All enterprises and firms acquire, come to the warehouse, and then spend materials for different needs. In this case, the relevant documents are drawn up:
1. If materials are systematically released from the warehouse to units for the performance of work and services, then limit-intake cards are issued. For example: cement or brick at a construction site, flour or sugar in a culinary workshop.
They are filled out for a month, in duplicate, one remains in the warehouse, and the second - at the materially responsible person in the department or division of the enterprise. At the end of the month, the card is handed over to the accountant to arrange for the disposal of materials.
2. If the materials are released on a one-off basis, then a demand for the release of materials or an invoice is drawn up. For example: spare parts in the workshop, stationery in the office.
When materials are written off, the accountant makes entries in the program, indicating the credit account 10 (materials), and the debit account costs:
- office administrative costs
- to main production (20) in the shop where the enterprise’s products are manufactured
- auxiliary production (23) to the unit in which additional work is being carried out
- for deficiencies identified in the inventory
- on the basis of acts of rejection in retail outlets
- when making trade markdowns, when writing off shrinkage
An act to write off materials states the fact of their disposal, is executed on the basis of primary documents and signed by the commission. In accounting, material consumption is recorded in monetary terms. But they enter the enterprise in different batches, at different times and not at the same prices. Therefore, there are several methods to write them off:
1. The weighted average cost method is the most used in practice. To do this, consider the total cost of the materials received at the warehouse and their total amount. Then calculate the average unit cost, which is multiplied by the number of materials written off.
2. The FIFO method, when first of all materials of the first batch are written off, then later, as they arrive at the warehouse.
3. The LIFO method, in which first the last batch of materials is written off, and then their first receipt. In this case, the total amount charged will be higher than in previous methods. This method is rarely used, for example, in construction.
4. The identification method, which is used even less often, because it is laborious. It is used when they write off materials such as precious stones in a jewelry workshop, exclusive products in elite ateliers for individual orders. The write-off is carried out at the cost of a unit of material, because each dress is obtained in a single copy, and precious stones have their own cost and a characteristic composition.
When filling out the act for the write-off of materials, indicate its number, date, name of materials, units of measure, their quantity, price, total amount, storage location, reason for write-off and expense account. The commission of three people signs the acts, indicating the position and full name. The act is approved by the head of the enterprise, and a seal is put. The act of cancellation is signed by the materially responsible person, but he is not a member of the commission.
The accountant records the posting: D (expense account), K (material account).
In construction, for each object, the head or senior superintendent maintains documentation throughout the year, projects, estimates for the reconstruction and expansion of the object, for installation or new construction are compiled. Form 29 (write-off of materials) reflects the actual cost of construction work and production standards.
Prior to the start of construction, the organization’s VET fills out the first section of form 29 indicating the standards for the necessary materials, and the foreman writes down the volumes of work performed there. In the second section, the foreman reflects the actual costs of materials during construction and compares them with production standards.
During construction and installation works, the foreman reports on the actual consumption and cost overrun of materials on a monthly basis, indicating the reasons in the explanatory note.
He provides his report every month to the accounting and vocational schools. After verification and approval by the construction manager, the form is returned to the foreman to fill it in the next month. The basis for filling out form 29 is the primary accounting documents : consignment notes, form KS-6, which records the work performed, local and general standards for the consumption of materials in construction.
In construction organizations, writing off materials has certain features. The picking card, which is issued in triplicate, has information on the amount of necessary materials, on received materials upon and according to plan norms. Information is displayed monthly and the balance is shown at the end of the year for each type of material (sand, concrete, roofing materials) and for each type of work (finishing work, utilities) separately.
Analyzing the picking cards, material reports, form 29, design and estimate documentation, VET and accounting together prepare the write-off acts, which are signed by the commission members and approved by the first head of the construction organization.