Accounting for deviations in the cost of material assets. Account 16 “Deviation in the cost of material assets Account 16 deviation in the cost of materials is applied
To reflect generalized information about the amounts of the difference between the accounting price and the actual cost of inventory items on the balance sheet of the enterprise, account 16 is used. Our article will introduce you to the features of accounting for cost differences of goods and materials, and also, using the example of typical transactions, will help you understand the transactions on the account 16.
Account 16: Accounting for Transactions
Account 16 is used at enterprises that reflect the amount of incoming/outgoing inventory items at the accounting price. Upon detection of a deviation between the accounting price and the actual cost of the goods (production costs, selling expenses, cost of purchase from a supplier, etc.), the amount of this deviation is reflected in account 16:
When reflecting operations on overexpenditures accumulated during the month on account 16, enterprises in the production sector use the following entries:
Accounting for the positive amount of deviations (savings) for received inventory items is reflected in the following entries:
When liquidating inventory items as a result of force majeure (natural disaster, accident, nationalization, etc.) or in the event of a shortage, the amount of deviations in account 16 is written off with the following entries:
Reflection of cost differences in inventory items on account 16
Let's consider an example of the excess of the accounting price of inventory items over their actual cost.
The Monolit Plus trading enterprise purchased a batch of auto parts (315 units) at a price of 984 rubles/piece. The total cost of delivery was 309,960 rubles, VAT 47,282 rubles. The discount price of auto parts is 1,018 rubles.
The Monolit Plus accountant made the following notes:
Debit | Credit | Description | Sum | A document base |
10 | 15 | The batch of spare parts is reflected at discount prices (315 units * 1018 rubles) | RUR 320,670 | |
15 | 60 | The actual cost of received spare parts is taken into account (RUB 309,906 – RUB 47,282) | RUR 262,624 | Purchase Invoice |
19 | 60 | VAT accrued on supplies | RUR 47,282 | Invoice incoming |
15 | 16 | The difference between the booking price of auto parts and the costs of their purchase was written off (RUB 320,670 – RUB 262,624) | RUR 58,046 | Accounting certificate-calculation |
Let's consider a case in which the price for purchasing a product is higher than what is recorded in accounting.
The Beloshveyka manufacturing company purchased a batch of cotton fabric (418 meters) at a price of 189 rubles/m. The total cost of delivery was 79,002 rubles, VAT 12,052 rubles. The discount price of fabric is 154 rubles/m.
When the fabric arrived, the Beloshveyk accountant made the following notes:
Debit | Credit | Description | Sum | A document base |
10 | 15 | A batch of cotton fabric was entered into the warehouse at discounted prices (418 m * 154 rubles) | RUR 64,372 | Receipt invoice, Accounting statement-calculation |
15 | 60 | The actual cost of the received fabric is taken into account (RUB 79,002 – RUB 12,052) | RUB 66,950 | Purchase Invoice |
19 | 60 | VAT accrued on supplies | RUB 12,052 | Invoice incoming |
16 | 15 | The difference between the accounting price of auto parts and the costs of their acquisition was written off (RUB 66,950 – RUB 64,372) | RUB 2,578 | Accounting certificate-calculation |
Account 16: writing off amounts of inventory deviations
In March 2015, the metallurgical enterprise Factorial purchased sheet metal (650 tons) for subsequent sale to Basis LLC:
- cost of sheet metal – 1,418,300 rubles, VAT 216,351 rubles;
- cost of delivery of the batch - 371,000 rubles, VAT 56,593 rubles;
- the accounting price of metal is 1800 rubles/t.
As of March 1, 2015, Factorial’s accounting records included:
In March, Factorial sold 420 tons of metal to Basis LLC at a price of 1,722,000 rubles, VAT 262,678 rubles.
