Accounting for material costs is an important part of the work of an accountant in an organization. Let's figure out what is included in material costs, how to calculate them correctly, and what wiring to use.

An accountant is a universal profession; specialization in it is only temporary, when the accounting department and the company are large and each specialist is engaged in his own area. However, to ensure that employees do not lose versatility and useful skills, experienced chief accountants try to regularly change their positions. And then the specialist who dealt with wages has to remember how to correctly calculate material costs, and what they actually are. Let's try to refresh our memory of basic knowledge together and start with the concept itself.

Material costs

The concept of material costs (MC) is found in both accounting and tax accounting. According to the norms of Article 254 of the Tax Code of the Russian Federation, material costs include:

• expenses for the purchase of raw materials, materials and components;
• expenses for the purchase of fuel, water, energy of all types spent for technological purposes;
• expenses for the purchase of works and services of a production nature;
• losses from shortages and damage to inventories within the limits of natural loss;
• other expenses.

This list in tax accounting is closed. In accounting, the concept of MH is defined in paragraph 8 of PBU 10/99 “Expenses of the organization,” but without a list. Therefore, each organization can independently determine the definition of this concept in accounting and be sure to prescribe the corresponding list in its accounting policies. In fact, these will be the same expenses that are prescribed in the Tax Code of the Russian Federation, taking into account the specifics of the company’s activities.

Types and classification

It would seem that everything is simple: there is an established list, and we focus on it. But in practice, there is also a division of MH into:

• straight;
• indirect.

This gradation is also provided for in tax accounting. In particular, Article 318 of the Tax Code of the Russian Federation. True, taxpayers are given the right to independently establish a list of direct MH, but in compliance with the established requirements for them. According to the norms of the Tax Code of the Russian Federation, direct material costs are:

• expenses of the organization for the purchase of raw materials and materials directly used in the production of goods (performance of work, provision of services), which are a necessary component or generally form the basis of the product;
• company expenses for the purchase of components undergoing installation or semi-finished products undergoing additional processing.

Balance and accounting

In order to display material costs in the balance sheet (line 1210), the accountant must summarize the balances of several accounts at once:

• 20 “Main production”;
• 21 “Semi-finished products of own production”;
• 23 “Auxiliary production”;
• 29 “Service production and facilities” as of the reporting date means the balance of work in progress (WIP);
• 28 “Defects in production.”

Therefore, the Ministry of Finance in accounting is reflected precisely in these accounts, as determined by Order of the Ministry of Finance dated July 2, 2010 No. 66n. Turnovers during the month also pass through accounts 25 “General production expenses” and 26 “General expenses”, but these accounts do not have a balance at the end of the month.

Material costs: profitability formula

Since MH directly affects the cost of production, and therefore the profitability of the organization, it is necessary to carry out analysis for them, as well as calculate coefficients. As a rule, this is done not by accountants, but by economists. They usually calculate how much profit can be made per ruble of material costs. The formula they use for this includes the following data:

• PMZ - profit per 1 ruble of the MS of a specific product;
• P - profit from the sale of these products;
• MH - for sold products.

The formula looks like this:

The obtained result makes it possible to calculate the profitability of production, that is, find out how much you can earn from each ruble spent or, conversely, lose (which is extremely undesirable).

In addition, it is possible to determine the so-called total material intensity, which is calculated as the ratio of the labor cost to the total amount of expenses incurred for the production of goods. This value can show the share of MH in the total cost of production. However, it should be remembered that other costs, such as the maintenance of the administrative apparatus, transport, etc., also influence the cost, and therefore the profitability.

Material Cost Budget

Determining all possible direct costs is called a direct material cost budget. It is necessary for the organization to plan its work. Not only economists, but also an accountant take part in budgeting, since in order to determine accurate results it is necessary to know not only the balances of materials and other supplies, but also the amount of accounts payable for them, as well as the repayment schedule. In this way, you can not only draw up a current budget, but also calculate it for a certain period of time, which allows you to determine the company’s need for finance for the purchase of materials. Timely financing in the required amount is insurance against production stoppages due to a lack of raw materials.

The cost of goods produced is formed from the monetary form of various economic elements. These include the company's material costs. They make up about 60% of the price of the finished product. You can learn more about their composition and accounting from this article.

Material costs represent a significant part of the expenses in the activities of any company. The size of the income tax base will depend on their correct calculation.

Material costs include:

Material costs in accounting are all the costs listed above, taking into account the characteristics of the activities of a particular company.

