Material costs (costs): what to include in their composition? Other material costs Material costs do not include

MATERIAL COSTS - the type of costs associated with production and sales, defined in Art. 254 NK. 1. Material expenses, in particular, include the following expenses of a taxpayer for tax on organizations:

1) for the purchase of raw materials and (or) materials used in the production of goods (performance of work, provision of services) and (or) forming their basis or being a necessary component in the production of goods (performance of work, provision of services);

2) for the purchase of materials used:

a) in the production (manufacturing) of goods (performance of work, provision of services) to ensure the technological process;

b) for packaging and other preparation of manufactured and (or) sold goods (including pre-sale preparation);

c) for other production and economic needs (testing, control, maintenance, operation of fixed assets and other similar purposes);

3) for the purchase of spare parts and consumables used for the repair of equipment, tools, fixtures, inventory, appliances, laboratory equipment, overalls and other property;

4) for the purchase of components and (or) semi-finished products that are subject to installation and (or) additional processing in the organization;

5) for the purchase of fuel, water and energy of all types spent for technological purposes, production (including by the organization itself for production needs) of all types of energy, heating of buildings, as well as for the transformation and transmission of energy;

6) for the purchase of works and services of an industrial nature performed by third-party organizations or individual entrepreneurs, as well as for the performance of these works (rendering of services) by structural divisions of the organization;

7) associated with the maintenance and operation of funds for environmental purposes (including the costs associated with the maintenance and operation of treatment facilities, ash collectors, filters and other environmental facilities, the costs of the disposal of environmentally hazardous waste, the costs of acquiring the services of third-party organizations for the receipt, storage and destruction of environmentally hazardous waste, wastewater treatment, payments for maximum permissible emissions (discharges) of pollutants into the environment and other similar expenses).

2. The cost of inventory items included in material expenses is determined on the basis of their purchase prices (excluding taxes included in expenses in accordance with the Tax Code), including commissions paid to intermediary organizations, import customs duties and fees, expenses for transportation, storage and other costs associated with the acquisition of inventory items.

3. If the cost of returnable packaging accepted from the supplier with inventory items is included in the price of these valuables, the cost of returnable packaging at the price of its possible use or sale is excluded from the total amount of expenses for their purchase. The cost of non-returnable containers and packaging accepted from the supplier with inventory items is included in the amount of expenses for their purchase. The assignment of containers to returnable or non-returnable is determined by the terms of the agreement (contract) for the purchase of inventory items.

4. The amount of material costs is reduced by the cost of returnable waste. 5. The following shall be equated to material expenses for the purposes of taxation:

1) expenses for land reclamation and other environmental protection measures, unless otherwise provided by Art. 261 NK;

2) losses from shortage and (or) damage during storage and transportation of inventory items within the limits of natural loss, approved in the manner established by the Government of the Russian Federation;

3) technological losses during production and (or) transportation;

4) expenses for mining and preparation work in the extraction of minerals for operational overburden work in quarries and threaded work in underground mining within the mining allotment of mining enterprises. 6. When determining the amount of material costs when writing off raw materials and materials used in the production (manufacturing) of goods (performance of work, provision of services), in accordance with the accounting policy adopted by the organization for tax purposes, one of the following methods for assessing the specified raw materials and materials is used:

a) the method of valuation at the cost of a unit of stocks;

b) the method of valuation at the average cost;

c) first-in-time acquisitions (FIFO) cost method;

d) the method of estimating the cost of the latest acquisitions (LIFO).

Encyclopedia of Russian and international taxation. - M.: Jurist. A. V. Tolkushkin. 2003 .

See what "MATERIAL EXPENSES" is in other dictionaries:

material costs- The term used in relation to oil and gas production means the value of assets that can be used for a certain period of time, for example, drill pipes, well plugs, land, tanks, as opposed to ... ... Financial and investment explanatory dictionary

Material costs- Art. 254 of the Tax Code of the Russian Federation. Material expenses, in particular, include the following expenses of the taxpayer: 1) for the purchase of raw materials and (or) materials used in the production of goods (performance of work, provision of services) and (or) forming ... ...

Organization material costs- (in relation to the provisions on taxation of corporate income tax) the material costs of the organization, in particular, include the following costs of the taxpayer: for the purchase of raw materials and (or) materials used in production ... ...

