General Accounting of Materials and Equipment Using the Regular Declaration Method

Diagram 1.3: Detailed accounting by balance sheet method

Cumulative import table

Summary table N – X- T

Import form

Import document delivery note

Warehouse card

Balance book

Delivery note

Export document delivery note

Note:

Cumulative export table

Daily, periodic recording Final recording

Compare data

1.6 General accounting for import - export of raw materials - fixed assets

1.6.1 Regular declaration method

1.6.1.1 Characteristics

It is a method of regularly, continuously and systematically monitoring and reflecting the import - export - inventory situation of materials and goods in accounting books.

The value of materials and goods in inventory on the accounting books can be determined at any time during the accounting period according to the formula:

Ending inventory value

= Beginning inventory value

+ Import value

warehouse in period

- Value of goods sold in the period

At the end of the accounting period, compare the actual inventory data of materials and goods with the inventory data of materials and goods in the accounting books. If there are any discrepancies, they must be handled promptly.

The regular declaration method is applied to production units and commercial units trading in high-value, high-quality, technical goods.

1.6.1.2 User account

 Account TK151 "Goods in transit"

 Account TK152 "Raw materials"

 Account TK153 "Tools and equipment"

Content and structure of account TK151 "Goods in transit":

In debt

TK151 - Goods in transit

Have

Debit balance : Value of purchased inventory

go on the road

Arise:

+ Value of purchased inventory in transit during the period.

Arise:

+ Value of inventory in transit that has been imported into the warehouse or transferred for direct sale.

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Content and structure of account Account TK152 "Raw materials"

In debt

TK152 - Raw materials

Have

Outstanding balance:Inventory value of raw materials

Arise:

+ Value of raw materials imported into warehouse during the period.

+ Value of surplus materials during inventory.

Arise:

+ Value of raw materials issued during the period.

+ Trade discount when purchasing raw materials is enjoyed.

+ Missing value of raw materials during inventory.

Content and structure of account TK153 "Tools and equipment"

In debt

TK153 - Tools and equipment	Have
Outstanding balance:Inventory value of fixed assets
Arise:		Arise:
+ Value of imported fixed assets in the period		+ Value of fixed assets issued in the period.
+ Surplus value of fixed assets during inventory.		+ Trade discount when purchasing
		CCDC is entitled to.
		+ Surplus value of fixed assets during inventory.

1.6.1.3 Accounting method

 Accounting for raw materials, tools and equipment inventory

+ In case of domestic purchase

- Purchase raw materials, tools and equipment to warehouse in full according to documents, VAT deduction method, record:

Debit account 152,153 – Actual price (excluding VAT) Debit account 1331 – Deductible VAT

Credit account 111,112,141,331 – Total payment

- In case the enterprise has received the invoice but the raw materials and tools have not been imported into the warehouse: save the invoice in a separate file "Purchased goods in transit". During the period when raw materials and tools arrive, they are still recorded as usual.

At the end of the period, raw materials, tools and equipment have not been returned to the accountant, record: Debit account 151 - Value of raw materials, tools and equipment according to documents

Debit account 133 – VAT (if any)

Credit account 111,112,141,331 - Total payment

In the next period, when raw materials, tools and equipment are imported into the warehouse, the accountant records: Debit account 152,153 - Value of raw materials and tools imported into the warehouse

Credit account 151 - Value of raw materials and fixed assets in warehouse

- In case raw materials, tools and equipment have been imported into the warehouse but the enterprise has not received the invoice: import raw materials, tools and equipment into the warehouse and save the warehouse receipt in the file "Goods without invoice". If the invoice arrives during the period, the accountant will record it as if the goods and invoice arrived together.