To calculate costs for each specific period, they need to be grouped into the following items:

• Material costs of a production nature minus production waste;
• Social contributions funds;
• Parts and semi-finished products;
• Remuneration of employees of the main production;
• Expenses for maintaining the functionality of special equipment;
• Add. earnings of production workers;
• Energy and fuel costs;
• Deductions for depreciation;
• Other expenses.

Return costs

Returnable waste represents the remains of resources that were generated during the manufacture of goods. They have already somewhat lost their user properties. For this reason, they cannot be used for their intended purpose.

The amount of material costs of the enterprise is reduced by the cost of returnable waste.

The following cannot be considered returnable waste:

• Inventory materials transferred to other divisions of the company for subsequent use;
• By-products that result from the main production of goods.

Returnable waste is assessed:

• At the selling price of goods when they are sold externally;
• At a reduced price of the initial resource when used for further production with increased costs.

Direct costs

One of the main types of material costs are direct costs.

They represent expenses that can be attributed to a certain type of product without much difficulty or additional costs. computational and analytical work. Such costs include: materials for the production of goods, wages of workers, and others.

In accounting, such costs are recorded by postings:

• D20 – K10 – attribution of costs for the purchase of raw materials used in the production process to the cost of goods.
• D20 – K60 – writing off the cost of services of third-party companies to production.
• D20 - K70 - attributing the wages of workers receiving piecework payments to cost.
• D20 – K69 – attribution of insurance premiums to the increase in the price of the goods.

The share of direct-use material costs is the most impressive in the cost of the finished product.

Analysis of direct expenses

Managing direct costs is the key to reducing product costs and increasing profitability. By analyzing such expenses, determining their part in the cost and final price of the product, it is possible to study the characteristics over time and determine the reserves for increasing profitability.

Material costs (costs) occupy a significant part of the expenses in the economic activities of the enterprise. The tax base for income tax depends on their correct calculation, as well as when calculating the “simplified” tax with the object of taxation “”. The list of material costs is defined in Chapter 25 of Art. 254 NK.

1. Material expenses include the following types of expenses:

1) raw materials and supplies for the production of goods (performance of work, provision of services) and their components;

2) materials for packaging goods and other needs related to the production of goods (testing, control, operation, maintenance of fixed assets, etc.);

3) tools, fixtures, equipment, instruments, laboratory equipment, special clothing and other means of individual and collective protection in accordance with the legislation of the Russian Federation, and other property that is not depreciable. (previously it was MBP - low-value wearable items). The cost of such expenses is included in the material costs in full when it is put into operation (issued to employees upon request, invoice and other documents);

4) components for installation, semi-finished products for additional processing;

5) purchase of fuel, energy of all types, water for technological purposes, generation of all types of energy, including for own needs, heating of buildings, and the costs of production or acquisition of capacity, costs of transformation and transmission of energy;

6) acquisition of works and services for the needs of the enterprise (of a production nature), performed by third-party organizations, individual entrepreneurs, structural divisions of the taxpayer.

Services (works) of a production nature include:

Performing individual operations for the production (manufacturing) of products, performance of work, provision of services,

Processing of raw materials, materials,

Monitoring compliance with technological processes,

Maintenance of fixed assets and other work.

Transport services for the transportation of goods within the organization (for example, movement of raw materials, tools, parts, etc. from the central warehouse to the workshop (department)), carried out by third-party organizations, individual entrepreneurs, structural divisions of the taxpayer itself; as well as delivery of finished products under the terms of agreements (contracts);

7) maintenance and operation of fixed assets and property for environmental purposes (sewage treatment plants, ash collectors, filters). This also includes the costs of burial, reception, storage, destruction of hazardous waste, wastewater treatment, the formation of sanitary protection zones on the basis of sanitary and epidemiological rules and regulations, payments for maximum permissible emissions of pollutants into the environment, and other similar expenses.

2. Material costs include:

The cost of inventories based on their purchase price excluding VAT and excise taxes (except for cases provided for by this Code),

Commission fees to intermediary organizations for services rendered,

Import duties and taxes,

Transportation and other costs associated with their acquisition.

If surpluses are discovered during the inventory, when property is received as a result of dismantling or disassembling fixed assets being taken out of service, during repair, reconstruction, modernization, technical re-equipment, partial liquidation of fixed assets, the cost of material expenses is considered as the amount of income received by the taxpayer on the basis of paragraph. 13 and clause 20, part 2, art. 250 NK.

