Postings for non-returnable technical waste. Irrevocable production waste
During the production activities of an organization, waste may be generated.
If waste is of no value, that is, cannot be used in production or sold to another organization, then it is considered irrecoverable waste (technological losses). Such waste cannot bring economic benefits to the organization, therefore they are not accepted for accounting as assets and are not valued (clause 7.2, subparagraph “a”, clause 7.2.1, clause 8.3 of the Concept approved by the Methodological Council on Accounting under the Ministry of Finance Russia, Presidential Council of the Institute of Professional Accountants 12/29/1997).
If the waste can be used or sold, then it is considered returnable waste.
Documentation
The transfer of returnable waste to the warehouse must be completed with a demand invoice in form No. M-11 (clauses 57, 111 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n). If the materials were processed by another organization, then return the receipt of the result and waste with a receipt order in form No. M-4. For more information on how to receive waste into a warehouse, see How to record receipt of materials in accounting .
Accounting
In accounting, record the receipt of waste as follows:
Debit 10 (16) Credit 20 (21, 23...)
- returnable waste has been credited to the warehouse.
In accounting, the organization has a choice of how to determine the cost of returnable waste - at the price of sale or possible use (clause 111 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n). Fix the chosen method in the accounting policy for accounting purposes (clause 7 of PBU 1/2008, letter of the Ministry of Finance of Russia dated August 19, 2008 No. 03-03-06/1/470).
If the organization plans to sell returnable waste, reflect its sale in the same way sales of materials .
BASIC
The assessment of the value of returnable waste in tax accounting depends on the further purpose of its use:
Such principles for assessing returnable waste are established by paragraph 6 of Article 254 of the Tax Code of the Russian Federation.
The price of possible use should be determined taking into account the fact that the result of using waste will be less than that of the raw materials that the organization had at the beginning of the production cycle, or the waste will be used for other purposes. For example, fabric scraps can be used to make rags. In this case, the cost of the scraps will be significantly lower than that of the original material. The procedure for determining the price of possible use in tax accounting is fixed in the accounting policy for tax purposes (Article 313 of the Tax Code of the Russian Federation).
Situation: how to evaluate returnable waste that will be sold externally if at the time of its receipt the selling price is unknown?
If an organization plans to sell returnable waste, then it must reflect it at the actual sales price (subclause 2, clause 6, article 254 of the Tax Code of the Russian Federation). Material costs are reduced by this amount (clause 6 of Article 254 of the Tax Code of the Russian Federation).
In some cases, at the time of receipt of returnable waste, the price for their sale is unknown. In such cases, the financial department allows the returnable waste to be valued at the market price. After sale, the organization must take into account the proceeds received when calculating income tax.
This is stated in letters of the Ministry of Finance of Russia dated April 26, 2010 No. 03-03-06/4/49, dated September 18, 2009 No. 03-03-06/1/595 and dated August 24, 2007 No. 03- 03-06/1/591.
In tax accounting, reduce material costs by the amount of returnable waste (clause 6 of Article 254 of the Tax Code of the Russian Federation).
Situation: at what point should material costs be reduced by the amount of returnable waste when calculating income tax??
Please consider returnable waste at the time of delivery to the warehouse. In this case, the method used by the organization (accrual or cash method) does not matter. This conclusion can be made on the basis of Articles 271, 272, 273 of the Tax Code of the Russian Federation. Determine the date of transfer of returnable waste using primary documents (Articles 313, 252 of the Tax Code of the Russian Federation). For example, according to the date of the demand invoice according to form No. M-11.
An example of reflecting returnable waste in accounting and tax accounting
CJSC Alfa applies a general taxation system (accrual method). In accounting, the organization reflects the cost of materials without using accounts 15 and 16.
In May, 25 tons of soybeans at a price of 16,000 rubles/t for a total amount of 400,000 rubles. (16,000 rub./t × 25 t) was transferred to production. Returnable waste from production (feed meal) amounted to 300 kg. They will be used in auxiliary production. Therefore, returnable waste in tax accounting is valued at the price of possible use - 6 rubles / kg.
Alpha’s accounting policy for accounting and taxation purposes prescribes the same rules for assessing returnable waste.
Alpha's accountant made the following accounting entries:
Debit 20 Credit 10
- 400,000 rub. (RUB 16,000/t × 25 t) - raw materials transferred to production;
Debit 10 Credit 20
- 1800 rub. (300 kg × 6 rubles/kg) - returnable waste has been capitalized into the warehouse.
When calculating income tax, Alpha's accountant reduced material costs by the cost of returnable waste - 1,800 rubles.
Situation: is it necessary to restore VAT on returnable waste in the form of scrap non-ferrous metals?
Answer: yes, it is necessary if the organization sells waste.
If this waste is used in production, that is, in activities subject to VAT, then there is no need to restore the tax.
If the organization sells waste, then VAT must be restored (subclause 2, clause 3, article 170 of the Tax Code of the Russian Federation). The fact is that the sale of non-ferrous metal scrap is not subject to VAT (subclause 25, clause 2, article 149 of the Tax Code of the Russian Federation).
In this case, the organization is obliged to conduct separate accounting for VAT (clause 4 of article 149 of the Tax Code of the Russian Federation).
Separate accounting can be avoided if the share of returnable waste that the organization decided to sell is less than 5 percent of the organization's total expenses. In this case, the entire VAT can be deducted without organizing separate accounting (paragraph 9, paragraph 4, article 170 of the Tax Code of the Russian Federation).
simplified tax system
If an organization applies a simplification and pays a single tax on the difference between income and expenses, the organization’s material costs must be reduced by the cost of returnable waste. This must be done at the time the waste is transferred to the warehouse. Determine this date based on primary documents, that is, on the date of drawing up the invoice in form No. M-11. Assess waste depending on the further purpose of its use:
- if waste is sold externally, it must be reflected in accounting at the sales price;
- If the waste will be used in your own production, reflect it in accounting at the price of possible use.
Such rules are established by subparagraph 5 of paragraph 1, paragraph 2 of Article 346.16 and paragraph 6 of Article 254 of the Tax Code of the Russian Federation.
Organizations that apply simplification for the facility do not take into account income and returnable waste (Article 346.14 of the Tax Code of the Russian Federation).
Situation: how to reflect returnable waste in the book of income and expenses when simplified? The organization pays a single tax on the difference between income and expenses.
The peculiarity of this operation is that returnable waste reduces the amount of material expenses of the organization (subclause 5, clause 1, clause 2, article 346.16, clause 6, article 254 of the Tax Code of the Russian Federation). This means that in the book of income and expenses, their value must be reflected in column 5 “Expenses taken into account when calculating the tax base” with a minus sign (clause 2.5 of the Procedure approved by Order of the Ministry of Finance of Russia dated October 22, 2012 No. 135n).
UTII
If an organization pays UTII, the receipt of returnable waste will not affect the calculation of this tax. Payers of UTII calculate this tax based on imputed income (clause 1 of Article 346.29 of the Tax Code of the Russian Federation).
If an organization sells returnable waste, there may be cases when this operation will not be subject to UTII .
OSNO and UTII
If an organization combines UTII and the general taxation system, it needs to organize separate accounting for profit tax and VAT (clause 9 of Article 274, clauses 4 and 4.1 of Article 170 of the Tax Code of the Russian Federation). As a rule, returnable waste can be attributed to some type of activity of the organization. Those returnable waste that relate to the organization’s activities on the general taxation system will reduce material costs for income tax (clause 6 of Article 254 of the Tax Code of the Russian Federation). Do not take into account returnable waste received from activities on UTII for tax purposes (clause 1 of Article 346.29 of the Tax Code of the Russian Federation).
Situation: is it necessary to distribute returnable waste, for which it is impossible to unambiguously determine the type of activity to which it belongs, between activities on the general taxation system and UTII?
Answer: no, it is not necessary.
Returnable waste itself is not an expense for the organization. Material costs are reduced by their amount, which must then be distributed according to the rules of paragraph 9 of Article 274 of the Tax Code of the Russian Federation.
In this article we will look at accounting for returnable production waste. Let's find out what is considered waste. Let's figure out how the types of waste differ. Let's talk about what documents are used to document waste in a warehouse.
Any company engaged in production inevitably generates waste of various types. Some of them are later put back into use, others are sold, and others are not to be used. In order to correctly process their capitalization, further use or sale, as well as not make mistakes in calculating taxes, an accountant needs to be armed with accurate knowledge. We will talk about what types of waste are, how they differ, what documents are processed and how they affect taxation.
What is waste?
Waste at a production enterprise can be things that have completely or partially lost their consumer properties.
