Inventory is a line in the balance sheet. How are finished products reflected in the balance sheet? Inventories balance sheet

The balance sheet is a systematic record of all accounting information. It is conducted by every organization that is competent in its own reputation and takes a responsible approach to reporting. One line item that poses particular challenges for inexperienced employees is 1210. In this article, we will look at how to correctly report inventory on the balance sheet.

What is reflected in the “Inventories” line

All inventories and expenses in balance line 1210 must be entered correctly. To do this, you need to consider:

Debit balance of account 10 “Materials”, add to it the balance of account 11, which reflects information about animals that are fed and fattened;
Then the balance of account 14 is subtracted, where reserves are registered that go towards reducing the value of material assets, and the debit balance of account 15 “Procurement and acquisition of material assets” is added;
Next, you need to calculate the resulting amount plus/minus the balance of account 16, which reflects information about deviations in the cost of material assets;
Then add the debit balance of such accounts as 20, 21, 23, 28, 29, 41;
We subtract from the resulting amount the balance of account 42, namely the data on the trade margin, and add all this to the balance of accounts 44 in the balance sheet, 45, 97.

It is worth noting that the data on accounts 15 and 16 relate only to part of the stocks of raw materials and supplies, and in account 97 only those costs of the enterprise are taken into account, the write-off period of which is no more than a year.

There is a legally accepted form for filling out this line. As experts note, the new form, unlike the previous one, is simplified. It only requires the presentation of basic data without detailed analysis. Despite this, they recommend carrying out this procedure only for those inventories whose original cost is more than 5% of the total size. Thus, all information will be fully disclosed, and such detailed reporting indicates the company’s competent attitude to the preparation of such documents.

As inventories, which must be registered in line 1210, we accept tangible and intangible assets that:

Are used and exploited in the form of raw materials or production materials for the creation, development or production of a labor product;
The manufacturer plans to send it for sale. It includes finished products in the balance sheet as the final result. Moreover, it must go through all stages before release, namely: high-quality processing, quality testing, checking for compliance with all necessary technical parameters, standards and documentation regulations;
Management purchased them to apply them to the control system.

There are also actual material costs in the balance sheet for the purchase of inventories, which include:

The total amount of funds that were paid by the organization to the seller of inventory. All this data is written down in the corresponding document;
Financial resources that were sent to companies providing information transfer, as well as for consultations. This information is entered in line 1210 only if the organization’s activities directly related to the sale or purchase of inventory;
The cost of gross output in the balance sheet, distribution costs;
Expenses for payment of customs duties;
Payments of taxes that are not refundable. Moreover, they must be related to the purchase of inventories by the company;
Costs for the transfer of rewards that were paid by the intermediary company after the acquisition;
Expenses of the organization that were allocated to procurement processes, as well as transportation of inventories. Economists include the costs of maintaining an organization’s warehouse as this type; transport services that were necessary for the delivery of goods, costs of the procedure for selling inventory on the retail market, and so on.

How to fill out information correctly

It is necessary to remember how an item of expenditure is created that is aimed at creating a product of labor. These include:

Material costs that are necessary for the purchase of materials and raw materials;
Costs for remuneration of employees of the enterprise, as well as hired employees. The company must conclude a service provision agreement with them;
Contributions for social needs. Such payments primarily include social benefits, as well as various pension and insurance contributions;
Depreciation expenses.

Once the actual data for each type of inventory has been recorded, it is necessary to make an estimate. It can be carried out by an accountant in several ways, for example, accounting for the cost of each product, calculating the average cost.

Most accountants in practice use the latter method, namely accounting by time of acquisition of goods. It is worth noting that a detailed reflection of acquired inventories according to their composition must be recorded in lines 12101-12105.

To reflect costs for future periods, it is necessary to reflect them in the manner that was established for writing off the cost of assets of this type.

In this case, the accounting department can fill out a report on deferred expenses in the balance sheet line. But for these purposes, the organization needs to document the accounting procedure in its accounting policies. Many accountants are interested in: “In which line of the balance sheet is account 97 reflected?” It allows you to create special subaccounts on line 1210 to express costs that will be allocated to subsequent purchasing periods.