“Factorial” reflected the receipt and write-off of goods with the following transactions:
Debit | Credit | Description | Sum | A document base |
16 | 60 | Sheet metal was accepted for accounting (RUB 1,418,300 – RUB 216,351) | RUB 1,201,649 | Purchase Invoice |
19 | 60 | VAT amount reflected | RUR 216,351 | Invoice incoming |
68 VAT | 19 | VAT on the cost of delivery is deductible | RUR 216,351 | Invoice incoming |
41 | 16 | Sheet metal was capitalized at the accounting price (RUB 1,800 * 650 t) | 1,170,000 rub. | Accounting certificate-calculation |
15 | 60 | The costs of delivering a batch of metal are reflected in accounting (371,000 rubles - 56,593 rubles) | RUR 314,407 | Certificate of services rendered |
19 | 60 | The amount of VAT is reflected on the delivery cost | RUR 56,593 | Certificate of services rendered, Incoming invoice |
68 VAT | 19 | VAT on delivery is deductible | RUR 56,593 | Invoice incoming |
16 | 15 | The amount of the difference between the accounting price and the cost of the metal is reflected in the accounting (1,201,649 rubles + 314,407 rubles – 1,170,000 rubles) | RUR 346,056 | Accounting certificate-calculation |
62 | 90.1 | Sheet metal sold by LLC “Bazis” | 1,722,000 rub. | Supply contract |
90.3 | 68 VAT | The amount of VAT accrued on the metal sold | RUR 262,678 | Receipt invoice, Outgoing invoice |
90.2 | 41 | The accounting value of sold sheet metal is reflected in expenses (420 t * 1,800 rubles) | 756,000 rub. | Accounting certificate-calculation |
Writing off the amount of deviations, Factorial’s accountant made the following calculation:
- The book value of sheet metal in March (including the balance) as of 03/01/2015 is 1,755,000 rubles. (325 t * 1,800 rub. + 650 t * 1,800 rub.).
- The amount of deviations in March 2015 (including the balance) is 378,056 rubles. (32,000 rubles + 346,056 rubles).
- The share (percentage) of deviations for goods sold is 21.55% (RUB 378,056 / RUB 1,755,000 * 100%).
- The deviation indicator for write-off in March 2015 is RUB 162,918. (RUB 756,000 * 21.55%).
The following entry was made in the Factorial accounting:
Reversal of balances on account 16 at the end of the reporting period
As of August 1, 2015, the balance sheet of JSC “Workshop No. 1” included:
In August 2015, “Workshop No. 1” purchased a batch of materials from LLC “Stroitel” for the amount of 61,400 rubles, VAT 9,366 rubles, the accounting price of which was 68,300 rubles. Construction and repair materials in the amount of 59,500 rubles. were scrapped for production.
Based on the results of August 2015, the accountant of JSC “Workshop No. 1” made the following notes:
Debit | Credit | Description | Sum | A document base |
10 | 15 | The batch of building materials was received at the warehouse of JSC “Workshop No. 1” at discount prices | 68,300 rub. | Receipt invoice, Accounting statement-calculation |
15 | 60 | The cost of the batch of materials is reflected in the accounting (61,400 rubles – 9,366 rubles) | RUR 52,034 | Purchase Invoice |
19 | 60 | VAT on the supply of materials has been taken into account | RUR 9,366 | Invoice |
15 | 16 | The amount of deviation of the accounting price and the cost of building materials is taken into account (RUB 68,300 – RUB 52.34) | RUR 16,266 | Accounting certificate-calculation |
20 | 10 | Construction materials transferred to production | 59.500 rub. | Invoice, Limit and intake list |
20 | 19 | Reversal of the deviation indicator based on the results of August 2015 ((RUB 3,850 + RUB 16,266) / (RUB 42,700 + RUB 68,300) * RUB 59,500) | RUB 10,783 | Accounting certificate-calculation |
The release of materials into production at accounting prices forces enterprises to use account 16 “Variance in the cost of materials” in accounting. Its main purpose is to reflect the difference between different types of prices for goods and materials. Accounting prices are allowed to be used only when moving materials within one enterprise; the possibility of their reflection in accounting is approved by the accounting policy.
Account 16 in accounting
When moving material assets that do not have a finalized actual cost, standard accounting cost estimates are used. If they do not coincide with the actual cost values, deviations are formed in account 16 and written off as expenses. It is allowed to use the 16th account without linking it with the 15th account.
Account 16 can be active or passive, in relation to the sections of the balance sheet - it combines the features of both types, according to the Chart of Accounts it is classified as active-passive. A debit takes into account cost overruns when comparing the book value with the actual value. That is, the level of planned prices for material objects turned out to be lower than the recorded figure in the delivery note and invoice. Credit turnover is formed when savings are obtained as a result of comparing the discount price and the real one. Savings occur if the discount price level exceeds the actual cost.
