What Are the Different Sources of Raw Materials?

Raw materials are the basic raw materials for producing a certain product. It is the product used at the beginning of the production process. Raw materials fall into two broad categories. One is forest products, mineral products and marine products in natural forms, such as iron ore crude oil. One category is agricultural products, such as grain, cotton, oil, and tobacco. There are many suppliers of such products, and there is no difference in quality. Therefore, appropriate measures should be taken in marketing according to the characteristics of various products, such as direct sales of natural products such as mineral products and marine products. The distribution route should be as short as possible and the cost should be as low as possible. For agricultural products, we should strengthen the storage of products and reduce the distribution process. Some products can also be supplied to manufacturing enterprises by commercial acquisition outlets. ^[1]

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Raw materials are raw materials and materials. Raw material generally refers to products from mining and agriculture, forestry, animal husbandry, and fishery; processed material generally refers to raw materials that have undergone some processing.

Raw materials refer to various raw materials and main materials, auxiliary materials, fuels, repair spare parts, packaging materials, outsourced semi-finished products, etc., which are changed in the form or nature of the enterprise by processing and constitute the main entity of the product.

Raw materials are companies

Raw materials can be divided into: raw materials and main materials, auxiliary materials, outsourcing

Accounting form for detailed classification

There are usually two forms of financial organization for the classification and accounting of raw material details:

The first type, "two sets of accounts", has a large amount of accounting work and requires repeated accounting;

The second type is a "set of accounts", also known as "account and card integration".

Accounting for income

1: At the same time that the receipt of the settlement voucher is received, the materials will be checked into the database;

2: The settlement voucher arrives first, and the materials are stored in the warehouse;

3: The material will be collected into the stock prior to receipt, and the settlement voucher will arrive (divided into two types, a known price and an unknown price).

1:

Borrow: Raw materials

Taxes payable-VAT payable (input tax) (General taxpayers should pay attention to taxes)

Loan: bank deposit / prepayment

2:

Borrow: supplies in transit

Taxes payable-VAT payable (input tax) (General taxpayers should pay attention to taxes)

Credit: Accounts payable (bank deposits, prepaid accounts, bills payable, etc.)

After receiving the materials

Borrow: Raw materials

Loan: supplies in transit

3: This case is usually not handled at the end of the month

The first type: I don't know the price

Borrow: Raw materials

Loan: Accounts payable-provisional estimates of accounts payable

At the beginning of next month, make the opposite accounting entry and flush it back:

Borrowings: Accounts Payable-Tentative Estimates of Accounts Payable

Loan: Raw materials

The second type: know the price

Borrow: Raw materials

Taxes payable-VAT payable (input tax)

Credit: Accounts payable

Accounting

I. Accounting of various materials of the company's inventory, including raw materials and main materials, auxiliary materials, purchased semi-finished products (purchased parts), repair spare parts (spare parts), packaging materials, fuel, etc. planned costs or actual costs.

When receiving raw materials, parts, etc. from the processing and assembling business of incoming materials, a check-up book shall be set up for registration.

Second, the subjects can be calculated in detail according to the storage location (warehouse) of the material, the type, variety and specification of the material.

Third, the main accounting treatment of raw materials.

(1) The materials purchased by the enterprise and verified in the inventory shall be debited to the subject according to the planned cost or actual cost, and credited to the "material procurement" or "materials in transit" subject at the actual cost, according to the planned cost and actual cost. Variance, debit or credit the "Material Cost Variance" account.

(2) Self-made and tested materials in the inventory, debited under the planned cost or actual cost, credited the "production cost" subject at the actual cost, and debited or credited at the difference between the planned cost and the actual cost Material Cost Variance account.

Materials that have been commissioned by an outside unit to be processed and have been checked into the inventory will be debited under the planned cost or actual cost, and credited with the "Entrusted Processing Materials" subject at the actual cost. Credit the "Material Cost Variance" account.

(3) Materials used in production and operation shall be debited for subjects such as "production costs", "manufacturing expenses", "selling expenses", and "management expenses", and credited to the undergraduate subjects. Cost of materials carried forward, debited for "Other Business Costs" and credited to undergraduates. Issued materials entrusted to external units for processing, debited "contracted processing materials" subjects, and credited undergraduate subjects. If the planned cost is used for the daily accounting of the materials, the material cost difference shall be carried forward, and the planned cost of the material shall be adjusted to the actual cost. For the daily calculation of materials using actual costs, the actual cost of the materials issued can be determined using the first-in, first-out method, weighted average method, or individual identification method.

4. The debit balance at the end of the course reflects the planned or actual cost of the company's inventory materials.

Planned Cost Core Algorithm

advantage

Daily accounting can be calculated at actual cost or at planned cost. For companies that have a large number of materials receiving and sending businesses and whose planned cost information is relatively sound and accurate, they generally use planned costs for material sending and receiving accounting.

Raw materials are calculated using the planned cost method. The main advantages are:

1: Conducive to evaluating the work performance of the procurement department;

2: Conducive to strengthening the management and supervision of inventory;

3: Conducive to assessing the work performance of the consumable materials department;

4: Conducive to simplifying accounting procedures.

The use of planned cost calculation is applicable to: the calculation of planned cost information is relatively sound and accurate, and the cost planning management calculation has a certain basis.