3. When non-returnable packaging is received from the supplier along with inventories, its cost is included in the amount of acquisition costs.

When a returnable container is received from a supplier along with inventory, if its price is included in the price of materials, its cost is excluded from the purchase price for the amount of its possible use.

How to determine returnable and non-returnable packaging? The conditions for containers and packaging of goods are specified in contracts for the supply of materials.

4. If the taxpayer uses products of its own production as raw materials, materials, semi-finished products, spare parts, components and other expenses, or if the taxpayer includes the results of work, services produced on its own as part of material costs, the assessment of these products, work, services is carried out on the basis of Art. 319 NK.

5. The amount of material expenses of the current month is reduced by the value of the remaining inventory transferred to production, but not yet used at the end of the month.

6. How to account for return costs? The amount of material costs is reduced by the cost of returnable waste. Returnable waste is the remains of raw materials, materials, semi-finished products, coolants and other material resources generated during the production of goods (provision of services, performance of work), which have partially lost their consumer qualities and, as a result, are used at additional costs or are not used for their intended purpose.

Returnable waste does not include:

Inventories that are transferred to other departments according to technological production for further use,

By-products resulting from production.

Returnable waste assessment:

1) at a reduced price of the initial material resource when using it for further production, but at increased costs;

2) at the selling price when selling externally.

7. For tax purposes, the following costs are equated to material expenses:

1) expenses for land reclamation and other environmental measures, with the exception of Art. 261 NK;

2) losses due to shortages or damage during storage and transportation of material reserves within the limits of natural loss norms;

3) technological losses during production or transportation. Technological losses are losses arising as a result of technological production.

4) expenses for mining.

8. When writing off raw materials and materials for production, the enterprise reflects the write-off method in its accounting policy:

1.by cost per unit of inventory;

2.at average cost;

3. at the cost of the first materials (FIFO method);

4. at the cost of the latest materials (.

Material costs include everything that has a price and quantity, and that is used directly in production, performance of work, provision of services, as well as costs associated with their promotion to the buyer: packaging, storage, transportation, etc.

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The cost of manufactured products consists of the monetary form of various economic elements, which include the material costs of the enterprise. Sometimes this position takes up about 60% of the price of the finished product. Its size largely determines whether a product will be expensive or cheap. The task of the economic department is to correctly calculate basic expenses and maintain a balance between planned and actual data. To do this, you need to clearly understand what refers to material costs in accounting, and how they are normalized in practice.

Structure of material costs

It must be taken into account that the cost of materials used to produce a specific batch of products necessarily excludes the price of waste, which will also be sold. The structure of material costs of a manufacturing enterprise can be represented by the following positions:

• raw materials purchased from another supplier;
• materials purchased externally for main production;
• semi-finished products and components received for payment;
• fuel purchased to support technological processes;
• purchased energy to maintain equipment operation, heating;
• cost of attracted natural raw materials.

Deductible waste also has its own classification. These include the balances of the elements:

• materials, raw materials, semi-finished products;
• coolants and resources that have lost their quality;
• other materials with a reduced rating.

• material production costs minus production waste;
• components and semi-finished products purchased for a fee;
• energy and various fuels to support technological processes;
• salaries of employees of main production facilities;
• additional income for production workers;
• social payments to funds;
• depreciation charges for general fund;
• expenses for ensuring the operability of equipment;
• workshop and other production costs.

When the actual cost is formed, the costs incurred for maintenance and repairs under warranty and recorded losses as a result of non-productive losses due to internal production reasons are taken into account separately. Production costs also increase due to shortages identified during the inventory in warehouses and workshops, if the culprit is not identified. When grouping costs, they are distinguished depending on the following characteristics:

• how they are directly related to the production process;
• do they depend on the volume of production of the enterprise;
• whether they are directly charged to cost or require distribution.

According to this grouping, material costs include direct and indirect elements; they can be basic expenses and overheads. Material costs are also divided into proportional (or conditionally variable) and disproportionate (or conditionally constant).

Types of material costs: direct, indirect, variable, constant

Direct material costs are costs that can be attributed to products of a specific type without much difficulty and additional analytical and computational work. The share of direct-use material costs is the most impressive in the cost of products. Such costs include: raw materials for production, wages of workers, fuel for machines. They are reflected in accounting by the following entries:

As a general rule, material costs in accounting are usually variable costs, that is, those that directly change with adjustments in output. These include materials, pieceworker remuneration, fuel for machines. But there are also positions that, being direct, will not increase significantly with output growth. An example would be the salary of a controller. Although it is a fixed value, it is nevertheless a direct expense in the calculation.

