Preliminary cost calculation. Cost of production
Cost of production
Cost calculation is a mandatory step for generating the financial result of an enterprise.
The purpose of using resources can be recorded only after completion of the stages of the production process in which they were irrevocably processed. Based on data from already completed economic output operations, it is possible to give an economic interpretation of the use of resources by determining the cost item.
The full production cost of products and work is formed in the context of costing items.
Each calculation item corresponds to a certain type of cost, based on the generally accepted grouping presented in Chapter 25 of the Tax Code of the Russian Federation (Material, Labor, Depreciation, etc.).
The cost of production is the most important indicator of the production and economic activity of an enterprise. Cost calculation is necessary for the following purposes:
- determining the profitability of production and individual types of products,
- identifying reserves for reducing production costs,
- formation of the pricing policy of the enterprise,
- calculating the economic efficiency of introduced innovations,
- making informed decisions on adjusting the composition of products.
Cost calculation is carried out according to operational accounting data. There are two types of cost calculations to choose from:
- Advance paynemt– intended for use by trade organizations to determine the estimated cost of purchased material assets during the reporting period. Performed using the weighted average method. The calculated values are used to determine the organization's gross profit, provided that the sales plan is met. For preliminary cost calculation, you can set up a routine task. In this case, the calculation is carried out relatively quickly.
- Actual calculation– carried out based on the results of the monthly reporting period with a full calculation of the cost of batches of movement of item costs. With this type of cost calculation, you can choose a method for determining the cost of writing off material assets:
- Monthly average– the cost of writing off goods is determined by the average price for the reporting period (weighted average estimate),
- FIFO (weighted average)– the cost of write-off according to FIFO is determined for a batch of retired goods,
- FIFO (rolling valuation)– the cost of writing off goods using FIFO is determined within the framework of full batch accounting.
For actual cost calculation, a universal workplace is provided Closing the month, the use of which allows you to reflect all operations to close the reporting period.
This article covers the following topics:
- How is the cost of inventory and materials calculated using the average cost and the FIFO method;
- How are warehouse movements taken into account in UT 11;
- What options exist for calculating cost in UT 11.
How is the cost calculated?
Calculation based on average cost
In UT 11, the calculation of the cost of disposal of goods at average cost is performed based on the results of the month (weighted average cost). This means that when calculating the cost of goods disposed of, all receipts for the month are taken into account. In this case, the balance of goods at the beginning of the month is taken into account. Thus,
Cost of a Unit of Goods = (Balance of Goods at the Beginning of the MonthValued + Cost of Purchases of Goods for the Month) / (Quantity of Initial Balance + Quantity of Receipts)
Differences in cost calculation in UT 10.3 and UT 11
UT 10.3 uses classic batch accounting using the FIFO method. At the same time, the system stores information about the cost of each batch of incoming goods. The FIFO method assumes that when a product is disposed of, the quantity and cost of the product must be written off sequentially from the earliest, in terms of time of receipt, batches.
In UT 11, cost calculation is performed using the FIFO method and is based on the accounting provision (PBU) “Accounting for inventories PBU 5/01”. In accordance with this, the balance of goods in the warehouse is calculated in quantitative terms. Next, the valuation of the balance at the end of the month is determined, which corresponds to the calculation of value using the FIFO method. To do this, the quantity and value of the remaining goods are collected sequentially from the last batches, according to the time of receipt, since calculation using the FIFO method implies that the first batches have already been written off. Then the quantity of goods removed from the warehouse during the month is determined. The cost of goods receipts for the month is determined taking into account the value of the initial balance, and from this value the cost of the balance at the end of the month, calculated using the FIFO method, is subtracted. The resulting value indicates the cost of writing off the goods for the month. The cost of writing off a unit of goods is determined as the cost of writing off goods for the month, divided by the quantity of goods disposed of in the month. The cost of each shipment is calculated as the product of the cost of a unit of goods and the quantity of goods written off.
