What Are Finished Goods?

The finished product refers to the product that has completed the entire production process, has undergone quality inspection, and has gone through the storage formalities. Inventory goods refer to products that have completed the entire production process, have undergone quality testing, and have experience in the inventory. The finished product and the inventory product are both finished products. The main difference is whether they have been stored in the warehouse. Both are suitable for evaluation using the cost method and the market method. ^[1]

Finished product

Finished products refer to products that have completed the entire production process and that the tested revenue pool meets the standard specifications and technical conditions. They can be delivered to the ordering unit in accordance with the conditions stipulated in the contract, or they can be sold as commodities.

I. Significance of finished product audit

Finished products refer to products that have completed the entire production process, have been checked into the inventory, meet the standard specifications and technical conditions, and can be delivered to the ordering unit in accordance with the conditions stipulated in the contract, or can be sold as a commodity. After the enterprise accepts the processing of foreign raw materials, the substitutes are processed and repaired. After the manufacturing and repairing are completed, they are treated as the finished products of the enterprise.

(I) Content of finished product audit

The audit of the finished product of the company mainly reviews the finished product sending and receiving vouchers, accounts, physical objects and management systems to find out whether the sending and receiving of the finished product of the enterprise is real, whether it has received false payment, fraud, corruption, theft, accounts, Whether the debit card and the account are consistent, whether there is a backlog of sluggishness, and whether the management is tight.

(B) the purpose of the audit of finished products

The main purpose of the audit of the finished products of the enterprise is to monitor the correctness of the accounts of the finished products of the enterprise, so as to ensure that the accounts, cards and accounts are in three phases: Promote the enterprise to properly store the finished products, minimize the sluggish backlog, and keep the finished products Good condition.

(III) Characteristics of finished product audit

Including: 1. Do not calculate the cost of WIP; 2. Use the cost of WIP at the beginning of the year; 3.

"Finished products" belong to asset accounts and are used to calculate the actual cost of various finished products in the inventory of the enterprise. The borrower shall register the actual cost of the finished product in the inspected income bank; the lender shall register the actual cost of the finished product; the balance at the end of the period shall reflect the actual cost of the finished product in the company's inventory. Finished products stored in the sales department of the company to be sold, finished products exhibited at the Customs and Exhibition, and finished products that have been issued but have not yet undergone collection procedures still fall within the scope of the company's finished product accounting. Generally, a detailed account should be set up for accounting.

1) Receipt, dispatch and deposit of finished products

The "Finished Product" account belongs to

The problem of tax evasion in the "finished product" account

1. Products sold are credited to "

Audit of "Finished Product" Account

The inspection of the "finished product" account is mainly to check the credit of the account, that is, the destination of the finished product out of the warehouse. Accounting of products sold by enterprises. When obtaining product sales income, debit "cash", "bank deposits", "accounts receivable", "

Tax planning for finished products

The finished product ledger generally sets up a detailed ledger with both quantity and amount according to the product type, name or storage location. The debit of this account reflects the inventory of finished product inspections and other transfers, which corresponds to accounts such as "basic production" and "pending profit of pending property". The lender reflects the carry-over cost of sales and other transfers, which corresponds to the account of the loss of property to be processed pending the sale of goods. The balance is on the debit side, reflecting the actual number of products in stock. When the product is put into storage, fill in the "finished goods storage form", which will be separately registered by the accounting department and the warehouse. Usually, the "finished product storage account" in the warehouse only reflects the receipt, payment and storage of the product. At the end of the month, the accounting department calculates the actual cost of the finished product in the warehouse based on the unit cost in the "product cost calculation table" for that month, and registers the unit price and amount number. Credit: finished product; loan: basic production. When the product is delivered, press

-Tax-related inspection and case analysis of the "finished product" account

1. The main content of the tax-related inspection of the "finished product" account and the emphasis on "finished product" as a calculation account for corporate income tax are very important in the corporate income tax inspection. This is because, first of all, the credit calculation content of the "finished product" account is directly related to the carry-forward of product sales costs. It is common to evade corporate income tax by using the cost of multi-turn product sales. Secondly, the "finished product" is a reconciliation account of the turnover tax, and its lender's accounting content is more complicated. The finished products issued have other uses besides being sold. Certain businesses that are of a sales nature, such as paying off debts with products, distributing profits with products, or swapping products back with raw materials, etc., should be treated as sales in accordance with the accounting system, through "product sales revenue" and "product sales costs" Account for accounting. If the company mistakes the credit of the finished product account directly to the accounts such as "accounts payable", "profit distribution" or "raw materials" and does not deal with sales, it not only evades corporate income tax but also evades turnover tax. There are also businesses that are deemed sales, such as using products for construction in progress, management departments, non-production organizations, providing labor services, and for gifts, sponsorships, fundraising, advertising, samples, employee benefits, rewards, etc. These self-produced and self-used products are an internal carry-forward relationship, there is no sales behavior, and the company has not increased funds because of this. According to regulations, it can be transferred at cost. When the product is transferred and used, its cost is transferred to the corresponding account according to the purpose. For example, use self-produced products for construction in progress, that is, transfer their costs to the cost of construction in progress; for gifts, sponsorships, fundraising, etc., that is, transfer their costs to non-operating expenses; for advertising, samples, etc., that is, their costs Transfer to product sales expenses, etc. The accounting entries are:

Borrowing: construction in progress (sales expenses, sales expenses, etc.)