One of the most important indicators in the “Inventories” line is the reflection of raw materials and materials. These include those MA companies that become the main means of labor for creating goods, and after entering data on the final gross output in the balance sheet. That is, these inventories are its main production resources. This type of goods may include not only fuel, parts for repairs, the main components of the product, but also tools, employee clothing, as well as production waste.

They are registered and accounted for in the debit balance of account 10, namely in the form of the original price for goods that are not subject to write-off until the end of the next reporting period. In order to simplify the entire process, experienced accountants use account 15, which expresses information about prepared and purchased MA, as well as account 16 with data on deviations in the cost of MA. All this allows you to describe in detail and reflect the accounting price of materials and raw materials. Finished products are also reflected in line 1210.

It is worth noting the role of account 14. In the event that the organization plans to create a reserve fund to depreciate the total amount of inventories. Impairment is the phenomenon of decreasing the value of inventories. That is, account 14 records the company’s raw materials and materials minus the reserve for impairment. Moreover, their cost should be several times lower than the original one by the date of submission of the report. In order to determine this, it is necessary to perform an impairment test:

Make a list of company assets that will participate in testing;
Calculate the value of the asset that will be recovered;
Determine losses from impairment phenomena;
Recognize the loss in profit or loss over time from impairment;
Prepare a detailed analysis of the situation after the report date;
Document all the data received and write down all the necessary information in the reporting.

This will allow us to reduce the cost of the materials used several times and stop the overexpenditure of the enterprise’s profits for further periods.

Section II “Current assets” of the balance sheet includes seven lines. They, in particular, reflect the cost of inventories and costs not written off at the end of the reporting period, the amount of “input” VAT not accepted for deduction, accounts receivable, the cost of short-term financial investments, and the amount of the organization.

Let's consider the order of filling out each of these lines in detail.

line 1210, line 1220, line 1230, line 1240, line 1250, line 1260

Line 1210 “Inventories”

Line 1210 should reflect information about materials, goods, finished products and work in progress. Inventories also include household equipment, inexpensive office furniture, stationery and other property of the organization that has not been written off at the end of the reporting period.

The data on line 1210 primarily includes the debit balance on account 10 “Materials”. Here the cost of materials, purchased semi-finished products, components, fuel, containers and spare parts that are not written off for production is indicated.

An organization can keep records of raw materials and supplies on account 10 at accounting prices. Then actual costs are reflected in the debit of account 15 “Procurement and acquisition of material assets”, and the deviation of actual costs from accounting ones is reflected in account 16 “Deviation in the cost of material assets”.

With this accounting procedure, when filling out line 1210, to the balance of account 10, you must either add the debit balance of account 16 (if the actual cost of materials exceeds the accounting one), or subtract the balance of this account (if the actual cost of materials is lower than the accounting one).

If an organization creates a reserve for the depreciation of inventories, then when filling out line 1210 from the debit balance of account 10, the credit balance of account 14 “Provisions for the reduction of the value of material assets” is subtracted.

Line 1210 reflects the cost of products that have not gone through all stages of processing, as well as work that was not accepted. To fill out this line, manufacturing firms summarize their account balances:

20 “Main production”;
- 21 “Semi-finished products of own production”;
- 23 “Auxiliary production”;
- 29 “Service industries and farms”;
- 44 “Sales expenses”;
- 46 “Completed stages of unfinished work.”

Trading companies show on line 1210 transportation costs that relate to the balance of unsold goods. If the accounting stipulates that transport costs are included directly in the cost of purchased goods, then such costs are reflected in account 41 “Goods” and are also included in these lines 1210 of the balance sheet, but as part of the cost of goods.

To reflect balances of finished products and goods in the balance sheet, the debit balance of accounts 41 “Goods” and 43 “Finished Products” is transferred to line 1210. If an organization accounts for goods at sales prices, then from the debit balance in account 41 the credit balance in account 42 “Trade margin” is subtracted. That is, in line 1210 of the balance sheet, goods are reflected at actual cost.

