Material Accounting: Concept and Postings

The main business tool is accounting. This is the main mechanism for managing all processes: from production to sale of products. It promotes the development of production, planning, analysis and forecasting.

The main link in conducting accounting at the enterprise is the accounting of materials. This is an integral part of the property of the enterprise, which is necessary for the successful existence and development of its activities.

Materials are involved in the production sphere and are its basis. They provide the process of output and participate in the formation of value.

Accounting of materials is able to influence the efficiency of the enterprise as a whole, from its correct organization depends the determination of the need for production in various materials. Rational supply of them leads to a reduction in costs, increased financial results, coherence of all processes. Excess stocks of materials lead to freezing of monetary resources and inhibition of their turnover. The enterprise incurs losses due to additional funds necessary for storage and storage, property tax is significantly increased. Failures in production can result in a shortage of necessary materials, which will affect the timing of the company's obligations to produce. Both cases have a negative impact on the financial result and lead to a decrease in profits.

Material accounting performs the following main tasks:

- control of the safety of resources;

- conformity of stocks to specifications;

- control over the organization of supply of production of materials;

- Calculation of actual costs for the procurement of materials;

- distribution of the cost of materials for costing articles.

Material resources participate in the production process only once. Their cost is completely transferred to the created products. In this they differ from fixed assets. Accounting for materials allows the timely renewal of inventories.

In the cost of production, material resources are significant. The qualitative account of materials and rational expenditure influence on increase of indicators of financial activity of the enterprise.

The goods are received on the basis of the supply contract. Accounting on the basis of accompanying documents produces a record of materials. Postings reflecting the receipt of goods from the supplier:

Дт 10 Кт 60.01 - Goods receipt to the warehouse from the supplier.

19.3 / 60.01 - the amount of VAT related to the received materials.

68.2 / 19.3 - the amount of VAT recoverable from the budget.

60.01 / 51 - the amount of repayment of the debt to the supplier for the goods received.

60.02 / 51 - advance payment to the supplier for the future delivery of goods.

60.01 / 60.02 - the amount that reflects the payment to the supplier of the previously listed prepayment.

If the materials are purchased by the accountable person, then the posting is made:

71 / 50.01 - issuance of money from the cash department of the enterprise to the reporting person .

10/71 - the amount of goods received from the accountable person.

19.3 / 71 - VAT on the goods received.