Loan: finished product (or homemade semi-finished product)

The value-added tax and consumption tax payable for using the product for each of the above purposes shall also be credited to the corresponding account according to the purpose. The accounting entries are:

Borrowing: construction in progress (or non-operating expenses, sales expenses, etc.)

Credit: Tax payable-VAT payable (consumption tax, etc.)

If the enterprise only carries forward the product cost for the above-mentioned sales business, and does not make or erroneously perform the tax payable accounting treatment, it will inevitably affect the turnover tax payable. At the same time, according to the tax law, corporate income tax should be reported and paid.

According to the nature, purpose, structure of the "finished product" account and its specific impact on taxation, its tax-related inspections should focus on the inspection of borrowings and lenders. The tax-related issues that should be checked include:

1. Is the quantity and amount of the finished product debited into the warehouse correct? Has the quantity and amount of the finished products stored in the warehouse caused the carry-over of the cost of the sold products?

2. Is the lender's transferred product sales cost correct? Has there been any impact on corporate income tax due to misdirected sales costs?

3. Is the sales business of paying debts, distributing profits, and redeeming materials with products correct? Does it affect tax payment?

4. Are products used for construction in progress and other businesses deemed to be sales treated? Is the accounting handled correctly? Is there a turnover tax and corporate income tax?

5. 2. Case analysis of tax-related inspection of the "finished product" account [Case 1] Case of calculating the cost of finished products, increasing the unit price of finished products in storage, and evading corporate income tax

An enterprise produces A products and stocks 200 A products at the beginning of the period, with an amount of 20,000 yuan; 800 pieces of A products that have been put into storage this month, amounting to 96,000 yuan, are calculated by the enterprise with an average unit price of 116 yuan using the weighted average method. 400 A products were sold this month, and the cost of product sales carried over was RMB 46,400. After inspection, the cost of the finished products carried into the warehouse this month had a false input factor of RMB 12,000. In the production process of product A, there is no initial product at the beginning and end of the period, and the fake input of 12,000 yuan has all affected the cost of the product in the warehouse that month. Based on the re-calculation results, the weighted average unit price of product A is actually 104 yuan [(20,000 96,000-12,000) ÷ (200 800) = 104 yuan], and the company has increased the product's weighted average unit price to increase the sales cost of the product by 4,800 yuan.

Commenting on the cost of selling multiple-transfer products and evading corporate income tax are some of the "tricks" of illegal taxpayers. They make use of errors in product cost accounting, or incorrectly transfer the amount of products into the warehouse, or transfer them into the warehouse incorrectly. The number of products in the inventory is artificially calculated as a unit cost of the finished products in the inventory, resulting in the wrong shift in the cost of the products sold. In the tax inspection, in addition to verifying the number of completed products against the relevant product warehousing orders, product cost calculation sheets, production reports, production records, etc., it is also necessary to pay attention to checking the calculation of product costs, from the collection of production costs to the completion of production costs. Any negligence in the distribution of products and products at the end of the period will bring legacy to the carry-over of product sales costs.

[Case 2] Cases of paying off debts with products and not selling them, evading VAT and corporate income tax cases

Check the detailed account of the finished product of an enterprise and find that there is an accounting entry with an abnormal correspondence on a certain day:

Borrow: Accounts payable 40,000.00

Credit: Finished products 40,000.00

The summary of the accounting voucher is "Repayment of Company A's arrears." It was verified that the batch of finished products was transferred at the cost price, and its selling price should be 48,000 yuan.

Reviews pay off arrears with a product, which is a sales business. According to the regulations of the accounting system, the amount of costs shall be recorded in the "Product Cost of Sales" account, the price of the products shall be recorded in the "Product Sales Revenue" account, and the exchange tax shall be calculated. The enterprise directly transfers the accounts payable to the accounts payable at the cost price, and does not process the sales, apparently evading the value-added tax and corporate income tax. However, due to the lack of accounting knowledge or poor tax awareness of the accounting personnel of individual enterprises, this accounting method is called a "shortcut". I am afraid that the "shortcut" taken by such accounting personnel in the accounting processing is not comparable. Pen, its behavior of tax evasion is worthy of vigilance!

[Case 3] Cases of using self-produced products under construction and evading VAT and income tax

A company under construction received a batch of self-produced products at a cost price of 20,000 yuan. The accounting entries made by the enterprise are:

Borrow: Construction in progress 20,000.00

Credit: Finished products 20,000.00

It was verified that the finished product was priced at 25,000 yuan.

Commenting on this business that belongs to self-produced products, according to the accounting system, it should be correct for the company to transfer money at cost, but it is a tax evasion to omit the VAT calculation based on the sales price. According to the tax law, in addition to calculating the output tax, self-produced and self-used products should also be used as taxable income when calculating corporate income tax. Therefore, the declaration of corporate income tax should be checked together for any omission of this taxable income.