These include:
- Residual raw materials;
- Own products;
- Semi-finished products;
- Materials;
- Inventory balances;
- Heat carriers.
They are divided into two groups:
- returnable waste;
- irrevocable.
Important! Returnable waste must be distinguished from all types of materials, distinguished from related products and other assets, since the correct calculation of cost, and, consequently, the tax base, depends on such differentiation.
How are the types of waste different?
The separation of irretrievable and returnable waste is carried out according to their characteristics:
Returnable waste | Irrevocable waste |
Similarities | |
Availability of material embodiment * Are a product of manufacturing processes Changed/lost properties in full or part of them |
|
Difference | |
Bring income For future use: – in all types of production processes with increasing costs - for a purpose that does not correspond to the original one | Does not provide economic benefits Not used in this production, but: – suitable for the manufacture of other types of goods and products – possible release as related (by-product) products |
Important! When calculating profit from the amount of expenses related to material, it is necessary to subtract the amount of returnable waste, and, on the contrary, add waste classified as irrevocable to them.
Returnable waste also has subtypes.
They are divided into:
- used - those that are consumed by the company in production operations;
- unused - those that may be useful for household needs or for sale to other enterprises.
What documents are used to document waste in a warehouse?
Those wastes that are identified during the manufacture of products must be:
- counted and weighed;
- delivered to the warehouse.
For delivery and registration of arrival at the warehouse and sale, the following documents are used:
Form name | Document |
Invoice for transfer of products to the warehouse | |
Warehouse receipt order | |
Requirement-invoice, which records the release upon re-entry into production | |
Invoice for the transfer of goods, containers when moving within the company | |
A journal that records the safety and movement of products within warehouses | |
M-8 | Limit-fence card for releasing when re-using in the manufacture of products |
Invoice for shipment to the third party when releasing to another organization | |
Sales invoice |
Important! These documents are the basis on which costs and expenses are reduced in accounting and tax accounting, respectively. The storekeeper does not indicate the value of the capitalized assets; this is subsequently done by the accounting department by filling out the appropriate columns based on the calculation of the cost of expenses incurred.
All accounting documents must contain information about expenses.
Such data includes:
- Amount of waste;
- Units in which they are measured (pieces, kg, m, sq.m);
- Price.
Important! Since 2013, organizations can use documents developed by them independently, but subject to their mandatory approval by the manager and indication of the necessary details - those that comply with the requirements of accounting legislation.
Accounting for waste at OSNO
Important! Every day, the accounting service should receive reports from the warehouse manager (another warehouse employee), compiled on the basis of movement through the warehouse, among other goods and materials and waste related to returnables, for the previous day.
The wiring looks like this:
- D 10-6 K 20 – waste arrived;
- D 20 K 10-6 - waste is again put into production.
Entries reflecting income from sold returnable waste, classified as other, will be as follows:
- D 62 K 91-1
When the cost of waste at which it is accepted for accounting is written off, this is reflected by the posting:
- D 91-2 K 10-6
Example
Sunflower LLC gives a “second life” to oil sludge that has accumulated in tanks during storage. The production process covers the 1st quarter of 2017. The warehouse recorded the receipt of sunflower oil from production. Its cost was 140,000 rubles. 400 kg of sludge, defined as returnable waste, are taken into account at 6 rubles per kilogram. Then they were put back into production. As a result, oil was produced at a cost of 175,000 rubles. It contains returnable waste in the amount of 2,400 rubles (6 rubles x 400 kg). Income after the sale of products amounted to 225,000 rubles. It includes VAT - 34,322 rubles.
Postings according to OSNO
In the table we look at the contents of the operations:
Contents of operations | Debit | Credit | Amount in rubles |
Costs of manufacturing the product – sunflower oil | 20.1 | 02; 10; 60; 70; 69 | 140 000 |
Posting of waste classified as returnable | 10.6 | 20.1 | 2 400 |
Cost minus waste | 43 | 20.1 | 137 600 |
Sales income | 62 | 90.1 | 225 000 |
VAT on income | 90.3 | 68.2 | 34 322 |
Write-off of cost | 90.2 | 43 | 137 600 |
Result from product sales | 90.9 | 99 | 53078 |
Returnable waste must be received by the accounting service exactly at the moment when it is identified - at the end of the product manufacturing process.
Important! Waste classified as returnable can lead to a decrease in the value only of those material assets during the production of which they arose.
Reflection in tax accounting
When recording the movement of returnable waste in tax accounting, you must be guided by the following instructions of the Tax Code of the Russian Federation:
- When using the accrual method, the cost of waste, defined as returnable, reduces the organization’s costs in the tax period corresponding to the tax period of their secondary receipt into production.;
- It should be taken into account that the day on which they were actually used (re-entered into production or on sale) is not taken into account;
- It is also necessary to remember that when calculating income tax, when total expenses are reduced by returnable waste, it is necessary to document them accordingly using the above registers.
Important! Returnable waste in both types of accounting has the same reflection: their receipt is recorded on the day they appeared, and the decrease in the cost of products occurs in the same tax period.
How waste is valued in accounting
Important! Accounting legislation gives the company the right to use any of the methods by which waste is valued, regardless of its future purpose (sale or release into production). In this case, it is necessary to prescribe the methodology by which the price is determined in the accounting policy.
Inventory accounting, as defined by the guidelines for inventories, is carried out according to:
- The price at which they can be used;
- Selling price.
Important! If accounting uses the price of waste that corresponds to the possible or estimated selling price, then a situation may arise when the price changes upon sale. In this case, no adjustment is made for the resulting difference. In this case, the company either has other income or a loss.
Valuation in tax accounting
The Tax Office points out that there are two ways to assess waste:
- At the possible price of use in production, which is lower than that of the source material;
- At the market price when the waste is intended for sale.
Important! Tax accounting differs from accounting in that the former depends on the valuation of waste on how it will be used in the future. As in accounting, in tax accounting, if the actual sale price is not identical to the capitalization price, it is not revalued.
Accounting under a simplified taxation system
Income minus expenses
- When paying a single tax according to the “Income minus expenses” scheme, the enterprise’s costs must be reduced by the amount of returnable waste when they are put back into production;
- When returnable waste is sold, the single tax base increases. At the same time, they are taken into account as expenses.
Income
- If tax is applied to the “Revenue” object, then returnable waste when it is shipped to production is not subject to accounting for tax purposes;
- If a sale occurs, the single tax base increases.
Important! There is no value added tax on returnable waste sold to another company under the simplified tax system.
Accounting for a single tax on imputed income
In contrast to accounting for returnable waste under the main taxation system, an organization that pays a single tax on imputed income, according to the Tax Code of the Russian Federation, cannot sell goods that it itself produces. Returnable waste also falls under this rule. Such an enterprise can sell only purchased goods at retail using the UTII system. If an enterprise produces products on UTII, then in this case it needs to organize separate accounting:
- When combining “imputation” and the main system - separate accounting for UTII, profit and VAT;
- When combining “imputed” and “simplified” - accounting for UTII and tax according to the simplified tax system.
Accounting for returnable production waste: questions on returnable waste
Question No. 1. Can usable spare parts remaining after the repair of fixed assets be classified as returnable waste?
Answer: No, it is not possible, just like other values that can be used after repair, reconstruction and modernization of the OS.
Question No. 2. Is it possible in accounting to evaluate returnable waste using methods other than those noted in the guidelines?
Answer: There is a method for assessing reserves according to IFRS (in force in Russia since 2011). This is the use of the lesser of: 1. cost and 2. net sales estimate (estimated selling price minus costs to complete the production process or sale). It is subject to application provided that it is indicated in the company’s accounting policies.
Question No. 2. Is it possible to use the estimated selling price for tax accounting?
Answer: Yes, as a rule, tax authorities do not object to this.
Question No. 4. How to calculate the depreciation of materials required to use Answer: Tax Code when reusing waste in the production process when calculating profit?
The reduced valuation of waste is determined by the accounting department of the enterprise on the basis of data from economic services, taking into account their variety, the specifics of technical processes, and the usefulness of materials.
For the manufacture of metal structures, our organization uses angles and fittings. The length of each is 11-12 m. In fact, during production, parts of the corner and fittings, each 2-3 m long, remain. Can we “convert” the remains of these materials into scraps and, if so, can we value them at the price of scrap metal? What is meant in accounting by “offcuts” and “returnable waste” from production?
Recyclable waste refers to materials generated during production that can be sold or further used in production. They are accounted for at the selling price on account 10 of the Chart of Accounts as scrap metal. Operations for the sale of scrap are reflected in the general procedure as sales of materials, but it should be noted that the sale of scrap is not subject to VAT. In this regard, the organization may be required to maintain separate VAT accounting.