Manufacturing enterprises indicate in line 1210 the actual or standard cost of finished products.

In addition, line 1210 reflects the cost of products or goods transferred to customers, the proceeds from the sale of which cannot be recognized in accounting. For example, if the transfer to goods occurs not at the time of shipment, but after payment. On the same line, the cost of valuables that are transferred to other organizations for sale under a commission agreement is recorded. Thus, the debit balance of account 45 “Shipped Goods” is entered in line 1210.

Line 1220 “Value added tax...”

Line 1220 is dedicated to input VAT. This line of the balance sheet should show the balance of VAT amounts that suppliers and contractors presented to the company. At the same time, as of December 31, your organization did not accept tax as a deduction or did not include VAT as an expense in the cost of purchased assets (work, services). For example, this is possible if invoices have not yet been received, there is an error in them, when releasing goods with a long production cycle, or when selling products taxed at a zero rate. Input VAT may remain accounted for, provided that it is deducted only after remittance. For example, when a company fulfills its VAT obligations. In line 1220 enter the debit balance of account 19 “Value added tax on acquired assets,” which is recorded as of the reporting date.

Line 1230 “Accounts receivable”

Line 1230 about accounts receivable. The following debts are included in accounts receivable:

buyers for goods supplied to them, services provided, work performed;
suppliers for advances transferred to them;
accountable persons for the money given to them;
budget and extra-budgetary funds for overpayments of taxes or contributions, etc.

Accordingly, in line 1230 enter the debit balance of accounts for accounting settlements: 60 “Settlements with suppliers and contractors”, 62 “Settlements with buyers and customers”, 68 “Settlements for taxes and contributions”, 69 “Settlements for social security”, etc. d.

Line 1240 “Financial investments (except ...)”

In line 1240, reflect data on short-term investments. Here we are talking about assets with a circulation or maturity period of no more than 12 months. For example, these are loans issued for a period of less than a year, bills or bonds with a maturity of no more than 12 months. Data on long-term investments are indicated in line 1170 of the first section of the balance sheet.

In line 1240 enter the debit balance of account 58 “Financial investments” (in terms of short-term investments). If a company creates a reserve for reducing the cost of financial investments, then the indicator in line 1240 of the balance sheet is reflected minus contributions to this reserve. That is, when filling out line 1240, the credit balance of account 59 “Provisions for impairment of financial investments” is subtracted from the debit balance of account 58.

Information about interest-free loans is not indicated in line 1240. Such loans are not financial investments. Therefore, their amount is taken into account as part of accounts receivable on line 1230 of the balance sheet.

And further. Line 1240 does not reflect information about cash equivalents. Their amount is given in line 1250 of the balance sheet.

Line 1250 “Cash and cash equivalents”

In line 1250 indicate information about the company’s money - both in rubles and in rubles. So, on line 1250 of the balance sheet they reflect:

money in the company's cash desk, as well as the cost of monetary documents (for example, postage stamps, paid travel tickets, vouchers, etc.);
money in accounts in
money in foreign currency held in foreign currency accounts in banks;
other funds, for example money held in special bank accounts, transfers in transit, etc.

Funds in deposit accounts opened for the purpose of generating income are not shown in line 1250. Depending on the term of the deposit, they are reflected either on line 1170 (long-term) or on line 1250 (short-term) of the balance sheet.

The cost of funds in foreign currency is converted into rubles at the official exchange rate as of the reporting date. To fill out this line, use data on the organization’s cash balances reflected in bank statements and the cash book.

The organization's cash equivalents are also entered in line 1250 of the balance sheet. These are short-term (for a period of no more than 3 months) and highly liquid investments that are not subject to the risk of changes in value, which can be converted into a predetermined amount of money. For example, this is a cash equivalent - this is a bank deposit on demand.

Thus, in line 1250 the debit balance is entered for accounts 50 “Cash”, 51 “Cash accounts”, 52 “Currency accounts”, etc.

Line 1260 “Other current assets”.

In line 1260 it is necessary to reflect information about other assets that are not shown in lines 1210-1250 of the balance sheet and information about which is not significant. In particular, these may be amounts of VAT accrued upon shipment of goods, the proceeds from the sale of which were not recognized in the reporting year, amounts of shortages that were not written off, etc.

