Accounting for materials is a laborious process and requires high accuracy from accountants. In order not to download the documentation with a large amount of information, the materials must be written off in a timely manner.
Correct record keeping - order in the company. The success of the inventory and the relevance of analytical indicators will depend on the kind of document flow in the company. If all measures are taken in a timely manner, the balance sheet at the reporting date will converge without problems.
General write-off rules
Materials are the current assets of the organization. Accounting for materials is kept on account 10 "Materials". In the course of the company's life, a large amount of low-value property is used.
After use, the material must be written off, leaving it on the balance sheet does not make sense, as this leads to an unreasonable overestimation of the value of assets.
The timing of the write-off is set by each organization individually, this information must be spelled out in the accounting policy. This can be a month, quarter, or the day the property is retired. Disposal is formalized by a write-off certificate. This document indicates the amount of materials written off and the total cost. The form is developed by the enterprise independently. For certain groups of materials, additional documents will be required to confirm the consumption. For example, to write off fuel, it is necessary to use the waybills of transport, which reflect the validity of the costs of fuel and lubricants.
Write-off transactions
All of the above documents are grounds for writing off materials. Only after their registration should the accountant make the postings.
Disposal of material is always reflected in Account Credit 10 "Materials".
Depending on where the material values go, the wiring is built. This can be a transfer to production, write-off due to marriage, or simply use for the needs of the organization. In most cases, two accounts are used, to which it is customary to write off the costs of materials: account 20 "Main production" and account 26 "General business expenses". If the organization is directly involved in production, account 20 is used, in other cases - 26.
Debit 20 - Credit 10 - Issue of materials to the main production.
Debit 26 - Credit 10 - Release of materials for general business needs.
There are other options for composing transactions. They are used mainly in large organizations with a large number of structural units.
Debit 23 - Credit 10 - Issue of materials to auxiliary production.
Debit 25 - Credit 10 - Release of materials for general production needs.
Debit 28 - Credit 10 - Issue of materials to correct the marriage.
Debit 29 - Credit 10 - Issue of materials to service production.
Debit 44 - Credit 10 - Materials written off in the course of trading, or used to maintain retail space.
Debit 94 - Credit 10 - Write-off of the cost of damaged materials, they should be released according to the recycling act.