Costs associated with production and sales- Costs associated with production and sale include: 1) costs associated with the manufacture (production), storage and delivery of goods, performance of work, provision of services, acquisition and (or) sale of goods (works, services, ... ... Vocabulary: accounting, taxes, business law

Costs of the organization associated with the production and sale- (in relation to the provisions on taxation of corporate income tax) the expenses of the organization associated with the production and sale include: expenses associated with the manufacture (production), storage and delivery of goods, ... ... Encyclopedic dictionary-reference book of the head of the enterprise

Type of expenses incurred by the taxpayer and taken into account for the purposes of determining the tax base for corporate income tax. In accordance with Art. 253 of the Tax Code, the costs associated with the production and sale include: 1) costs associated with ... ... Encyclopedia of Russian and International Taxation

material costs (excluding the cost of returnable waste)- Costs reflecting the cost of raw materials and materials purchased from the outside, which are part of the manufactured products, forming its basis, or are a necessary component in the manufacture of products (carrying out work, providing services); ... ...

Expenses Material- costs, including the cost of purchased raw materials and materials that are part of the manufactured products, forming its basis, purchased materials used in the production process and for packaging products or spent on ... ... Glossary of business terms

MATERIAL COSTS- a part of production costs, costs for the production of products, goods, services, which includes the costs of raw materials, basic and auxiliary materials, fuel, energy and other costs equated to material ones. Material costs ... ... Economic dictionary

expenses for the production and sale of goods (works, services)- Costs associated with the production and sale of goods (works, services): material costs; labor costs; contributions to the pension fund, social insurance fund, employment fund, health insurance fund; depreciation ... ... Technical Translator's Handbook

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Material costs: formula for calculating the balance

Let's look at the regulated reporting forms and determine how to find material costs in the balance sheet.

Its asset looks like this:

As you can see, there is no line for material costs in the balance sheet, although there are several accounts for their calculation in accounting:

20 main production
21 accounting of semi-finished products
23 ancillary production
25 and 26 - overhead and business expenses
29 service farms

According to PBU 4/99, accounts 25 and 26 have no balances, and are closed at the end of each reporting period. It turns out that for material costs, the calculation formula is based on the balances of accounts 20-23, 29, and is reflected in the balance sheet in the line “Inventories” of the II section of the Asset. It is this position that is the main one in the construction of cost forecasts, costing and analysis of efficiency. It is generally accepted that material costs in the balance sheet are a line with code 1210, if you use regulated coding, or “Inventories” by its name in the form 0710001 according to OKUD.

Analysis of the efficiency of the enterprise by costs

To estimate the costs of the company, the following values are used:

Profit per ruble of material costs

The amount of profit per 1 rub. MZ is the main indicator of the efficiency of material turnover in a particular production. It is calculated as the ratio of profit from the main activity to the amount of material costs incurred. For example, if you need to calculate this parameter for reporting for the past year, you need to take the profit / loss from sales in line 2200 of the income statement

and correlate it with the amount of reserves in section 4 of the notes to the balance sheet:

Please note that in this section, inventory should be reported by group or type, for example: raw materials, goods for resale, basic materials, finished goods, "work in progress". Thus, it is possible to calculate the profit per 1 ruble of material costs in the context of any expense of the main industries.

Product material consumption parameter

Material consumption is calculated as the ratio of material costs to output products in its cost estimate. The calculated value characterizes the volume of MZ per unit of manufactured product. When evaluating the dynamics of the indicator, its decrease is assessed positively, and its growth is negative.

The value of material yield per unit of product

If material consumption is the ratio of material costs to the cost of output, then material productivity is determined as the result of dividing the cost of production of a batch of products by the materials spent on its creation and other material costs. This parameter characterizes how many products were obtained in the cost estimate from each ruble of the consumed resource.

The share of material costs in the cost

The proportion of material costs to the total cost shows the dynamics of material consumption, and if for profit per 1 ruble of material costs the formula is Pr / MZ, then to calculate the specific weight, it is necessary to correlate MZ / Cst full, where Cst full is the total cost of production.

Material cost factor

All the main indicators in dynamics can be expressed through coefficients that will clearly show the growth / growth or decline in output and / or costs, therefore, the calculation of material costs is carried out both in absolute and in relative terms. The correct setting of statistical research will allow you to understand how wisely the business is being conducted and whether there are resources for profit growth. An increase in material costs indicates not only an increase in output, but also an inefficient use of resources and an increase in the cost of a unit of product. For the coefficient of material costs, the calculation formula is usually used as follows: they relate the actual value of material costs to its planned parameter. The resulting value characterizes how economically resources are used, whether there is an overrun. The coefficients of total material costs can be greater than one, then economists will record overspending, but if the indicator is less than one, resources are used sparingly. Accounting for material and labor costs in dynamics is carried out precisely from the point of view of management efficiency.