The financial reporting forms were approved by Order of the Ministry of Finance dated July 2, 2010 No. 66n. When submitting reports to tax authorities and statistical authorities, the line code must be indicated after the column “Name of indicator”. These codes are listed in Appendix No. 4 to Order of the Ministry of Finance dated July 2, 2010 No. 66n. How to fill out line 1210 of the balance?

What does line 1210 of the balance sheet consist of?

Line 1210 of the balance sheet is called “Inventories”. As the name suggests, this line needs to be shown (clause 20 of PBU 4/99):

raw materials, materials and other similar values;
costs in work in progress (distribution costs);
finished goods, goods for resale and goods shipped;
Future expenses.

This means that to fill out line 1210 of the balance sheet as of the reporting date, you need to add up the debit balance of the following accounts (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

10 “Materials;
11 “Animals in cultivation and fattening”;
15 “Procurement and acquisition of material assets”;
16 “Deviation in the cost of material assets”;
20 “Main production”;
21 “Semi-finished products of own production”;
23 “Auxiliary production”;
28 “Defects in production”;
29 “Service industries and farms”;
41 "Products";
43 “Finished products”;
44 “Sales expenses”;
45 “Goods shipped”;
97 “Deferred expenses”.

We remind you that in financial statements, indicators must be presented in a net assessment, i.e., minus regulatory values (clause 35 of PBU 4/99). This means that if an organization has an amount of reserve for depreciation related to inventories (credit balance of account 14 “Reserves for depreciation of material assets”) or a trade margin (credit balance of the same name account 42), the debit balance of the above accounts should be equal to their amount decrease. And the already “cleared” balance of inventories should be reflected on line 1210. And information about regulatory values that are not given separately in the balance sheet must be disclosed in the explanations to it.

Please also note that if the organization’s reserves include, for example, raw materials or materials used to create non-current assets, then these amounts are not reflected on line 1210 as current assets (Letter of the Ministry of Finance dated January 29, 2014 No. 07-04-18 /01). The amount of such inventories will need to be shown in line 1190 “Other non-current assets”. Similarly, the balance of accounts 15 and 16 related to the acquisition of non-current assets will also not be shown on line 1210. It is quite natural that the balance of account 97 is reflected on line 1210 only in that part that relates to expenses with a write-off period not exceeding 12 months after the reporting date. The remaining deferred expenses are included in non-current assets.

Finished products are reflected in the balance sheet within assets collectively referred to as “Inventories”. The article will discuss the balances of which accounts accumulating the cost of finished products fall into this balance sheet asset.

Reliability of information on finished products

According to one of the accounting principles, financial statements, including the balance sheet, must contain only reliable information. This means that balances on all accounts, including balances on finished goods (GP) accounts, must reflect the real state of affairs in the company.

In this sense, the accountant faces a difficult task. He needs to collect information about all production processes: the movement of inventories and valuables, their consumption, depreciation of fixed assets and intangible assets, wages and insurance premiums, as well as all other expenses involved in the formation of the cost of the state enterprise in order to establish the real value of the asset “Ready products." After all, finished products are the result of the entire production activity.

After writing off the sold GP at cost, a balance is formed in total terms by the end of the final period. It will be included in line 1210 of the balance sheet.

The balance sheet itself must be prepared by all legal entities at the end of the year. But company owners often require provision of intermediate information about the economic situation of the enterprise and assessment of financial potential in close to real time. Approximate, since it takes accountants time to draw up any balance sheet, even an intermediate one.

Evaluation of finished products

For an objective assessment of inventories, including GP, there is PBU 5/01 - in fact, a working tool for accounting services.

It spells out the principles for the formation of the cost of SOEs. The chosen method of its reflection must be the same for each item. It must remain unchanged for at least 1 reporting period and record as fully as possible the final cost of the finished product being created.

When assessing a state enterprise, it is necessary to be guided not only by PBU 5/01, but also by the provisions of the accounting policy in force at the enterprise.

