Subcontracting scheme - what is it? Subcontracting operations accounting. Subcontracting: Accounting
Such an organization of the production process imposes its own characteristics on the order of reflection of the tolling scheme in accounting. The customer does not reflect the sale of raw materials (since he does not transfer ownership rights to them), but write them off to production, then show the costs of the contractor’s work in accounting and form the cost of the manufactured products from these terms. Moreover, both the products themselves and all other processing results (for example, waste) are also the property of the customer (Article 220 of the Civil Code of the Russian Federation). Therefore, the cost of materials is not deducted from the balance sheet of the customer organization, but is accounted for on account 10, subaccount "Materials transferred for processing to the side" (paragraph 157 of the Methodological Instructions).
The transfer of materials for processing to the contractor can be issued by waybill in the form No. M-15. The documents must contain an indication that the materials were transferred for processing on tolling terms.
After processing, the contractor is obliged to transfer the result to the customer (Clause 1, Article 703 of the Civil Code of the Russian Federation). At the same time, the remains of unused materials are transferred to him (Clause 1, Article 713 of the Civil Code of the Russian Federation) and the following documents:
- invoice for the transfer of finished products to the customer in the form of No. МХ-18 and (or) a report on products made from the customer’s raw materials;
- a report on the processed raw materials, which should contain data on the consumed materials (Clause 1, Article 713 of the Civil Code of the Russian Federation);
- invoice for the return of materials not used in production;
- an act of acceptance and transfer of work for the cost of processing works (Article 720 of the Civil Code of the Russian Federation);
- invoice for the cost of processing operations.
Consider an example in which the processing organization receives subcontracting materials from the customer organization for the manufacture of finished products. The processor makes the finished product, transfers it to the customer, and also returns unused materials.
Example
The organization CJSC Sewing Factory received an order for the manufacture of finished products - a women's suit (30 pcs.) From raw materials supplied by the customer. OOO "Customer" transferred materials for the manufacture of products - fabric (100 m) at a price of 200 rubles. per meter. The products are manufactured in accordance with the specification for write-off of materials "Specification No. 1 (production)" approved by Sewing Factory CJSC. As a result of the production, there was an excess fabric in the amount of 10 m, which was returned to the organization “Customer” LLC. The cost of sewing one unit of the product is 354.00 rubles. (including VAT 18% - 54.00 rubles). The cost of finished product processing services is determined by the planned cost, which is 100 rubles. per unit of service provided.
The following business operations are carried out:
- (registration of an invoice for the receipt of materials).
- (execution of a requirement-invoice for the release of materials in the form of No. M-11).
- (execution of an invoice for the receipt of finished products in the form of No. MX-18).
- Reflection of material processing services (execution of the act of rendered services and invoice, report on products made from customer’s raw materials, report on processed raw materials).
- (registration of an invoice for the return of materials).
№ | Operation | Dt | Ct | Amount | Document 1C | Entry Based |
---|---|---|---|---|---|---|
1 | Receipt of goods | 003.01 | --- | 20 000,00 | Receipt of goods and services | --- |
2 | Subcontracting to production | 003.02 | 003.01 | 18 000,00 | Requirement invoice | --- |
3.1 | Release of finished products from customer materials | 20.02 | 20.01 | 3 000,00 | Shift Production Report | --- |
3.2 | Transfer of finished products to the customer | --- | --- | --- | Transfer of goods | --- |
4.1 | Write-off of materials | --- | 003.02 | 18 000,00 | Implementation of processing services | Requirement invoice |
4.2 | 62.01 | 90.01.1 | 10 620,00 | |||
4.3 | Accrued VAT on the sale of services | 90.03 | 68.02 | 1 620,00 | ||
4.4 | Charged to cost (excluding the cost of tolling materials) | 90.02.1 | 20.02 | 3 000,00 | ||
4.5 | Processing invoice for processing services | --- | --- | 10 620,00 | Invoice issued | Implementation of processing services |
5 | Return Unused Materials | --- | 003.01 | 2 000,00 | Return of goods to the supplier | Receipt of goods and services |
Receipt of goods
To perform operation 1 "Receipt of materials to be supplied" (see the table of the example), you must create the document "Receipt of goods and services". As a result of this document, appropriate postings will be generated.
Creation of the document "Receipt of goods and services" (Fig. 1):
Filling in the heading of the document "Receipt of goods and services" (Fig. 2):
- In field Warehouseselect the warehouse for the subcontracting materials.
- In field Counterparty
- In field Contract Attention! The contract selection window displays only those contracts that have the form of a contract With buyer (fig. 3).
Filling in the tabular part of the document "Receipt of goods and services" (Fig. 4):
On the “Materials” tab, data is entered: name, quantity, price, and also the material account is indicated, according to which entries will be made as a result of the document.
Filling in the tab "Accounts of settlements" of the document "Receipt of goods and services":
On the tab "Settlement accounts", enter the settlement account with the customer for the received materials (filled automatically).