Account 16 is intended to reflect single deviations and accumulated cost differences in inventory items. In analytics, materials are systematized according to the level of deviations and taken into account in the context of created groups. Subaccounts for deviations in the cost of materials are not provided in accounting.
Account 16: postings
If a combination of 15 and 16 accounts is used in accounting, the following transactions are generated:
- D16 - K15 when identifying a negative difference between the costs of inventory and materials (overexpenditure);
- D15 – K16 when creating savings.
The debit of account 16 can occur in correspondence with the credit of account 79 when taking into account the amounts of deviations for materials received from separate divisions.
Account 16 is intended to reflect the difference between the actual and book value; for credit, it is accounted for in combination with the debit of the following accounts:
- – when assessing materials intended for construction on one’s own;
- 20, , , , 29, at the time of writing off deviations for different types of activities and the corresponding type of costs;
- 79 when attributing part of the deviations to the account of separate divisions that have their own balance sheet;
- , when it comes to materials sold;
- when reflecting deviations in prices for materials that, according to the inventory results, were in the category of shortages and losses.
Account 16 - example of use in accounting
In June, Print LLC purchased a batch of materials in the amount of 122,000 rubles. (at discount prices). The actual cost of capitalized goods and materials is at the level of 101,000 rubles. (without VAT). Within a month, 60% of purchased assets were sent to main production.
Account 16 in accounting will be used when reflecting the described transactions in the following transactions:
- D10 – K15 in the amount of 122,000 rubles. at the time of receipt of materials.
- D15 - K60 in the amount of actual cost equal to 101,000 rubles.
- D15 – K16 for 21,000 rub. (122,000-101,000) – the deviation in the cost estimates of materials is reflected.
- D20 – K10 for 73,200 rub. (122,000*60%) when sending part of the purchased materials to the production workshop.
- D20 – K16 (reversal method) in the amount of 12,600 rubles. (21,000 x 60%) to write off deviations in the cost of material assets transferred to production.
On this issue we take the following position:
Inventory of account 16 “Deviation in the cost of material assets” is not provided for by the current regulatory documents on accounting and is unlikely to be feasible in practice.
Justification for the position:
Unfortunately, in the legislation and regulatory documents on accounting, we were unable to find direct instructions on the topic: is it necessary to make an inventory of account 16 “Deviation in the cost of material assets,” and if so, in what order? We also did not find any arbitration practice on the issue under consideration. Therefore, we are forced to present our considerations on the basis of the general principles of organizing accounting in Russia.
Account 16 “Deviation in the cost of material assets” is intended to summarize information about differences in the cost of acquired inventories, calculated in the actual cost of acquisition (procurement) and accounting prices, as well as data characterizing the amount of differences. Account 16 takes into account the difference (deviation) between the book price and the actual cost of inventories. Account 16 is used by organizations that reflect the cost of inventories at accounting prices (Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n “On approval of the Chart of Accounts for accounting of financial and economic activities of organizations and instructions for its application”).
We see that account 16 refers to the so-called regulatory accounts, which do not reflect any type of assets or liabilities of the organization, but change the valuation of assets or liabilities (in this case, inventory and materials) reflected in other accounting accounts (in this case - on account 10 "Materials").
Since account 16 reflects part of the valuation of inventories (in other words, inventory items), we can assume that transactions on it, incl. inventory must be described in regulatory documents on inventory accounting.
Neither in the Guidelines for accounting of inventories, approved by order of the Ministry of Finance of Russia dated December 28, 2001 N 119n (hereinafter referred to as Guidelines N 119n), nor in the Guidelines for the inventory of property and financial liabilities, approved by order of the Ministry of Finance of Russia dated 06/13/1995 N 49 (hereinafter referred to as the Methodological Instructions for Inventory), there is no indication of the need for an inventory of account 16.
As follows from the text of paragraph 21 of Methodological Instructions No. 119n, an inventory of inventories is carried out to ensure the reliability of accounting data and financial statements. During the inventory, their presence, condition and assessment are checked and documented. The set of works that, in accordance with clause 26 of Methodological Instructions N 119n, must be carried out by the inventory commission, at least includes the following elements:
- identifying the actual availability of reserves;
- comparison of actual inventory availability with accounting data;
- documentation of facts of non-compliance of the quantity, quality, assortment of incoming stocks with the relevant indicators (characteristics) provided for in contracts (supply, purchase and sale and other similar documents);
- determining the reasons for writing off inventories and the possibility of using waste.
