If an organization or an individual entrepreneur works according to a simplified taxation system, engaged in production, then the cost of materials that are intended for production should be written off as expenses immediately after payment. In most organizations, the question arises of adjusting the recorded costs at the end of the last month for the cost of materials that were put into production, but not used.
Instructions
Step 1
The entire list of expenses that are taken into account under the simplified taxation system is available in the Tax Code. The composition and accounting procedure are also indicated there, and the cost is debited immediately after the funds are received to the organization's accounts or to the cashier. At the same time, reduce the amount of material costs of the current month by the price of materials and raw materials that have not been used in production. That is, if at the end of the month there are materials in work in progress, then adjust the costs for their cost, as of the last date of the reporting month by making an entry for the cost of unused materials with a minus sign.
Step 2
If you included in the costs the price of materials after payment and use in production, then this is not considered an error, since both conditions are met in the same tax period. Otherwise, the base includes the expenses of the previous tax period and the tax authorities have the right not to accept the reporting during the audit.
Step 3
If you are just planning to switch to a simplified taxation system, then, when purchasing materials, take VAT deduction after paying for the capitalized materials. In this case, use the materials during those activities that are subject to VAT. In the event that VAT has not been paid, then the tax paid in the cost of materials is written off to the costs of production, as well as the sale of products.
Step 4
For example, before the transition to the simplified system, the enterprise received materials, and they were written off for production, after switching to the “simplified” system, then these materials were used in activities that are not subject to VAT and the deducted amount of VAT must be restored.
Step 5
Each taxpayer keeps records of income and expenses in order to calculate the tax base for the tax paid in connection with the application of the "simplified tax", using the Book of Income and Expenses at the enterprise or with an individual entrepreneur. Since the expenses that are associated with the purchase of raw materials and materials should be accounted for as part of expenses at the time of payment, reflect the details of the payment order in the Book of Income and Expenses.