Variable costs include material costs, which can be classified as follows:

• Dependence on the amount of output

The budget for direct material costs can be built proportionally, descending - degressively, or ascending - progressively.

• Based on static

Based on this principle, material costs belong to the group of total costs (total cost) or average (average cost).

What is included in material costs for the purposes of creating an operating budget

Forecasting sales volumes for a certain time period is the basis for building short-term and long-term plans. The material cost budget reveals information about what the monthly and quarterly resource consumption will be to produce the planned volume of products. When forming it, they analyze:

• the previous cost of production based on data from past periods;
• prices for similar products from competing suppliers;
• expected market share in the near future;
• volume of current orders and the influence of seasonality;
• upcoming expenses on advertising and marketing promotion.

The norms and standards of material costs include not only analytical methods, but also total ones. With the last standardization option, the parameters are set for the unit of output as a whole without breaking it down into elements. The figures are calculated based on statistical data, information from similar industries, and values ​​from previous periods. The classification of material costs in this case depends on the method by which the information was obtained: experimental, statistical, analog.

In terms of cost items, material costs include the following costs of the organization listed below.

1. Costs for the acquisition of raw materials and/or materials used in the production of products and/or forming their basis or being a necessary component in the production of products.

Operations for the release of material assets into production for the manufacture of products are reflected in accounting under the credit of account 10 “Materials” in correspondence with the production cost accounts (accounts 20 “Main production”, 23 “Auxiliary production”, etc.).

Accounting for operations involving the receipt of raw materials and materials into the organization and their release into production, as well as the documentation of these operations are described in detail in Chapter. 7.

2. Costs of purchasing materials used:

For packaging and other preparation of manufactured and/or sold products (including pre-sale preparation);

For other production and economic needs (for testing, control, maintenance, operation of fixed assets and other similar purposes).

The release of materials for packaging manufactured and/or sold products, for general production and general business needs is reflected in the credit of account 10 “Materials” in correspondence with the debit of account 44 “Sales expenses”, account 25 “General production needs” and account 26 “General expenses” .

3. Costs for the acquisition of tools, devices, equipment, instruments, laboratory equipment, workwear, other personal and collective protective equipment and other property that is not depreciable property.

The cost of this property is included in material costs in full as it is put into operation.

Special tools, special devices, etc., as well as special clothing owned by the organization, are taken into account before transfer to production or (operation) as part of the organization’s current assets under account 10 “Materials” on a separate sub-account 10-10 “Special equipment and special clothes in warehouse."

The transfer of special equipment and special clothing into production (operation) is reflected in accounting as the debit of account 10 “Materials” (subaccount 10-11 “Special equipment, special clothing in operation”) in correspondence with the credit of account 10 “Materials” (subaccount 10- 10 “Special equipment, special clothing in warehouse”).

At the same time, the costs of purchasing workwear and other means of individual and collective protection that are not depreciable property are taken into account as part of material costs only if the mandatory use of workwear and other means of individual and collective protection by workers of a particular profession is provided for by the legislation of the Russian Federation.

Features of accounting of operations for the receipt of special equipment and special clothing into the organization and their release into production (operation), as well as the documentation of these operations are described in detail in Chapter. 7.

4. Costs for the purchase of components undergoing installation and/or semi-finished products undergoing additional processing in the organization.

Purchased semi-finished products and components are accounted for on account 10 “Materials” (subaccount 10-2 “Purchased semi-finished products and components, structures and parts”). -

The release of semi-finished products and components into production to complete manufactured products is reflected in the credit of account 10 “Materials” (subaccount 10-2) in correspondence with the production cost accounts.

5. Costs for the purchase of fuel, water and energy of all types, spent on technological purposes, generation (including by the organization itself for production needs) of all types of energy, heating of buildings, as well as costs for transformation and transmission of energy.

The basis for energy accounting will be an agreement with the energy supply organization, reflecting the supply of electricity and other types of energy. Documents confirming these expenses are invoices, invoices, bank statements and payment orders.

Costs for purchasing water are taken into account in a similar manner. In this case, these costs must be justified by the technological process. In case of excessive consumption of electricity, excess of water consumption standards not caused by the technological process, the costs should be considered economically unjustified.

In accounting, energy and fuel spent for technological purposes are reflected in the debit of production cost accounts and the credit of account 60 “Settlements with suppliers and contractors”.

