How are finished products reflected in the balance sheet? Reflection of finished products in the balance sheet In the balance sheet, finished products are valued

2018-01-25 11663

• Purpose of the article: reflection of information about reserves.
• Line number in the balance sheet: 1210.
• Account number according to the chart of accounts: Debit balance - 10, 11, 15, 16, 20, 21, 23, 28, 29, 43, 41, 44, 45, 97, Credit balance - 14, 42.

Inventories refer to the tangible property of enterprises with the help of which final production products are manufactured. By reflecting them in the balance sheet, the company shows what resources it has at the end of the reporting year.

How are inventories reflected?

Inventories on the balance sheet consist of several categories:

• materials, raw materials;
• finished products;
• deferred expenses;
• work in progress;
• goods for sale.

What to do with materials

Raw materials and materials that were not given for the manufacture of products, in line 1210 of the balance sheet, information is collected on the balances of debit and credit accounts:

• 10 "Materials";

The specifics of raw materials can be very diverse depending on what the enterprise does. For example, when making wine, the raw material can be grapes and all the accompanying ingredients needed in the preparation process.

Materials, in addition to raw materials, are divided into narrower subtypes:

1. Purchased semi-finished products and components.
2. Tara.
3. Fuel.
4. Spare parts.
5. Materials outsourced for processing.
6. Construction materials.
7. Inventory and tools.
8. Workwear.
9. Other stocks.

Debit 43 Credit 40 - products in the warehouse are capitalized.

Once the products are in the warehouse, they need to be sold. Unsold products fall into line 1210 of the balance sheet as a debit balance.

Goods for resale as part of reporting

Goods intended for sale are displayed in the balance sheet:

For example, the company Yuzhny Bereg LLC has the following data in its accounting records at the end of the year:

Since the figures in the balance sheet, according to the requirements of Order No. 66 n, are shown in thousands or millions of rubles, then in line 1210 you need to write:

50 - 50 + 50 + 6 = 56 thousand.

Costly accounts in progress

Work in progress must be reflected in the balance sheet as the sum of debit balances:

• 20 “Main production”;
• 23 “Auxiliary production”;

These are costly bills. They are called so because on them the company collects all expenses that relate directly to the production process.

What to do with deferred expenses

Finally, it is necessary to take into account the debit balance of account 97 “Deferred expenses”. These are expenses that the company spent on in the current month, but they will be deducted in the next time period. The list of expenses may include:

• certification and licensing;
• insurance;
• software products and subscription services;
• other deferred expenses.

For example, if an object is insured for a year, then the company buys an insurance policy at full cost. But the insurance will be written off monthly.

Let's assume that the gas boiler was insured on September 1 for 27,000 rubles. Since the insurance is valid for a year, you need to write off monthly:

27,000 / 12 months = 2,250 rubles.

Typical wiring:

• Debit 76 accounts Credit 51 accounts - an insurance policy in the amount of 27,000 rubles was paid.
• Debit 97 account Credit 76 account - an insurance policy was received from an insurance company in the amount of 27,000 rubles.
• Debit 23 (20, 26) accounts Credit 97 accounts - 2,250 rubles written off as expenses for the month.
• 2,250 rubles * 4 months = 9,000 rubles.
• 27,000 - 9,000 = 18,000 rubles.

Accordingly, line 1210 of the balance sheet from deferred expenses will include the amount that has not been written off as of December 31, that is, 18,000 rubles.

Increase or decrease row 1210

Every year, every company must submit financial statements, including a balance sheet, which is called Form No. The balance is drawn up in accordance with clearly defined instructions, which can be found in PBU 4/99. This document requires the reliability of the information in the report, therefore the “Reserves” item should be collected strictly according to the formula:

Debit 10, 11 - Credit 14 + Debit 15, 16 + Debit 20, 21, 23, 28, 29 + Debit 43 + Debit 41 - Credit 42 + Debit 44, 45 + Debit 97.

Inventories on the balance sheet are a current asset that indicates the company's financial security. The absence or sharp decrease in indicators in line 1210 of the current assets section, which collects all data on inventories, may indicate a scarcity of resources in the enterprise’s warehouses. On the other hand, there is an option that the process of turning an asset into money occurs so quickly that the company can barely keep up with its marketing service.