All of the above is clearly inapplicable to account 16, which takes into account a purely calculated value (the deviation between the accounting price and the actual cost of inventory, which in the case under consideration is equal to the value of the inventory).
Clause 3.17 of the Inventory Guidelines stipulates that the commission, in the presence of the warehouse (storeroom) manager and other financially responsible persons, verifies the actual availability of inventory items by obligatory recalculation, reweighing or re-measuring them. This clearly provides for the natural-material form of inventoried goods and materials.
Mentions of account 16 in connection with inventory in regulatory documents and economic literature refer exclusively to the reflection of inventory results in accounting.
So, according to paragraphs. "b" clause 29 of Methodological Instructions No. 119n, amounts of shortages and damage to inventories identified during inventory are written off from accounting accounts at their actual cost, which includes the contractual (accounting) price of the stock and the share of transportation and procurement costs related to this stock. The procedure for calculating the specified share is established by the organization independently.
In accounting, this operation is reflected in the debit of account 94 “Shortages and losses from damage to valuables” and the credit of inventory accounts (for example, account 10 “Materials”) in terms of the contractual (accounting) price of the inventory and the debit of account 94 “Shortages and losses from damage to valuables " and the credit of account 16 "Deviation in the cost of materials" when used in the accounting policy of the organization of accounts for the procurement and purchase of materials in terms of the share of transportation and procurement costs.
As an example, we can also cite the articles “Inventory” (V.R. Zakharyin, “Economic and Legal Bulletin”, No. 12, December 2014), “The procedure for conducting an inventory of property and financial obligations and reflecting its results in accounting” ( N.M. Balakireva, G.R. Khamidullina, “New in accounting and reporting”, N 23-24, December 2003), etc.
Taking into account the above, we come to the conclusion that the inventory of account 16 “Deviation in the cost of material assets” is not provided for by the current regulatory documents on accounting and is unlikely to be feasible in practice.
However, account 16 is used when calculating the actual cost of inventory items, shortages and damage of which were identified based on inventory results.
Please note that this position is our expert opinion.
We recommend that you read the following materials:
- Encyclopedia of solutions. Inventory (line 1210);
- Encyclopedia of solutions. Accounting for receipt of goods;
- Encyclopedia of solutions. Accounting for write-off of goods as a result of damage, shortage, theft
- Encyclopedia of solutions. Accounting for income in the form of the value of surpluses identified during inventory.
Prepared answer:
Expert of the Legal Consulting Service GARANT
auditor, member of the Russian Union of Auditors Mikhail Bulantsov
Response quality control:
Reviewer of the Legal Consulting Service GARANT
auditor, member of RSA Gornostaev Vyacheslav
The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.
Account 16 “Deviation in the cost of material assets” is intended to summarize information about differences in the cost of acquired inventories, calculated in the actual cost of acquisition (procurement) and accounting prices, as well as data characterizing the amount of differences.
The amount of the difference in the cost of acquired inventories, calculated in the actual cost of acquisition (procurement) and accounting prices, is written off as a debit or
credit to account 16 “Deviation in the cost of material assets” from account 15 “Procurement and acquisition of material assets”.
The differences in the cost of acquired inventories accumulated on account 16 “Deviation in the cost of material assets”, calculated in the actual cost of acquisition (procurement) and accounting prices, are written off (reversed - if the difference is negative) to the debit of the production cost accounting accounts (expenses for sale) or other relevant accounts.
Analytical accounting for account 16 “Deviation in the cost of material assets” is carried out for groups of inventories with approximately the same level of these deviations.
According to the accepted procedure, account 16 “Deviation in the cost of material assets” can be considered additional to accounts 10 “Materials” and 15 “Procurement and acquisition of material assets.”
The fact is that some of the deviations that arise during the acquisition of valuables relate to valuables written off for production, and some - to valuables remaining in stock.
The cost of materials received into the warehouse received from the supplier is:
at discount prices - 492,000 rubles; at actual cost - 500,000 rubles. The deviation in the cost of materials will be 8,000 rubles. (500,000 - 492,000).
Based on the example data, we will show the correspondence of accounts.
(1) The supplier's invoice for materials was accepted - 500,000 rubles: Dt invoice. 15 “Procurement and acquisition of material assets”
(2) Materials were credited to the warehouse at accounting prices of RUB 492,000:
Dt sch. 10 "Materials"
K-tsch. 15 “Procurement and acquisition of material assets.”