6. Costs for the acquisition of works and services of a production nature, performed by third-party organizations or individual entrepreneurs, as well as for the performance of these works (provision of services) by structural divisions of the organization.

Works (services) of a production nature include the performance of individual operations for the manufacture of products, processing of raw materials and supplies, maintenance of fixed assets and other similar work.

Works (services) of a production nature also include transport services of third-party organizations (including individual entrepreneurs) and/or structural divisions of the organization itself for the transportation of goods within the organization. These, in particular, include the movement of raw materials, supplies, tools, parts, workpieces, and other types of cargo from the central warehouse to the workshops and the delivery of finished products in accordance with the terms of agreements (contracts).

Works and services of a production nature performed by third-party organizations or individual entrepreneurs (including transport services) must be carried out under contracts with suppliers and accepted for accounting on the basis of acceptance certificates for work (services), invoices, bank statements and payment orders .

In accounting, the cost of these works and services is reflected in the debit of the production cost accounts in correspondence with accounts 60 “Settlements with suppliers and contractors” and 76 “Settlements with various debtors and creditors”.

Costs for the delivery of inventories (hereinafter referred to as inventories), carried out by the organization’s own vehicles, do not increase the cost of these inventories, but are reflected as part of the corresponding group of costs (labor costs, amounts of accrued depreciation, etc.).

7. Costs associated with the maintenance and operation of fixed assets and other environmental property (including costs associated with the maintenance and operation of treatment facilities, ash collectors, filters and other environmental facilities, costs for the disposal of environmentally hazardous waste, costs for the purchase of third-party services organizations for the reception, storage and destruction of environmentally hazardous waste, wastewater treatment, payments for maximum permissible emissions (discharges) of pollutants into the natural environment and other similar expenses).

For expenses related to environmental protection measures, one should be guided by the Federal Law of January 10, 2002 No. 7-FZ “On Environmental Protection”. Environmental costs are determined by the List of works (services) for environmental purposes, approved. by order of the State Committee for Ecology of Russia dated February 23, 2000 No. 102 “On works (services) for environmental purposes.” In this case, these expenses of the organization should not be associated with the acquisition (construction) of depreciable property.

When taking into account the costs of burial and destruction of environmentally hazardous waste, one should be guided by the Rules for the transboundary movement of waste, approved. Decree of the Government of the Russian Federation dated July 17, 2003 No. 442 “On transboundary movement of waste” and order of the Ministry of Natural Resources of the Russian Federation dated December 2, 2002 No. 786 “On approval of the Federal Classification Catalog of Waste”.

8. The following are considered material expenses for profit tax purposes:

Losses from shortages and/or damage during storage and transportation of goods and materials within the limits of natural loss;

Technological losses during production and/or transportation;

Expenses for mining and preparatory work during mining, for operational stripping work in quarries and cutting work during underground mining within the mining allotment of mining enterprises.

Losses from shortages and/or spoilage during storage and transportation (natural loss) of MPZ are determined by the physical and chemical characteristics of these MPZ.

Natural loss does not include technological losses and losses from defects, as well as losses of inventories during storage and transportation caused by violation of standards, technical and technological conditions, technical operation rules and damage to containers.

Losses from shortages and/or damage during storage and transportation of inventories are accepted for profit tax purposes only within the limits of natural loss norms approved in the manner established by the Government of the Russian Federation. "

Technological losses are losses during the production and/or transportation of goods (work, services), caused by the technological features of the production cycle and the transportation process, as well as the physical and chemical characteristics of the raw materials used.

Natural indicators characterizing technological losses that occur during a specific technological process must be justified and documented.

In this case, technological losses are taken into account in reducing the tax base as part of the assessment of the cost of material costs transferred to production:

The amount of material expenses should be reduced by the cost of returnable waste, which is reflected by an entry in the debit of account 10 “Materials” and the credit of account 20 “Main production” or account 23 “Auxiliary production”.

When selling returnable waste, the party should keep in mind that the price of the said waste is determined by agreement of the parties in accordance with the concluded agreement.

As a rule, the cost of inventories included in material costs is determined based on their acquisition prices excluding value added tax, including commissions paid to intermediary organizations, import customs duties and fees, transportation costs and other costs associated with acquisition of inventories.

Accounting for operations for the acquisition of inventories and their release into production and for other needs, accounting for packaging and returnable waste, accounting for losses from shortages and/or damage to material assets, etc., as well as the documentation of these operations are described in detail in Chapter. 7.