On convening and holding a general meeting of members of the non-profit partnership “Chamber of Professional Accountants and Audit….
A.F. Zvorono,
General Director of the audit company "Rollover"
I.G. Zvorono,
Chief Auditor of the Auditing Company “Rollover”
In the course of audits, many violations in the implementation of operations with inventory items (inventory and materials) are revealed. In our opinion, this is due to the fact that the accounting services of enterprises do not always take into account a number of key points.
Firstly, the classification of inventories by groups is often not used: raw materials and basic materials, auxiliary materials, purchased semi-finished products, waste, fuel, containers, spare parts. For this reason, all goods and materials are reflected on account 10 “Materials”, which does not allow organizing synthetic and analytical accounting with the allocation of sub-accounts in accordance with the recommendations of the Chart of Accounts.
Secondly, the current forms of primary accounting documentation for goods and materials are not fully or partially applied:
Receipt orders - f. No. M-4;
The act of acceptance of materials - f. No. M-7;
Limit fence cards - f. No. M_8, M-9;
Invoice-requirement for vacation (internal movement of materials) - f. No. M_11;
Stock accounting cards for materials - f. No. M-12;
Power of attorney - f. No. M-2 and M-2*.
Thirdly, the details in the above documents are not completely filled out:
The limit-fence cards do not contain a limit, price, the balance of the limit, there are no signatures of the storekeeper or the recipient of the workshop;
In the acts for the write-off of instruments there is no date of compilation, the reason for the write-off, the signatures of the members of the commission;
There is no price, amount of goods and materials on invoice requirements, etc.
All these shortcomings significantly reduce the reliability of primary documents, and also do not contribute to ensuring proper control over the use of materials in production.
During inspections, we often state the absence of:
Agreements concluded with financially responsible persons for acceptance and release, as well as the safety of goods and materials entrusted to them;
A special list of officials who are granted the right to sign documents for the release and export of goods and materials;
Nomenclature-price tag for each name, grade, size of materials;
Regulations on document flow.
In the process of studying the accounting policy of an enterprise, auditors are faced with cases where the principles laid down in the accounting policy are not followed, which leads to a distortion of the cost of production and, consequently, the profit of the enterprise.
A. In accordance with the accounting policy, the posting of inventory items is carried out at the actual cost, including the costs of transportation, storage, delivery, commission, and others.
When checking, it is found that goods and materials are received based on the prices indicated by the supplier in the accompanying documents, without including transport and procurement costs and other costs.
B. In the accounting policy, the method of writing off materials to production at an average cost was chosen.
When checking, it is revealed that the method of writing off at the purchase price is used in accounting. This discrepancy arises from non-compliance with the “average cost” method of accounting. To use this method, the enterprise must develop and approve the methodology for forming the average price.
C. The accounting policy determines the use of planned or contract prices for materials.
During inspections, we often encounter cases where the above prices unreasonably include the costs of maintaining warehouse services, sales departments, and supply departments.
When writing off materials for production, a large number of violations also take place:
There is no calculation of the need for materials based on the norms for the consumption of materials, and therefore it is difficult to control their overspending;
Materials for the warehouse are not credited, but are immediately written off as production costs;
There are corrections that are not confirmed by the signature of materially responsible persons.
Comparing the data of planned cost estimates with the data of inventories released into production, the auditors establish the facts of writing off the costs of materials that are not used by the main production shops, as well as the facts of replacing one material with another without issuing a special act-requirement. Replacement may indicate an overrun; in this case, the head of the enterprise must establish its causes and the culprit. Additional release of materials, as well as replacement, are made only with the permission of the head of the enterprise or the chief engineer, as this is associated with a change in technology, labor costs, etc.
The most common mistake at present is when the materially responsible persons, who are accountable for the balance of material assets, do not submit monthly material reports. This, in turn, leads to the fact that employees of accounting departments fully write off the materials transferred to production as they are released from the warehouse, and not upon consumption.
Responsible persons are required to draw up monthly reports on the balances and movement of materials in the report and submit them to the accounting department. It was then that accounting services will receive the necessary data on the balance of materials at the beginning of the month, their receipt, according to the standard and actual consumption, balances at the end of the month.
If a material report is not compiled for materials not used in production, this means that it is necessary to take an inventory of the residues. But the whole problem lies in the fact that inventories are often carried out by the materially responsible persons of the shops themselves, which does not meet the requirements of the current regulatory documents.