Analytics in cost
Calculation of the cost of goods in UT 11 is carried out in the context of the following analytics:
- Organization, warehouse;
- Nomenclature, characteristics of nomenclature;
- A number of other analysts.
Cost accounting by analyst is carried out independently. One product item in different warehouses may have different costs. Cost calculation is carried out based on analytical objects. In this case, each analytics object is formed by the above parameters. For each analytical object, a linear equation is compiled. Thus, a system of linear equations (SLE) is obtained. Linear equations are compiled based on the identity:
Cost of Goods Remaining at the End of the Month = Cost of Receipts for the Month + Cost of Initial Balances - Cost of Write-offs for the Month
Before compiling the SLU, the system calculates the total balance that should remain in the warehouse using the FIFO method. In this case, the valuation of the remainder is determined based on the latest batches.
Features of cost calculation
There are some features in calculating cost using the FIFO method in UT 11:
- The party is clearly absent. This means that it is not possible to obtain a valuation report for the lots. To isolate specific batches, you need to use additional characteristics of the nomenclature, or separate accounting by departments/managers;
- All unwritten batches from the previous month are combined into one batch. The quantity and value of this lot is the sum of the number and value of unwritten off lots;
- All receipts of one product from one supplier within one calendar day are considered one batch. The quantity and cost of this batch consists of the quantity and cost of goods received;
- All write-offs of goods within one month are accounted for at average cost, regardless of the method used to value goods when written off (at average cost, FIFO);
- Movements of goods and other transactions without a known valuation are not used in the valuation of the balance of goods in the warehouse at the end of the month. This rule has an exception. These operations are taken into account in the valuation of the remaining goods in the warehouse, in the event of a shortage of current receipts of goods with a known value.
Pros and cons of the technique
In comparison with classic batch accounting in UT 10.3, cost calculation using the FIFO method in UT 11 has pros and cons.
- The system is not sensitive to the order in which receipt and sales documents are entered;
- The time for cost calculation and period closure has been significantly reduced;
- Managers' manipulations with the timing of document processing are eliminated by averaging the cost of written-off goods within all documents of the month.
- Lack of possibility of batch evaluation after implementation of the implementation document;
- The inability to instantly assess gross profit when posting a sales document.
How are warehouse movements taken into account in UT 11?
In UT 11, a warehouse is understood as a certain territory where goods are stored. A warehouse can be presented in the form of racks, shelves and cells designed for storing goods. In this case, the system can keep records of goods in each cell (address warehouse). The directory "Warehouses (warehouse territories)" is hierarchical. For a group of warehouses, you can configure the selection of this group in orders and invoices for receipt (shipment) of goods. If in one receipt (shipment) document it is necessary to take into account operations for several warehouses, then these warehouses must be placed in a warehouse group. If warehouses belong to different groups (not related by hierarchy), then it is impossible to carry out group operations with them.
To reflect the operation of moving inventory items from one warehouse to another, the document “Movement of Goods” is intended, which performs movements in the “Cost of Goods” register in quantitative terms. The valuation is established by the document “Calculation of the cost of goods”. In addition, movements are carried out through the registers Goods of organizations, Goods in warehouses, Free balances.
What options exist for calculating cost in UT 11
In the document "Calculation of the cost of goods" you can choose two calculation options:
- Preliminary,
- Actual.
Preliminary cost calculation
It is recommended to carry out cost calculations multiple times over the course of a month using the “Preliminary” calculation option. To do this, in the client-server version of work, you can configure a routine task. In this case, the calculation is carried out relatively quickly. The cost of each disposal and the cost of remaining goods are not calculated. The document determines the average cost of goods and records it in the information register “Cost of goods”.
It is convenient to analyze the preliminary cost in the “Income and expenses” and “Sales volume by type of goods” reports. To generate reports, go to the “Finance” section and execute the “Finance Reports” command in the navigation panel.