Since financial receipts to the company’s accounts depend on the rate of inventory turnover, it is necessary to maintain the proper level of resources by pursuing an effective marketing policy.

Finished products- these are products and semi-finished products that are fully processed, complying with current standards or technical specifications, accepted into the warehouse of the organization or the customer (buyer).

Goals and objectives of accounting for finished products

The purpose of accounting for finished products is the timely and complete reflection in the accounting accounts of information about the release and shipment of finished products to the organization.

The main objectives of accounting for finished products are:

Correct and timely documentation of operations for the production, movement and release of finished products;

Monitoring the safety of finished products in storage areas.

Accounting for finished products

To summarize information about the availability and movement of finished products, account 43 “Finished products” is intended.

This account is used by organizations carrying out production activities.

Finished goods can be accounted for in one of three ways:

at actual production cost;

at accounting prices (standard (planned) cost) - using account 40 “Output of products (works, services)” or without its use;

for direct cost items.

Accounting for products at actual cost

If an organization decides to account for finished products at actual cost, then in this case they will be accounted for only using account 43 “Finished products”.

In this case, the receipt of finished products at the warehouse is reflected by the following posting:

If the first method is used, then when transferring finished products to the warehouse, reflected at accounting prices (planned cost), the following entry is made:

Documentation of the movement of finished products

The transfer of finished products to the warehouse is formalized by a requirement-invoice (form N M-11 “Requirement-invoice”) (approved by Resolution of the State Statistics Committee of Russia dated October 30, 1997 N 71a).

When finished products arrive at the warehouse, materials accounting cards are opened in form N M-17 “Material Accounting Card” (approved by Resolution of the State Statistics Committee of Russia dated October 30, 1997 N 71a), which are issued against receipt to the financially responsible person.

The operation for the sale of finished products is documented with a consignment note (standard form TORG-12).

Reflection of finished products in the balance sheet of the enterprise

Finished products are reflected in the balance sheet at the actual or standard (planned) production cost (clause 59 of the Regulations on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 N 34n).

In the balance sheet, the value of balances of finished products not sold and not shipped to customers as of the reporting date is indicated on line 1210 “Inventories”.

Organizations independently determine the details of this indicator.

For example, the balance sheet may separately contain information on the cost of materials, finished products and goods, costs in work in progress, if such information is recognized by the organization as significant.

If in current accounting finished products are reflected at actual production cost, then in the balance sheet they are reflected at actual production cost (debit account balance).

When recording the production of finished products at standard (planned) production cost using an account in the balance sheet, they show the standard (planned) production cost of finished products.

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Finished products: details for an accountant

• Return of finished products

  Finished products returned by the buyer were accepted for accounting* 43 90 The cost of products was reduced... when reflecting profit from sales of finished products in the situation discussed earlier. ...there will be no profit. Manufacturer guarantees of finished products Often the organization provides (in accordance with.... * * * We examined the methodology for accounting for the return of finished products from the point of view of international standards... included in the cost and price of finished products, then instead of adjusting the listed indicators...

• Accounting for finished products sold under a commission agreement

  Sales, account 105 37 “Finished products - other movable property of the institution” is intended (p... -committent, transactions related to the sale of finished products under a commission agreement are reflected in... services" (clause 39, 150); write-off of finished goods products at planned cost when... from the sale of goods of own production (finished products) excluding VAT is recognized as income... Amount, rub. Finished products accepted for accounting 2 105 37 340 2 ...

General production costs should be included in the cost of finished products in proportion to a coefficient calculated as the ratio... of production capacity utilization: constant overhead costs will be written off to the cost of finished products... The enterprise forms an incomplete production cost of finished products. The cost of production includes variables... remain in work in progress, unsold finished products, the cost of which does not reduce the tax...

• Accounting methodology in ferrous and non-ferrous metallurgy

  Accounting and calculation of the cost of finished products in certain industries. ...accounting and calculating the cost of finished products in certain industries. ... solely for the sake of simplification and clarity, the finished products of the second (final) processing stage are assessed... content for homogeneous concentrates, which are finished products, prices are set at which... the released concentrate under the “Finished Products” account is taken into account on specialized cards.. .

