What exactly is planned costing? How does it compare to actual costing?

1. The characteristics of raw material cost accounting according to the plan are: The receipt and dispatch voucher is valued according to the planned cost of the material, and the general ledger and sub-ledger of the raw materials are registered according to the planned cost. The difference between the actual cost of raw materials and the planned cost is calculated through the Material Cost Variance account, and at the end of the month, the planned cost of the raw material issued and the material cost difference are adjusted to the actual cost.

2. The calculation formula involved in the planning cost method is as follows: the planned cost of the issued material The quantity of the issued material The planned unit price.

Actual cost of issued material Planned cost of issued material The amount of cost variance for issued material.

Cost variance amount for issued material Planned cost for issued material Material cost variance rate.

Material Cost Variance Rate Variance Planned Cost (Variance Amount of Opening Inventory Variance Amount of Inventory of Period Revenue) (Planned Cost of Opening Inventory Planned Cost of Inventory of Period Revenue Inventory).

Note: Overrun variances are positive, and savings variances are negative).

Actual Cost of Balance Material Planned Cost of Balance Material Cost Variance Amount of Balance Material Planned Cost of Balance Material Planned Cost of Balance Material Material Cost Variance Rate.

3. The differences between the planned costing method and the actual costing method are as follows: The actual costing method refers to the actual purchase cost as the recorded cost, while the planned costing method is an inventory valuation method that takes the planned cost formulated by the enterprise as the recorded cost, and uses the "material cost difference" as the allowance account with the actual cost. Under the planned costing method, inventory is accounted for at planned cost.

The unit price of each type of inventory is fixed, which is the planned cost. The difference between the actual cost and the planned cost is reflected through a variance account such as Material Cost Variance.

Under the actual cost method, inventory is recorded at actual cost. The unit price of each inventory may be different.

The planned costing method is suitable for enterprises with a wide variety of inventories and frequent sending and receiving, and is mainly used for internal management.

First, the planned cost method.

1. Self-made planned unit price for all raw material varieties (the planned unit price cannot exceed 10% of the actual price).

2. Finance calculates costs through the "Material Purchase" account and at the end of the month through "Material Cost Variance".

3. It is suitable for the workshop accounting or workshop department assessment and secondary accounting of the enterprise.

Second, the actual cost method.

1. The materials stored in the warehouse are stored at the actual price.

2. Finance calculates costs according to the "first-in-first-out", "last-in-first-out" and "weighted average" methods.

3. Suitable for the field of circulation.

Three, the difference. 1. The size and nature of the company are determined.

2. The variety of materials is determined by the cost accounting method.

3. The decision-making ability of the leader to decide.

The actual cost is the purchase cost, processing cost and other costs incurred by the enterprise to achieve the current location and state when acquiring the property.

The planned cost is the classification, name, specification, number, unit of measurement and planned unit cost and other information of the property formulated by the enterprise itself, and the plan is calculated according to these information when the property is obtained or issued The biggest difference between the two methods is the daily accounting of raw materials, and the daily entry and exit of raw materials under the planned cost method are calculated at planned cost, without change, but adjusted according to the difference in material cost at the end of the period; Under the actual cost method, the daily incoming and outgoing of raw materials is based on the actual cost incurred. A system of accounting for inventories at planned cost. It is an inventory accounting system commonly used by industrial enterprises in China.

The basic requirements are that under the planned costing method, it is necessary to set up two accounts, "inventory purchase" and "inventory cost variance", and take raw materials as an example to illustrate the accounting procedures of planned costs as follows:

1) Pay the material according to the actual cost, the debit of the "material procurement" account is priced according to the planned cost, and the difference between the actual cost and the planned cost is credited to the "material cost difference" account, and the overrun is written in blue, and the saving is in red;

2) (according to the plan) cost carry-over material cost;

3) When receiving raw materials, carry forward according to the planned cost;

4) At the end of the accounting period, the planned cost of materials is adjusted to the actual cost.

Variance Allocation Elimination The difference between the actual cost and the planned cost is the difference between the actual cost and the planned cost, and the actual cost exceeds the planned cost as an overrun, and vice versa as a savings. Inventory cost variances are formed in the process of inventory acquisition, and are resold as the inventory is issued, that is, the inventory cost variance is allocated to the relevant cost items according to the variance rate.

