Write-off of marriage: documents, reflection in accounting. Reasons for marriage

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

As you know, the demand for products gives rise to its supply. However, in order for the manufacturer's products to become popular, they must be of high quality.

Quality is a set of characteristics and properties of a product that determine its suitability for its intended use. Such a definition is present in GOST 15467-79. According to GOST R ISO 9001-2015, quality is the degree to which a set of product characteristics meets established requirements.

However, no matter how the manufacturer strives to meet the standards, some products are produced with defects. Such products are called marriage. The reasons for its appearance are very different: the human factor, equipment failure, etc. In any case, defective products should not be delivered to the consumer.

Manufacturing defects

They call parts, assemblies, products, semi-finished products, the quality of which does not meet standards or specifications. Such objects cannot be used for their intended purpose or can only be used after the defects have been eliminated.

Dutyfor the detection of defective parts, products, semi-finished products, etc., is assigned to the technical control department (OTC). As a rule, a stamp is affixed in the passport or on the body of the finished product that it has passed control. Today, automated systems are widely used in the manufacturing sector. They allow you to detect marriage with minimal human intervention.

Views

Manufacturing defects can be:

• Correctable. This means that the defects found in the product can be eliminated, and the product can be used for its intended purpose.
• Final. In this case, fixing the defects is either impossible or not economically viable.
• Internal. This type of marriage is detected before the product is sent for sale.
• External. This type of marriage is detected by the consumer.

Reflection in accounting

Accounting for marriage in accounting is carried out on the 28th account. The debit concentrates all the costs associated with defects identified before the products were sent for sale and after the sale. The credit reflects the amounts payable by the perpetrators. Usually deductions are made from the salaries of these persons, the subjects are deprived of bonuses, other pen alties are made.

The loan also reflects other amounts mitigated. Among them, in particular, the cost of defective products at the price of their possible use.

When forming credit and debit turnovers, the total amount of losses is determined. Defective goods are written off at the cost of low-quality products from28 counts 20. Losses include the cost of goods of good quality of the corresponding type.

Analytical accounting is carried out for individual workshops (divisions) of the enterprise, types of goods, expenditure items, circumstances under which marriage was allowed, subjects guilty of this.

Correctable deficiencies

In case of detection of such defects, the cancellation of marriage from accounts 20 and 43 is not carried out. On the account 28 reflect only the costs that are associated with the elimination of deficiencies. These include, in particular:

• The cost of additional materials, raw materials used in the correction of defects.
• Earnings of employees involved in the elimination of deficiencies. It is accrued with appropriate deductions.
• Depreciation of machines used in the elimination of deficiencies.

The composition of costs also includes indirect costs of the unit (workshop) in which product defects are corrected. When distributing expenses between the various types of products that are manufactured in it, and the goods being processed, when writing off the marriage in the postings, account 25 is closed.

When an external correctable defect is detected, the cost of eliminating defects includes transportation costs. We are talking, in particular, about the cost of delivering low-quality products to the enterprise, to the workshop in which they will be reworked, and the return transportation of already corrected objects.

Final flaws

In this case, when the marriage is written off, account 28 is debited in the transactions. It is transferred to itthe cost of all defective products that cannot be corrected. The amount received will be recognized as the cost of low-quality goods. If deficiencies are discovered before the goods are accepted to the warehouse, the marriage is written off from credit 20 of the account. If defects are found in products after posting (for example, immediately before being sent to the buyer), the cost is transferred to the credit account. 43. As a rule, this account is also used when hidden manufacturing defects are revealed (after sale to the consumer).

If irreparable defects are found, the products are actually returned. This operation is accompanied by the formation of string records, through which the sale of defective products is canceled.

If defective goods or their parts can be used (for scrap, for example), they are accounted for. 10 subaccount "Other materials" at the price of possible application.

Recovery from the guilty

When identifying specific employees involved in the occurrence of a marriage, the amount to be recovered from them is transferred from the credit of 28 accounts to the debit of the account. 73, to a sub-account reflecting information on calculations related to compensation for property damage. Such a scheme is applied if the employee of the enterprise is guilty of marriage.

If a third party is involved in the occurrence of defects, the amounts are transferred to the debit of account 76, to the sub-account "Calculations on claims".

"1C": cancellation of marriage

When defective products are found in the warehouse, it is necessary to issue a "Requirement-Invoice". If an irreparable marriage is detected, the cost item is indicated in the write-off document: "Marriage in production". The system substitutes invoice 28 automatically. The tabular part of the marriage write-off report indicates the item group for which analytical accounting will be carried out.

In the system, you can specify which products the defect is attributed to, accurate to the series.

If a correctable defect is found, the product can be returned for revision. To do this, the document "Demand-invoice" is drawn up for the cost item.

Taxation

Losses from the write-off of defective goods can be reflected in the "other costs" that are associated with production and sale, based on sub. 47, paragraph 1 of Art. 264 NK. When performing these operations, a number of nuances should be taken into account.

Firstly, it should be noted that the legislation does not enshrine the definition of manufacturing defects. Therefore, this concept can be used in the sense in which it is disclosed in the regulatory documents governing reporting.

It turns out that when writing off defects in trade, the costs in the form of losses from goods with defects can include the costs of internal defects identified at the stage of production or sale, and external defects found by the consumer during assembly, use, installation of the product.

Income tax

When writing off marriage, as mentioned above, they are included in other costs associated with the release and sale of products. In the norms of the Tax Code there are nospecial restrictions on accounting for these costs. Therefore, subject to the general principles of recognizing costs for tax purposes in accordance with Chapter 25 of the Tax Code, documentary evidence, economic feasibility, non-reimbursable losses from defective products can be taken into account by the manufacturer in expenses. Control agencies also adhere to this position.

