Account 16. Deviation in the cost of material assets

Cost accounts and their number

Cost accounts in accounting are a list of accounts that collect the costs of a company's business activities with their subsequent transfer to the financial result, and also collect costs for the production of products and work performed.

There are 11 main cost accounts. These include: 20, 23, 25, 26, 28, 29, 44.1, 44.2, 44.3, 90, 91.

In this case, accounts 90 and 91 should not be considered as group accounts, but only their specific subaccounts. For a score of 90, these are 90.2, 90.7, 90.8. For a score of 91 it is 91.2.

As a result, the total number will be 13 accounts. These are - 20, 23, 25, 26, 28, 29, 44.1, 44.2, 44.3, 90.2, 90.7, 90.8, 91.2

It should be noted that each group account from the list can be represented in subaccounts. It depends on the requirements in a particular enterprise for a particular activity. This phenomenon is clearly visible in the chart of accounts, for example for 20 accounts. Let's take, for example, the 1C Accounting and 1C Accounting programs for agricultural enterprises. These are the settings for account 20 “main production”.

20 account in 1C Accounting

20 account in 1C Accounting for an agricultural enterprise

And here are the settings for account 44 – “Sales expenses”

In the 1C Accounting program

Once again - 1C Accounting

So, the minimum number of cost accounts in accounting is 13.

Cost accounting: how is it done and why is it needed?

With this short review, we are opening a series of materials for those business owners who have had to deal with accounting . We will not talk about what is unlikely to be useful to you: only the most necessary and in simple words. So, let's go.

Convenient online accounting

Quick establishment of a primary account, automatic payroll calculation, multi-user mode in Kontur.Accounting

Try it

The company records its costs, for example, for staff salaries, rental or communication services, materials used in the company's work, depreciation of vehicles and equipment, on expense accounts. They are designed to save up all your expenses within a month. We don't want anything to be forgotten or lost, right?

Let's look at the main expense accounts that may be useful to you:

Account 20 is intended to account for production costs aimed at producing products or providing services. It’s called “Main Production”. This may include the cost of materials for baking buns, and the salaries of car drivers if you provide delivery services. By the way, the depreciation of these cars can be included here.

Account 26 : “General business expenses.” It takes into account administrative or management costs. Office rent or the salary of the company director should be reflected here.

Account 44 records costs associated with the sale of goods, works or services. Organizations that are engaged in trade can take into account all their costs if they do nothing else. And other companies take into account entertainment expenses, advertising expenses, salespersons’ salaries, agency fees for selling products, etc. The account is called “Sales expenses.”

Expense accounts are “closed” at the end of each month. This means that the amounts accumulated on them are written off to another account, usually to the 90th account : in addition to the accumulated expenses that came here from expense accounts, all expenses for the month are taken into account.

In addition to expenses, all monthly income also falls here. Expenses are then subtracted from income, and the resulting result, called the financial result for the month , will be the accounting profit or loss. This amount goes to another account - 99 ; it is called “Profit and Loss”, and accountants call the procedure for determining or deducing a financial result “closing the month” .

In Kontur.Accounting, all this work is automated: the service itself will generate a document, which is called: “Closing the month.” It will display the financial result, and you only need to submit primary documents on time.

Cost accounts in the chart of accounts, their classification

Cost accounts in accounting can be classified as follows:

The first classification is Types of costs in an enterprise. The variety of cost items and expenses of any company is divided into two types. Some expenses relate to core activities, others - to other expenses. Various accounting accounts are used to record these types of costs and expenses.

Costs and expenses for core activities use our entire list of accounts, except 91.2 Other expenses use only account 91.2

Sometimes a company uses account 84, although it is not a cost account at all. But it is assumed that the company can take into account expenses that, by law, cannot be used for accounting for profit. In this case, they are called “expenses from own profit”.

The second classification is the specific type of activity of the company. Whatever the company does, it is based on only four types of activities. For each type of activity in accounting, there is a separate list of cost accounts. There will be one list for production and completed work. For trading enterprises it is different. And for companies providing services - the third. We'll talk more about this later.

Each accounting account, being an accounting tool, contains a number of properties. The account code, as well as its subaccount, determines the purpose of the account and the type of information stored on it. The subconto of the account shows “how in detail” the information is stored. Look at the master list of cost accounts.

A common feature among the accounts will be a subconto that says that the name of the cost item should be indicated in the transactions. For accounts:

— 20 — “Main production costs” — 25 — “General production costs” — 26 — “General business expenses” — 44 — “Distribution costs” — 91.2 — “Other income and expenses”

But for accounts 90.2, 90.7 and 90.8 there is no subaccount that is in any way related to cost items. Because account 90 refers to the formula for the financial result for the main activity. It is often carried out in the context of the names of types of activities - subconto “nomenclature groups”.

Look at completed SALTs for some costly accounts.

How do expense accounts work in accounting?