The reason why planned cost accounting is widely used in China's industrial enterprises is that it can simplify daily accounting, all kinds of inventory have only one unit cost, and only the number of inventory needs to be registered, and there is no complex inventory valuation procedures such as first-in-first-out and last-in-first-out. Moreover, planned cost accounting is also conducive to assessing the work performance of the procurement department, strengthening inventory management, promoting the reduction of breakage, and reducing the error of inventory accounting. The difficulty of planned costing lies in how to formulate an effective planned cost that is in line with the actual situation of the enterprise, and if the planned cost is highly correlated with the actual cost, the planned costing will lose its meaning.

Under normal circumstances, if the inventory cost variance rate continues (e.g. within two years) exceeds 5, the planned cost should be adjusted.

Planned costing of raw materials, inventories, etc., is recorded at the planned cost price at the time of purchase, and the difference is collected under the "Material Cost Variance" account. At the end of the month, the material cost variance that will be collected is allocated according to the ratio of the number of items in the inventory to the number of requisitioned and entered into the cost. That is, the planned cost is adjusted to the actual cost.

For example, if a general taxpayer of a commercial enterprise buys 100 pieces of commodity A at 20 yuan per piece and pays 2,340 yuan by bank deposit, then: 1. If the selling price is 30 yuan per piece excluding tax, and the planned cost accounting is adopted, the accounting entries of the enterprise are as follows:

At the time of purchase: Borrow: inventory goods 30*100=3000 Tax payable - VAT payable (input tax) 340 Credit:

Bank Deposits 2340 Commodity Distribution Spread 1000 80 Sales at the end of the period, then the closing accounting treatment: borrow: bank deposits 2808 Credit:

Main business income 2400 Tax payable - VAT payable (output tax) 408 Carry-forward cost Borrow: main business cost 1600 Commodity purchase and sales price difference 800 Credit: inventory goods 24002, if the cost method is used to account for warehousing:

Debit: Inventory of goods 2000 Tax payable - VAT payable (input tax) 340 Credit: Bank deposit 2340 On sale:

Borrow: Bank Deposits 2808 Credit: Income from Main Business 2400 Tax Payable - VAT Payable (Output Tax) 408 Cost carried forward at the end of the period:

Borrow: Cost of Main Business 1600 Credit: Inventory Goods 1600

Accounting formula for planned costing:

1. The planned cost of the quantity of materials issued and the planned unit price;

2. Actual cost The planned cost of the issued materials The cost difference of the issued materials;

3. The amount of cost variance, the planned cost of the materials issued, the rate of material cost variance;

4. Material cost variance rate, difference amount, planned cost.

What is the difference between planned and actual costs?

1. The cost of accounting inventory is different.

From the receipt and dispatch voucher of inventory to the sub-ledger and general ledger, it is valued at its actual cost.

The revenue, issuance and balance of the enterprise's inventory are valued at the pre-determined planned cost, and the general classification and detailed classification accounting of the inventory under the planned cost method are valued at the planned cost.

At the same time, it will be set up separately"Material cost variances"Accounts, which act as a link between planned and actual costs, are used to register the difference between actual and planned costs.

2. The account treatment is different when the cost is included.

When acquiring inventory, the planned cost of acquiring inventory should be calculated according to the planned unit cost and filled in the material receipt list, and the difference between the actual cost and the planned cost should be used as"Material cost variances"Register.

3. The nature and scale of applicable enterprises are different.

The actual cost method is generally suitable for enterprises with small scale, simple inventory varieties and small procurement business.

The planned costing method is suitable for enterprises with a wide variety of inventory and frequent sending and receiving.

The differences between actual costing and planned costing are:

1. The actual cost accounting method is that when the material adopts the actual cost accounting, the sending and receiving and balance of the material, regardless of the general classification accounting or the detailed classification accounting, are priced according to the actual cost. The planned costing method means that when the material adopts the planned costing, the receipt and delivery and balance of the material, regardless of the general classification accounting or the detailed classification accounting, are priced according to the planned cost.

2. Actual cost method, the goods in transit use "materials in transit"; In the planned costing method, "material procurement" is used for goods in transit, that is, in the planned costing method, there is no "material in transit" account. The amount between the actual cost and the planned cost is included in the Material Cost Variance (this is to verify cost overruns or savings).

