What is the accounting of inventory loss, inventory profit, inventory profit and loss?

Inventory surplus, general write-off of administrative expenses.

In the case of inventory loss, it is necessary to find out the reasons and include expenses or non-operating expenses according to the reasons.

Inventory loss or damage:

Borrow: Loss or overflow of property to be disposed of.

Credit: Inventory goods, etc.

After reporting for approval according to the management authority, according to the reasons for the loss or damage of the inventory, the following situations shall be dealt with: if the inventory shortage is caused by the error in measurement and receipt and mismanagement, the value of the residual material, the recoverable insurance compensation and the compensation of the negligent person shall be deducted first, and the net loss shall be included in the management expenses; If the inventory is damaged due to extraordinary reasons such as natural disasters, the disposal income (such as the value of the residual materials), recoverable insurance compensation and compensation for the negligent party shall be deducted first, and the net loss shall be counted as non-operating expenses.

Debit: Other receivables – insurance company or responsible person.

Borrow: Administrative expenses.

Borrow: Non-operating expenses (inventory damage caused by natural disasters and other extraordinary reasons) Credit: Loss and excess of property to be disposed of.

Credit: Tax Payable - VAT Payable - Input Tax Transferred Out.

For inventory losses caused by poor management, the VAT input tax originally paid at the time of purchase included in the inventory loss inventory should be transferred out.

It should be said that the inventory loss or damage caused by "abnormal reasons" should be transferred out of the non-deductible VAT. To put it more comprehensively.

Accounting treatment of inventory losses and gains.

1. When the company's inventory is in surplus:

Borrow: raw materials.

Credit: Pending property loss and overflow.

After approval processing:

Borrow: Loss or overflow of property to be disposed of.

Credit: Administrative expenses.

2. When the company's inventory is in deficit:

Borrow: Loss or overflow of property to be disposed of.

Credit: raw materials.

After approval processing:

Borrow: Other receivables (indemnity of insurance companies and negligent persons).

Administrative expenses (general operating losses).

Non-operating expenses - extraordinary losses (extraordinary losses such as unexpected disasters).

Credit: Pending property loss and overflow.

It should be noted that when the inventory is lost, if the mildew, theft, or loss caused by poor management is lost, the input tax of the inventory loss needs to be transferred out.

The property loss and excess to be disposed of is an asset class account, which accounts for the profit, loss and damage of various property and materials that have been ascertained by the enterprise in the process of property inventory. The property loss and excess to be disposed of is a transitional account, and there is generally no balance at the end of the period, and its balance has entered the current profit and loss account, and entered the profit and loss account. Pending property loss and excess accounts are often set up with two active accounts, ie"Pending fixed asset loss or overvalue"、"Pending losses and overpayments of current assets".

The loss or excess of the property to be disposed of is directly related to the asset before the approval is reported, and is directly related to the current loss and excess after the approval is reported.

Can the profit and loss of inventory be offset by management expenses?

First of all, the positive and flat profit of inventory is generally caused by errors in the measurement or calculation of sending and receiving, which can be offset by administrative expenses.

The inventory of the enterprise in the property inventory, according to"Inventory Inventory Report"For the amounts listed, the accounting entries are prepared as follows:

Borrow: raw materials.

Turnover materials. Inventory items, etc.

Credit: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

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: Property loss and overflow to be disposed of Loss and overflow of assets to be disposed of.

Credit: Administrative expenses.

Secondly, there are many cases of inventory loss, and the following two situations are recorded after approval"Administrative expense account"

1) It belongs to the loss within the quota and the error in the measurement of the daily receipt and dispatch of inventory, that is, the normal loss, which is transferred to management expenses after approval

Borrow: Administrative expenses.

Credit: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

2) For other losses that cannot be recovered, they will be credited after approval"Administrative expense account"

Borrow: Administrative expenses.

Credit: Loss and Excess of Property to be Handled Loss and Excess of Current Assets to be Treated.

Therefore, the inventory profit can be offset by the management expenses, and the inventory loss can be included in the management expenses in some cases.

The content of the information compiled above is what we are aiming for"What is the accounting for the profit and loss of inventory? "A detailed answer to this question. When we take stock of the company's inventory, sometimes there will be a profit, and sometimes there will be a profit and loss.

