Reflection of other materials in accounting
In the Chart of Accounts for accounting financial and economic activities of organizations and instructions for its application, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n, a synthetic account of the same name 10 “Materials” is allocated for accounting materials. Account 10 collects information about the availability and movement of material assets. To account 10 The chart of accounts assumes the use of subaccounts from 1 to 11. Of these, account 10 with subaccount 6 (10-6) “Other materials” is provided for accounting for other materials.
Other materials are accounted for at the price of possible use or at the market price. Other inventories received upon disposal of a fixed asset must be capitalized at market value. The accounting entry will look like this:
Dt 10-6 Kt 91-1 - other material released during dismantling of the fixed asset was capitalized.
Sales of other materials are reflected in accounting in the same way as sales of materials:
Dt 62 Kt 91-1 - proceeds from the sale of other material to the buyer;
Dt 91-2 Kt 10-6 - write-off of the cost of other materials.
During the production of products, defects occur; they can also be attributed to other materials. If defective products cannot be corrected, then in the future they may be suitable for use within the enterprise as material or for sale. In this case, the defective products should first be capitalized as other material. The accounting entry will look like this:
Dt 10-6 (43) Kt 28 - posting of defective products.
The recording of waste after the elimination of irreparable defects is reflected in the same way.
Find out more about accounting for the write-off of internal defects in the article “Procedure for writing off work in progress (nuances).”