The characteristics of raw material according to planned cost accounting are: the sending and receiving vouchers are priced at the planned cost of the material, and the general ledger and detailed ledger of the raw material are registered at the planned cost.

The difference between the actual cost of the raw material and the planned cost is calculated through the "Material Cost Difference" account. At the end of the month, the difference between the planned cost of the raw material and the cost of the material is adjusted to the actual cost.

Process

The specific accounting treatment can be divided into the following four aspects:

1. The payment amount has been determined, and the materials have not been checked into the inventory at the end of the month.

In this case, you only need to purchase according to the payment of the invoice and the corresponding value-added tax, and you do not need to calculate the material cost difference. which is:

Borrow: Material purchase (actual cost)

Tax payable-VAT payable (input tax)

Loans: bank deposits, bills payable, and accounts payable, etc. VAT under small-scale taxpayers is included in the cost of material purchases, the same below.

2. The payment amount has been determined, and the materials have been checked into the inventory at the end of the month.

In this case, it is necessary to purchase according to the payment on the invoice and the corresponding value-added tax, and calculate the material cost difference.

Borrow: Material purchase (actual cost)

Tax payable-VAT payable (input tax)

Loans: bank deposits, bills payable, accounts payable, etc. are also processed into the warehouse at the same time:

Borrow: Raw materials (planned cost)

Credit: Material Procurement (Planned Cost)

Material cost differences at the end of the month:

Borrow: Material Procurement

Loan: Material cost difference (saving difference)

Borrowing: Material cost variance (overrun variance)

Credit: Material Procurement

Or: Carry-over material cost difference when put in storage

Borrow: Raw materials (planned cost)

Borrowing or loan: material cost variance (overspending is debited, savings are credited to the lender)

Credit: Material Procurement (Actual Cost)

3. The amount of the payment is uncertain until the end of the month. The end of the month is accounted for at the planned cost estimate and will be written off in red at the beginning of the next month.

indicates that the savings or credit balance is represented by a "negative sign";

(3) The cost difference of the material burden issued is always included in the credit of the material cost difference, except that the overrun difference is indicated by blue characters, and the savings are indicated by red characters or ×××. The material that is finally included in the cost is still the actual cost.

Accounting for valuation accounting

practice

In daily accounting, sometimes you will encounter procurement business where the purchased materials have arrived, and the receipts such as invoices have not arrived, and the payment has not been paid. This kind of business receives the material first, and pays later. Generally, vouchers such as invoices and bills can be reached within a short period of time.

In order to simplify the accounting procedures, the general ledger may not be temporarily processed for this business that occurs within the month, and only the materials received are registered in the detailed ledger; at the end of the month, vouchers such as invoices and bills have not been received At the time, all textbooks and most businesses do:

At the end of the month, according to the temporary valuation of the material, debit the "raw materials" account, and credit the "accounts payable-temporarily estimated accounts payable" account;

At the beginning of next month, the same bookkeeping vouchers will be used to write off the same;

When receiving the invoice statement, debit the "raw materials", "tax payable-payable value added tax (input tax)" and other subjects, and credit the "account payable" subject;

When paying, debit subjects such as "payables" and credit subjects such as "bank deposits". I have different views on the above accounting treatments.

I. In actual work, the company generally places a purchase order with the supplier, and specifies the quantity and unit price of the material in the purchase order (generally the unit price including tax). The supplier shall purchase according to the requirements of the enterprise i, T- ~ Delivery. Therefore, the materials are recorded at the contract price or planned price, which cannot truly reflect the assets and liabilities of the enterprise, leaving a manipulable space for the enterprise to increase its assets.

2. If the ordered materials are used or have been made into finished products and put into storage or made into finished products and sold, the corresponding accounting account should be "production cost", "inventory goods" or "main business cost" At this time, the debited "raw material" account is not consistent with the actual situation, causing the book record to be inconsistent with the inventory material balance, and the so-called inventory profit and loss will occur. If it happens in the month when the annual property inventory is carried out, and it is treated rashly as an inventory profit and loss, it will lead to an opposite profit and loss in future inventory. The "Raw Materials" account applies only if this batch of material is still unused and stored in the warehouse.

3. For enterprises that adopt the actual cost method, if the material is issued using the weighted average method, the raw materials accounted for the valuation also participate in the calculation of the weighted average unit price, which leads to the calculation error of the issued material cost, which further affects the calculation of product costs and causes distortion of accounting information. Chain reaction.

4. The enterprise that adopts the planned cost method for inventory calculation shall calculate the material cost difference rate at the end of the month and allocate the material cost difference formed in the current month. The raw material cost difference temporarily estimated at the end of the month did not reflect the material cost difference in the month of the temporary estimate, but participated in the calculation of the material cost difference.

After the invoice of the batch of materials settled in the following months arrives, the material cost differences will be registered and participate in the allocation of the cost differences of the materials consumed in the next month. In this case, the reflection of the actual cost of materials issued will be distorted in the month in which the materials are temporarily estimated and thereafter.

When the batch material cost difference is positive, the actual cost of materials issued in that month will be underestimated, and the actual cost of materials issued in subsequent months will be overestimated; otherwise, the actual cost of materials issued in that month will be overestimated, and the subsequent months will be underestimated. The actual cost of issuing the materials violates the matching principle of accounting and causes distortion of accounting information.