Filling in the tab "Advanced" of the document "Receipt of goods and services" (Fig. 5):
On the "Advanced" tab, the details of the document from the customer are entered, according to which the materials were received:
- in field Vh. number enter the number of the receipt document;
- in field Vh. date enter the date of the receipt document.
In addition, if necessary, you can fill in the fields Shipper and Consignee.
The result of the document "Receipt of goods and services" (Fig. 6):
Spend .
Subcontracting to production
To perform step 2 "Transfer of tolling materials into production" (see the table of the example), you must create the document "Demand-waybill". As a result of this document, appropriate postings will be generated.
Creation of the document “Requirement-waybill” (Fig. 7):
Filling in the header of the document "Requirement-waybill" (Fig. 8):
- In field Warehouse Select a warehouse from which materials will be transferred to production.
- Check box Cost accounts on the Materials tab it is not required to install, as tolling materials are released into production.
Filling in the bookmark "Customer Materials" of the document "Requirement-invoice" (Fig. 9):
On the “Customer Materials” tab, data on the materials to be debited are entered: name, quantity, and also the accounting accounts are indicated from which they are transferred and to which they are transferred:
The result of the document "Requirement-waybill" (Fig. 10):
To hold the document, click Spend , to view transactions, click Document Result .
Release of finished products from customer materials
To perform operation 3.1 "Release of finished products from customer materials" (see the table of an example), it is necessary to create a document "Production report for a shift". As a result of this document, appropriate postings will be generated.
Creation of the document "Production Report for a shift" (Fig. 11):
Filling in the header of the document “Production Report for a shift” (Fig. 12):
- In field Warehouse Select a warehouse where finished products will be recorded.
- Check box Write off materials It is established if, at the same time as the release of finished products in the document “Production report for a shift”, materials are written off. In our example, during the release of products, the cancellation of materials was performed earlier by the document “Demand-waybill” (see operation 2 “Transfer of tolling materials to production”). If the checkbox is selected, an additional tab “Materials” will appear, on which you can reflect the write-off of materials for production costs. When the document “Production Report for a shift” is posted, the relevant entries will be generated to write off the materials from the credit of account 10 “Materials”. In our example, materials are not written off with this document, so you must uncheck Write off materials.
- In field Cost account Select an account that reflects processing costs.
- In field Cost subdivision Select the unit in which the processing took place.
Filling in the tab “Products” of the document “Production Report for a shift” (Fig. 13):
On the tab “Products” enter data on products manufactured from processing: the name, quantity, price and amount at the planned cost, the account on which the products will be listed at the planned cost, as well as the item group.
The result of the document "Production Report for a shift" (Fig. 14):
To view transactions, click Document Result .
To perform operation 3.2 "Transfer of finished products to the customer" (see the table of the example), you must create the document "Transfer of goods". This posting document does not generate.
Creation of the document "Transfer of goods" (Fig. 15):
Filling out the document "Transfer of goods" (Fig. 16):
Reflection of material processing services
To perform operations 4.1 “Write-off of subcontracting materials”, 4.2 “Sales of processing services”, 4.3 “VAT charged on the sale of services” and 4.4 “Charged costs (excluding the cost of subcontracting materials)" (see the table of the example), you must create the document "Sales processing services "based on the document" Requirement-Invoice ", which were written off the materials. As a result of the document "Implementation of processing services", the corresponding transactions will be generated.
Creation of the document "Implementation of processing services":
Filling in the heading of the document "Implementation of processing services" (Fig. 17):
- In field Counterparty select a customer from the "Contractors" directory.
- In field Contract Select a contract with the customer.
Filling in the tab "Customer Materials" of the document "Implementation of processing services" (Fig. 17):
On the tab "Customer's Materials" enter data on the materials to be debited: name, quantity, and also indicate the account of the account from which they are transferred. The bookmark is filled in automatically; you need to check the correctness of filling in the fields.
- in field Accounting account You must select an account for the subcontracted materials transferred to production.
Filling in the tab "Products (processing services)" of the document "Implementation of processing services" (Fig. 18):
To perform operation 4.5 “Issuing an invoice for processing services” (see the table of the example), you must create the document “Invoice issued” based on the document “Implementation of processing services”. As a result of the document "Invoice issued", postings are not generated.
Creation of the document "Invoice issued" (Fig. 19):
For the adjustment invoices issued in case of a change in the price of goods, read the articles “Correction invoice issued (increase in the price of goods, current period)” and “Correction invoice issued (decrease in the price of goods, current period)”.
The result of the document "Implementation of processing services" (Fig. 20):
To hold the document, click Spend , to view transactions, click Document Result .
When the document “Implementation of processing services” was carried out on a loan 90.01.1 “Revenue from sales not subject to UTII”, revenue for rendered services for processing finished products in the amount of 10 620.00 rubles is reflected. The debit 90.02.1 "Cost of sales not subject to UTII" reflects the planned cost of rendered processing services.
