensation for damage when calculating income tax at the moment the guilty person recognizes the obligation to compensate for damage or at the time the court decision comes into force (). For example, for citizens, a court decision comes into force 10 days after it is made (unless the decision is appealed) ().

If the organization uses the cash method, take into account the amount of compensation as part of income at the time of compensation for damage by the guilty party (). For example, if an employee is found guilty, then include the amount of compensation for damage as income on the day the employee deposits money into the organization’s cash desk.

An example of how to reflect in accounting and taxation the sale of discounted goods with an expired shelf life

LLC "Trading Company "Hermes"" is engaged in wholesale trade. The organization pays income tax monthly. When calculating income tax, it uses the accrual method. Goods are accounted for at purchase prices.

In August, as a result of an inventory, it was revealed that Hermes still had in its warehouse part of a batch of unsold food products that had expired. The purchase price of goods is 60,000 rubles. (without VAT).

The organization decided to discount and sell expired goods. For this purpose, for the purpose of conducting an examination, samples of goods worth 500 rubles were taken. The organization paid 283 rubles for the examination, including VAT - 43 rubles.

After receiving the expert opinion, the products were sold to the farm for 11,800 rubles, including VAT - 1,800 rubles.

In August, the Hermes accountant reflected transactions on markdowns and sales of expired goods as follows:

Debit 94 Credit 41
– 60,000 rub. – damage to goods is reflected at the purchase price (based on the act in form No. TORG-15);

Debit 44 Credit 41 subaccount “Goods subject to markdown”
– 500 rub. – samples of expired goods were submitted for examination;

Debit 44 Credit 60
– 240 rub. (283 rubles – 43 rubles) – expenses for conducting the examination are written off;

Debit 19 Credit 60
– 43 rub. – the amount of VAT on examination costs is reflected;

Debit 68 subaccount “VAT calculations” Credit 19
– 43 rub. – submitted for VAT deduction based on examination;

Debit 41 subaccount “Goods subject to markdown” Credit 94
– 10,000 rub. – the value (market, taking into account the actual condition) of expired goods is taken into account in a separate sub-account;

Debit 62 Credit 90-1
– 11,800 rub. – revenue from the sale of expired products is reflected;

Debit 90-2 Credit 41 subaccount “Goods subject to markdown”
– 9,500 rub. (10,000 rubles – 500 rubles) – the cost of goods with an expired shelf life is written off;

Debit 90-3 Credit 68 subaccount “VAT calculations”
– 1800 rub. – VAT is charged on goods sold;

Debit 90-2 Credit 44
– 740 rub. (500 rub. + 240 rub.) – the cost of the examination is taken into account in the cost of goods sold;

Debit 91-2 Credit 94
– 50,000 rub. – non-reimbursable losses from damage to goods at the purchase price are written off as other expenses;

Debit 99 Credit 90-9
– 240 rub. (RUB 11,800 – RUB 1,800 – RUB 9,500 – RUB 740) – reflects the loss from the sale of expired goods.

In August, the organization included in expenses when calculating income tax a loss from the sale of expired goods in the amount of 50,240 rubles. ((RUB 11,800 – RUB 1,800) – RUB 59,500 – (RUB 500 + RUB 240))

BASIS: VAT

VAT can be reimbursed only on costs related to goods, the shortage (damage) of which does not exceed the norms of natural loss.* If the amount of shortage (damage) includes TZR, then the amount of input VAT on these costs can be deducted only in the part that refers to shortages (spoilage) within the limits of natural loss norms. The fact is that VAT deduction is possible only for goods that are used in transactions subject to VAT (clause 1 of Article 172 of the Tax Code of the Russian Federation). And lost goods cannot be used in VAT-taxable transactions.

If damage (shortage) of goods is detected upon acceptance of goods and is not due to the fault of the carrier, submit a claim to the supplier. In this case, the supplier will be required to issue a correction invoice. Based on this invoice, accept VAT as a deduction.

If the shortage (damage) of goods occurred due to the fault of the transport company, submit a claim to the carrier. And write off the input VAT on damaged (lost) goods to account 94 “Shortages and damage to acquired values.” It cannot be taken as a deduction, since lost goods cannot be used in transactions subject to VAT.

On the restoration of input VAT accepted for deduction if the product was lost as a result of theft, fire or damage, see In what cases is it necessary to restore input VAT previously accepted for deduction.

simplified tax system

Organizations that pay a single tax on income do not include losses from damage (shortage) of goods as expenses. This is due to the fact that such organizations do not take into account any expenses at all when determining the tax base (clause 1 of Article 346.14 of the Tax Code of the Russian Federation).

If an organization calculates a single tax on the difference between income and expenses, the reflection of losses from damage (shortage) of goods depends on the reasons for their occurrence:*

• storage and transportation;
• force majeure circumstances.

Losses from shortages (damage) during storage and transportation can be taken into account in expenses only within the limits of natural loss rates (in the same manner as for calculating income tax) and (or) technological losses (during transportation) (clause 7 of Art. 254 of the Tax Code of the Russian Federation). In this case, goods for which a shortage (damage) has been identified must be paid for ().* Expenses in the form of amounts of damage caused in excess of the norms do not reduce the tax base. These costs are not in the list of expenses that can be taken into account when calculating the single tax (Clause 1, Article 346.16 of the Tax Code of the Russian Federation).

If the cause of damage (shortage) was force majeure (for example, natural disasters), the cost of losses cannot be taken into account even within the limits of natural loss norms. The fact is that the list of expenses taken into account when calculating the single tax is limited by the Tax Code of the Russian Federation. Losses from damage to goods as a result of natural disasters, fires, etc. are not included in this list. Therefore, they cannot be taken into account for taxation.* Clause 2 of Art. 346.16 clause 1 art. 346.15