The cost of GP consists of actual manufacturing costs and includes both direct production costs and indirect ones.

The accounting policy must provide for the procedure for distributing general production expenses to the balances of state enterprises and the procedure for writing off general business expenses.

Disposal of state enterprises is carried out on the basis of the option established in the accounting policy for its write-off at cost:

inventory units;
on average;
according to FIFO.

As a result, at the end of the reporting period, objective information about finished products will be collected from the accounting accounts.

In what accounts are finished products recorded?

The costs that form the actual cost of the GP are collected on account 43 “Finished products”. In this case, after all the costs for its production have been generated, the following posting is made:

Dt 43 Kt 20 - reflected at cost, capitalized to the GP warehouse.

This posting is carried out as finished products are manufactured and received into the warehouse.

Disposal of GP upon sale will be reflected as follows:

Dt 90 Kt 43 - the cost of finished products sold is reflected in expenses.

This write-off is made at the end of each month.

The debit balance at the end of the year will be included in inventories on line 1210 of the balance sheet.

Thus, the indicator for assessing the balances of the state enterprise as of the reporting date must be real, reliably reflecting the state of the company’s property for the “Finished Products” asset.

Some features of accounting for finished products

Above, the general principles of the formation of the cost of production enterprises based on actual expenses and their reflection in account 43 during a normal production cycle were clearly demonstrated.

But deviations from the norm do occur. It is impossible to foresee and analyze all cases within the framework of one article. We will describe only the most common situations.

If manufactured products are planned to be used for the needs of the enterprise and this is known, then it is advisable to capitalize them not on account 43, but on materials account 10.

Then the wiring will be done:

Dt 10 Kt 20 - according to the generated actual cost of such product-material.

The release of these materials will occur according to the accounting option for their evaluation.

Depending on what specific needs the capitalized materials will be used for, they can be written off to accounts 20 or 25, 26.

Accounting for deviations in cost

If the enterprise accounts for GP at standard cost, then the difference between the actual and planned cost of production is taken into account in the finished product release account - 40.

At the end of the month, the balance of account 40 is written off to account 90 “Sales”. Thus, account 40 will not have any balances on any reporting date, and finished products will appear in line 1210 of the balance sheet at the real value of their balances on the reporting day.

If the cost is reflected in accounting in accordance with the adopted accounting policy in accounting prices, then the deviation from them is recorded in a separate sub-account directly to the 43rd account “Deviations of the actual cost from the accounting value of the state enterprise.”

In line 1210 of the balance sheet as of the date of the report, the balances of finished products fall either at book value or at actual costs - depending on the adopted accounting policy.

Additionally, we will say that for serial production it is advisable to use the accounting method at standard cost, while for production with the production of products in limited quantities it makes sense to keep accounting at actual costs, without establishing accounting units or standard cost indicators.

It is also allowed to reflect cost on account 43 only in the context of direct costs incurred.

Another nuance of reflecting the finished product

When exporting or transferring for sale under GP commission agreements, the time of sale does not coincide with the time of shipment of the goods. Therefore, it must be recorded for these transactions on account 45 “Goods shipped”.

As a result of the shipment, the following posting occurs:

Dt 45 Kt 43 - at the actual cost of the shipped GP.

At the time of recognition of sales revenue, the following entry must be made:

Dt 90 Kt 45 - for the amount of the actual cost of the sold GP.

Balances on account 45 are also reflected in line 1210 of the balance sheet, thereby forming an idea of the location of the finished product.

***

Whatever method of assessing finished products is adopted in the accounting policy, its balances as part of accounts 43 and 45 are recorded in the assets of the balance sheet as of the reporting date and are included in the amount of the enterprise’s inventories, for the reflection of which line 1210 of these statements is allocated.

45 accounting account— This is a register designed to summarize information about the movement of those products or goods that have already been shipped, but are not yet considered sold. Where can you see the entire volume of products created during the period? How the total volume of products created is related to account 45 and how the data for line 1210 of the balance sheet is generated - this is discussed in our article.