The rationale for this position is given below in the Glavbukh System vip version
During the production activities of an organization, waste may be generated.
If waste is of no value, that is, cannot be used in production or sold to another organization, then it is considered irrecoverable waste. This type of waste is discussed in more detail in the recommendation How to reflect irrevocable waste (technological losses during production) in accounting and taxation.
If the waste can be used or sold, then it is considered returnable waste*.
Documentation
The transfer of returnable waste to the warehouse must be completed with a demand invoice in form No. M-11 (clauses 57, 111 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n). If the materials were processed by another organization, then return the receipt of the result and waste with a receipt order in form No. M-4. For more information on how to receive waste into a warehouse, see How to register and reflect the receipt of materials in accounting.
Accounting
In accounting, reflect the receipt of waste as follows*:
Debit 10 (16) Credit 20 (21, 23...)
– returnable waste has been credited to the warehouse.
In accounting, the organization has a choice of how to determine the cost of returnable waste - at the price of sale or possible use* (clause 111 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n). Fix the chosen method in the accounting policy for accounting purposes (clause 7 of PBU 1/2008). For example, you can use the following methodology to calculate the cost of returnable waste.
The procedure for paying taxes on operations related to the generation of returnable waste depends on the taxation system that the organization applies.
BASIC: assessment of returnable waste
The assessment of the value of returnable waste in tax accounting depends on the further purpose of its use*:
– if waste is sold externally, it must be reflected in accounting at the sales price;
– if the waste will be used in your own production, reflect it in accounting at the price of possible use.
Such principles for assessing returnable waste are established by paragraph 6 of Article 254 of the Tax Code of the Russian Federation.
Situation: how to evaluate returnable waste that will be sold externally if at the time of its receipt the selling price is unknown
If an organization plans to sell returnable waste, then it must reflect it at the actual sales price (subclause 2, clause 6, article 254 of the Tax Code of the Russian Federation). Material costs are reduced by this amount (clause 6 of Article 254 of the Tax Code of the Russian Federation).
In some cases, at the time of receipt of returnable waste, the price for their sale is unknown. In such cases, the financial department allows the returnable waste to be valued at the market price. After sale, the organization must take into account the proceeds received when calculating income tax.*
This is stated in letters of the Ministry of Finance of Russia dated April 26, 2010 No. 03-03-06/4/49, dated September 18, 2009 No. 03-03-06/1/595 and dated August 24, 2007 No. 03- 03-06/1/591.
BASIC: material costs
In tax accounting, reduce material costs by the amount of returnable waste (clause 6 of Article 254 of the Tax Code of the Russian Federation).*
Situation: at what point should material costs be reduced by the amount of returnable waste when calculating income tax?
Please consider returnable waste at the time of delivery to the warehouse. In this case, the method used by the organization (accrual or cash method) does not matter. This conclusion can be made on the basis of Articles 271, 272, 273 of the Tax Code of the Russian Federation. Determine the date of transfer of returnable waste using primary documents (Articles 313, 252 of the Tax Code of the Russian Federation). For example, according to the date of the demand invoice according to form No. M-11.
An example of reflecting returnable waste in accounting and tax accounting
CJSC Alfa applies a general taxation system (accrual method). In accounting, the organization reflects the cost of materials without using accounts 15 and 16.
In May, 25 tons of soybeans at a price of 16,000 rubles/t for a total amount of 400,000 rubles. (16,000 rub./t? 25 t) was transferred to production. Returnable waste from production (feed meal) amounted to 300 kg. They will be used in auxiliary production.
Therefore, returnable waste in tax accounting is valued at the price of possible use - 6 rubles / kg.
Alpha’s accounting policy for accounting and taxation purposes prescribes the same rules for assessing returnable waste.
Alpha's accountant made the following accounting entries:
Debit 20 Credit 10
– 400,000 rub. (RUB 16,000/t? 25 t) – raw materials transferred to production;
Debit 10 Credit 20
– 1800 rub. (300 kg? 6 rubles/kg) – returnable waste has been credited to the warehouse.
When calculating income tax, Alpha's accountant reduced material costs by the cost of returnable waste - 1,800 rubles.
Situation: is it necessary to restore VAT on returnable waste in the form of scrap non-ferrous metals*
The answer to this question depends on how the organization plans to use this waste in the future.
If this waste is used in production, that is, in activities subject to VAT, then there is no need to restore the tax.
If the organization sells waste, then VAT must be restored (subclause 2, clause 3, article 170 of the Tax Code of the Russian Federation). The fact is that the sale of non-ferrous metal scrap is not subject to VAT (subclause 25, clause 2, article 149 of the Tax Code of the Russian Federation).*
In this case, the organization is obliged to maintain separate accounting for VAT (clause 4 of Article 149 of the Tax Code of the Russian Federation).
Separate accounting can be avoided if the share of returnable waste that the organization decided to sell is less than 5 percent of the organization's total expenses. In this case, the entire VAT can be deducted without organizing separate accounting (paragraph 9, paragraph 4, article 170 of the Tax Code of the Russian Federation).*
Natalya Komova, Deputy Director of the Department of Tax and Customs Tariff Policy of the Russian Ministry of Finance
E. N. Sayapina, magazine expert
Due to the specific nature of the activity and production technology, when processing raw materials into finished products, food industry enterprises almost always generate waste. At the same time, some types of waste as secondary raw materials can be either used in the further production process or sold to third-party buyers. In this regard, the problem of waste accounting and valuation is especially relevant for an accountant. In this article, we will consider how to qualify waste received in the production process, at what point to capitalize it, how to organize accounting and how to evaluate it, using the example of enterprises producing fat and oil products. We will also consider the features of taxation of returnable waste.
Regulatory framework
We list the main documents that can guide you when accounting for waste at oil and fat industry enterprises:
- PBU 5/01 “Accounting for inventories”(hereinafter - PBU 5/01);
- Guidelines for accounting of inventories(hereinafter - Guidelines for accounting for inventories);
- Methodological recommendations for accounting for production costs and calculating the cost of fat and oil products;
- Instructions for accounting for raw materials, supplies and finished products at oil and fat industry enterprises;
- Instructions for accounting of finished products at enterprises of the USSR Ministry of Food Industry system;
- Instructions for rationing raw material consumption in the oil and fat industry, standards for consumption of raw materials and standards for waste and losses in the oil and fat industry;
- Collection of specific indicators of production and consumption waste generation, approved by the State Committee for Ecology on 03/07/1999.
Despite the fact that some of the listed regulations were adopted back in Soviet times under the conditions of economic planning, many of their provisions have still not lost their relevance.
Concept and classification of waste
Before moving on to considering the issues of organizing the accounting and assessment of returnable waste, let’s find out what should be understood by production and consumption waste in the general sense. Neither the current law nor the new law “On Accounting” that will replace it in 2013 provides a definition of waste. The interpretation of this term is given in Federal Law of June 24, 1998 No.89-FZ “On production and consumption waste”. Yes, under waste refers to the remains of raw materials, materials, semi-finished products, other items or products that were formed in the process of production or consumption, and goods (products) that have lost their consumer properties.
Concept returnable waste is disclosed in industry manuals on accounting, in particular, in paragraph 4.1.12 of the Methodological recommendations for accounting for production costs and calculating the cost of fat and oil products: this residues of raw materials, materials, semi-finished products, coolants and other types of material resources formed during the production of products (works, services), which have lost completely or partially the consumer properties of the original resource (chemical or physical) and are therefore used at increased costs (reduced product yield ) or not used at all for its intended purpose. For the purposes of calculating income tax, the Tax Code ( clause 6 art. 254) contains a similar interpretation.
From the above formulation, we will highlight common features that together will allow us to distinguish returnable waste from other types of assets:
- the presence of a material form;
- change (loss) of the properties of the original (source) raw materials;
- education in the production process;
- further use in the production process with increased costs (reduced yield) or use for other purposes, in other words, the ability to bring economic benefit in the future.
Here are examples of returnable waste in the oil and fat industry:
- in the production of unrefined vegetable oils from oilseeds in the process of hulling in preparation for oil extraction - sunflower husks, husks, shells of oilseeds;
- when refining vegetable oils in the production of margarine products and mayonnaise - fat in grease traps obtained during the treatment of wastewater from oil and fat production at local and general plant treatment facilities;
- when distilling fatty acids from vegetable oils, lard, soap stock, animal and other fats, the resulting tars and bottoms are obtained;
- during the refining of vegetable oils in the production of lard and margarine products in the process of removing deodorizing substances and unwanted impurities from oils, animal fats and their mixtures for food use - deodorization shoulder straps;
- when storing unrefined vegetable oils in tanks - sludge (tank sludge or sediment formed when oil settles in containers, consisting mainly of particles of pulp, cake (meal), phosphatides and oil).
