What should I do with the inventory that is in the red?

According to the accounting system, inventory should be counted regularly, at least once a year. If the results of the inventory are inconsistent with the book records, the reasons shall be ascertained before the year-end accounts are handled, and the accounts shall be processed before the year-end accounts after being approved by the general meeting of shareholders or the board of directors, or the meeting of managers (factory directors) or similar institutions according to the management authority of the enterprise. The inventory of the surplus shall be offset by the management expenses of the current period; The inventory loss, after deducting the compensation and residual value of the wife or the insurance company, etc., is included in the current management expenses, and if it is an extraordinary loss, it is included in the non-operating expenses.

If the inventory with profit or loss has not been approved before the year-end accounts, it shall be dealt with first when the financial accounting report is provided to the outside world, and an explanation shall be made in the notes to the accounting statements; If the amount subsequently approved for processing is inconsistent with the amount already disposed of, the beginning of the year of the relevant item in the accounting statement shall be adjusted according to the difference.

Inventory should be set up"Pending property loss and overflow"Subjects and set up under them"Pending losses and overpayments of current assets"Detailed accounts, detailed accounting.

The accounting process of the inventory results is carried out in two steps:

In the first step, the inventory with a profit, loss or damage is recorded first"Excess of property to be disposed of: Excess of current assets to be disposed of"Subjects;

The second step, after approval, resells according to different reasons.

1) Inventory surplus.

According to"Inventory Inventory Report"The type and amount of the inventory listed"The accounting entries are as follows:

Borrow: raw materials.

Packaging. Low-value consumables.

Inventory items. Credit: Loss or Excess of Property to be Processed - Profit or Loss of Current Assets to be Disposed of.

2) inventory loss.

According to"Inventory Inventory Report'Make the following accounting entries:

Borrow: Loss and excess of property to be disposed of: Loss and excess of current assets to be disposed of.

Credit: raw materials.

Packaging. Low-value consumables 120

500 for items in stock, etc

Inventory loss: VAT to be transferred out.

Steps: 1. Adjust the account (for example: account 5000, real: 4900) debit: 100 + 17 property profit and loss to be processed

Credit: Raw materials 100

Tax Payable - VAT Payable (Inward and Outbound) 17

2. The superior issued the processing opinions, debit accounts: other receivables, management expenses, non-operating expenses, etc.; Credit Account: Pending Property Gains and Losses.

In the case of profit, it is reversed, but if there is input tax, it must also be transferred out.

If it is handled strictly in accordance with accounting standards, it is necessary to deal with the inventory loss at the end of the year.

The principle of substance over form and the principle of authenticity both require that inventory losses be dealt with in a timely manner. State band bump.

1. After the inventory loss, the inventory on the book can no longer truly reflect the value of the inventory, and the balance sheet is discussed in the asset book.

It seems that the inflated assets in the income statement.

It seems that the profits are inflated.

2. If the inventory is turned into property loss and overflow to be disposed of after the inventory is lost.

The profit and loss of the property to be disposed of can no longer bring economic benefits to the enterprise, and there is no corresponding place for imitation when filling in the balance sheet. Does not meet the definition of an asset.

It is recommended to deal with it correctly according to the accounting standards for business enterprises.

The inventory loss is not disposed of, and the profit is not affected, but the processing affects the profit.

The treatment method of inventory loss is as follows:

When an enterprise incurs an inventory loss, it should credit the account of "raw materials" or "inventory goods", debit the account of "property loss and excess to be disposed of", and after approval, the inventory loss caused by the measurement of sending and receiving, poor management, etc., shall be included in the account of "management expenses".

Inventory losses caused by natural disasters and other abnormal reasons are included in the "non-operating expenses" account. The compensation of the insurance company shall be included in the account of "other receivables" and credited to the account of "property loss and excess to be disposed of".

The specific entries are as follows:

When an enterprise incurs an inventory loss:

1. Borrow: the loss and overflow of property to be disposed of.

2. Credit: raw materials (inventory commodities and other accounts).

After the enterprise finds out the cause of the inventory loss and approves it:

1. Borrow: management expenses, other receivables, and non-operating expenses.

2. Loan: property loss and overflow to be disposed of.

A brief introduction to inventory loss

Inventory deficit is a situation in which the book balance of inventory after counting is greater than the actual balance. In addition to normal losses in the process of production and operation, the damage to goods caused by natural disasters and poor management mainly includes purchased goods and self-made semi-finished products, as well as shortages of products and finished products, that is, the so-called "abnormal losses" in the tax law.