• About how the tax authorities did not share expenses with the taxpayer

  Employees of the main departments that directly produce finished products. On the basis that... the value of the balances of work in progress, finished goods and shipped goods. Thus... Raw materials and materials, as well as finished products, are part of inventories... and packaging were carried out in the finished goods warehouse immediately before the products are shipped... natural gas, electricity) in the production of finished products. However, these arguments of the inspectors are not...

• Direct and indirect tax expenses

  Employees of the main departments that directly produce finished products. On the basis that... the value of the balances of work in progress, finished goods and shipped goods. Thus... Raw materials and supplies, as well as finished products are part of inventories... and packaging were carried out in the finished goods warehouse immediately before the products are shipped... electricity, gas, steam) to the cost of finished products, then perhaps the judgment was...

• The right to independently determine the composition of direct expenses must be used carefully

  Depreciation deductions associated with the sale of finished products, made in the reporting (tax) ... direct expenses attributable to the balance of finished products. The following was also noted. ... different quantities of finished products can be produced with different breakdowns by ... the quality of components is not included in the composition of the finished product (glass bottle), ... the technological process used by the company for the production of finished products using the heap leaching method is impossible ...

• Catering in an educational institution

  Sales - finished products are reflected in account 0 105 37 000 "Finished products - other... movable property of the institution." In this case, finished products are taken into account... the cost of finished products is determined at the end of the month. At the same time, the actual cost of finished products is... 37,000 * If finished products are sold for a fee. ** If finished products are spent on needs... the institution organizes accounting of food products, finished products and food charges. ...

• Tax accounting of operations for processing customer-supplied materials

  With the transfer of materials and return of finished products to the customer? Definition of "contract materials" ... with the transfer of materials and the return of finished products to the customer? Legal regulation Should... obligations; name and technical characteristics of the finished product. The parties must provide where... materials; name and quantity of finished products; name and quantity of residues... .). As a result of processing, finished products and returnable waste were obtained, which...

• Accounting for factoring companies attracting external financing

  To the buyer 90/Cost (sales) 43 (finished products) 428 571 429 Write-off of cost... 000 405 000 0 43 (finished products) 0 428 571 429 -428 ... to the buyer 90/Cost (sales) 43 (finished products) 428 571 429 Write-off of cost... to the buyer 90/Cost (sales) 43 (finished products) 428 571 429 Write-off of cost... 000 405 000 0 43 (finished goods) 0 428 571 429 -428 ...

• Accounting object “income” since 2019

  Ownership rights to a service, product, finished product, work. When performing work, providing...; sales of inventories, excluding merchandise, finished goods and biological products; sales of basic...benefits associated with ownership of goods, finished products, biological products; b) the subject of accounting... is actual control over goods, finished products, biological products; c) at...: 1. Income from the sale of goods, finished products, biological products are recognized in the accounting...

• Dairy by-products

  If the above claims concerned the finished products of the enterprise. In the same business... the process of converting raw materials into finished products, while changing their chemical... equipment for processing it into finished products, whey is a returnable waste. For... with increased costs (reduced yield of finished products); at the selling price, if sold...

• Tax accounting of government agencies in 1C since 2017.

  P. Operations to form the cost of finished products, performed work (services) are reflected... 0 109 61 000 “Cost of finished products, work, services.” By account... of work, services) for a specific type of finished product (work, services performed). Overhead costs... distributed (attributed to the cost of finished products sold (work performed, services)); not... H20 “Cost of finished products, works, services”; H25 “Overhead costs of production of finished products, works, services...

• FSBU "Reserves": main provisions

  Costs incurred by the institution for the manufacture of finished products, performance of work, provision of services... costs incurred by the institution for the manufacture of finished products, performance of work, provision of services... actual costs incurred for the manufacture of finished products, performance of work, provision... are distributed to actual cost of finished products sold, work performed, services provided, ... production of other non-financial assets, alienation of finished products, biological products); b) by...

• Accounting for income and expenses in a budgetary institution

  Accounting for operations to form the cost of finished products, work performed, services provided... costs directly attributable to the cost of finished products, work, services (subaccount 109 ... .60); overhead costs for the production of finished products, works, services (subaccount 109 ... policy, are distributed to the cost of finished products sold, works rendered, services - if ... the institution produces finished products, adjustments to the distribution and write-off of costs if the finished products were ... .