In turn, returnable waste can be used (consumed by the enterprise itself for the manufacture of products of the main or auxiliary production) and unused (consumed by the enterprise itself only as materials, fuel, for other economic needs, or sold to third-party buyers).
Irreversible considered waste that cannot be used due to various technical or organizational reasons. In the interpretation GOST 30772-2011 “Resource conservation. Waste management. Terms and definitions" (clause 3.15) is waste that is impossible, impractical (ineffective) or unacceptable to reuse, in other words, not suitable for further use.
Irrevocable waste includes technological losses (fumes, shrinkage of raw materials, volatilization, evaporation during the production process). For example, in oil production, this is the loss of seed mass due to changes in their moisture content and contamination as a result of storage, in other words, the difference between the amount of oil contained in the seeds and the amount of oil extracted from them. In the fat processing industry, losses can be fat residues on filter press napkins, spills and sticking to equipment, to the floor, and fat residues in waste waters. In the production of lard, there are losses associated with the removal of volatile substances released with hydrogen from the apparatus, as well as mechanical losses with filter press napkins, water from the grease trap, and catalyst dirt. In the production of margarine products - losses generated during the melting of solid fats, losses from sticking to equipment, floors, and waste water.
Technological losses, unlike returnable waste, cannot be considered an asset, since they are not capable of bringing economic benefits in the future and in some cases do not have a tangible form.
In addition, they do not qualify as returnable waste according to clause 6 art. 254 Tax Code of the Russian Federation, clause 4.1.12 of the Methodological Recommendations for Accounting for Production Costs and Calculating the Cost of Oil and Fat Products - remnants of inventories, which, in accordance with the technological process, are transferred to other departments as full-fledged raw materials (materials) for the production of other types of goods (works, services) ), and also associated (related) products , obtained as a result of the technological process. By-products differs in composition and possibility of use from the original raw material, but the properties of the original raw material are not lost . That is, by-products meet established quality standards (technical specifications) and are close in their characteristics to finished products; they can be used as raw materials (semi-finished products) for the manufacture of other types of products or as an independent product (products) sold externally.
Thus, at oil and fat industry enterprises at various stages of the production process the following types of by-products are formed:
- in the production of unrefined vegetable oils - meal, cakes obtained in the process of extracting oil from oilseed raw materials by extraction or pressing methods;
- during the refining of vegetable oils in the process of hydration - food and feed phosphatide concentrates as part of the components of oilseed raw materials, as well as fats in soap stock, separated during the process of alkaline neutralization;
- during the hydrogenation of oils and fats in the production of lard, in the production of margarine products and mayonnaise, in the case when bleaching and refining processes (including deodorization) are carried out at margarine factories - fats in soap stock;
- in the production of fatty acids (undistilled oils and fats) in the process of fat breakdown - crude glycerin.
Why is it so important to correctly distinguish returnable waste from other types of inventory, by-products, losses and other assets? This issue requires close attention - the value of the cost of production and the tax base for the purposes of calculating income tax depend on the correct classification of waste. In force clause 4.1.12 Methodological recommendations for accounting for production costs and calculating the cost of fat and oil products, clause 6 art. 254 Tax Code of the Russian Federation the cost of returnable waste reduces the amount of material costs, and, for example, irrecoverable waste (technological losses), on the contrary, are equated to those according to clause 4.1.8 the above recommendations, pp. 3 paragraph 7 art. 254 code.
Thus, as a result of classifying returnable waste, for example, as technological losses and taking them into account as expenses, the cost of products may be distorted in the direction of its increase and the costs associated with its production for tax purposes, which will undoubtedly cause claims from regulatory authorities. So, in Resolution dated November 11, 2011 No.F09-7368/11 FAS UA examined a case in which the tax authority qualified waste in metallurgical production as returnable, excluded it from expenses, thereby increasing the tax base, and assessed additional income tax. The court supported the taxpayer in that waste that is not removed from the production process, but is involved in production as ordinary raw materials, without requiring increased costs for their processing, is not considered returnable, and accordingly cannot reduce material costs. The company won a similar dispute, proving that the production process produced precisely by-products that are not returnable waste ( Resolution of the Federal Antimonopoly Service of the Moscow Region dated September 29, 2008 No.KA-A40/9071-08). It is unacceptable to consider defective products as returnable waste ( Resolution of the Federal Antimonopoly Service of the Moscow Region dated January 21, 2011 No.KA-A40/15256-10-2), as well as inventories, spare parts formed, for example, during modernization, reconstruction, repair of fixed assets that are subject to reuse ( Letter of the Ministry of Finance of the Russian Federation dated September 10, 2007 No. 03-03-06/1/656 ).
Documentation and return waste
In practice, most enterprises do not organize production waste accounting in the best way, on the one hand, due to the difficulties of accounting itself, including determining the moment of recognition and assessment of returnable waste, on the other hand, often due to the reluctance to reduce expenses for tax purposes . This leads to a loss of control over the occurrence, preservation and rational use of waste in further activities and an interest in reducing it and more efficiently using raw materials. In addition, the lack of detailed (analytical) information about waste leads to a distortion of the actual value (cost) of certain types of products.
The organization of accounting, including analytical, must be structured in such a way as to ensure the collection of complete information about the places of waste generation, its types, the types of products from which they were obtained, as well as the quantitative and qualitative composition of the waste.
Let's consider the general procedure for documenting returnable waste.
The waste generated in the production process, together with the finished products, as they are released from production, are first of all weighed and delivered to a warehouse (drain station). If the quantity or mass of waste cannot be determined by weighing or recalculation, a calculation method is used - multiplying the amount of manufactured products or recycled materials by the approved waste rate. The document on the basis of which collected waste is handed over and received at warehouses in order to account for the movement of material assets within the organization between structural divisions or materially responsible persons may be a delivery note or an invoice for internal movement in the TORG-13 form ( paragraph 57, 111 Guidelines for accounting for inventories). It will not be a violation if the organization draws up a receipt order in form M4 or a demand invoice in form M-11. Note that on the basis of these documents, material costs in accounting and tax expenses are reduced.
At the time of receipt of waste to the warehouse, the financially responsible person (storekeeper), when drawing up the primary document, does not give a valuation of the received asset (returnable waste), therefore the corresponding columns will be filled in by an accounting employee after an appropriate calculation of the cost of the waste.
With the help of invoice requirements in the M-11 form, waste is also released into production in the event of its subsequent use for the manufacture of products. However, a limit-fence card (form M-8) can also be used.
To account for the release of waste to third parties, an invoice for the release of materials to the third party in the form M-15 or a consignment note in the form TORG-12 is used. Let us note that in any case, the primary documents must, of course, contain information about the name of the waste, quantity, units of measurement and their price.
FYI
Due to the entry into force of the new federal law on accounting in 2013, unified forms of primary documents are abolished. The head of the organization (economic entity) will independently approve the forms of such documents and the procedure for their execution in the accounting policy, based on the specific conditions of the activity, but indicating all the required details.
Let us dwell on some features of the analytical accounting of returnable waste in the oil and fat industry. It is advisable to organize the document flow in accordance with Instructions for accounting for raw materials, materials and finished products at oil and fat industry enterprises, which provides forms of primary documents and consolidated registers, taking into account industry specifics.
The basis for the primary accounting of raw materials and supplies spent on production, the production of finished and by-products, and returnable waste is the book of plumb lines (form 11), in which meter readings are recorded when weighing (determining the quantity) of waste, certified by the signatures of the deliverer and receiver. Entries in the book serve as the basis for filling out:
- act of acceptance by the warehouse of finished and by-products and returnable production waste (form 15);
- limit intake cards for the release of raw materials into production (form 20).
Based on limit intake cards, raw material acceptance certificates, finished and by-product delivery certificates and returnable production waste and other documents, as well as laboratory data on the quality of raw materials, products, waste, monthly production reports are compiled for workshops (independent sections), in which, in in particular, the name of the waste, quantity, price, balance at the beginning and end of the reporting period, income and expenses in production are reflected.
The receipt of returnable waste (for example, technical fat, slurry), received from production to the warehouse and intended for further processing or sale, is recorded in the book of accounting of finished and by-products, fatty raw materials and returnable production waste (form 21), where accounting is kept in kind weight with actual moisture content and sludge weight and in fats without moisture and sludge weight for each type of returnable industrial waste. The data in this book is used when drawing up cleanup reports (Form 16a).