Attention! The materials received for processing are written off from the credit of account 003.02 “Materials transferred to production” using the average cost method. This method is fixed in the accounting policy in the section Assessment of the cost of inventories upon disposal in special cases (Fig. 21) and is not accessible to the user for change.
Setting the accounting policy for writing off materials is carried out from the menu: Enterprise - Accounting policies - Accounting policies of organizations -bookmark Stocks (fig. 21).
Return Unused Materials
To perform step 5 “Return of unused materials” (see the table of the example), you must create the document “Return of goods to the supplier”. As a result of this document, appropriate postings will be generated.
To check the balances of unspent material (tolling) in the warehouse transferred by the customer for the manufacture of finished products, you can use the report Turnover balance sheet by count 003.01 "Materials in stock", having formed it for the required period.
To do this, do the following (Fig. 22):
- Call from the menu: Reports - Balance Sheet.
- In the fields The period from ... to ... select the period for which the report is generated.
- In field Score select account 003.01 .
- Press button Customizationto create an accounting register (Fig. 22).
- In the "Settings Panel" window, call "Settings Panel Settings" and check the boxes: Indicators,Grouping, Additional data, Selection, Decor. In the "Appearance" section, check the boxes in the fields: Display title, Display captions and Display unit. In order for the position and decryption of the signature of the responsible person to be reflected in the accounting registers (for example, in the balance sheet), you need to configure the information register "Organization responsible persons" (menu Company - Responsible persons of organizations (Fig. 23)).
- Click the "Generate Report" button.
Creating a Return Merchandise to Vendor document:
The document "Return of goods to the supplier" is entered on the basis of the document "Receipt of goods and services", which received the materials.
Filling in the tab “Materials” of the document “Return of goods to the supplier” (Fig. 24):
On the “Materials” tab, data on the returned materials are entered: name, quantity, price, total amount, and also the accounting account from which they are transferred is indicated. The bookmark is filled in automatically; it is necessary to check the correctness of filling in the fields and edit them.
The result of the document "Return of goods to the supplier" (Fig. 25):
To hold the document, click Spend , to view transactions, click Document Result .
To control the movement of inventory held in stock, you can use the report Turnover balance sheet by count 003.01 "Materials in stock", having formed it for the necessary period (Fig. 26).
In this article, we will consider step-by-step instructions for accounting in 1C 8.3 (8.2) tolling raw materials to our processor (third-party organization) for. In addition, we briefly touch upon the issue of returning unused material (raw materials).
For convenience, make articles at this stage so that you can further consider operations on the topic. I already have materials in the database on the leftovers with which I will work.
In the program you can often find moments when raw materials are called materials and materials are called raw materials. For convenience, I will use the term “materials” in this article. And we will mean that.
To create the document "" in 1C, you need to find the section "Transfer to Processing" through the menu item "Production" and select the appropriate subsection.
In the window with the list of documents, click the "Create" button. The window for creating the document “Transfer of goods (materials) to processing” opens.
Let's start filling out the document. First, fill the upper part (cap). We indicate the organization, warehouse and counterparty with the contract. This data is enough to understand from whom and to whom the materials are transmitted.
In the tabular section, use the “Selection” button and select the materials for transmission. Here is an example of a completed document:
As you can see, one of the products is accounted for in my account 41.01. In this case, it does not matter to us. It’s more important which accounts our materials will get to. The tabular part indicates that they must be credited to the account 10.07 “Materials in processing”. Now we will see this. Click the “Post” button, then the button. A window opens with the postings (if they are formed at all, it happens):
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Yes that's right. Materials were transferred to the account on 10.07. Now it remains to physically ship the materials and wait for the contractor to make finished products out of them.
Reception from processing
We issue in 1C 8.3 a document for the return of materials from processing. This document is similar, at first glance, to the document of receipt of goods, but it performs several more functions:
- firstly, we must write off the materials from which the contractor made us products;
- secondly, we may incur additional costs associated with, for example, the delivery of materials. These costs should affect the cost of finished products;
- thirdly, there may be remnants of materials that the contractor returns to us, and we must capitalize them;
- well, in the end, as a result of all these operations, we should have finished products in stock.
We proceed to the paperwork. Similarly to the first, we will fill the organization, warehouse and counterparty with the contract.
The tabular part in this document is more diverse, therefore we will consider it in more detail, by bookmarks. I will give you an example of an already completed document, and then we will carefully consider it:
First Tab: Products. Here we choose the product that ultimately came to us.
Let me remind you that finished products are accounted for in our 43 accounts. Another feature on this tab is the “Planned Amount” column. Since at this stage we often cannot accurately indicate the cost of production, we here indicate it manually as planned. In this document, we can accurately calculate only direct material costs - these are the materials that make up our product. Plus, some services, again, related to the direct production of this batch.
Finally, we can calculate the cost only at the end of the month, taking into account the rental of equipment (for example, the car that transported the materials), the monthly salary of workers, electricity, heating, and so on.