Accounting statements: features of accounting for the cost of finished products

The value of the balances of finished products listed in the warehouse as of the reporting date in the balance sheet is included in the amount reflected in line 1210 “Inventories”. That is, finished products are an integral part of inventories, the total value of which consists of (clause 20 of PBU 4/99, approved by order of the Ministry of Finance of the Russian Federation dated July 6, 1999 No. 43n):

raw materials and supplies;
costs in work in progress;
finished products, goods and goods shipped;
expenses of future periods.

Read about what sections the balance sheet consists of and how to fill it out correctly in the article. “Balance sheet (assets and liabilities, sections, types)” .

Being an integral part of inventories (clause 2 of PBU 5/01, approved by order of the Ministry of Finance of Russia dated 06/09/2001 No. 44n), finished products must be taken into account at actual cost (clause 5 of PBU 5/01). Upon disposal, it is assessed in accordance with one of the methods chosen for this (clause 22 of PBU 5/01), i.e. based on the cost:

each unit;
average;
first acquisitions.

Both of these valuation procedures (input and output) affect the cost at which the balance of available finished products will be reflected in the balance sheet (clause 24 of PBU 5/01).

The actual cost of the finished product is determined based on the actual costs incurred for its production (clause 7 of PBU 5/01). Finished products, as they are manufactured, are accepted for accounting in the warehouse, which is reflected by posting to the debit of account 43, intended for accounting for these products. However, due to the fact that at the time of receipt the actual cost has not yet been formed (the month is not closed), the receipt is registered at the accounting price (clause 204 of the Methodological Recommendations for Inventory Accounting, approved by Order of the Ministry of Finance dated December 28, 2001 No. 119n), selected by the taxpayer independently from several possible options. At the end of the month, when the actual cost of creating each type of finished product becomes clear, the accounting value is adjusted to the actual value.

Accounting accounts 43 and 45 to reflect finished products

Thus, all products manufactured for sale within a month are recorded as a debit to account 43 at their book value. At the end of the month, this cost must be adjusted to the actual cost. Moreover, within a month, some of the products have already been sold. What is the algorithm for accounting for deviations?

Deviations in value can be collected in 2 ways: on account 40 or on a separate sub-account of account 43. The accounting value will be calculated as follows:

with the first method: Dt 43 Kt 40;
with the second: Dt 43 Kt 20 (23, 29).

The deviation will be generated by:

accrual of actual cost with receipt of the difference on account 40 - with the first method: Dt 40 Kt 20 (23, 29);
additional accrual (with plus or minus) of the adjustment amount - in the second method: Dt 43 Kt 20 (23, 29).

Write-off of the cost of manufactured products when they are shipped during the month of manufacture is reflected by posting Dt 90 Kt 43 at book value. At the end of the month, the cost of shipped products is adjusted by postings Dt 90 Kt 40 or Dt 90 Kt 43, depending on the selected deviation account.

When taking into account deviations on account 40 for products that remained unshipped, at the end of the month you will have to make a posting Dt 43 Kt 40 for the amount of deviations associated with these products, so that the balance on account 43 shows its actual cost.

For shipments of finished products or goods with a special transfer of ownership (the shipment takes place, and recognition of the sale occurs later), an interim account 45 “Goods shipped” is used, i.e. in the correspondence of transactions reflecting such a shipment, instead of account 90, account 45 is used: Dt 45 Kt 41 (43). Recognition of the sale will subsequently be reflected by posting Dt 90 Kt 45.

What goods are included in account 45? These are, for example, goods transferred for commission. Also, account 45 “Goods shipped” is used in case of export of products. The use of account 45 when exporting is due to the fact that ownership remains with the seller for some time until all customs procedures are completed.

Results

Finished products remaining in the warehouse on the reporting date will appear in the balance sheet line reflecting the amount of inventory and will become its component. The cost of finished products is formed by 2 rules: acceptance for accounting at the actual costs of its creation and disposal in the assessment chosen by the taxpayer (at the cost of a unit, average or first acquisitions). Accounting for the movement of products during the month of production, when the actual cost has not yet been formed, is carried out at the accounting cost, which is then adjusted for the amount of deviations.