Accounting of inventories in the enterprise

Production inventories are part of the assets of the enterprise. They are used as raw materials or production materials for manufacturing products, are intended for sale and can be used for own needs.

By the position of accounting number 5/01 to the production and material stocks are still various goods and ready for sale products. Production TMZ are divided into different groups depending on their purpose. This is the main group of production stocks used in the process of creating products (raw materials and materials, semi-finished products and components) and an auxiliary group that serves to maintain the means of labor in a normal state (varnishes, paints, fuels and lubricants).

Accounting of material inventories is carried out in accounts No. 10 "Materials", No. 12, No. 15 "Procurement and Purchase of Inventories", No. 16 "Deviations in the value of goods and materials."

Depending on their technical properties, production costs are subdivided into separate sub-accounts. These are the following accounting subaccounts - "raw materials and materials", "purchased components and semi-finished products", "fuel", "packaging and materials", "spare parts", "other materials", "construction TMZ", "stocks transferred for processing" "Economic inventory."

Valuation of inventories in accounting when they enter the warehouse is carried out at actual cost. The total cost of TMZ is formed from the actual cost specified in the receiving documents (incoming invoice)? And additional costs associated with their purchase (information services, customs duties, transportation costs, insurance and others).

The accounting of inventories on any economic entity is carried out only on the basis of primary accounting documents. The basis for the acceptance of the inventory of industrial inventories is a consignment note, an incoming invoice from the seller, which includes the quantity, the unit price and the total cost including VAT. Then a parish warrant is issued to the parish. Production reserves received from production shops are stocked on the basis of an internal invoice.

Accounting for inventories provides for an obligatory inventory, conducted at least once or twice a year to confirm the actual balances in the warehouse. Obligatory inventory and actual assessment of the technical condition of stocks is carried out at the end of the year or additionally may be carried out with the change of the chief accountant or director of the enterprise, those officials directly responsible for the presence of TMZ, for their correct reflection in accounting. Inventory of production stocks is carried out by a special commission created at the enterprise to check material stores and conducted by the enterprise with personal participation of storekeepers and representatives of the commission appointed by order.

Analytical accounting of inventories is carried out for individual warehouses in the context of sub-accounts and individual groups of TMZ. Analytical accounting depends on the chosen method of the method for estimating production stocks (for example, based on the average price method).

Accounting of inventory in the financial statements necessarily contains information on how to account for TMZ used at the enterprise in accordance with the approved accounting policies. Correctly organized accounting of TMZ is the most important factor for the uninterrupted organization of the production process and the output of products. Also, the types and value of TMZ, transferred as collateral to another enterprise, are necessarily identified in accounting reports.