Based on incoming and outgoing documents by the warehouse manager or other financially responsible persons for all types of raw materials (oilseeds and fats), finished products (butter, drying oil, lard, margarine, soap, etc.), by-products (meal, cake, soap stock, etc. .) and production waste (technical fat, etc.) a daily report is compiled on the movement of raw materials, finished and by-products and returnable production waste (Form 4) and submitted to the accounting department no later than the next day.
Undoubtedly, maintaining analytical accounting is a prerequisite for organizing production waste accounting, since this allows you to reliably and correctly determine the impact of the amount of returnable waste on the cost of a particular type of product.
To reflect information on returnable waste in accordance with Instructions for using the Chart of Accounts account 10 “Materials” is intended, subaccount 10-6 “Other materials”. The peculiarity of accounting is that the source of coverage for this asset is the credit of account 20 “Main production”. That is, the acceptance of returnable waste for accounting is documented in an accounting entry Debit 10-6 Credit. Further transfer to production of returnable waste – Debit Credit 10-6.
In accounting, revenue from the sale of returnable waste is recognized in accordance with p. 7 , 10.1 PBU 9/99 “Income of the organization” as other income and is reflected in the credit of account 91-1. The cost of capitalized returnable waste transferred for sale is recognized as another expense in accordance with clause 11,14.1 PBU 10/99 “Organization expenses” and is recorded as an accounting entry Debit 91-2 Credit 10-6.
Moment of acceptance of returnable waste for accounting
Many accountants are concerned about the question of when to capitalize returnable waste and in what period to reduce the cost of production by the cost of returnable waste in accounting and tax expenses. Often, at food industry enterprises, waste is recorded only after the fact of its use or sale has been established, and not at the moment of its formation, which, by the way, leads to a loss of control over its safety, movement and use in the production process. By and large, this circumstance arises because the moment waste is accepted for accounting is interconnected with the need to evaluate it, which, in turn, depends on the further use of returnable waste (either processing or external sales). At the date of waste generation, in some cases, the accountant may not know about their further fate, and therefore experience difficulties in assessing them. Let's try to figure out when returnable waste should be taken into account.
Let's consider a situation where material resources are written off for production in one reporting period without adjusting for the cost of generated returnable waste, and returnable waste is assessed and used in the further production process in another period. This will obviously lead to a distortion of the cost of a particular type of product produced in a particular period. In the next period, in which the fact of using returnable waste is established and their assessment is made, the adjustment of material resources allocated for the production of the next batch or type of product to the cost of returnable waste generated during the processing of previous types of raw materials again distorts the cost of the new batch of products and contradicts the economic the essence of returnable waste. The situation is even more absurd when there are no material expenses at all in the following reporting periods.
Accounting
Such problems will not arise if returnable waste arrives at the time of its receipt (occurrence) in the production process. This is also evidenced by paragraph 48 Guidelines for accounting for inventories: materials in the organization must be posted in a timely manner. In addition, in item 111 This document expressly states that waste generated in the organization's divisions is collected in the prescribed manner and delivered to warehouses using delivery notes indicating their name and quantity. In this case, the cost of waste is included in the reduction in the cost of material resources, released into production . Here it is worth making an important and obvious clarification: we are talking about reducing the cost of precisely those materials and raw materials, as a result of the processing of which the corresponding waste was generated.
Tax accounting
From the meaning clause 6 art. 256, clause 1 And 2 Art. 272 Tax Code of the Russian Federation regulating the procedure for recognizing expenses using the accrual method, it follows that the cost of returnable waste generated when using materials and raw materials in the production process reduces the amount of material expenses of the organization subject to recognition in the tax period in which these raw materials and materials are written off for production. In this case, the date of actual use of returnable waste (further release into production or sales to third parties) does not matter. It should also be taken into account that expenses for profit tax purposes due to clause 1 art. 252 Tax Code of the Russian Federation must be documented. Let us remind you that when material costs are reduced by the amount of returnable waste, a document confirming the fact of receipt of the relevant waste from production can be a delivery note, an invoice for internal movement or a receipt order.
As we can see, the procedure and moment for recognizing returnable waste in accounting and tax accounting do not differ: waste must be capitalized at the time of its occurrence in the production process and in the same reporting (tax) period, reduce the cost of the material resources during the processing of which they were generated.
Returnable waste assessment
So, we have already touched on one of the problems that worries the accountant - determining the moment of accepting returnable waste for accounting.
Now let’s find out how the use of returnable waste affects their assessment in accounting and tax accounting.
Accounting
According to clause 111 of the Guidelines for accounting for inventories the cost of waste is determined based on the prevailing prices for scrap, waste, rags (i.e. or sales ).
In the industry manual for accounting for production costs and calculating the cost of fat and oil products clause 4.1.12 determined that The cost of returnable waste and by-products is excluded from the costs of material resources included in the cost price. in accordance with the valuation method adopted in the accounting policy of the organization: either at a reduced price of the original material resource (at the price possible use), or by price possible implementation.
When applying an assessment of returnable waste based on the price of the expected (possible) sale at the time of waste generation and entry into accounting, a situation may arise where the initial estimate will differ from the actual sale price. We believe that the initial cost of waste should not be adjusted for the resulting difference. In this case, the company will have other income or loss. Let's justify: according to clause 12 PBU 5/01 the actual cost of inventories belonging to the organization (which can also include returnable waste), at which they are accepted for accounting, is not subject to change, except in cases established by the legislation of the Russian Federation. The possibility of changing the value of material assets is provided, in particular, clause 25 PBU 5/01, according to which, for obsolete inventories, inventories that have completely or partially lost their original quality, as well as for inventories for which the current sales value has decreased, the value at the end of the year for reflecting them in the balance sheet can change through the creation reserves for reduction in the value of material assets. But this procedure does not apply to returnable waste.
FYI
IAS 2 Inventories, put into effect on the territory of the Russian Federation By Order of the Ministry of Finance of the Russian Federation dated November 25, 2011 No.160n, proposes that assets be valued at the lower of cost or net realizable value (estimated selling price less estimated costs to complete production and estimated costs to be incurred to sell), that is, fair value less costs to sell. . Fair value is considered to be the amount for which an asset can be exchanged or a liability settled in a transaction between knowledgeable buyers and willing sellers.
Thus, the norms of accounting legislation give the organization the right to choose any option for estimating the cost of waste, regardless of the further use of waste (in production or external sales), the main thing is that the chosen methodology is enshrined in the accounting policy.
Tax accounting
In tax accounting clause 6 art. 254 Tax Code of the Russian Federation also involves two methods of waste assessment:
- at a reduced price of the original material resource ( at the price of possible use ), if this waste can be used for main or auxiliary production, but with increased costs (reduced product yield);
- at selling price in case the waste is sold externally.
As we can see, in tax accounting, unlike accounting, there is a direct relationship between the valuation of waste and its further use.
The procedure for determining the reduced price of an initial material resource depends on the type of raw material, the industry and specifics of production, and the characteristics of the technological process, therefore, each enterprise needs to establish such a procedure in its accounting policy. In this case, one of the determining factors in the assessment may be, in particular, the usefulness of the resulting waste (for example, deodorization strips used as an additive for animal feed are a source of biologically active substances and crude fat in the form of essential fatty acids), the significance of the waste contained substances (content and amount of fat). But this is already a task for economists.
The greatest number of questions arise regarding the sales price valuation method. Due to the fact that the legislation does not specify the procedure for calculating such a price, there is no consensus among experts.
According to some experts, returnable waste should be assessed precisely according to actual selling price. But then the cost of the waste cannot be known until it is sold. It is good if the arrival of returnable waste from production and its sale occurred in the same period. What if next? It is impossible to reduce material costs by the cost of returnable waste during the period of their sale, otherwise regulatory authorities will inevitably have claims against the company regarding understatement of the tax base (overstatement of expenses) for the purpose of calculating profit tax of the previous period. In this case, the taxpayer must follow the rules Art. 54 , 81 Tax Code of the Russian Federation: submit an updated tax return to the inspectorate and make adjustments to tax liabilities for the period in which returnable waste was accepted for accounting from production and in which their cost should have been excluded from material expenses. This is fraught with additional payment of penalties and possible questions from the tax service regarding the submission of the “clarification”. In addition, we have already found out that waste must be assessed precisely at the moment of generation and capitalization, and their accounting only in quantitative terms without a valuation is not allowed (this fact can be considered a gross violation of the rules for accounting for income and expenses Art. 120 Tax Code of the Russian Federation). Therefore, in our opinion, this valuation option is unacceptable for the enterprise.