The essence of how “cost accounts” work can be understood from its definition at the beginning of the article. It shows that cost accounts work in two directions:

Direction 1: Some accounts collect information about the costs incurred and expenses of the company in the course of its activities. These accounts include: 26 for services, 44.X for trade or production, 91.2 for all types of activities.

Direction 2: Other accounts are used to obtain the cost of products or work performed by the company.

For manufacturing enterprises, a whole bunch of accounts work for this: 20, 23, 25, 26, 28, 29. For companies performing simple work, the list of accounts is simpler and is represented mainly by 20 and 26 accounting accounts.

The essence of the work of accounts in this direction is to “accumulate” the full cost of the costs and expenses incurred by the company, in order to then see the resulting cost of the finished product or work. Accounting account 20 is the final account, where all costs and expenses for manufactured products or work are collected.

Costs are collected according to the names of cost items (sub-accounts of the account). Thanks to this, it becomes possible to generate a detailed report, for example, a balance sheet for an account.

Methods for writing off deviations

Any enterprise has the opportunity to choose a method that allows you to write off the difference in prices for goods. Subsequently, the chosen method is prescribed in the accounting policy. The following options are currently available:

• leveling the difference in the circulation process - the technique is used when the discrepancy is no more than 10% of the valuation of goods;
• write-off at the beginning of the month by specific gravity is not the most accurate method + the deviation cannot be more than 5%;
• full write-off of the difference monthly based on value (the difference is no more than 5%).

The accountant chooses the methodology, subsequently coordinating it with management. Based on this, the accounting policy of the enterprise is formed.

Cost Accounts and Activities

Cost accounts in accounting are scattered throughout the chart of accounts. But at the same time, they still have their own grouping, which is revealed in relation to nearby accounts.

For example, the 20th invoices clearly show that they relate to production. For any manufacturing enterprise, we can safely say that its specificity is its production accounts.

However, for companies performing simple work, there are no clearly visible and specific accounts in the chart of accounts. And these will also be 20th counts, only part of them: 20, 26, sometimes 25.

The 26th score will be interesting. He stands, as it were, on the border. On the one hand, it is included in the group of 20 accounts, which relate to production or performance of work. But what if the company does not produce or perform work, but provides services?

For service firms, account 26 will be the most important account where costs and expenses are collected.

What about a trading company? Should he use a count of 26 or 44? Or maybe only 44? (since account 26 strictly refers to services) The answer is: “For trading enterprises, the main account of costs and expenses will be only 44.”

As you can see, accounting for activities has defined its lists of cost accounts. Moreover, each account has its own set of rules for how it should work within itself, as well as in relation to the financial result.

But do not forget that for any type of activity there is a general expense account called “other expenses”. This is account 91, namely, a specific sub-account - 91.2

Look in the table at the list of cost accounts for activities.

Primary documents for accounting of services provided to us

The service provider issues us a certificate of service provision.
If we agree with everything, we sign it. Next, we draw up a primary document in our accounting: Look at the examples of primary documents.

Look at the tabular parts of the documents - everywhere they indicate the name of the service, department (if necessary), expense account (correspondent account), amount. And in the header of the document we indicate the service provider and the contract. If necessary, also information about the supplier's invoice.

Impact of Cost Accounts on Accounting Areas

The purpose of accounting implies the generation of two main types of reports:

Form No. 1 - “Balance”. The report shows the state of the enterprise at a point in time. Indicators of this state are two types of information: what the company owns (Assets) and debts/liabilities (Liabilities) of the company.

Form No. 2 - “Report on financial results” (profit and loss statement). The report shows Profit/Loss for main and non-core activities for the period.

Accounting areas that are all interconnected work to achieve accounting goals. A change in one area or account will certainly result in a change in another area. Most changes affect the final accounting results. Cost accounts are no exception.

The main “influences of cost accounts” on areas of accounting: 1. Incorrect assignment of a cost item to a specific account. 2. The incorrect formulation of the cost item was chosen, which resulted in an erroneous attribution to the formation of the cost of production. 3. An incorrect or suboptimal method was used to transfer the collected costs to the main production to obtain the full cost of the product or work. 4. Changes in the amounts of primary documents in previous periods when the financial result was calculated.

How is account 16 used in accounting?

The cost of materials or goods for a company's business activities is divided into actual and accounting. The book value is used during the transfer of inventories, since the final amount has not yet been formed. When the assessment results do not coincide with market indicators, the accountant draws up a certificate of deviations. A specific amount is formed on account 16 and subsequently the accumulated deviations become part of the enterprise’s expenses.

Count 16 – active-passive. The debit of the account accepts the positive difference between market prices and the actual cost of goods purchased by the organization. If the company saved and purchased materials or goods at a reduced price, the difference is indicated in the credit of account 16.

Account 16 is used to reflect single or general deviations in inventory items. No subaccounts are created for this account.