In such cases, auditors make a control calculation of the consumption of materials for the release of capitalized finished products. The data of these calculations are compared with the results of inventories. And in almost all cases, deviations (lack, surplus) are detected.
For example, item No. 15 (pcs.).
January 1997 |
February 1997 |
March 1997 |
|
Balance at the beginning of the month | |||
Received from stock | |||
Output | |||
Irreparable marriage | |||
Balance according to calculation | |||
Actual balance | |||
shortage |
In order to avoid the above situation, it is necessary to comply with the generally accepted principles reflected in the Guidelines for the inventory of property and financial obligations, approved by order of the Ministry of Finance of Russia dated June 13, 1995 No. 49.
According to clauses 2.2 and 2.6 of these Guidelines, a permanent inventory commission is created in the organization to conduct an inventory.
The inventory commission ensures the completeness and accuracy of entering data on the actual balances of fixed assets, stocks, goods, cash, other property and financial obligations into the inventories, the correctness and timeliness of the registration of inventory materials.
The personal composition of permanent and working inventory commissions is approved by the head of the organization. The document on the composition of the commission (order, resolution, order) is recorded in the book for monitoring the implementation of orders for inventory.
The composition of the inventory commission includes representatives of the administration of the organization, employees of the accounting service, and other specialists (engineers, economists, technicians, etc.).
The inventory commission may consist of representatives of the internal audit service of the organization, independent audit organizations.
The absence of at least one member of the commission during the inventory is the basis for recognizing the results of the inventory as invalid.
Low-value and consumable items
The main mistake is non-compliance with the requirements of clause 46 of the Regulation on Accounting and Reporting of December 26, 1994 No. 170.
In violation of the above paragraph, IBEs worth less than 1/20 of the established limit per unit are reflected in correspondence:
Dr. 12/MBP in operation
K_t 12/MBP in stock,
those. IBEs continue to be listed on the balance sheet.
IBEs worth more than 1/20 of the established limit per unit are reflected in correspondence:
Dt 25 / General production costs
Set 12/MBP in stock,
those. are written off directly to general production expenses and are not listed on account 12.
Such accounting does not provide proper control over the safety of material assets.
Some accountants, not always clearly understanding the meaning of clause 45 of the Regulation on Accounting and Reporting dated December 26, 1994 No. 170, can write off the IBE as they are put into production or operation and reflect this operation as follows:
D-t 13 / MBP wear
Set 12/MBP in operation.
Such posting is possible only if an act is issued for the write-off of the worn-out IBP. The act must be approved by a permanent commission.
Sources of information: Regulation on the accounting policy of the enterprise; supply contracts; nomenclature-price tag; Book of purchases; sales book; contracts with financially responsible persons; primary documents for the movement of inventories (waybills, waybills, invoices, powers of attorney; receipt orders, acts of acceptance of materials, invoices-requirements for the release (internal movement) of materials, limit-fence cards, warehouse accounting cards for materials, registers of cards ); inventory lists of inventories; accounting registers for accounts 10, 15, 19, 10, 25, 26, 41, 91, 60, 76, etc.; General ledger, enterprise reporting.
1. familiarization with the work of the material department of accounting- the objects of attention of the auditor are: the composition, subordination and qualifications of accounting personnel; list of normative documents used; the presence of a schedule (scheme) of workflow; the validity of the choice in the accounting policy of organizational, methodological and technical aspects for this section of accounting; availability of schemes for reflecting business transactions with inventories on the accounting accounts; internal control methods used (inventory, documentation, batch cutting, etc.) to check for deviations in the actual consumption of materials from the norms; observance of terms of carrying out inventories of commodities and materials and procedure for registration of their results.
The auditor should make sure in the presence of executed contracts with materially responsible persons, registers of receipt and expenditure documents, orders on approving the composition of the inventory commissions and the procedure for conducting inventories.
2. checking the state of warehouse facilities at the enterprise. The auditor finds out the number and location of storage facilities, their capacity, the availability of conditions for storing valuables, the availability of fire and security alarms, weighing equipment, containers, etc.
The auditor determines, as a result of which operations, material and production resources enter the enterprise, and their consumption is carried out. All these operations can be classified by the auditor into typical and atypical. Typical operations are checked selectively, and atypical operations are subjected to continuous study. The control procedures in both cases are aimed at analyzing the documentation confirming the operations on the movement of inventories, and assessing the correctness of reflecting these operations on the accounting accounts.