The financial department insists that the cost of returnable waste in case of external sales should be determined based on the existing market prices (note: until 2012, determined in the manner prescribed Art. 40 NK RF, since 2012 – Art. 105.3 Tax Code of the Russian Federation), and in this assessment exclude from material costs ( letters dated April 26, 2010 No. 03-03-06/4/49 , dated September 18, 2009 No. 03-03-06/1/595 ). In principle, this approach is quite acceptable, although with a slight clarification: current market prices must be taken at the time the waste is accepted for accounting.
The next option for assessing waste is by price possible implementation, as provided for in accounting, also has the right to exist.
Note that in a situation where the initial valuation (whether at the market price at the time of receipt of waste or at the price of possible sale) differs from the actual sale (sale) price, by analogy with accounting there are no grounds for additional valuation (discount) of returnable waste. The same conclusion can be drawn from the above Letters of the Ministry of Finance of the Russian Federation No. 03-03-06/4/49 , which states that when returnable waste is sold externally, revenue is reduced by the cost of such waste, recognized V tax accounting , while the profit received is subject to taxation. In this case, the organization, according to clause 1 art. 249 Tax Code of the Russian Federation income arises, taken into account when determining the tax base, in the amount of proceeds from the sale of waste. The cost (or in other words, the production price), in which waste was determined at the time of its occurrence in production and accepted for accounting and by which material costs were reduced, can be included in the composition of expenses that reduce income from the sale of waste at the time of their sale in accordance With pp. 2 p. 1 art. 268 Tax Code of the Russian Federation. As a result, the taxpayer may experience either a profit subject to taxation or a loss.
FYI
Some regulatory authorities have a different vision of the situation, which, fortunately, does not find support from judges. For example, in the case considered by the FAS UO in Resolution dated September 13, 2011 No.F09-5521/11, the arbitrators did not accept the tax authority’s argument that income tax should be paid on the entire cost of sold returnable waste, since the cost of returnable waste, determined by the price of their sale for the purpose of being accepted for accounting, is not an expense for their acquisition.
So, in the case of waste disposal, an assessment made by any of the methods can be considered legitimate - based on:
- already established prices for the sale of such waste at a given enterprise;
- possible (estimated) selling prices;
- market prices (let us pay attention again!), determined at the time of receipt of returnable waste from production.
We focus the attention of accountants on an important nuance. In practice, a situation may arise when an organization, intending to sell returnable waste and having given it an appropriate valuation, nevertheless decides to use it in the production process or, conversely, having valued it at a reduced price of the original material resource, sells it externally. Since tax accounting establishes a direct dependence of the valuation on further use, here (in the case of different prices) it may be necessary to adjust tax liabilities in accordance with Art. 54, 81 Tax Code of the Russian Federation.
Example 1
Maslozhirkombinat LLC uses returnable waste - sludge (tank sludge) generated during oil storage. Let us assume that the production process takes place in one reporting (tax) period – the third quarter of 2012.
Unrefined oil was transferred from production to the finished product warehouse at an actual cost of RUB 150,000. According to the acts of cleaning the tanks, the resulting fumes in the amount of 420 kg were capitalized as returnable waste and, in accordance with the approved valuation methodology, their price was determined by the enterprise at the reduced cost of raw materials (oil) - 7 rubles. for 1 kg. Subsequently, the fuses are transferred in full to extraction for the production of refined oil. As a result, refined oil was obtained at a cost of 180,000 rubles, including the cost of used returnable waste - 2,940 rubles. (7 rubles x 420 kg). Revenue from the sale of unrefined oil amounted to 221,250 rubles, including VAT - 33,750 rubles, revenue from the sale of refined oil - 265,500 rubles, including VAT - 40,500 rubles.
Debit |
Credit |
Amount, rub. |
|
02, 10, 60, 70, 69 |
|||
(420 kg x 7 rub.) |
|||
The costs of producing refined oil are reflected, including the cost of transferred returnable waste (fuses) |
02, 10, 60, 70, 69 |
||
The cost of finished products (refined oil) has been formed. |
|||
The cost of unrefined oil sold was written off |
|||
Revenue from the sale of refined oil is reflected |
|||
VAT is charged on proceeds from the sale of refined oil |
|||
The cost of refined oil sold was written off |
|||
Received financial results from the sale of refined oil |
In tax accounting income ( Art. 249, 271 Tax Code of the Russian Federation) from the sale of unrefined oil will amount to 187,500 rubles, from the sale of refined oil - 225,000 rubles.
Expenses ( Art. 252, 254 – 256 , 272 Tax Code of the Russian Federation) from the sale of unrefined oil – 147,060 rubles. (150,000 - 2,940), refined oil - 180,000 rubles.
Profit from the sale of unrefined oil for the third quarter of 2012 - 40,440 rubles, refined oil - 45,000 rubles.
Note: if returnable waste had been used in the next tax period - in the fourth quarter of 2012, then, relatively speaking, the enterprise would have paid income tax for the third quarter by an amount calculated from the cost of returnable waste, capitalized and not used in production in the third quarter.
Example 2
Let's use the conditions of example 1.
Unrefined oil worth 150,000 rubles was transferred from the production of Maslozhirkombinat LLC to the finished products warehouse. According to the acts of cleaning the tanks, the resulting waste in the amount of 420 kg was recorded as returnable waste and, in accordance with the approved valuation methodology, was valued by the enterprise at a possible sale price of 8 rubles. for 1 kg. Subsequently, the fuses were sold in full to a third party at an actual price of 10 rubles. per 1 kg, including VAT.
The following entries should be made in accounting:
Debit |
Credit |
Amount, rub. |
|
The costs of producing unrefined oil are reflected |
02, 10, 60, 70, 69 |
||
Returnable waste - fuses - were capitalized from production (420 kg x 8 rub.) |
|||
The cost of finished products (unrefined oil) minus returnable waste has been formed |
|||
Revenue from the sale of unrefined oil is reflected |
|||
VAT is charged on proceeds from the sale of unrefined oil |
|||
Cost of goods sold written off |
|||
Financial result was obtained from the sale of unrefined oil |
|||
Reflected revenue from the sale of returnable waste (fuze) (10 rub. x 420 kg) |
|||
VAT is charged on proceeds from the sale of returnable waste (fuzzy) |
|||
The cost of capitalized returnable waste (fuss), estimated at the possible sale price, was written off |
|||
The financial result from the sale of returnable waste has been determined |
In tax accounting income ( Art. 249, 271 Tax Code of the Russian Federation) from the sale of unrefined oil will amount to 187,500 rubles, from the sale of returnable waste - 3,560 rubles.
Expenses from the sale of unrefined oil ( Art. 252, 254 – 256 , 272 Tax Code of the Russian Federation) – 146,640 rub. (150,000 - 3,360), from the sale of returnable waste ( pp. 2 p. 1 art. 268 Tax Code of the Russian Federation) – 3,360 rub.
For the third quarter of 2012, profit from the sale of unrefined oil was 40,860 rubles, returnable waste was 200 rubles.
Please note
If the cost at which returnable waste was valued upon receipt from production coincides with the actual cost upon sale, in the absence of any additional costs associated with the sale of waste, the financial result of the transaction will be zero.
Despite the fact that we have examined the features of accounting for returnable waste in the oil and fat industry, the article will also be useful for other food industry enterprises, since the methodological basis for the accounting and assessment of waste, as well as the tax rules are the same for all industries.
Let us summarize the important findings. Returnable waste affects the cost of a specific type of product: it is excluded from material costs and expenses for the purpose of calculating income tax and, in the same assessment, its value can be transferred either to the creation of another batch or type of product when re-transferring them into production, or reduce income in case of their implementation. Therefore, it is important not only to correctly qualify and distinguish such waste from other types of assets, but also to maintain full analytical records of their places of origin, types in cost, quality and quantity. Returnable waste should be received and assessed at the time of its occurrence (formation) in the production process and in the same period excluded from material costs. Determining the cost of waste when selling it can be done in any of the following ways: at the price of possible use, at the price of sale of the corresponding waste already established at the enterprise, at the price of possible sale or at the market price, but provided that the choice of valuation methodology is fixed and justified in the accounting policy.
So, if we proceed from the options for using returnable waste in the future and, as a consequence, the use of various methods for their assessment, the cost of a particular type of product may differ, but in general the financial result (profit or loss) will not change, since returnable waste assessed in any way is first excluded from composition of the cost price (expenses for tax purposes), and then, upon further use either in the production process or for sale, are included in costs (expenses) that reduce revenue (income).
Approved by Order of the Ministry of Finance of the Russian Federation dated 06/09/2001 No. 44n.
Approved by Order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n.
Approved by Order of the Ministry of Agriculture of the Russian Federation dated December 14, 2004 No. 537.