Actual cost calculation
After the end of the month, the document “Calculation of the cost of goods” is carried out with the “Actual” calculation option. In this option, the cost of disposal of goods and remaining goods in warehouses is calculated. Additional costs are allocated to the cost of goods. Cost calculation with calculation option The actual one can be performed repeatedly within a month if there are no problems with the performance of the information system.
Concluding remarks
Typically, in enterprises, with rare exceptions, documents do not keep up with actual trade transactions and, as a rule, are entered into the accounting system retroactively, corrected, reposted, etc. With a large turnover, restoring the sequence of documents in UT 10.3, calculating costs and closing the period requires significant costs. The advantage of UT 11 in these operations may be a decisive factor in the choice of an accounting system for trade enterprises, especially for those who for management accounting It is important to obtain results independent of the order in which documents for receipt and sale of goods are entered.
The program is carried out using a regulatory document Calculation of the cost of goods(chapter Finance – Regulatory documents).
The cost price is calculated separately for each organization that is part of the trading enterprise.
The program allows you to create this document automatically so that during the work you can evaluate the profit from the sale of goods. In this case, the preliminary cost of goods will be calculated. At the end of the month, you should carry out a regulatory document and calculate the actual cost of goods.
In order for the cost to be calculated automatically, it is necessary to select the checkbox in the settings of cost estimation methods for each organization Update the cost using a routine task.
The valuation method that is established for the calculation ( FIFO or Monthly average), affects the calculation of actual cost. The preliminary cost of goods is always calculated using the valuation method Monthly average.
Now we need to create a routine task that will automatically create a document Calculation of the cost of goods, and set the frequency with which this task will be executed.
A new routine task is created in the list Support and Maintenance(chapter Administration).
In a new task, you must check the box Usage and set the frequency with which the routine task should be performed. For example, we want costing to be calculated every day at 8 am. You need to enter this data into the schedule for this routine task.
After entering the schedule, click the button Save and close in the shape of Calculation of preliminary cost.
Every morning at 8 am a new document will be created Calculation of the cost of goods for those organizations in which the checkbox for updating cost data with a routine task is selected. Thus, every day we will have up-to-date data on the cost of goods. You can also configure the schedule so that the cost price is updated every hour or every 10 minutes.
If such a need arises, the cost calculation can be activated manually by the user. To do this, just select the command from the list of routine tasks Run now.
So, the program today, January 9, automatically created a document Calculation of the cost of goods. This document will appear in the list of Regulatory documents (section Finance).
The calculation option will be set in the automatically generated document Preliminary.
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The write-off cost can be calculated both for a month and for a certain period of time through the document “Calculation of the cost of goods”. You can also calculate through the monthly closing assistant.
Note. The cost is calculated for each warehouse separately.
- The average monthly cost is calculated at the end of the month. Each product receives the same cost per month. The calculation formula is as follows:
(balance (of cost) at the beginning of the month + receipt (of cost) during the month) / (balance of quantity at the beginning of the month + receipt of quantity during the month) = cost
- The FIFO weighted valuation is calculated to determine the value of the balance using the following formula.
(balance (cost) at the beginning of the month + receipts (by value) during the month) / (balance at the beginning of the month (quantity) + receipts during the month (quantity)) = cost price of absolutely any batch for the selected month
- FIFO rolling estimate calculates the consumption of goods in order of receipt, i.e. if one item of the nomenclature arrived earlier than another item that arrived later, then the first one will be written off earlier.
Practice of calculating cost in 1C:UT 11.1:
Method one. The simplest one is to create the document “Sales - Documents for calculating the cost of goods” at the end of each month.
Method two. Through “Administration - Support and maintenance - Routine and background tasks - Cost calculation - Run now.” You can also configure a scheduled task to run automatically once a month.
Rice. 1
Rice. 2
How to perform the cost calculation procedure:
1. Right-click on the cell with the red number (in the “Gross Profit” column), then “Decrypt”. There you need to select “Registrar” - you can see what documents the movements were made with.
2. We look at the accumulation register through the menu:
“Menu” - “Service” - “Options” - “Display the “All functions” menu”;
Go to the menu “All functions” - “Accumulation registers” - “Goods in warehouses (or goods of the organization), or “Cost of goods”.