3. Checking the organization of accounting of material resources at the enterprise, the auditor, based on the study and comparison of data from primary settlement and payment documents (invoices, waybills, etc.) and accounting registers (warehouse accounting cards, reports on the movement of values, etc. ) establishes the completeness of capitalization of inventories, the correctness of their classification and evaluation, the validity of write-offs to expense. It is determined whether all the necessary details are indicated in the documentation, whether arithmetic calculations are performed correctly, whether business operations comply with current legislation.
4. control over the validity of the application of tax deductions for VAT on acquired material assets.
5. The validity of the write-off of material resources as an expense is clarified according to the data of the relevant primary documents (waybills, vacation requests, limit-fence cards, etc.). The auditor needs to establish the correctness of the assessment of material resources for such operations. The correctness of the applied schemes for the correspondence of accounts for writing off inventories from the warehouse is established by the auditor, as a rule, selectively by monitoring the entries in the accounting registers for accounts 20, 25, 26, 44, etc. and comparing them with the data of primary expenditure documents.
If the company in the reporting period carried out retail sales of goods accounted for on account 41, the auditor must find out the correctness of the acceptance of goods for accounting, the calculation of the trade margin and the proportionality of its write-off for the goods sold, the completeness of the calculation of taxes. The object of control are receipts and expenditure documents and accounting registers for accounts 41,42, 90, 50, 51, 62, 68, etc.
Typical mistakes:
Liability agreements with storekeepers (materially responsible persons) have not been concluded;
Incorrectly executed documents on the receipt and expenditure of inventory items;
There is no analytical accounting of the movement of inventories in the accounting department;
Incorrect calculation of the actual cost of procurement of materials;
Write-off of material assets not accepted for accounting (not issued by receipt documents) as an expense;
Lack of norms for the consumption of materials or their non-compliance;
Non-compliance with the option of accounting for material assets adopted in the accounting policy;
Irregularly reconciliation of data on the movement of material assets in the accounting department and in the warehouses of the enterprise is carried out;
No annual inventory of inventory is carried out;
A large number of unused inventories are stored in warehouses;
Incorrect write-off of goods and materials by cost areas;
Arithmetic errors.
Typical mistakes in accounting and reporting Utkina Svetlana Anatolyevna
Chapter 3
Often there are errors when the posting and writing off of materials is carried out in violation of the established requirements. So, the material accounting of income and expenditure (write-off) of material assets is not properly drawn up on the corresponding unified forms, or not all the necessary details of these forms are filled out.
The current procedure for accounting for inventories is set out in the Guidelines for Accounting for Inventories, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n. In accordance with it, the procedure for acceptance and posting, issue and write-off of materials is established by the management of the organization. At the same time, it should be taken into account that material accounting (different from accounting) should be carried out by the relevant unit, and not at all by the accounting department. At the same time, incoming materials should be formalized, as a rule, by drawing up receipt orders (standard intersectoral form No. M-4, approved by the Decree of the State Statistics Committee of Russia dated October 30, 1997 No. 71a. Commission with the execution of the Materials Acceptance Certificate The composition of the commission must be established by order of the head of the organization.
The release of material assets should be issued using limit-fence cards (standard intersectoral form No. M-8), waybills (forms No. 11 and No. 15) and warehouse accounting cards of form No. M-17, and materials can be written off on the basis of an expense report ( write-offs).
It is recommended to develop in the organization a regulation on accounting for inventories, reflecting the specifics of the organization's production and corresponding to the specified Guidelines. In such a provision, it is advisable to establish the procedure for establishing the norms for the consumption of materials for production, the procedure for writing off waste, prices for finished products, officials responsible for the development of norms and prices.
Check for an order to determine the circle of financially responsible persons, liability agreements and check whether the method of accounting for the write-off of goods and materials actually used in the organization approved in the accounting policy
When forming expenses that are taken into account for taxation, one should take into account the requirements of the Tax Code for documenting and the economic feasibility of the expenses incurred. Thus, in the approved material consumption rates, it is necessary to clearly justify the volume of technological losses of raw materials and materials.
Verify the correctness of the posting of goods and materials by reconciling the total amounts reflected in the accounting records of goods and materials with the data of other registers (for settlements with suppliers and contractors, founders, etc.) and with the data of the General Ledger.