Approved by the USSR Ministry of Food Industry on September 6, 1979.
Approved by the USSR Ministry of Food Industry on March 25, 1983.
Approved by the State Planning Committee of the USSR on May 21, 1964.
It should be taken into account that in the Compendium, the values of many waste indicators are defined as statistical averages or industry averages, averaging the differences between enterprises in terms of the level of organization of production and the quality of processed raw materials. In addition, during the transition to low-waste technologies during the process of technical re-equipment, the values of many indicators may change significantly.
Federal Law of November 21, 1996 No. 129 FZ.
Federal Law dated December 6, 2011 No. 402 FZ.
We are guided by the Instructions for rationing the consumption of raw materials in the oil and fat industry, the norms of consumption of raw materials and the norms of waste and losses in the oil and fat industry, approved. State Planning Committee of the USSR 05/21/1964.
Approved by Resolution of the State Statistics Committee of the Russian Federation dated December 25, 1998 No. 132, as well as the TORG-12 form named below.
Approved by Resolution of the State Statistics Committee of the Russian Federation dated October 30, 1997 No. 71a, as well as the following forms M-8, M-11, M-15.
Approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n.
Approved by Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 32n.
Approved by Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 33n.
In paragraph 1 of Art. 105.3 of the Tax Code of the Russian Federation, prices used in transactions to which they are not parties, as well as income (profit, revenue) received by a party to the transaction, are interpreted as market prices. The taxpayer has the right to independently apply for tax purposes a price different from that applied in the specified transaction, if the price actually applied in the transaction does not correspond to the market price. This is evidenced by clause 3 of Art. 105.3.
We will not delve into calculations of the percentage of product output, taking into account standards and losses, let’s take conditional figures.
"Accounting", 2012, N 12
In the process of production activities, the organization generates household and industrial waste that can be used in production, disposed of, and sold. Let's consider the procedure for reflecting industrial waste in accounting and tax accounting.
Industrial waste includes solid, liquid and gaseous industrial waste obtained as a result of chemical, thermal, mechanical and other transformations of materials of natural and anthropogenic origin.
Part of the waste that can be used in the same production is called returnable. These include the remains of raw materials and other types of material resources formed during the production process. Due to the partial loss of some consumer properties, returnable waste can be used in conditions with reduced requirements for the product or with increased consumption; sometimes they are used not for their intended purpose, but only in auxiliary production (for example, used automobile oils - for lubrication of non-critical equipment components) . At the same time, the remains of raw materials and other material assets that are transferred to other departments as full-fledged raw materials in accordance with the technological process, as well as by-products obtained as a result of the technological process, are not considered returnable waste.
Waste that cannot be used within a given production, but can be used in other productions, is called secondary raw materials.
Waste that is not practical to recycle at a certain stage of economic development forms irrecoverable losses. They are first neutralized in case of danger and buried in special landfills.
Returnable waste accounting
Returnable waste in the form of leftover materials generated during the production process partially loses the consumer qualities of the original resources (chemical or physical properties) and is therefore used at increased costs (reduced product yield) or is not used for its intended purpose.
Returnable waste does not include:
- remnants of inventories that are used as full-fledged raw materials for the production of other types of products, which was initially established by the production technology. Such remnants of materials can be considered, for example, fabric scraps formed during cutting of a product and transferred for the production of other products (smaller); broken glass, if it is not the same glass that is produced from it, but some other products, for example foam glass;
- by-products, i.e. products that inevitably appear during the production of the main product. For example, whey formed during the production of cottage cheese and cheese from milk. The availability of such products is determined by the technology of the production process. It is impossible to produce basic products from it.
The procedure for accounting for returnable waste for accounting purposes is regulated by the Methodological Guidelines for Accounting for Inventories. In accordance with clause 111 of the Methodological Instructions, returnable waste is transferred to the warehouse using delivery notes indicating their name and quantity.
Returnable waste is accepted for accounting purposes at the price of possible use or sale. Returnable waste is assessed in the following order:
- at a reduced price of the initial material resource (at the price of possible use), if this waste can be used for main or auxiliary production, but with increased costs (reduced yield of finished products);
- at the selling price if this waste is sold externally.
It is advisable to indicate the method for assessing returnable waste in the accounting policy.
The cost of recorded waste is included in the reduction of the cost of materials released into production. However, the Tax Code of the Russian Federation does not clearly define either the moment of reducing material costs by the cost of returnable waste, or the procedure for determining the sales price if waste is sold externally.
In our opinion, it is advisable in tax accounting to evaluate the cost of returnable waste at the moment when it is determined that they can be used. Based on the logic of the provisions of Art. 254 of the Tax Code of the Russian Federation, material costs should also be reduced by the cost of returnable waste at the time of their generation and receipt. These provisions must be reflected in the accounting policies of the organization.
Returnable waste is accepted for accounting as the debit of account 10 "Materials", subaccount 6 "Other materials", and the credit of account 20 "Main production".
The cost of returnable waste transferred to production is taken into account as part of expenses for ordinary activities and is reflected in the debit of account 20 “Main production” and the credit of account 10, subaccount 6 “Other materials”. Receipt of waste to the warehouse from the main production and the subsequent transfer of this waste to auxiliary production is documented with a demand invoice according to f. N M-11.
Receipts from the sale of materials are other income of the organization, for which account 91 “Other income and expenses”, subaccount 1 “Other income” is intended. The amount of receipts from the sale of materials is determined based on the price established by the agreement between the organization and the buyer. Receipts from the sale of materials are recognized in accounting if the conditions specified in clause 12 of PBU 9/99 are met.
Sales of materials for cash are reflected in the debit of account 50 "Cash" (51 "Cash Accounts") and the credit of account 91 "Other income and expenses", subaccount 1 "Other income". At the same time, to the debit of account 91 “Other income and expenses”, subaccount 2 “Other expenses”, from the credit of account 10, subaccount 6, the book value of retiring materials is written off.
Transfer of materials (main production waste) from the warehouse to the buyer is issued with an invoice for the release of materials to the third party according to f. N M-15.
For the purposes of Sec. 25 of the Tax Code of the Russian Federation, the rules for accounting and assessing returnable waste do not differ from the corresponding accounting standards. According to paragraph 6 of Art. 254 of the Tax Code of the Russian Federation, the amount of material costs is reduced by the cost of returnable waste. If returnable waste can be used for main or auxiliary production, but with increased costs (reduced yield of finished products), then they are valued at a reduced price of the original material resource (at the price of possible use) (clause 1, clause 6, article 254 of the Tax Code of the Russian Federation ).
In accordance with paragraphs. 1 clause 1 art. 146 of the Tax Code of the Russian Federation, the sale of goods (work, services) on the territory of the Russian Federation is recognized as subject to VAT. In this case, the tax base is defined as the cost of these goods (works, services), calculated on the basis of prices determined in accordance with Art. 105.3 of the Tax Code of the Russian Federation, without including VAT. Taxation is carried out at a tax rate of 18% (clause 3 of Article 164 of the Tax Code of the Russian Federation).
The amount of VAT accrued on the sale of materials is reflected in the organization’s accounting under the credit of account 68 “Calculations for taxes and fees” in correspondence with account 91 “Other income and expenses”, subaccount 2 “Other expenses”.
If returnable waste is planned to be sold externally, then it must be assessed in tax accounting at the sales price (Letter of the Ministry of Finance of Russia dated April 26, 2010 N 03-03-06/4/49). The tax accounting registers at the time of sale reflect the reduction of previously recognized material costs of the main production by the cost of returnable waste, as well as income from the sale of said waste and expenses associated with this sale (example 1).
Example 1. In July 2012, the organization used materials worth 400,000 rubles to produce products. In the same month, returnable waste was received, the cost of possible use of which was 28,000 rubles. Waste was used in production in October 2012.
The following entries were made in the accounting (Table 1).
Table 1
In tax accounting, the amount of material expenses for 9 months of 2012 is reduced by 28,000 rubles. When transferring waste to production, its cost (28,000 rubles) is included in material costs.
Recycled raw materials
Sources of secondary raw materials can be:
- returnable waste from materials used in the production process (for example, in the woodworking industry - shavings, in the clothing industry - fabric scraps, in metallurgy - scrap metal, etc.);
- irretrievable waste (technological losses), the further use of which in the production of products is impossible (defective products, materials obtained during the dismantling of fixed assets, finished products not sold during the warranty period).
The remnants of industrial products, which, in accordance with the technological process, are transferred to other departments as full-fledged raw materials (materials) for the production of other types of goods (works, services), as well as associated (associated) products obtained as a result of the technological process, are not returnable waste.
The cost of recorded waste is included in the reduction of the cost of materials released into production.