At the end of the period, if the invoice has not arrived, according to the provisional price, the accountant records:

Debit account 152,153 – Value of imported materials and tools (provisional price) Credit account 111,112,141,331 – Total payment

Next period, when the invoice arrives, based on the actual price on the invoice, the accountant will adjust. If the price on the invoice is higher than the provisional price, then record the following:

Debit account 152,153 – Value of imported raw materials and tools (difference) Debit account 133 – VAT (if any)

Credit account 111,112,141,331 – Payment difference

If the price on the invoice is lower than the provisional price, the value of the imported goods is reduced, the accountant records:

Debit account 111,112,141,331 – Amount received back (Difference) Debit account 133 – VAT (if any)

Credit account 152,153 - Value of imported raw materials and tools (difference)

- Incurred costs such as transportation, loading, unloading, storage, insurance, etc. are included in the accounting inventory price:

Debit account 152,153 – Actual expenses incurred Debit account 133 – VAT (if any)

Credit account 111,112,141,331 – Total payment

- If the seller gives the business a trade discount, price reduction or returns raw materials, tools and equipment to the seller, record a reduction in the price of imported goods:

Debit account 111,112,141,331 – Discounted or returned amount Credit account 152,153 – Value of discounted or returned materials and tools Credit account 133 – VAT (if any)

- When paying the seller before the due date, the enterprise will enjoy a payment discount, reflected in financial operating income, the accountant records:

Debit account 111,112,141,331 – Discount amount received Credit account 515 – Discount amount received

- In case of purchasing raw materials, tools and equipment that are less than the documents, discovered during inventory:

* If the cause is not determined, the accountant records: Debit account 152,153 - Actual value of raw materials and tools in stock Debit account 133 - VAT (if any)

Debit account 1381 – Value of missing materials and tools Credit account 112,141,331 – Total payment

* If the cause is determined to be related to the supplier, if the supplier delivers all the goods, the accountant records:

Debit account 152,153 - Actual value of missing materials and tools Credit account 1381 - Value of missing materials and tools

If the supplier does not deliver any more, the accountant records: Debit account 111,112,331 - Amount returned by the supplier

Credit account 1381 – Value of missing materials and tools

Credit account 133 - VAT (if any) related to missing materials and equipment

- In case of purchasing raw materials, tools and equipment in excess of the documents, discovered during inventory:

* If only kept on behalf, accounting processing records: Debit account 002 - Materials, equipment received for keeping

When returning the excess goods to the seller, the accountant records: Credit account 002 - Materials and supplies received for safekeeping

* If the cause is not determined, the accountant records: Debit account 152,153 - Actual value of raw materials and tools in stock Debit account 133 - VAT (Purchase invoice)

Credit account 112,141,331 – Total payment (Purchase invoice)

Credit account 3381 – Surplus assets awaiting disposal (Actual surplus value – Price before tax)

* If the reason for the excess is determined to be due to the seller's export, the business will immediately purchase the excess goods:

Debit account 3381 – Surplus assets awaiting disposal

Debit account 133 – VAT related to surplus goods Credit account 111,112,331 – Additional payments

- Importing raw materials, tools and equipment made by the enterprise itself, the accountant records: Debit account 152,153 - Value of raw materials and equipment imported into the warehouse

Credit account 154 – Unfinished production costs

- Importing raw materials due to the enterprise receiving joint venture capital from another unit, the accountant records:

Debit account 152,153 - Value of raw materials and tools in stock Credit account 411 - Business capital

- Re-import raw materials from the production department due to unused materials, accountant records: Debit account 152 - Value of raw materials in stock

Credit account 621 – Direct material costs

+ In case of imported raw materials, tools and equipment:

- For imported goods used for production and business activities of goods and services subject to VAT under the deduction method:

Debit account 152,153 – Value of raw materials and fixed assets

Credit account 331 – Payable to sellers

Credit account 3333 – Import tax payable

Credit account 3332 – Special consumption tax payable

At the same time, reflect the deductible VAT payable on imported goods: Debit account 133 - Deductible VAT on imported goods

Credit account 33312 – VAT on imported goods

 Accounting for raw materials inventory

- Exporting raw materials for production and business, accountant records: Debit account 621, 627, 641, 642 - Production and business expenses