Any enterprise operating on a commercial basis produces some product for sale. These are various types of goods, spare parts and materials for them, or services and certain types of work. For this reason, competent accounting of finished products is necessary for the effective operation of the enterprise.

The concept of finished products and their accounting

Finished product (FG) is a completed product that has been released as a result of production.

It must meet the requirements of GOSTs or technical specifications, pass quality control, be assembled into a complete set and sent for storage to the warehouse of the enterprise or customer.

GPs are classified into several types:

• Gross- These are products produced by an enterprise over a certain period of time. Expressed in monetary terms and includes intermediate, completed and final products.
• Gross turnover- this is the totality of gross output for all workshops of the enterprise, including work of a production nature and the internal turnover of the organization for a certain period of time.
• Comparable Products- These are products that the company produced previously.
• Incomparable products- manufactured for the first time in the current reporting period

After production, finished products come under the control of the warehouse employee under financial responsibility. Receipts are recorded in quantitative terms, if necessary, divided into categories of goods. For accounting, a card or cardless method is used. GP warehouse balances are regularly checked.

Registration of finished products and primary documentation

For the final product, the following mandatory documents required when releasing goods from the warehouse must be prepared:

• declaration or certificate of conformity,
• hygienic certificate,
• quality certificate,
• packaging label and other papers corresponding to the product category, confirming its quality and completeness.

Without these documents, the company does not have the right to sell its goods.

All transactions carried out with the participation of a state enterprise are accompanied by primary documents. Each operation has its own established document form.

Receipt of finished products to the warehouse

This is carried out using the Invoice for the transfer of finished products to storage locations in the MX-18 form. It presents:

• from where and where the goods are transferred,
• correspondent account,
• basic information about the product,
• its characteristics.

The document is signed by the submitting and receiving persons, after which it is sent to the accountant.

This operation can also be carried out using the Acceptance and Delivery Note, which indicates data about the warehouse, workshop, quantity of goods being moved and information about it. At the same time, they use the Acceptance and Delivery Sheet and, simplifying warehouse accounting procedures.

Any movement of the GP within the warehouse premises is recorded in warehouse accounting cards () or the warehouse accounting book (form M-40). Cost indicators are reflected in accounting.

Shipment from the sales warehouse

Goods are regularly shipped from the warehouse, the registration of which is carried out using an invoice (), invoice for the release of materials to the outside () and an invoice order. All of these are types of waybills, which detail the categories of goods being shipped. The waybill must be supplemented by an invoice for payment (form No. 868) and an invoice, which can be separately sent to the counterparty’s accounting department within 5 days from the date of shipment.

Registration of the process of moving goods to the buyer is carried out with the help of a waybill for freight vehicles (form No. 4-P). These documents contain information about the cargo and the features of its transportation. To receive the goods, the buyer's representative must have a power of attorney to receive the goods.

Finished product accounting

From the point of view of PBU 5/01 “Accounting for inventories”, finished products are considered to be the organization’s inventories, the purpose of which is to be sold to make a profit. In the balance sheet, actual or planned cost is used to account for SOEs. The chosen method determines the further reflection of the goods on balance sheet accounts. WTP can be assessed using any of the following methods:

Actual cost

• Actual production cost. This is the totality of all expenses (including general expenses) for the production of a product. They are posted to account 20 “Main production”, which contains information about all production costs. Used for small production volumes.
• Incomplete production cost. This is a complex of all production expenses with the exception of general business expenses: salaries of management personnel, vacation and travel allowances, depreciation, etc. Thanks to such an assessment, “net” production costs are determined, which allows for effective planning of activities with the limited resources available.

At discounted prices

• Planned production cost. The method is applicable for large production volumes. The essence of the method is to determine the difference between the actual and accounting costs, which then must be written off. Postings are made to account 40 “Release of products (works, services)” or to account 43 “Finished products”.
• Valuation at wholesale, negotiated prices. Applicable when selling prices are stable. But at the same time, it does not characterize the cost of GP. The method is based on the difference in types of costs, which are most often negative.
• Estimated at retail prices. The principle of operation of the method is similar to those described above in this category. Actively used today.