In the case of subsequent use of waste for the manufacture of products (parts, etc.), their release into production is documented by issuing invoice requirements.
Returnable waste is accepted for accounting as the debit of account 10 “Materials”, subaccount 6 “Other materials”, and the credit of accounts 20 “Main production”, 23 “Auxiliary production”, etc.
Subaccount 10-6 “Other materials” takes into account the presence and movement of: production waste (stumps, scraps, shavings, etc.); irreparable marriage; material assets received from the disposal of fixed assets that cannot be used as materials, fuel or spare parts in a given organization (scrap metal, waste materials); worn tires and scrap rubber, etc. Production waste and secondary material assets used as solid fuel are accounted for in subaccount 10-3 “Fuel” (example 2).
Example 2. Let's assume that returnable waste received in July 2012 is intended for sale. Based on the market price for such raw materials, waste is estimated at 28,000 rubles. and sold in October 2012 for 30,000 rubles. (excluding VAT).
Sales of returnable waste are reflected in table. 2.
Table 2
Tax accounting for the sale of returnable waste is presented in table. 3.
Table 3
Irrevocable losses
Waste that is not subject to further processing and use is irretrievable loss. The legal basis for the management of production and consumption waste is established by the Federal Law of June 24, 1998 N 89-FZ “On production and consumption waste”.
Legal entities operating in the field of waste management are required to maintain, in accordance with the established procedure, special records of generated, used, neutralized, transferred to other persons or received from other persons, as well as disposed waste and submit appropriate statistical reporting. Special accounting data must correspond to accounting data.
By virtue of Art. 51 of the Federal Law of January 10, 2002 N 7-FZ “On Environmental Protection”, production and consumption wastes are subject to collection, use, neutralization, transportation, storage and burial, the conditions and methods of which must be safe for the environment and regulated by the legislation of the Russian Federation. Discharge of waste into surface and underground water bodies, drainage areas, subsoil and soil is prohibited.
Depending on the degree of negative impact on the environment, waste is divided into five hazard classes. Temporary storage of industrial and consumer waste is allowed, in particular, on the production territory of the main producers (manufacturers) of waste (clause 3.2 of SanPiN 2.1.7.1322-03). At the same time, different storage procedures are provided for different classes of waste. Thus, in closed warehouses used for temporary storage of waste of hazard classes I - II, spatial isolation and separate storage of substances in separate compartments (chests) on pallets must be provided. At the same time, storage of solid industrial waste of class I is permitted exclusively in sealed recyclable (replaceable) containers (containers, barrels, tanks), class II - in securely closed containers (plastic bags, plastic bags), III - in paper bags and chests, cotton and textile bags , IV - in bulk, embankment, in the form of ridges.
Organizations that carry out only temporary storage of waste (no more than 6 months) generated in the course of their business activities do not need to obtain a license. A license is also not required for those organizations that carry out any activities with hazard class V waste. This means that waste paper, cardboard and other hazard class V waste (including some food production waste) can be independently exported (without a license) and transferred to any organization that also does not have a license.
The assignment of waste to a specific hazard class should be confirmed by calculation; if the hazard class determined by the calculation method corresponds to the fifth, it is necessary to additionally use the experimental method. A passport must be obtained for waste of classes I - IV.
An organization may recognize expenses for payment for industrial waste disposal services as expenses for ordinary activities. In accounting and tax accounting, they are recognized in the amount of the contractual cost of these services on the date of signing the acceptance certificate for services provided (clauses 5, 7, 16 PBU 10/99, clause 1 of Article 252, clause 1 of Article 272 Tax Code of the Russian Federation).
These expenses are reflected as an entry in the debit of account 20 “Main production” in correspondence with the credit of account 60 “Settlements with suppliers and contractors”.
However, if an organization has the opportunity to sell the generated waste to a third party and make a profit, and it disposes of it, then the disposal costs cannot be considered economically justified, since they do not correspond to the business goals of the commercial organization.
The Letter of the Ministry of Finance of Russia dated 06/07/2011 N 03-03-06/1/332 explains that in the case of disposal (write-off) of illiquid goods, the costs of their acquisition and further liquidation cannot be considered within the framework of extracting income from business activities and, therefore, are not taken into account as expenses for profit tax purposes.
Each business entity is obliged to pay for the negative impact on the environment caused by the production and storage of waste. Calculation of fees for negative impacts on the environment, the procedure for its completion and submission are approved by Rostechnadzor Order No. 204 dated 04/05/2007. Payers submit it to Rosprirodnadzor at the location of each production area, mobile negative impact facility, waste disposal facility, or at the location of the payer in the case , if the permitting documentation was issued in general to the business entity, no later than the 20th day following the expired reporting quarter.
The procedure for developing and approving standards for waste generation and limits on their disposal is approved by Order of the Ministry of Natural Resources of Russia dated February 25, 2010 N 50. Small and medium-sized businesses submit these reports in a notification manner before January 15 of the year following the reporting period, in accordance with the Order of the Ministry of Natural Resources of Russia dated 02/16/2010 N 30. For them, the limits on waste disposal are the amount of waste actually sent for disposal in accordance with reporting on the generation, use, neutralization, and disposal of waste (with the exception of statistical reporting). Fees for the current year are collected from small and medium-sized businesses on an actual basis without a fivefold coefficient (Letter of Rosprirodnadzor dated December 7, 2011 N OD-06-01-32/15903).
Payment for negative impact on the environment, within the approved limits, is included in the organization’s expenses for ordinary activities on the date of its accrual (clauses 5, 7, 8 of PBU 10/99).
This type of mandatory payments is not a tax (fee), since it is not provided for in Art. Art. 13 - 15 Tax Code of the Russian Federation. Therefore, the accrual of fees for environmental pollution can be reflected by an entry in the debit of account 20 “Main production” and the credit of account 76 “Settlements with various debtors and creditors”.
The Ministry of Finance of Russia in Letter dated May 27, 2011 N 07-02-18/02 recommended keeping separate records (on additionally entered subaccounts) of fees for excess emissions in order to obtain the necessary information in order to reflect permanent differences in accounting in accordance with PBU 18/02. Among the payments accounted for in account 91 “Other income and expenses” given in paragraph 11 of the Letter, the fee for excess emissions is not mentioned.
In tax accounting, the fee for placement within the established limits, by its nature, does not relate to the fee for excess impact and reduces the base when calculating income tax on the basis of paragraphs. 7 clause 1 art. 254 of the Tax Code of the Russian Federation (Resolutions of the FAS UO dated 04.05.2008 N F09-8409/07-S3, dated 19.03.2008 N A76-8/07, VSO dated 16.04.2007 N A33-8921/06-F02-1794/07, dated 06.03.2007 N A33-2101/05-F02-6757/06-S1).
By virtue of clause 4 of Art. 270 of the Tax Code of the Russian Federation, payments for excess emissions are not accepted when calculating income tax (Letter of the Federal Tax Service of Russia for Moscow dated October 28, 2009 N 16-15/112957).
Limits on waste disposal are established for a period of 5 years, subject to annual confirmation by individual entrepreneurs and organizations of the unchanged production process and raw materials used. An organization can take into account the costs of paying for the services of third-party organizations to develop limits in tax accounting as other expenses associated with production and sales, based on paragraphs. 3 p. 1 art. 264 of the Tax Code of the Russian Federation (Letter of the Ministry of Finance of Russia dated September 4, 2007 N 03-03-06/4/127).
The date of incurring expenses for payment to third-party organizations for work performed (services provided) is the date of settlements in accordance with the terms of concluded agreements or the date of presentation to the taxpayer of documents serving as the basis for making settlements, or the last date of the reporting (tax) period. Expenses are recognized in the reporting (tax) period in which they arise based on the terms of the transactions. Consequently, the organization recognizes the expenses in question at a time for profit tax purposes (Resolutions of the Federal Antimonopoly Service UO dated January 17, 2012 N F09-8803/11, SZO dated March 13, 2007 N A05-11056/2006-12 and dated April 11, 2007 N A05-10034/2006 -9).
Meanwhile, the Russian Ministry of Finance believes that the organization has the right to take into account the costs of paying for the services of a third-party organization to develop standards for waste generation and limits on their disposal for profit tax purposes evenly over the period of their validity. If, for any reason, expenses are incurred for the development of new draft standards for waste generation and limits on their disposal, expenses in the form of the difference between the total amount of expenses for the development of old draft standards for waste generation and limits on their disposal and the actual expenses recorded by the organization can be included in expenses for profit tax purposes in a lump sum (Letter dated November 10, 2011 N 03-03-06/4/127).
E.I.Antanenkova
First House of Consulting
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