We indicate in each line with the finished product its specification. Thanks to this, we don’t have to fill in the “Used Materials” tab manually.
We will not consider the “Services” tab, on it everything is the same as in the document ““, unless, again, you need to specify a cost account.
So, to the expense account, we moved smoothly. Let's go to the tab “Cost account”. It was then that he buried himself. I got it by default on January 20. Who has a blank field, select the one you need. Fill in the details “Cost division” and “And item group”. This is necessary for analytical accounting.
Tab “Used materials”. Here we click the "Fill" button and select "According to the specification." Hooray, everything filled up correctly for me:
Oddly enough, on this tab. We pass to the "Returned Materials".
Return of unused goods
The Civil Code of the Russian Federation does not provide for a special chapter regulating the relations of the parties when carrying out tolling operations. The main conditions for these relations are spelled out in the provisions of Article 220 of the Civil Code of the Russian Federation:
- New products produced by processing materials that do not belong to the enterprise acquire the ownership right of the owner of this raw material (unless other conditions for the transfer of property rights are specified in the contract).
- If the owner is granted ownership of the manufactured products from the customer’s inventories, he is obliged to reimburse the cost of the services rendered to the customer.
Transfer of raw materials to the company to the contractor
According to the Accounting Regulation "Accounting policies of the enterprise" the organization has the right to reflect in the balance sheet only those production resources that belong to it under the law or are in its operational management.
When transferring to overproduction, ownership is retained by the customer. Therefore, the organization does not have the right to reflect the amount of such production assets in its balance sheet. From all this it follows that the contractor does not conduct production activities, but only performs certain services for a monetary reward.
Material and production assets from the client to the contractor are transferred on the basis of the primary document: invoice for the release of materials to the party according to f. M-15. In the consignment note, it is necessary to fill in the column “Ground”, in which the mark “On tolling terms according to the agreement of ... No. ...” is made. This primary document serves as the basis for the acceptance of tolling stocks in accounting.
Accounting of raw materials received for processing
To account for funds that were transferred to production on a toll basis, an off-balance account 003 is reserved. It is called “Materials accepted for processing”. It is necessary to summarize information about the movement, availability of materials (raw materials) of the client, which are accepted for alteration and not paid by the implementing organization.
Costs of remodeling, as well as the completion of funds are recorded on accounts reflecting information on production costs. It also reflects only their manufacture minus the amount of customer’s production assets.
Account 003 has two sub-accounts: 003.1 - Subcontracting stocks in the warehouse and 003.2 - Subcontracting stocks in processing.
Information on inventories transferred for processing is maintained both in quantitative and in monetary terms for each customer at the prices indicated in the documents for the transfer of inventories.
Processing operations with the contractor on the off-balance account 003 are carried out without double recording until the transfer of inventories to the customer of the conversion products.
Reform products are recorded on an off-balance sheet account. 002 “Goods and materials accepted for safekeeping”. Information on the amount of finished products on it consists of the actual costs of production for the alteration and the cost of tolling resources. It also includes information on waste returned to the contractor under the terms of the contract (in a conditional assessment).
The expenses of an institution engaged in the use of tolling resources for ordinary types of activities for manufacturing products are recognized as the amount of the processor’s own auxiliary production resources, wages with all tax accruals on it, which are recorded on the debit of costly production accounts.
All expenses incurred by the manufacturing enterprise are directly deducted from expense accounts to debit account. 90.2 "Cost of sales."
The incoming revenue from completed tasks (services rendered) for the alteration of the customer’s material resources from the contractor is reflected without the sum of such resources. This revenue is recognized as part of the income in the period when the Act of acceptance of work performed was signed by the parties.
Subcontracted business transactions
Account Correspondence | Operation Name | |
Debit | Credit | |
003 | — | The customer’s inventory went to the performer |
20 | 02, 10, 26, 25, 23, 60, 76, 70 | Reflection in accounting for the costs of processing resources at the enterprise of the contractor |
90.2 | 20 | Reflected the cost of services (works) |
62 | 90.1 | Reflection of proceeds from completed rework tasks |
90.3 | 68 | Accrued VAT on finished products |
90.9 | 99 | Reflection of financial result |
51 | 62 | Accounts receivable repaid by customer |
— | 003 | Written off tolling resources according to the concluded agreement |
Processor waste accounting
During the production process, the executing agency may have waste. The contract for the provision of services (performance of work) prescribes waste accounting options. In this case, two options are possible: either the waste remains with the processor, or it is returned to the enterprise to the customer.
If the waste remains with the contractor, then it is recorded on the loan account. 003 "Materials transferred to processing" and debit n. 10 “Materials” for the entire amount of the cost of raw materials that were transferred for reform.
Business operations for the reflection of waste remaining at the processor
Accounting of settlements between the contractor and the processor
Options for mutual settlements between the customer and the contractor are prescribed in the contract. To date, there are three options:
- in cash;
- finished products;
- raw materials.
