Inventories are part of the assets of the enterprise. They are used as raw materials or production materials for the manufacture of products, are intended for sale and can be used for their own needs.
According to the accounting provision numbered No. 5/01, various other goods and ready-to-sell products are also attributed to inventories. Production TMZ are divided into various groups depending on their purpose. This is the main group of inventories used in the process of creating products (raw materials, semi-finished products and components) and the auxiliary group, which serves to maintain the means of labor in good condition (varnishes, paints, fuels and lubricants).
Inventory accounting is carried out on the accounts of accounting No. 10 “Materials”, No. 12, No. 15 “Procurement and purchase of goods and materials”, No. 16 “Deviations in the value of goods and materials”.
Depending on their technical properties, production material costs are divided into separate sub-accounts. These are the following accounting sub-accounts - “raw materials”, “purchased components and semi-finished products”, “fuel”, “containers and materials”, “spare parts”, “other materials”, “construction TMZ”, “inventories transferred to processing”, "Household equipment".
Valuation of inventories in accounting when they arrive at the warehouse is carried out at actual cost. The total cost of TMZ is formed from the actual cost specified in the acceptance documents (incoming invoice)? and additional costs associated with their purchase (information services, customs duties, transportation costs, insurance and others).
Accounting for inventories at any business entity is carried out only on the basis of primary accounting documents. The basis for the acceptance of production inventories is a bill of lading, an incoming invoice from the seller, which includes the quantity, unit price and total cost including VAT. Next, a receipt is issued for the arrival . Inventories received from production shops are allocated to the warehouse on the basis of an internal invoice.
Inventory accounting provides for mandatory inventories conducted at least once or twice a year to confirm actual stock balances. A compulsory inventory and actual assessment of the technical condition of stocks is carried out at the end of the year or may additionally be carried out when the chief accountant or director of the enterprise, those officials who are directly responsible for the availability of TMZ, for their correct reflection in accounting are changed. Inventory of inventories is carried out by a special commission created at the enterprise to check inventory and conducted at the enterprise with the 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 method chosen for the method of estimating inventories (for example, based on the average price method).
Accounting for inventories in the financial statements necessarily contains information on the methods of accounting for TMZ used at the enterprise in accordance with the approved accounting policy. Properly organized accounting of TMZ is the most important factor for the uninterrupted organization of the production process and production. Also, the types and costs of TMZ transferred as collateral to another enterprise are necessarily highlighted.