Depending on the accounting policy of the enterprise for tax purposes, the costs associated with the production and sale of products can be attributed to both indirect and direct costs. The relevant provisions are enshrined in paragraphs 1, 2, 318 of the article of the Tax Code.

Indirect costs are fully included in the costs of the current period. Direct costs form the tax base for the sale of products in the cost of which they are already taken into account.

Accordingly, in the accounting policy of the enterprise for tax purposes, it is necessary to fix the rules for accounting for the costs of marriage. In particular, it is advisable to develop a methodology for determining the cost of defective products.

VAT

In paragraph 3 of Article 170 of the Tax Code there is an exhaustive list of situations in which the "input" tax, legally accepted for deduction, must be restored.

It is worth noting that this rule does not contain such a basis as the cancellation of a marriage that is not suitable for subsequent use (without identifying the perpetrators). At the same time, in the opinion of the control departments, the "input" tax in the case under consideration should be restored during the period of write-off of products. After all, they will not be used to committransactions that are recognized in the Tax Code as an object of taxation.

As for judicial practice, it develops in favor of enterprises. As indicated, in accordance with Article 23 of the Tax Code, the payer is obliged to deduct the established taxes to the budget. Accordingly, the obligation to pay previously legally deductible VAT should be enshrined in legislation.

Meanwhile, taking into account the explanations of the Ministry of Finance, some experts believe that the decision not to restore the tax when writing off the marriage may lead to disagreements with the Federal Tax Service.

Refund operations

Their accounting can be done in different ways. For example, an enterprise can recalculate the income tax base for the period in which the defective product was sold. Since the contract between the seller and the acquirer will be terminated, the payer has the right to reduce the amount of profit by the amount of income from the sale of marriage. The amount of costs in this case can be reduced by the cost of the product returned by the buyer.

The second option is to attribute costs in the form of product costs to losses from a detected defect. In this case, the cost will be the amount that must be returned to the buyer of the defective product.

As the Ministry of Finance explains, the company has already taken into account the costs of producing defective goods during the sale. Therefore, the price of the returned product is considered to be zero.

Indemnification

When deciding on compensation for harm, the fact of identifying the perpetrators will be essential. They may not beonly employees of the enterprise, but also third-party entities. For example, equipment stopped due to a power outage, poor-quality materials were received from a supplier, etc.

Claims to third parties are sent in the manner prescribed by the Civil Code. Compensation for damage by employees of the enterprise is carried out according to the rules fixed by the Labor Code. As Article 241 of the Code establishes, if an agreement on mat. responsibility, you can recover from him an amount that does not exceed the average monthly salary.

Retention is carried out on the basis of the order of the head of the enterprise. The order is issued within a month from the date of determining the final amount of property damage. If this period is missed, as well as if the employee evades compensation for harm, the employer has the right to go to court.

Documentation

When defective products are identified, an act is drawn up. The unified form of this document is not approved. Accordingly, the enterprise can develop its own form of the act. The form of the document is fixed in the accounting policy.

When an internal marriage is detected, the document is filled out by employees of the technical control department. If an external defect is found, the act is drawn up by the consumer.

Features of drawing up an act

The following details must be present in the marriage discovery report:

• Company name.
• Address of location.
• Contact details.
• Document name.

The text contains information about the product in which the defect was found, the reasons for the marriage, the perpetrators.

The document must be issued in 3 copies. The first is transferred to the accounting department, the second - to the unit where the low-quality goods were produced, the third is received by the financially responsible employee. If an external marriage is detected, the consumer's claim is attached to the act.

Approval of the fact of detection of marriage is carried out by a special commission.

Errors in quality management

Some manufacturers are unclear about the purpose of manufacturing defects. They believe that the occurrence of defective products is a natural process, without which production activities are indispensable.

Meanwhile, the creation of a competent accounting system allows you to timely identify the circumstances that cause the appearance of defects in goods. Accordingly, based on the available data, the manager can take measures to reduce the number of defective products.

Quite often shop managers complain about obsolescence of equipment. This is how they explain the appearance of marriage and believe that the purchase of modern machines can improve the situation. However, not every company has the funds for this. Of course, you can’t work on old equipment either. The best way out of the situation may be the modernization or rental of machines.

Managers and technologists often say that it can be difficult to identify the causes of marriage. Of course, the enterprise canthere are different situations in which it is really problematic to determine the circumstances of the occurrence of defects. But in most cases, it is possible to identify the reasons for the production of products with shortcomings by grouping them according to common features. Usually the causes of defects are violations of technology, negligence, oversight of responsible persons.

When grouping signs of low-quality products, correct accounting of products is of particular importance.

Methods for eliminating defects

They depend on the causes of defects in products. If the shortcomings are associated with the use of low-quality materials, the supplier of such raw materials should be identified. In addition, it is necessary to create a system for monitoring the values entering the enterprise. The agreement with suppliers should include a clause on liability for the supply of low-quality raw materials.

If the defects are related to the operation of the machines, it is necessary, first of all, to determine the period of their maintenance. In the shops it is necessary to establish personal responsibility for the functioning of the equipment, non-compliance with the rules of operation. It is important to identify on which machine the marriage is made.

If the release of defective products is associated with unprofessional staff, the system of employee motivation should be reviewed. For example, an enterprise may establish additional bonuses and incentives for minimizing defects. The introduction of automated process control allows to reduce the influence of the human factor on the production process. Currently, such systems are used in all major industrialenterprises.