Accounting for cash settlements
This option of settlements is the simplest. According to this common scheme, the contractor provides services for the production of finished products from commissioned goods, and the contracting authority pays for this type of service.
Postings to reflect these transactions in the accounting above.
Accounting for settlements of finished products
A contract of this type will be mixed: a contract (for services provided) and a contract of sale (for payment for work). Depending on how the finished product will be used in the future, the contractor can put it on the balance in two ways:
- If in the future the products will be used as material, then its cost is reflected in 10 cc. “Materials”;
- In the case of its intended further sale, the finished product is reflected in the account. 41 "Products".
Accounting for settlements by raw materials
The cost of the shipped resources, which are accepted as payment for the task, is disclosed on the account. 45 "Goods shipped." This value may be reflected in the balance sheet of the processor due to the fact that the ownership right to it is fully transferred to it upon completion of completed tasks.
After fulfilling all the conditions of the contract, payment by raw materials is reflected in the account. 91 “Other income and expenses”. Until the onset of ownership, the cost of resources is reflected in the off-balance sheet account. 002 “Goods and materials accepted for safekeeping”.
Processor tax accounting
The executing company maintains tax accounting similar to the execution of work.
Processor direct costs:
- Remuneration of staff involved in the process of remodeling;
- Depreciation of fixed assets that are used in the production process;
- The amount of the unified social tax on wages of employees.
Received raw materials for processing is not an acquisition. Therefore, its value cannot be reflected in the offset of VAT. The tax base for determining the amount of tax after the sale of products is the cost of processing the resources received for reform, excluding VAT.
For materials processing services - 18%, regardless of the tax rate calculated on inventories.
It is possible to keep records of the processing of tolling raw materials both on the side of the processor and on the side of the customer. All necessary documents can be selected on the Production tab.
The tolling scheme for the processing of materials in 1C 8.3 represents a rather long chain of actions that must be clearly observed. Let's try to systematize these actions and compile tables of the necessary documents.
Raw materials in 1C 8.3 at the processor
A document for the implementation of services solves several problems at once. The structure of the document and postings are shown in the figures below. The calculation of the cost of services for the processing of tolling is no different from.
Important! When posting tolling raw materials, you should choose an agreement with the form “With a Buyer”.
When filling out the document “Implementation of processing services”, in the “Price” field, the price of services set by the processor must be indicated, and in the “Price planned” field, the planned cost of the service.
An example of filling out a document 1C 8.3 “Implementation of processing services”:
Processor tolling postings example:
Accounting for tolling in 1C at the customer
2.1- write-off of materials;
2.3 - return of residual materials;
2.4 - accounting of processing services;
2.5 - VAT accounting;
2.6 - invoice;
Dt 20.01 | Kt.07.07 |
Dt 43 | Kt20.01 |
Dt 10.01 | Kt.07.07 |
Dt 20.01 | Kt60.01 |
Dt 19.04 | Kt60.01 |
Dt 68.02 | Kt.19.04 |
It should be noted that in 1C 8.3 when transferring tolling materials for processing, materials are written off at an average cost. The type of contract must be selected " With supplier».
The document “Receipt from processing” has the following structure:
- Products (products from tolling)
- Services (processing services provided to us by the processor)
- Used materials (tolling materials used in the production)
- Returned materials (remnants of tolling materials, if any)
- Returnable Container
- Cost account
Many companies transfer their raw materials for processing to other organizations to optimize the production process. The accounting and tax accounting of these operations has its own specifics - both for the enterprise that transfers the raw materials and for the processor.
Recycling agreement
Civil law defines the production of goods from tolling as the production by a person of a new movable item by processing materials not belonging to that person (Article 220 of the Civil Code of the Russian Federation).
The parties to the tolling operations are the owner of the raw materials (materials) transferred to the processing - the contractor and the processor. At the same time, transferring raw materials for processing, the dealer has remained its owner. Moreover, he acquires ownership of the finished product.
The Civil Code of the Russian Federation does not separately single out a contract for the processing of tolling raw materials and does not determine whether processing refers to work or services.
According to the author, the contract for the processing of tolling raw materials should be classified as a contract, the relations under which are regulated by Ch. 37 of the Civil Code of the Russian Federation. According to the contract, the contractor undertakes to perform certain work on the instructions of the customer and deliver its result to the customer, and the customer undertakes to accept the result of the work and pay for it.
Consider the features of accounting and tax accounting of these operations at the customer and processor.
Accounting with a contractor
Raw materials remain on balance
Note! Since the ownership of raw materials does not pass to the processor, they are not subject to debit from the balance of the contractor, but are accounted for on account 10, subaccount 7 "Materials transferred for processing to the side."