Dt sch. 16 “Deviation in the cost of material assets” K-tsch. 15 “Procurement and acquisition of material assets.” Let's continue with the example.
Let's assume that out of 492,000 rubles received by the enterprise during the reporting period, 60% were written off to production, and 40% remained in the warehouse. This means that 8,000 rubles accumulated on account 16 “Deviation in the cost of material assets” should be distributed as follows:
Materials written off for production amounted to RUB 295,200;
There are 196,800 rubles worth of materials left in the warehouse.
However, these values are calculated at accounting prices, while their deviations from the actual cost amount to 8,000 rubles.
Consequently, it was necessary to write off not 295,200 rubles to production, but a larger amount.
The above reasoning causes additional entries that will look like this.
New operations are added to the already known operations (1), (2), (3).
(4) Materials written off for main production - RUB 295,200. (60% of the total received volume):
(5) Price deviations related to materials released during the reporting period to the main production were written off - RUB 4,800.
(60% of all deviations accumulated during the reporting period):
K-t sch. 16 “Deviation in the cost of material assets.”
Thus, on account 20 “Main production” the debit turnover will be equal to 300,000 rubles. This amount shows the actual cost of materials released into production during the reporting period.
We examined a case where accounting prices turned out to be lower than actual prices. If the opposite case occurs, then the correspondence will be as follows.
(1) The supplier's invoice for materials was accepted - 492,000 rubles: Dt invoice. 15 “Procurement and acquisition of material assets”
K-t sch. 60 “Settlements with suppliers and contractors.”
(2) Materials were credited to the warehouse at accounting prices of RUB 500,000:
Dt sch. 10 "Materials"
K-t sch. 15 “Procurement and acquisition of material assets.”
(3) Deviations between the actual cost of materials and their cost at accounting prices were written off - 8,000 rubles:
Dt sch. 15 “Procurement and acquisition of material assets”
K-tsch. 16 “Deviation in the cost of material assets”,
if accounting prices turn out to be higher than actual prices, then the enterprise has a profit (in our case - 8,000 rubles).
(4) Materials written off for main production - RUB 300,000. (60% of the received volume):
Dt sch. 20 “Main production” Set of accounts. 10 "Materials".
(5) Price deviations related to materials released during the reporting period to the main production were written off, reversal - 4800 rubles. (60% of all deviations accumulated during the reporting period):
Dt sch. 20 "Main production"
K-tsch. 16 “Deviation in the cost of material assets” (reversal).
The posting for operation 5 can be made as follows:
Dt sch. 16 “Deviation in the cost of material assets” Kt. 20 “Main production” - 4800 rub.
The disadvantage of this entry is the distortion of the debit turnover on account 20 “Main production”, which will be equal to 300,000 rubles. instead of the correct amount of 295,200 rubles. Therefore, it is more preferable to use “variegated” postings (on the debit of account 20 “Main production” using the “red reversal” method and the debit of account 16 “Deviation in the cost of material assets” using a regular entry).
In both examples, at the end of the month, account 16 “Deviation in the cost of material assets” will have a balance of 3,200 rubles. (in example 1 - debit, in example 2 - credit). When drawing up the balance, the amount is 3200 rubles. (without posting) in the first case it will be added to the balance of account 10 “Materials”, and in the second case it will be subtracted from the balance of this account.
We analyzed cases of distribution of deviations in proportion to the materials remaining and written off in the main production.
However, the provision that the write-off of deviations is carried out “in proportion to the cost at the accounting prices of materials used in production” was removed from the text of the instructions. This is due to the fact that clause 25 of the Methodological Recommendations on the procedure for forming indicators of an organization’s financial statements, approved by Order of the Ministry of Finance of the Russian Federation dated June 28, 2000 No. 60n, organizations are given the right, when adopting accounting policies, to establish the procedure for writing off identified deviations. This means that the chief accountant, choosing the procedure for distributing expenses concentrated on account 16 “Deviation in the cost of material assets,” independently decides how best to close this account, but we do not know the better option outlined by us.