Profitability of material costs

If we talk about the profitability of the Ministry of Health, then this indicator shows how much real income is received from 1 invested ruble of material resources. As a rule, for its calculation, the amount of net profit and the total costs of a material nature are correlated.

ROI based on financial statements

Accounting for material and labor costs involves monitoring the effectiveness of their use. Let's look at the example of the financial statements of the Passive company, what will be the profit per ruble of material costs, the formula for calculating it and how to operate with the obtained coefficients in practice. Here is form 0710002 from a pulp and wood pulp company.

Calculating Rcosts using the VP/Cst formula, we obtain a coefficient of 0.25 (200/800), which shows that for each ruble invested in pulp production, the company receives 25 kopecks of gross profit, and last year this value was similar with a gross profit of only 80 thousand roubles. It turns out that the cost recovery has not changed with the increase in production.

Assessing the effectiveness of sales by the formula:

Sales profit (line 2200)/(Cst(line 2120)+Comm.exp.(2210)+Exp.management(line2220))

We get: in 2014 and 2015, the coefficient is 0.14 - the efficiency is the same.

Determined in the calculations of her.

Material costs include:

the cost of raw materials and materials, purchased components and semi-finished products, works and services of an industrial nature performed by third parties, fuel, energy;
deductions for the reproduction of the mineral resource base;
deductions for land reclamation, payment for water, payment for standing timber, etc.

Saving material costs is the most important direction for reducing the cost of production, especially at enterprises in material-intensive industries.

The amount of material costs is formed based on:

purchase prices of material resources;
margins (surcharges);
commissions paid to supply and foreign trade organizations;
the cost of commodity exchange services, including brokerage services;
fees for transportation, storage and delivery of material assets produced by third parties.

The cost of material costs in the calculation of the cost of production is determined minus returnable waste.

Material costs - an element of the cost of products (works, services), which reflects the cost:

purchased from the side of raw materials and materials that are part of the manufactured products or are a necessary component in the manufacture of products (carrying out work, providing services);
purchased materials used in the production process of products (works, services) to ensure a normal technological process and for packaging products or consumed for other production and economic needs (testing, control, maintenance, repair and operation of equipment, buildings, structures, other fixed assets etc.), as well as spare parts for the repair of equipment, wear and tear of tools, fixtures, inventory, instruments, laboratory equipment and other means of labor that are not classified as fixed assets, wear and tear of overalls and other low-value items;
purchased components and semi-finished products, which are further installed or additionally processed at this enterprise;
works and services of an industrial nature performed by third-party enterprises or enterprises and enterprises that are not related to the main type of activity.

Production works and services include:

performance of individual operations for the manufacture of products, processing of raw materials and materials;
conducting tests to determine the quality of raw materials and materials consumed, monitoring compliance with established technological processes, repairing fixed production assets;
use of natural raw materials (deductions for the reproduction of the mineral resource base, for land reclamation, payment for land reclamation work carried out by specialized enterprises, payment for standing wood, payment for water taken by industrial enterprises from water management systems);
all types of fuel purchased from the side, spent for technological purposes, production of all types of energy (electrical, thermal, compressed air, cold and other types), heating of buildings, transport work to service production, performed by enterprise transport (transport services of third-party organizations for the transport of goods within the enterprise (moving raw materials, materials, tools, parts, blanks), other types of cargo from the base (central) warehouse to workshops (departments) and delivery of finished products to storage warehouses, to the station (port, wharf);
purchased energy of all types (electrical, thermal, compressed air, cold and other types) spent on technological, energy, motor and other production and economic needs of the enterprise.

The costs for the production of electrical and other types of energy generated by the enterprise itself, as well as for the transformation and transmission of purchased energy to the places of its consumption, are included in the corresponding cost elements, losses from a shortage of incoming material resources within the limits of natural loss.

The cost of material resources, reflected in the "Material costs" element, is formed on the basis of their purchase prices (excluding value added tax), markups (surcharges), commissions paid to supply and foreign economic organizations, the cost of commodity exchange services, including brokerage services, customs duties, fees for transportation, storage and wealth, carried out by third parties.