So, based on the recommendations of the Instructions on the application of the Chart of Accounts for the accounting of financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated 10.31.2000 N 94н, the contractor will perform all operations, from the transfer of raw materials to the return receipt, on the synthetic material accounting account reserves, opening separate sub-accounts for it - 10/1 "Raw materials and materials" and 10/7 "Materials transferred to processing". When transferring materials for processing, the organization writes them off from one subaccount to another (Debit 10/7 - Credit 10/1), and upon receipt of the subaccount they usually change places (Debit 10/1 - Credit 10/7).
This norm is also contained in paragraph 157 of the Methodological Instructions for recording inventories approved by Order of the Ministry of Finance of Russia dated December 28, 2001 N 119н (hereinafter - the Methodical Instructions), according to which the organization that transferred its materials to another organization for processing (processing, execution of work production of goods) as tolling, the cost of such materials is not written off from the balance sheet, but continues to be taken into account in the account for the accounting of relevant materials (in a separate sub-account).
Cost of finished products
The donor organization during the transfer of materials must draw up an invoice for the transfer of materials to the party, the unified form of which is N M-15 approved by Resolution of the Goskomstat of Russia of 10.30.1997 N 71a. It must be indicated in it that the materials are transferred for processing on tolling terms.
After processing the raw materials (materials), the donor organization should receive from the processor a report on the consumed materials, which indicates the amount of consumed raw materials, manufactured products, as well as waste, and the act of acceptance of the work performed, indicating the list and cost of the work performed. Since the ownership of the manufactured products belongs to the contractor, on the basis of the processor’s report it reflects the receipt of finished products on account 43. Receipt of finished products is drawn up on the invoice (form N МХ-18).
Thus, the cost of finished products from the contractor is formed at the expense of the cost of raw materials and, accordingly, the cost of processing.
The cost may also include transportation, travel expenses, payment of intermediary services, the share of general production and general business expenses attributable to the manufactured products. This procedure for the formation of cost must be reflected in the accounting policies of the organization.
Example. LLC Fortuna transfers for processing spare parts for collecting car alarms at the Research Institute 3000 Research Institute. The cost of the transferred materials is 320,000 rubles, and the cost of the assembly of alarms is 120,000 rubles. Moreover, according to the report of the processing organization, part of the material in the amount of 20,000 rubles. was not used during assembly.
In the accounting of LLC Fortuna, you must make the following entries:
Debit 10/7 - Credit 10/1
- 320 000 rub. - reflected the transfer of raw materials for processing;
Debit 20 - Credit 10/7
- 300,000 rubles. - reflected the cancellation of materials for the manufacture of car alarms;
Debit 10/1 - Credit 10/7
- 20 000 rub. - reflected the return of unused raw materials (materials);
Debit 20 - Credit 60
- 120 000 rub. - reflected the cost of processing raw materials;
Debit 19 - Credit 60
- 21,600 rubles. - Reflected VAT on the cost of processing raw materials (assembly of alarms);
Debit 68 - Credit 19
- 21,600 rubles. - accepted for deduction of VAT;
Debit 43 - Credit 20
- 300,000 rubles. - finished products accepted for accounting.
Since the transfer of ownership of the tolling raw materials does not occur, there is no object of VAT and income tax.
Waste management
Another point worth paying attention to is waste accounting. If the waste remains with the recycling organization, then the accounting and tax accounting of the subcontractor should reflect gratuitous transfer operations, which, according to paragraphs. 1 p. 1 Article 146 of the Tax Code of the Russian Federation is equivalent to sales, and therefore, it is necessary to charge VAT.
If the waste is transferred to the contractor, then the cost of the treatment is adjusted accordingly.
It is necessary to consider the following. The procedure for accounting returnable waste for accounting purposes is regulated by the Methodological Instructions. Based on paragraph 111 of the Guidelines, recyclable waste is recorded at the price of possible use or sale. The cost of recorded waste is included in the decrease in the cost of materials released into production.
Thus, for accounting purposes, the actual costs of the manufacture of semi-finished products include the cost of raw materials (minus the cost of returnable waste) and the cost of processing it.
Example. The organization transfers 100 kg of raw materials to a third-party processing company for the manufacture of semi-finished products. The cost of 1 kg of raw materials is 2000 rubles. The cost of processing raw materials is 118,000 rubles, including VAT of 18,000 rubles. In the period established by the contract, the processing organization transferred the manufactured semi-finished products, as well as returnable waste. The possible sale price of returnable waste is 20,000 rubles.
In the accounting organization you must make the following entries:
Debit 10/7 - Credit 10/1
- 200 000 rub. (2000 rub. X 100 kg) - reflected the transfer of raw materials for processing;
Debit 10/6 - Credit 10/7
- 20 000 rub. - recyclable waste is accepted for accounting at the price of possible sale;
Debit 20/1 - Credit 10/7
- 180 000 rub. (200 000 rub. - 20 000 rub.) - the cost of raw materials minus returnable waste is written off.
Refining of materials and manufacturing of finished products
Depending on the nature of processing, several options for accounting for operations on the transfer of raw materials and obtaining the results of the work performed are distinguished. The main types of processing are the completion of materials and the manufacture of finished products.