Paragraph 88 of the Guidelines for Accounting for Inventories suggests other ways to write off deviations in the cost of materials:
writing off deviations in full to those accounts of production and (or) circulation costs to which materials are written off. This method may be applicable if the specific weight of the deviations does not exceed 10% of the accounting cost of materials;
during the current month, deviations can be distributed based on the specific weight (as a percentage of the accounting value of the relevant materials) prevailing at the beginning of this month. However, if this results in a significant under- or over-write-off of variances, in the next month the amount of distributed variances is adjusted to the specified amount of the previous month. The level of materiality in this case should not exceed 5%;
Deviations can be distributed in proportion to their share (standard), fixed in planned (standard) calculations, to the accounting cost of the materials used. If the actual sizes of deviations differ from the standard sizes, in the next month (reporting period) the amount of distribution deviations must be adjusted. The balances of deviations at the beginning of each month (reporting period) are calculated based on the share (standard) of deviations provided for in planned (standard) calculations to the actual availability of materials in accounting prices;
Deviations can be written off monthly (in the reporting period) in full to increase the cost of consumed (issued) materials, if their share (as a percentage of the contractual (accounting) cost of materials) does not exceed 5%.
The instructions for using the Chart of Accounts recommend that analytical accounting for account 16 “Deviation in the cost of material assets” be carried out for groups of inventories with approximately the same level of these deviations. However, in this case, the connection between the amount of deviations and the cost of specific materials for which these deviations were formed is lost. Therefore, analytical accounting for account 16 “Deviation in the cost of material assets” should be based not on the level of deviations, but on groups of inventories that are homogeneous in their purpose and use. The same instructions expand the functions of account 16 “Deviation in the cost of material assets”: it can also take into account the amount differences that arise if, under an agreement, the parties express their obligations in foreign currency or in conventional monetary units that are repayable in rubles .
However, according to clause 6 of PBU 5/01, “actual costs for the acquisition of inventories are determined (decreased or increased) taking into account the amount differences that arise before the inventories are accepted for accounting, in cases where payment is made in rubles in the amount , an equivalent amount in foreign currency (conventional monetary units).” Inventory includes materials, goods, and finished products.
The purchase and sale agreement defines the cost of goods as 600 USD. (including VAT - 100 USD). Payment for goods is carried out in rubles at the exchange rate of the Central Bank of the Russian Federation on the day of payment. Central Bank rate: on the day of receipt of goods - 25 rubles, on the day of payment - 26 rubles. The buyer, before payment, sold half of these goods for 10,500 rubles, including VAT - 1,750 rubles. (Revenue for tax purposes is calculated based on shipment.)
1. The receipt of goods is reflected in the accounting: Dt inc. 41 “Products” - 12,500 rub. (500 USD 25),
Dt sch. 19 “Value added tax on acquired assets” - 2500 rubles. (100 USD 25) Set of accounts. 60 “Settlements with suppliers and contractors” -15,000 rub. (600 USD 25).
2. The shipment of goods to the buyer is reflected in the accounting: Dt inc. 62 “Settlements with buyers and customers”
K-t sch. 90-1 “Revenue” - 10,500 rubles.
3. Sold goods are written off: D-t. 90-2 “Cost of sales”
K-t sch. 41 “Products” - 6250 rub. (12,500:2).
4. VAT is charged to the budget on goods sold: Dt inc. 90-3 “Value added tax”
K-t sch. 68 “Calculations for taxes and fees” - 1750 rubles.
5. Money was transferred to the supplier for the goods:
K-t sch. 51 “Current accounts” - 15,600 rubles. (600 USD 26).
After this operation, on the debit of account 60 “Settlements with suppliers and contractors”, a total difference of 600 rubles is formed. due to the fact that the cost of goods is 600 USD. when posting, it was determined at one rate (25 rubles), and when paying - at a different rate (26 rubles). The total difference includes VAT (100 rubles). To account for this amount difference, you can use account 16 “Deviation in the cost of material assets.”
6. The amount difference is reflected in accounting:
Dt sch. 16 “Deviation in the cost of material assets” -500 rubles,
Dt sch. 19 “Value added tax on acquired assets” - 100 rubles. K-t sch. 60 “Settlements with suppliers and contractors” - 600 rubles.
7. Submitted for deduction of VAT on goods consumed and paid for:
K-t sch. 19 “Value added tax on acquired assets” - 2600 rubles. (2500 + 100). The total difference reflected in account 16 “Deviation in the cost of material assets” in the amount of 500 rubles is divided equally between the balance of goods in the warehouse and the goods sold (since half of the purchased goods are sold).