1. Actual cost accounting.

1. Concept. When the actual cost accounting of materials is adopted, the sending and receiving and balance of materials, regardless of general classification accounting or detailed classification.

Accounting is based on actual cost.

2. The accounting subjects used are:"Raw materials"、"Supplies in transit"etc,"Raw materials"The debits, credits, and balances of the accounts are all valued at actual cost, and the actual cost of the materials issued needs to be calculated using the selected method, but there is no problem of calculating and carrying forward the cost variance.

3. The actual cost accounting is adopted, and the daily cost of materials cannot be reflected whether the cost of materials is saved or overrun, so that the operating results of the material procurement business cannot be reflected and assessed. Therefore, this method is usually suitable for enterprises with less material sending and receiving business.

2. Planned costing.

1. Concept. When the material adopts planned costing, the receipt and delivery of materials and the balance, regardless of general classification accounting or detailed classification.

Accounting, all are priced according to the planned cost.

2. The accounting subjects used are:"Raw materials"、"Material procurement"、"Material cost variances"etc,The difference between the actual cost of the material and the planned cost, passed"Material cost variances"Account accounting. At the end of the month, calculate and allocate the cost difference to be borne by the materials issued in the current month, and include the cost of the relevant assets or the profit or loss of the current period according to the use of the materials received, so as to adjust the planned cost of the issued materials to the actual cost.

3. The daily accounting is relatively simple, which can reflect whether the material cost is saved or overrun, so as to reflect and assess the operating results of the material procurement business. However, at the end of the period, the cost variance needs to be calculated and carried forward. It is suitable for enterprises with more material sending and receiving business and more sound and accurate planned cost information.

Extended Information: Valuation Procedures for the Cost Method:

In the first step, once the assessee asset is identified, the full replacement price should be estimated using the current (valuation base date) market price based on the basic information such as the physical characteristics of the asset.

The second step is to determine the useful life, remaining useful life and total useful life of the asset to be assessed.

In the third step, the physical and functional wear and tear of the asset are estimated using the life depreciation method or other methods.

The fourth step is to estimate the net value of the asset to be assessed.

Accounting formula for planned costing:1. The planned cost of the quantity of materials issued is calculated and the unit price of the stove is calculated.

2. Actual cost The planned cost of the issued materials The cost difference of the issued materials;

3. The amount of cost variance, the planned cost of the materials issued, the rate of material cost variance;

4. Material cost variance rate, difference amount, planned cost.

The role of planned costing.

The first is to guide procurement through planning, and control procurement costs by analyzing the difference between actual costs and planned costs. Although in the market economy, the material fluctuations are large, but from the perspective of budget management, the planned cost method can still play its role.

The second is to simplify accounting and reduce workload. The hall is a large enterprise, with a wide variety of materials and materials, frequent imports and exports, and the use of actual cost accounting, even with the help of existing microcomputer management, is still very troublesome. Therefore, the adoption of planned costing has little to do with the nature of the enterprise, and more to do with the size of the enterprise.

1. Actual cost method, the goods in transit use the "materials in transit" plan cost method, and the goods in transit use "material procurement", that is to say, in the planned cost method, there is no "materials in transit" account. The amount between the actual cost and the planned cost is included in the "material cost difference" (this is to test the cost of over-burning or saving) 2. When the cost is included, the actual cost can be directly transferred, but the planned cost is first transferred to the planned cost, and the second is to transfer the "material cost difference" to the relevant cost.

Categories: Business Wealth Management >> Finance.

Problem description: The purchase and sale price includes 17 pegging multiplication tax: 200 kilograms of material A are purchased from a factory, each kilogram is counted as yuan, and the bank deposit payment is used as an accounting entry.

Analysis: What is the planned price of raw materials?

Borrow Procurement of Supplies 25840

Tax Payable - VAT Payable (Input Tax).

Credit bank deposits.

If the actual cost is greater than the planned cost of the scramble, then:

Borrow Raw Materials (Planned Cost).

Loan Material Cost Variance (Planned Cost - 25840) Credit Material Purchase 25840

If the actual cost is less than the planned cost, then:

Borrow Raw Materials (Planned Cost).

Credit Material Procurement 25840

Credit Material Cost Variance (25840 - Planned Cost).