IMPORTANT! When determining the accounting prices of an item, it is important to adhere to a certain ratio of actual and accounting costs. In other words, products that have the same actual cost must have the same book price.

Accounting for finished products in transactions

For synthetic accounting of inventories in accounting, account 40 “Output of products (works, services)” or account 43 “Finished products” is used.

Count 40 is active-passive. It is used to collect general information about the products, works and services produced during the reporting period. The debit includes the actual cost of the product, and the credit the planned cost.

Capitalization of GP at accounting prices is carried out by the following posting:

• Dt 43 Kt 40

The actual cost of GP is taken into account as follows:

• Dt 40 Kt 20

At the end of the reporting period, a deviation () is identified for account 40, which must be written off. If there is an overexpenditure (debit balance), this is reflected by posting:

• Dt 90-2 Kt 40

Otherwise (if savings are made), the deviation is written off by reversal as follows:

• Dt 90-2 Kt 40

Account 40 is closed and, as a result, has no balance.

Write-off of the standard cost of sold GP is carried out:

• Dt 90-2 Kt 43

Released products can be taken into account immediately account 43"Finished products." Count 40 will not be needed in this case.

• Dt 43 Kt 20

This posting is accounted for by the GP at accounting prices. At the end of the month, a deviation between actual and accounting costs will be identified. If there is an overspend, then make another entry, writing off the deviation to the debit account: Dt 43 Kt 20. Otherwise, it is done.

The cost of products sold is written off by posting:

• Dt 90-2 Kt 43

Overexpenditure is written off in a similar way. If the accounting cost exceeds the actual cost, a reversal entry is made:

• Dt 90-2 Kt 43

Finished products are reflected in the balance sheet within assets collectively referred to as “Inventories”. The article will discuss the balances of which accounts accumulating the cost of finished products fall into this balance sheet asset.

Reliability of information on finished products

According to one of the accounting principles, financial statements, including the balance sheet, must contain only reliable information. This means that balances on all accounts, including balances on finished goods (GP) accounts, must reflect the real state of affairs in the company.

In this sense, the accountant faces a difficult task. He needs to collect information about all production processes: the movement of inventories and valuables, their consumption, depreciation of fixed assets and intangible assets, wages and insurance premiums, as well as all other expenses that take part in the formation of the cost of the enterprise in order to establish the real value of the asset "Ready products". After all, finished products are the result of the entire production activity.

After writing off the sold GP at cost, a balance is formed in total terms by the end of the final period. It will be included in line 1210 of the balance sheet.

The balance sheet itself must be prepared by all legal entities at the end of the year. But company owners often require provision of intermediate information about the economic situation of the enterprise and assessment of financial potential in close to real time. Approximate, since it takes accountants time to draw up any balance sheet, even an intermediate one.

Evaluation of finished products

For an objective assessment of inventories, including GP, there is PBU 5/01 - in fact, a working tool for accounting services.

It spells out the principles for the formation of the cost of SOEs. The chosen method of its reflection must be the same for each item. It must remain unchanged for at least 1 reporting period and record as fully as possible the final cost of the finished product being created.

When assessing a state enterprise, it is necessary to be guided not only by PBU 5/01, but also by the provisions of the accounting policy in force at the enterprise.

The cost of the GP consists of the actual production costs and includes both direct production costs and indirect ones.

The accounting policy must provide for the procedure for distributing general production expenses to the balances of state enterprises and the procedure for writing off general business expenses.

Disposal of state enterprises is carried out on the basis of the option established in the accounting policy for its write-off at cost:

• inventory units;
• on average;
• according to FIFO.

As a result, at the end of the reporting period, objective information about finished products will be collected from the accounting accounts.

In what accounts are finished products recorded?

The costs that form the actual cost of the GP are collected on account 43 “Finished products”. In this case, after all the costs for its production have been generated, the following posting is made:

• Dt 43 Kt 20 - reflected at cost, capitalized to the GP warehouse.

This posting is carried out as finished products are manufactured and received into the warehouse.

Disposal of GP upon sale will be reflected as follows:

• Dt 90 Kt 43 - the cost of finished products sold is reflected in expenses.