The debit balance on account 60 "Settlements with suppliers and contractors" should reflect the cost of paid materials that remained on the way at the end of the month or were not taken out of the supplier's warehouse. This balance at the end of the month is transferred to the debit of account 10 "Materials" without posting them in warehouses. At the beginning of the next month, these amounts are reversed and are listed in the current account again as accounts receivable on account 60, until these materials are accepted and capitalized. When accounting for materials at accounting prices, you must make sure that account 16 “Deviations in the cost of materials” reflects the difference between the actual cost of goods and materials and their book value. The grand total of balances in total terms for each account of the balance sheet at the end of the month should correspond to the balances at the end of the month given in the inventory sheet. Comparison is made for each warehouse separately on the 1st day of the period being checked. The total turnover of goods and materials disposal for the month for all warehouses and the balances of goods and materials at the end of the month given in the statement, check with the credit turnover and the balance of account 10 "Materials" in the General Ledger. If there are discrepancies, it is necessary to identify the cause and correct the error.
The final step in checking the use of goods and materials is to establish the validity of deviations in the cost of materials for the production of finished products. According to the accounting sheet for material assets, goods, containers, the technique for calculating deviations is checked, the correctness of calculating the average percentage of deviations in directions, materials, including their balance in the warehouse.
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Often there are errors when the posting and writing off of materials is carried out in violation of the established requirements. So, the material accounting of income and expenditure (write-off) of material assets is not properly drawn up on the corresponding unified forms, or not all the necessary details of these forms are filled out.
The current procedure for accounting for inventories is set out in the Guidelines for Accounting for Inventories, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n. In accordance with it, the procedure for acceptance and posting, issue and write-off of materials is established by the management of the organization. At the same time, it should be taken into account that material accounting (different from accounting) should be carried out by the relevant unit, and not at all by the accounting department. At the same time, incoming materials should be formalized, as a rule, by drawing up receipt orders (standard intersectoral form No. M-4, approved by the Decree of the State Statistics Committee of Russia dated October 30, 1997 No. 71a. Commission with the execution of the Materials Acceptance Certificate The composition of the commission must be established by order of the head of the organization.
The release of material assets should be issued using limit-fence cards (standard intersectoral form No. M-8), waybills (forms No. 11 and No. 15) and warehouse accounting cards of form No. M-17, and materials can be written off on the basis of an expense report ( write-offs).
It is recommended to develop in the organization a regulation on accounting for inventories, reflecting the specifics of the organization's production and corresponding to the specified Guidelines. In such a provision, it is advisable to establish the procedure for establishing the norms for the consumption of materials for production, the procedure for writing off waste, prices for finished products, officials responsible for the development of norms and prices.
Check for an order to determine the circle of financially responsible persons, liability agreements and check whether the method of accounting for the write-off of goods and materials actually used in the organization approved in the accounting policy.
When forming expenses that are taken into account for taxation, one should take into account the requirements of the Tax Code for documenting and the economic feasibility of the expenses incurred. Thus, in the approved material consumption rates, it is necessary to clearly justify the volume of technological losses of raw materials and materials.
Verify the correctness of the posting of goods and materials by reconciling the total amounts reflected in the accounting records of goods and materials with the data of other registers (for settlements with suppliers and contractors, founders, etc.) and with the data of the General Ledger.
The debit balance on account 60 "Settlements with suppliers and contractors" should reflect the cost of paid materials that remained on the way at the end of the month or were not taken out of the supplier's warehouse. This balance at the end of the month is transferred to the debit of account 10 "Materials" without posting them in warehouses. At the beginning of the next month, these amounts are reversed and are listed in the current account again as accounts receivable on account 60, until these materials are accepted and capitalized. When accounting for materials at accounting prices, you must make sure that account 16 “Deviations in the cost of materials” reflects the difference between the actual cost of goods and materials and their book value. The grand total of balances in total terms for each account of the balance sheet at the end of the month should correspond to the balances at the end of the month given in the inventory sheet. Comparison is made for each warehouse separately on the 1st day of the period being checked. The total turnover of goods and materials disposal for the month for all warehouses and the balances of goods and materials at the end of the month given in the statement, check with the credit turnover and the balance of account 10 "Materials" in the General Ledger. If there are discrepancies, it is necessary to identify the cause and correct the error.
The final step in checking the use of goods and materials is to establish the validity of deviations in the cost of materials for the production of finished products. According to the accounting sheet for material assets, goods, containers, the technique for calculating deviations is checked, the correctness of calculating the average percentage of deviations in directions, materials, including their balance in the warehouse.