The refinement consists in the fact that the customer (dealer) transfers the raw materials (materials) to the processor in order to refine them, bring them to a state in which they can be used in further production. That is, the processor does not produce finished products, he returns the finished materials to the contractor, and the contractor directly uses them to produce his products.
In this case, the materials after refinement are taken into account on account 10, and the cost of the work performed by the processor refers to an increase in their cost.
Example. The car manufacturing plant acquired metal for the production of a vehicle unit for a total of 590,000 rubles. (including VAT 90 000 rub.). In connection with the repair of the necessary equipment, the plant concluded an agreement with a third-party organization, according to which the latter carried out the manufacture of units and returned them to the factory for the manufacture of automobiles. The cost of processing is 118,000 rubles. (including VAT - 18,000 rubles).
In the account of the plant, which acts as a contractor, these operations must be reflected in the following transactions:
Debit 60 - Credit 51
- 590,000 rubles. - reflects the payment made to the supplier for the metal;
Debit 10/1 - Credit 60
- 500 000 rub. - reflected the acceptance of the metal;
Debit 19 - Credit 60
- 90,000 rubles. - Reflects the amount of VAT presented for payment by the metal supplier;
Debit 68 - Credit 19
- 90,000 rubles. - accepted for deduction of VAT;
Debit 10/7 - Credit 10/1
- 500 000 rub. - metal was transferred for processing;
Debit 10/1 - Credit 10/7
- 500 000 rub. - received ready-made units from the processor;
Debit 10/1 - Credit 60
- 100 000 rub. the cost of the work of the processing organization is included in the cost of materials;
Debit 19 - Credit 60
- 18 000 rub. - VAT charged on processing;
Debit 68 - Credit 19
- 18 000 rub. - accepted for deduction of VAT on processing.
As a result, the formed value of the units for cars, by which they will be put into production, is 600,000 rubles. (500,000 + 100,000).
In the manufacture of finished products, the donor organization transfers raw materials to the processing organization and receives finished products from it, which it subsequently sells.
The cost of raw materials is debited to the accounts of the cost of production at the time of receipt of the finished product from the processor.
The cost of processing works is also charged to the accounts of cost accounting for production and is involved in the formation of the cost of production.
Example. LLC Terra acquired processed wood for a total amount of 944,000 rubles. (including VAT - 144,000 rubles) and transferred them to a processing organization for the manufacture of furniture. Finished products transferred to Terra LLC. The cost of the processing organization is 472,000 rubles. (including VAT - 72,000 rubles).
In accounting for the organization, you must make the following entries:
Debit 10/1 - Credit 60
- 800,000 rubles. - accepted for accounting material received from the supplier;
Debit 19 - Credit 60
- 144,000 rubles. - Reflected VAT presented for payment by the supplier of the material;
Debit 68 - Credit 19
- 144,000 rubles. - VAT is deductible;
Debit 10/7 - Credit 10/1
- 800,000 rubles. - transferred materials for the manufacture of furniture;
Debit 20 - Credit 10/7
- 800,000 rubles. - written off the cost of materials (at the time of receipt of the finished product);
Debit 20 - Credit 60
- 400 000 rub. - Charged costs of processing services;
Debit 19 - Credit 60
- 72 000 rub. - Reflected VAT submitted by the processor;
Debit 68 - Credit 19
- 72 000 rub. - accepted for deduction of VAT;
Debit 43 - Credit 20
- 1 200 000 rub. (800,000 + 400,000) - finished products accepted for accounting.
Thus, the cost of finished goods consists of the cost of materials and the cost of work on their processing. To simplify the calculations, the assumption was made that the organization had no other costs associated with the production of these products. In practice, other costs may be included in the cost.
Accounting with a processing organization
According to paragraph 156 of the Methodological Instructions, subcontracting materials are materials accepted by the organization from the customer for processing (processing), performing other work or manufacturing products without paying for the cost of the materials accepted and with the obligation to fully return the processed (processed) materials, delivery of completed work and manufactured products .
Accounting is carried out in quantitative and cost terms at the prices indicated in the documents for the transfer of raw materials. Analytical accounting of tolling materials is carried out by customers, names, quantity and cost, as well as by places of storage and processing (performance of work, manufacturing of products). They are recorded on the off-balance account 003 "Materials accepted for processing."
Both raw materials received for processing and finished products are recorded on account 003 “Materials accepted for processing” until the finished product is transferred to the customer.
The materials transferred for processing arrive at the warehouse on the basis of the consignment note (form N M-15). At the time of their posting to the warehouse, a receipt order is issued (form N М-4) with a note that the raw materials arrived at the organization on tolling terms.
Products from tolling and from our own raw materials:
separate accounting required
All costs associated with the production process are accounted for by the processing organization on account 20 "Main production". If the processor, in addition to processing raw materials supplied by the customer, produces products from his own materials, he must keep separate records for both material and other costs.