This write-off is made at the end of each month.

The debit balance at the end of the year will be included in inventories on line 1210 of the balance sheet.

Thus, the indicator for assessing the balances of the state enterprise as of the reporting date must be real, reliably reflecting the state of the company’s property for the “Finished Products” asset.

Some features of accounting for finished products

Above, the general principles of the formation of the cost of production enterprises based on actual expenses and their reflection in account 43 during a normal production cycle were clearly demonstrated.

But deviations from the norm do occur. It is impossible to foresee and analyze all cases within the framework of one article. We will describe only the most common situations.

If manufactured products are planned to be used for the needs of the enterprise and this is known, then it is advisable to capitalize them not on account 43, but on materials account 10.

Then the wiring will be done:

• Dt 10 Kt 20 - according to the generated actual cost of such product-material.

The release of these materials will occur according to the accounting option for their evaluation.

Depending on what specific needs the capitalized materials will be used for, they can be written off to accounts 20 or 25, 26.

Accounting for deviations in cost

If the enterprise accounts for GP at standard cost, then the difference between the actual and planned cost of production is taken into account in the finished product release account - 40.

At the end of the month, the balance of account 40 is written off to account 90 “Sales”. Thus, account 40 will not have any balances on any reporting date, and finished products will appear in line 1210 of the balance sheet at the real value of their balances on the reporting day.

If the cost is reflected in accounting in accordance with the adopted accounting policy in accounting prices, then the deviation from them is recorded in a separate sub-account directly to the 43rd account “Deviations of the actual cost from the accounting value of the state enterprise.”

In line 1210 of the balance sheet as of the date of drawing up the report, the balances of finished products fall either at book value or at actual costs - depending on the adopted accounting policy.

Additionally, we will say that for serial production it is advisable to use the accounting method at standard cost, while for production with the production of products in limited quantities it makes sense to keep accounting at actual costs, without establishing accounting units or standard cost indicators.

It is also allowed to reflect cost on account 43 only in the context of direct costs incurred.

Another nuance of reflecting the finished product

When exporting or transferring for sale under GP commission agreements, the time of sale does not coincide with the time of shipment of the goods. Therefore, it must be recorded for these transactions on account 45 “Goods shipped”.

As a result of the shipment, the following posting occurs:

• Dt 45 Kt 43 - at the actual cost of the shipped GP.

At the time of recognition of sales revenue, the following entry must be made:

• Dt 90 Kt 45 - for the amount of the actual cost of the sold GP.

Balances on account 45 are also reflected in line 1210 of the balance sheet, thereby forming an idea of ​​the location of the finished product.

***

Whatever method of assessing finished products is adopted in the accounting policy, its balances as part of accounts 43 and 45 are recorded in the assets of the balance sheet as of the reporting date and are included in the amount of the enterprise’s inventories, for the reflection of which line 1210 of these statements is allocated.

Serves to provide the founders, as well as government agencies, with complete information about the financial position of the enterprise for consideration. At the same time, it reflects not only property holdings, but also the raw materials that the enterprise has at its disposal, goods, etc. Accountants face the question of reflecting finished products in the balance sheet of a given business entity, and this issue is worth considering in more detail.

Legal entities need to submit reports in the form of a balance sheet only once a year. It shows the financial situation of a given enterprise at the end of the year. Very often, those who manage an enterprise are faced with the need to find out what the economic situation of a given enterprise is, long before the end of the reporting year. Therefore, accountants have to draw up interim balance sheets in order to reflect the state of affairs at a specific period of time.

D-t90 K-t43 is displayed. In this case, the actual cost of production is reflected as expenses. This write-off is carried out at the end of the month, in contrast to the first, which is carried out as the products are recorded in the warehouse.

At the end of the reporting period and the balance sheet is drawn up, the debit balance will be reflected on line 1210. That is why it is worth using only real indicators for accounting.

So, the reflection of finished products in the balance sheet is mandatory and has a direct impact on the completeness of the economic picture of the enterprise reflected in the document. All processes that accompany the production process of this type of product incur certain costs for the enterprise, which are necessarily included in the cost of finished products or are classified as other items depending on the accounting policy chosen by the enterprise.