8. The amount difference is written off:
Dt sch. 90-2 “Cost of sales” - 250 rubles.
K-tsch. 16 “Deviation in the cost of material assets” - 500 rubles.
In this case, a positive total difference was formed. If the ruble exchange rate on the day of payment for goods were higher than on the day of capitalization, then the amount difference would be negative.
In principle, to reflect total differences in accounting, you don’t have to use account 16 “Deviation in the cost of material prices
", and immediately write off this amount to the appropriate accounts (41 "Goods", 90 "Sales", 91-2 "Other expenses", etc.).
According to clause 25 of the Methodological Recommendations on the procedure for generating financial reporting indicators, account 16 “Deviation in the cost of material assets” may reflect deviations associated with the provision of discounts (capes) to the organization under the agreement.
According to the supply agreement, the cost of goods purchased from suppliers is 6,000 rubles, including VAT - 1,000 rubles. If the buyer pays for the purchased item within 20 days after receipt, he will be given a 2% discount. The buyer paid for the goods 15 days after receipt.
1. Goods received are capitalized: Dt inc. 41 “Goods” - 5000 rub.,
Dt sch. 19 “Value added tax on acquired assets” - 1000 rubles. K-t sch. 60 “Settlements with suppliers and contractors” -6000 rub.
2. Money was transferred to the supplier for the goods:
Dt sch. 60 “Settlements with suppliers and contractors”
K-t sch. 51 “Current accounts” - 5880 rub. (6000 - (6000 -2:100)).
As a result, on the credit of account 60 “Settlements with suppliers and contractors” a balance of 120 rubles is formed, which represents a discount received from the supplier (including VAT - 20 rubles).
3. The discount amounts were written off from account 60 “Settlements with suppliers and contractors”:
Dt sch. 60 “Settlements with suppliers and contractors”
K-tsch. 16 “Deviation in the cost of material assets” - 120 rubles.
4. Discounts are distributed to the corresponding invoices (reversal):
Dt sch. 19 “Value added tax on acquired assets” -
K-tsch. 16 “Deviation in the cost of material assets”
Thus, the cost of goods and VAT on these goods are adjusted (reduced) by the amount of the discount.
5. The amount of VAT on capitalized and paid goods is presented for deduction:
Dt sch. 68 “Calculations for taxes and fees”
K-t sch. 19 “Value added tax on acquired assets” - 980 rubles. (1000 - 20).
For operation (1), the goods were capitalized in gross valuation, i.e. excluding discount. You can apply a net estimate, i.e. minus the discount. In this case, there is no need to use account 16 “Deviation in the cost of material assets”. If the goods are not paid for within 20 days, the amount of the unreceived discount may be reflected in account 16 “Deviation in the cost of material assets.” However, in this case, you can do without account 16 “Deviation in the cost of material assets” by writing off deviations directly from account 60 “Settlements with suppliers and contractors”:
Dt sch. 41 “Goods” - 100 rub.
Dt sch. 19 “Value added tax
for acquired values” - 20 rubles. K-t sch. 60 “Settlements with suppliers
and contractors" -
To summarize, we will try to derive a general rule for writing off deviations in the cost of material assets:
Deviations in the cost of material assets are written off to the accounts to which the material assets were written off.
Consequently, if the materials were written off to accounts 08 “Investments in non-current assets”, 28 “Defects in production”, 29 “Service production and farms”, 58 “Financial investments”, 79 “Intra-economic settlements”, 94 “Shortages and losses from damage values”, 99 “Profits and losses”, the amount of deviations attributable to these materials is subject to write-off to the same accounts.
Count 16 implies presence of deviations in the cost criteria of materials. If it exists, it is necessary to detect the fact and display it in business transactions for the ease of subsequent settlement actions.
Purpose and use
Account 16 is used to summarize information about the differences that have arisen between the values of acquired material assets. They are calculated within the framework of the actual cost of procurement or purchase, as well as accounting prices.
It is used by enterprises that account for materials on account 10, and also use low-value items with immediate wear and tear by reflecting them on account 12 at accounting values.
The amounts of differences in the costs of acquired assets, calculated in the actual costs of purchase and procurement, as well as accounting prices, are subject to write-off to the Debit or Credit of account 16 from account 15 “Procurement and acquisition of materials”. Such values may include the following product items and units:
- fuel resources;
- mineral fertilizers;
- stern;
- seeds;
- planting materials;
- construction equipment, etc.