Whether it is a profit or a loss, it needs to be accounted for accordingly, which can be based on the above information.

According to the reason for the loss, it will be dealt with in the following situations:

1) The shortfall is caused by natural wear and tear within the quota and is included in the management expenses;

2) If the shortage or damage is caused by errors in the measurement of sending and receiving and mismanagement, the net loss after deducting the recoverable compensation of the insurance company and the negligent person and the value of the residual material will be included in the management expenses. Among them, for the inventory that is stolen, lost, moldy and deteriorated due to poor management, the corresponding input tax shall not be deducted from the output tax and shall be transferred out;

3) In the case of car collapse caused by natural disasters or other extraordinary reasons, the net loss after deducting the recoverable compensation of the insurance company and the negligent person and the value of the residual material will be included in the expenses of business closure.

2 Accounting entries.

1) When you find that you are losing money.

Borrow: Loss or overflow of property to be disposed of.

Credit: raw materials.

Tax payable - VAT payable ** this Zen out).

2) Report for approval.

It is a loss within a fixed amount caused by natural loss.

Borrow: Administrative expenses.

Credit: Pending property loss and overflow.

It is a loss caused by poor measurement, accounting and management of sending and receiving.

Borrow: Raw material (remnant).

Other receivables (insurance, compensation for the person responsible).

Credit: Pending property loss and overflow.

It is the loss of inventory caused by natural disasters or accidents (the loss of work stoppage due to the severe epidemic is recorded as non-operating expenses).

Borrow: Raw material (remnant).

Other receivables (insurance and indemnity payables).

Non-operating expenses were very lossy.

Credit: Pending property loss and overflow.

That is, the actual quantity of inventory is less than the quantity recorded in the account.

When an enterprise conducts an inventory of 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 inventory profit; On the contrary, it is a loss of inventory. In order to reflect the profit, loss and damage of various inventories ascertained by the enterprise in the inventory of property, the enterprise should set up a property loss and excess account to be disposed of, and the debit side shall register the inventory loss, damage amount and the resale amount of the inventory profit, and the credit side shall register the inventory profit amount and the resale amount of inventory loss.

The profits and losses of various inventories in the inventory of an enterprise should be handled before the closing of the accounts at the end of the period, and after the processing at the end of the period, there should be no balance in this account. When the enterprise has an inventory surplus, the raw materials are debited'Accounts such as inventory commodities shall be credited to the property loss and excess to be disposed of - the current asset loss and excess account to be disposed of; After reporting for approval in accordance with the management authority, the management expenses are generally written off, i.e., the property loss and excess account to be disposed of is debited and the management expense account is credited.

When an enterprise incurs inventory loss or damage, it debits the loss and excess of property to be disposed of - the loss and excess account of current assets to be disposed of, and credits the accounts of raw materials and inventory commodities. If, according to the provisions of the VAT regulations, the inventory loss or damaged inventory involves the relevant input tax that cannot be deducted, the corresponding input tax shall also be transferred out.

For normal inventory losses, the accounting treatment is equivalent to the tax law, which is directly deducted from the profit of the current year; For the abnormal loss of inventory, the accounting is divided into two situations to directly deduct the profit in the current year, that is, the loss of natural disasters, after deducting the compensation of the insurance company, the non-operating expenses, and the loss of goods theft, mildew and deterioration caused by poor management, after deducting the compensation of the relevant responsible personnel, it is included in the management expenses.

When the inventory is profitable, the inventory should be recorded in the accounts in a timely manner and the actual number of inventory books should be adjusted. The surplus inventory should be recorded at its replacement cost, debit: raw materials, etc., credit: loss and excess of property to be disposed of--loss and excess of current assets to be disposed of.

When the inventory is in deficit, it should be borrowed: the loss and excess of the property to be disposed of - the loss and excess of the current assets to be disposed of, and the credit: the raw materials are out of stock, and the goods in stock.

If raw materials, finished products, and commodities are accounted for at planned costs (or selling prices), the cost difference (or the difference between the purchase and sale of commodities) should also be carried forward at the same time. If VAT is involved, it should also be dealt with accordingly.