The costs associated with the delivery (including loading and unloading) of material resources by transport and personnel of the enterprise are subject to inclusion in the relevant elements of production costs (labor costs, depreciation of fixed assets, material costs, etc.).

The cost of material resources also includes the costs of enterprises for the purchase of containers and packaging received from suppliers of material resources, minus the cost of these containers.

The allocation of material costs as an independent type of costs allows you to determine the material consumption of manufacturing products and develop a set of measures to save material resources at the enterprise.

Direct material costs are the costs that are associated with the production of goods, the performance of work and the provision of services. Each organization has the right to establish its own list of such MOH.

An accountant is a universal profession, specialization in it is only temporary, when the accounting department and the company are large and each specialist is engaged in a separate area. So that employees do not lose their versatility and useful skills, experienced chief accountants try to regularly change their places. And then the specialist who was involved in wages has to remember how to correctly calculate material costs, and what they are. Let's refresh the basic knowledge together and start with the concept itself.

What it is

The concept of material costs (MOH) exists in both accounting and tax accounting. According to the norms of article 254 of the Tax Code of the Russian Federation, material costs include the following items:

expenses for the purchase of raw materials, materials and components;
expenses for the purchase of fuel, water, energy of all types spent for technological purposes;
expenses for the acquisition of works and services of an industrial nature;
losses from shortages and damage to inventories within the limits of natural loss;
other expenses.

The list of what is included in material costs in tax accounting is closed. In accounting, the concept of MOH is defined in paragraph 8 of PBU 10/99 "Organization's expenses", but without a list. For this reason, each organization has the right to establish the interpretation of the concept in accounting on its own and be sure to prescribe a list in the accounting policy. In fact, these will be the same expenses that are prescribed in the Tax Code of the Russian Federation, taking into account the specifics of the company's activities.

Types and classification

It would seem that everything is simple: there is an established list, and we focus on it. But in practice, there is still a division of the MOH into:

straight;
indirect.

This gradation is also provided for tax accounting. In particular, article 318 of the Tax Code of the Russian Federation. True, taxpayers have the right to independently establish a list of direct MOH, but in compliance with the established requirements for them. According to the norms of the Tax Code of the Russian Federation, direct material costs include:

expenses of the organization for the purchase of raw materials and materials directly used in the production of goods (performance of work, provision of services), which are a necessary component or form the basis of products;
company's expenses for the purchase of components that are subject to installation, or semi-finished products that are subject to additional processing.

Balance and accounting

To display material costs (line in the balance sheet No. 1210), the accountant summarizes the balance of several accounts at once:

20 "Main production";
21 "Semi-finished products of own production";
23 "Auxiliary production";
29 “Service industries and facilities” at the reporting date means the balance of work in progress (WIP);
28 "Marriage in production."

As determined by order of the Ministry of Finance dated July 2, 2010 No. 66n, accounting for material costs in accounting is reflected in these accounts. Turnovers during the month also go to accounts 25 “General production expenses” and 26 “General expenses”, but these accounts do not have a balance at the end of the month.

Calculation of profitability formula

Since the MZ directly affect the cost of production, and hence the profitability of the organization, it is necessary to analyze and calculate the coefficients for them. Most often, this is done not by accountants, but by economists. They calculate the profit per ruble of the Ministry of Health. The material cost formula used by specialists uses the following data:

PMZ - profit per 1 ruble of the MZ of a particular product;
P - profit from the sale of these products;
MZ - for sold products.

The formula looks like this:

The result obtained makes it possible to calculate the profitability of production, that is, to find out how much you can earn from each ruble spent or, conversely, lose (which is highly undesirable).

In addition, the so-called total material consumption is determined, which is calculated as the ratio of the MOH to the total amount of expenses incurred for the production of goods. This value shows the share of MH in the total cost of production. But it should be remembered that other costs also have an impact on the cost, and hence on profitability: the maintenance of the administrative apparatus, transport, etc.

MoH budget

The definition of all possible direct costs is the budget of direct material costs: it is necessary for the organization to plan activities. Not only economists, but also an accountant take part in the preparation of the budget, since in order to determine the exact results, it is necessary to calculate not only the balances of materials and other inventories, but also the amount of accounts payable for them and the repayment schedule. By joint efforts, it is possible not only to draw up a current budget for material costs, but also to calculate it for a certain period of time, which makes it possible to determine the company's need for finance for the purchase of materials. Timely financing in the right amount is insurance against stopping production due to a lack of raw materials.