The differences accumulated in the account relating to the cost of acquired assets are written off to the debit of accounts related to the accounting of production costs, as well as other areas in proportion to the values at the accounting prices of materials used in the production process.
Analytical accounting activities within the framework of this account are carried out for groups of material resources with approximately the same degree of deviations.
Thus, it turns out that account 16 is traditionally used to account for the difference between the accounting value and the actual cost of inventories. This direction is often used by organizations that reflect the value of inventories within the framework of accounting values. Traditionally, they take into account the purchase of material and production assets using account 15.
Complete correspondence with examples
During accounting transactions, account 16 is large-scale, therefore it is widely used along with the following areas.
By debit
By loan
- 08 – investments in long-term assets;
- 15 – procurement and purchase of materials;
- 20 , 23 – basic and auxiliary production, respectively;
- 25 – costly areas of general production nature;
- 28 - marriage;
- 29 – service farms;
- 44 – costs of the implementation plan;
- 60 – settlement transactions with suppliers;
- 76 – carrying out settlements on accounts receivable and payable;
- 79 – on-farm operations;
- 90 , 91 – receipts and expenses for current and other activities;
- 97 – upcoming expenditure areas.
Key transactions and business transactions
If we consider the basic transactions within account 16, they look like this.
- Dt 16 Kt 15– reflection of the fact of deviation between the cost of materials and the actual cost.
- Dt 16 Kt 15– reflection of deviations in the cost of materials.
- Dt 15 Kt 16– reflects the fact of deviation between the cost indicator of materials and the actual cost parameter.
- Dt 20 Kt 16– there was a direct accrual of the deviation value.
Write-off of deviations, calculation and other operations
Write-off measures are displayed within the following entries.
- Dt 08 Kt 16– write-off at the end of the monthly period of deviation of the actual cost indicator.
- Dt 20 Kt 16– write-off of deviations in the value of tangible assets.
- Dt 23 Kt 16– write-off due to deviation of the actual cost norm.
- Dt 29 Kt 16- the same as in the previous case.
- Dt 44 Kt 16– an operation in which identified deviations in the cost indicator of materials are written off at the expense of sales costs.
- Dt 91 Kt 16– writing off the amounts of deviations for materials sold.
- Dt 26 Kt 16– there was a write-off at the end of the month in relation to the deviation of the actual cost of materials from the accounting prices.
- Dt 25 Kt 16– write-off based on deviation of actual cost.
Vacation arrangements in relation to production resources must be documented through documentation accepted by the company in accordance with the specifics of the production process. For example, this could be a waybill associated with the internal movement of goods, a fence sheet, a route map, etc.
The number of materials that were transferred must be reflected in the unit in which operational accounting is carried out. It can be pcs., kg., m., l., sq. m.
In the process of releasing materials into the production process, their assessment is carried out using one of the following methods:
- at the cost of each product unit;
- according to the average cost parameter;
- at the price of the first stocks (by time of purchase).
These standards are defined within the framework of the Inventory Accounting Instructions. It is approved by the Ministry of Finance and allows significantly simplify accounting activities.
The company must apply one of the specified methods for a group of inventory items during the reporting period. The chosen method should be fixed in within the company's accounting policy.
As for settlement actions, they are carried out quite simply. Grouping of costs reflecting the cost occurs by elements:
- expenses of a material nature;
- staff remuneration;
- contributions for social needs;
- depreciation on fixed assets;
- other expenses.
These costs make up the cost. The deviation is calculated as the difference between the actual cost, which includes markup, taxes and other additions, and the received amount.
Regulatory framework
Accounting for material and production values is carried out on the basis of various documents. For ease of understanding, they are divided into several levels.
- First level. Legislative acts, administrative documents and decrees adopted by the President.
- Second level. Generally accepted accounting standards for record keeping.
- Third level. Various methodological recommendations.
- Fourth level. Documents adopted within the enterprise itself.
Thus, account 16 plays an important role in accounting and is used in reflecting a large number of transactions.
- Differences between charts of accounts of budgetary, autonomous and government institutions With accountable persons
- Accounting info Agreement on assignment of rights of claim in 1s 8
- Regulatory reporting Reporting to the Social Insurance Fund of Russia
- We provide documents upon request of the Inspectorate