What Is Materials Procurement?
Material purchase is an accounting account used to reflect and monitor the use of material purchase funds, calculate the purchase cost of purchased materials, and determine material cost differences (the difference between the actual cost of materials and planned costs). It is both a costing account and a business results account. The purchase price and purchase cost of the purchased materials that have been paid for the inspection and storage will be debited to the account at actual cost and credited to "bank deposits" and other accounts. At the end of the month, when the actual cost of outsourced materials is carried forward, the material-related account is debited according to the planned cost, and the account is credited. The actual cost is less than the difference (savings) in the planned cost. account. The difference between the actual cost and the planned cost is recorded to the contrary. The debit balance after the difference is carried forward represents the amount of material in transit and is reflected in the material in transit item of the balance sheet. Therefore, the materials are priced according to the planned cost, and there is no need to set up a "material in transit" account. The debit balance of the "material procurement" account is "material in transit". The debit of the "Purchasing" account. [1]
purchase ingredients
- (1) When the enterprise pays the material price, transportation and miscellaneous expenses, etc., deduct the amount of the material that should be included in the material procurement cost, deduct the amount of the deductible value-added tax, and debit the "tax payable-value-added tax payable ( Input tax) "subject, according to the actual payment or payable
- [Example 1] Purchase 300 kilograms of A material from Jinshan Company for 90,000 yuan and 700 kilograms of B material for 140,000 yuan. VAT
- (1) For the materials that have been checked into the inventory but the invoices have not arrived, they may not be temporarily recorded in the month.
When the invoice arrives, the entry based on the invoice amount is:
Borrowing: Raw material loans: Bank deposits (accounts payable, etc.)
If at the end of the month, the invoice statement has not arrived, then:
Borrowing: Raw material loan: Accounts payable-provisional estimated payables will use the red numbers at the beginning of next month as opposite accounting entries, and offset provisional estimated payable entries. When the invoice is received, it will be registered according to the amount shown in the invoice.
- (2) The advance payment stipulated in the contract cannot be accounted for as the material price. Only when the invoice is received, can the "material in transit" account be registered and carried forward to the "prepaid account" account according to the amount listed in the invoice.
- (3) If the value added tax paid for the purchase of goods should be listed separately, the value added tax paid should be included in the input tax amount, and the accounting treatment is generally:
Borrowing: Taxes payable on materials in transit-VAT payable (input tax)
Loans: VAT for goods purchased in related accounts such as bank deposits should not be listed separately: small-scale taxpayers shopping; unable to obtain VAT invoices or tax payment vouchers; purchased goods are exempt or non-taxable items; confirmed Shopping that pays taxes at a rate of 6% or 4%.
- (4) If the purchased taxable consumer goods are used for the production of taxable consumer goods, and the consumption tax already paid is deducted in accordance with regulations, the deduction of "tax payable-VAT payable" shall be debited.
- (5) Shortages and damages in the procurement process should be handled in different situations:
Reasonable losses in the quota are included in the cost of purchased materials;
If the responsible person can be identified, a claim shall be made, debits to related accounts such as accounts payable or other receivables, credit to materials in transit, accounts payable of value added tax (input tax amount transferred out), and consumption taxes payable;
The reasons have yet to be identified or need to be reported for approval before reselling the processing losses, debiting the property loss and overflow account to be processed, crediting the materials in transit, tax payable-VAT account payable, tax payable-consumption tax account payable ;
If the responsible person is identified after the cause is determined, the relevant account such as accounts payable or other receivables shall be debited, and the account for property damage and overflow shall be credited;
If it is determined that the losses are caused by natural disasters, non-operating expenses-extraordinary losses account should be debited, and the account for property loss and overflow should be credited;
If it is found that other losses cannot be recovered, after approval, it shall be debited to the management expense account and credited to the property loss account for disposal.