This requirement stems from the fundamentally different reflection in the accounting of operations for the production of products from own and tolling raw materials. Since when transferring raw materials or materials for processing, ownership of the specified property is retained by the contractor, the processor is not entitled to reflect the received property on his balance sheet.
The costs of the processor, which he bears during the processing, are recorded in the accounts of the cost of production. First of all, these are the cost of the processor’s own materials, wages, UST, depreciation of fixed assets, general and general production expenses.
Who has the waste left?
If waste is generated during the processing, the contract may stipulate that the waste is returned to the contractor or remains with the recycling organization.
If the waste according to the contract remains with the processing organization, then an entry is made on the credit of account 003 “Materials accepted for processing” for the amount of the cost of the raw materials transferred for processing, while being taken into account on account 10.
In this situation, it is very important to consider whether the parties to the contract reduce the transaction price by the amount of waste resulting from processing or not.
If the waste received from the processing of materials from the contractor remains with the processor at the expense of partial payment for the work performed by him, then they are taken into account, for example, as auxiliary materials.
If the waste received from processing does not affect the transaction price, then such an operation is qualified as a gift agreement (clause 1 of Article 572 of the Civil Code of the Russian Federation). And then, as used, the cost of the waste is written off to account 91.
When calculating income tax, the cost of property received free of charge is included with the processor in non-operating income (Clause 8, Article 250 of the Tax Code of the Russian Federation). The date of recognition of these incomes will be the day the parties sign the act of acceptance and transfer of wastes of tolling raw materials (subparagraph 1, paragraph 4 of article 271 of the Tax Code of the Russian Federation).
At the end of the work, the finished product is transferred to the customer according to the acceptance certificate and invoice. In addition, the processing organization must submit a report on the use of raw materials. Excess raw materials are returned to the customer if the contract does not provide for partial payment for the work with raw materials.
The reflection of the cost of the waste remaining at the processor depends on whether it was stipulated in the contract that the waste remains with the processor organization at the expense of a partial payment for the work performed by it.
If such a condition is included in the contract, then in accounting, you must make the following posting:
Debit 10 - Credit 60
- reflected in the accounting auxiliary materials.
If the agreement did not provide for this procedure, but the waste was left with the processing organization, then it is necessary to reflect the receipt of materials free of charge in this way:
Debit 10 - Credit 98
- The received waste is reflected in deferred income.
Consider the general accounting procedure for a processing organization using a specific example.
Example. LLC "Creon" and the state farm to them. Kalinin concluded an agreement according to which the state farm transfers to the society meat and raw materials for the production of sausages in the amount of 10,000 kg in the amount of 400,000 rubles. The cost of processing services is 118,000 rubles. (including VAT - 18,000 rubles). The amount of costs of the processor is 80 000 rubles.
In accounting for the organization, you must make the following postings:
Debit 003
- 400 000 rub. - reflects the cost of raw materials (materials) accepted for processing;
Debit 20 - Credit 02 (10, 23, 25, 26, 70, etc.)
- 80 000 rub. - reflected the cost of processing raw materials;
Debit 90 - Credit 20
- 80 000 rub. - the costs of transferring finished products to the dealer are charged off;
Debit 62 - Credit 90
- 118 000 rub. - Reflects the proceeds from the implementation of processing works (excluding the cost of raw materials (materials) received on tolling terms);
Debit 90 - Credit 68
- 18 000 rub. - accrued VAT;
Debit 90 - Credit 99
- 20 000 rub. - reflected the financial result;
Credit 003
- 400 000 rub. - written off the cost of raw materials (materials) accepted for processing.
Processor tax accounting
As for the tax accounting of the transactions in question, difficulties may arise regarding the distribution of direct and indirect costs, as well as the procedure for assessing the balances of work in progress.
So, the organization must choose and approve in the accounting policy the method of distribution of direct and indirect costs in accordance with Art. 318 of the Tax Code of the Russian Federation, since indirect costs are expensed in full for tax purposes in the current period, while direct costs are allocated in accordance with the method set forth in the taxpayer accounting policy.
If the processing organization will form the WIP or it will have unrealized finished products in its warehouse, it needs to distribute the total direct costs between the types of activities. For these purposes, the organization can immediately keep a separate account of direct costs or distribute them in proportion to the cost or quantity of raw materials and materials, in proportion to the amount of products obtained from own or tolling materials.
As for the calculation of VAT, the following should be noted. VAT on the cost of processing tolling raw materials is charged at a rate of 18% regardless of the rate at which the processed raw materials and manufactured products are taxed, since the object of taxation is the performance of work, and not the sale of products.
The tax base for VAT will be equal to the cost of processing raw materials taking into account excises (for excisable goods) and without including VAT (paragraph 5 of article 154 of the Tax Code of the Russian Federation). The cost of tolling raw materials (materials) is not taken into account when determining the tax base.
VAT paid upon the purchase of materials, work, services used by the processor in the performance of work may be deductible subject to the requirements of Art. 172 of the Tax Code.