When an enterprise conducts an inventory inventory, it shall prepare an "inventory report" and use it as the original voucher for the inventory inventory. After checking the actual number of inventory records with the book records of inventory, if the book inventory is less than the actual inventory, it is the profit of inventory; On the contrary, it is a loss of inventory. For the inventory of profit and loss, it is necessary to record the account of "property loss and excess to be disposed of", and find out the reason for treatment.

When the inventory is in earning:

Pre-approval: Borrow: Raw materials and other accounts.

Credit: Excess of Property to be Processed - Excess of current assets to be disposed of.

Post-Approval: Borrow: Pending Property Loss and Excess - Pending Disposal of Current Asset Excess and Loss.

Credit: Administrative expenses.

When the inventory is in deficit:

Pre-Approval: Borrow: Excess of Property to be Processed - Excess of Current Assets to be Disposed of.

Credit: Raw materials and other accounts.

After approval: borrow: management expenses (sending and receiving measurements, mismanagement);

non-operating expenses (extraordinary reasons);

Other receivables (receivables from the responsible person, insurance company);

Credit: Excess of Property to be Processed - Excess of current assets to be disposed of.

For the inventory loss phenomenon that occurs when the enterprise takes inventory, the accounting of property loss and excess accounts to be disposed of should be set up. What are the accounting treatments?

Accounting treatment of inventory losses.

The loss here refers to the loss under normal circumstances. Due to the particularity of some inventories, losses are inevitable, so general enterprises will have loss limits. Natural losses under such a fixed amount need to be included in the "management expenses".

Case 2] During the property inventory, Company B found that 10 kilograms of B material were missing, and the cost per kilogram was about 5,000 yuan. After verification, the loss is within the limit. Without considering taxes and fees, try to write relevant entries.

According to the normal inventory loss, it needs to be divided into before the approval of the processing and after the approval of the processing to make corresponding entries.

Before Approval Processing:

Borrow: 50,000 property losses and surpluses to be disposed of

Credit: 50,000 for raw materials

After approval processing:

Borrow: 50,000 for administrative expenses

Credit: 50,000 property losses and surpluses to be disposed of

Accounting entries for inventory gains.

It is not surprising if there is excess inventory after the inventory. It is likely that the accounts are different or other goods are mixed in. If the amount of profit is small, it can be accounted for through the account of "profit and loss of property to be disposed of", and the "management expenses" shall be written off after approval according to the management authority. The specific accounting treatment is as follows.

Case 1] Company A conducted a property inventory at the end of the year, and found that 500 kilograms of Panyingjia materials were used, and the actual cost per kilogram was 30 yuan. After investigation, it was found that the result was an error in the measurement of material sending and receiving, and the relevant accounting entries were tried to be prepared.

Before approving the processing, compare the accounts and facts, determine the surplus of the material inventory, and prepare the accounting entries as follows

Borrow: raw materials 15000

Credit: 15,000 property losses and surpluses to be disposed of

After the approval of the processing, the accounting entries for the resale material inventory profit are as follows:

Borrow: 15,000 property loss and surplus to be disposed of

Credit: Management expenses 15000

Considerations for taking inventory.

Generally speaking, the inventory of an enterprise can be divided into two forms: regular and irregular. Generally speaking, companies will make fixed inventories at the end of the month, the end of the quarter, and the end of the year. However, at the time of accounting handover, an inventory will also be carried out from time to time.

However, what we need to remember is that after completing the inventory and understanding the specific matters of profit or loss, it is important to sort out an inventory report as evidence for the early balance of the inventory.

If the reason cannot be ascertained, it shall be transferred to the management expenses after approval.

Borrow: Administrative expenses.

Credit: Excess of Property to be Processed - Excess of current assets to be disposed of.

For losses that should be compensated by the person at fault, the following entries should be made:

Debit: Other receivables.

Credit: Excess of Property to be Processed - Excess of current assets to be disposed of.

For inventory losses due to force majeure reasons such as natural disasters, the following entries should be made:

Borrow: Non-operating expenses Very loss.

Credit: Excess of Property to be Processed - Excess of current assets to be disposed of.

Other losses that cannot be recovered are credited to the "Management Expense Account" upon approval

Borrow: Administrative expenses.

Credit: Excess of Property to be Processed - Excess of current assets to be disposed of.

The inventory of the surplus is usually caused by the error in the measurement or calculation of the daily receipt and dispatch of the enterprise, and the inventory of the surplus can be offset against the management expenses, and the accounting entries are as follows:

Borrow: Pending Property Losses and Losses Pending Disposal of Current Void Orange High Asset Losses and Overflows.

Credit: Administrative expenses.