If you perform a selection by nomenclature and characteristics, you will see at what price it was purchased (the “Receipt of goods and services” document, or entering opening balances), and at what price it was sold;
Rice. 3
Rice. 4
Rice. 5
Note. Currencies are divided in 1C:UT into the currency of management and regulatory accounting mainly for the formation of accounting documents in the program: book of purchases and sales, etc., but if they are the same (rubles), then there will be no difference in the reports, depending on the choice of currency.
Back Up
Cost calculation is a mandatory step for generating the financial result of an enterprise. There are several calculation methods, each of which is suitable for certain organization parameters. In this regard, every fifth call to the company comes with the question: “What method should I use when calculating the cost of goods?” In this article we will share our experience with you and talk about each method using specific examples.
First, a little theory:
Cost calculation is necessary for the following purposes:
Determining the profitability of sales of certain types of goods. (The profitability ratio is calculated as the ratio of profit to the assets that form it. Profitability, % = Profit (Revenue or sales cost - Cost) / Revenue;)
Making informed decisions on adjusting the composition of the accounting of goods sold;
Formation of the pricing policy of the enterprise.
The calculation of write-off cost (sale, use in production, etc.) is carried out, in general, for a month or for a specific date using the document “Calculation of the cost of goods” directly (the calculation is made from the beginning of the month to the end of the day of the document “Calculation of the cost of goods”) or from the Monthly Closing Assistant.
When choosing a cost calculation method, the presence/absence of batch accounting is important. Batch accounting is necessary for:
Storage information about each batch of goods;
Maintaining complex VAT accounting;
Batch valuation;
Export sales;
Inclusions/exclusions of VAT in the price.
Types of cost calculation:
1) Preliminary calculation:
Intended for use by trade organizations to determine the estimated cost of purchased material assets during the reporting period. Performed using the “Monthly average” method. The calculated values are used to determine the organization's gross profit, provided that the sales plan is met. For preliminary cost calculation, you can set up a routine task. In this case, the calculation is carried out relatively quickly.
2) Actual calculation:
Performed based on the results of the monthly reporting period with a full calculation of the cost of batches of movement of item costs. With this type of cost calculation, you can choose any method for determining the cost of writing off the material assets described above. For actual cost calculation, a universal workplace is provided " Closing the month", the use of which allows you to reflect all operations to close the reporting period.
Application solutions of the 1C company allow you to simultaneously keep track of costs in the prices of initial receipt (the cost at which the goods arrived at the first organization of the enterprise) and in the prices of receipt in each individual one.
Cost calculation for a group of companies.
Each warehouse has its own cost calculated. The valuation method is selected when creating an accounting policy. Cost calculations can be made for one or several organizations. If the enterprise uses the Intercompany scheme, then the cost must be calculated for all organizations included in the Intercompany structure, simultaneously using one calculation method.
Cost calculation methods:
All examples are given based on “1C: Trade Management 11.2”. In other software products of the 1C company, the cost is calculated in a similar way.
"Monthly average":
The calculation is carried out based on the average price for the reporting period without taking into account batches. The total cost value is used both for retired goods and for warehouse balances.
Monthly average = (Balance value + Receipt cost) / (Balance amount + Receipt amount).
Case 1:
One organization engaged in the trade of Russian-made carpets turned to the specialists of the RG-Soft company in order to choose the most suitable method for calculating costs. The company purchases goods only in Russia; the price of goods does not depend on the dollar exchange rate and may vary slightly depending on time. Based on this, there is no need to keep batch records. In this regard, RG-Soft specialists suggested choosing the “Weighted Average Assessment” method. Let's consider an example of calculating the cost of one item in a given company.
The information that was entered into the information base is presented in Table 1.
Table 1.
Calculations:
(100,000+200,000)/(10+10)=15,000 rub. – unit cost of goods in December;
5*15,000=75,000 rub. – the total cost of goods written off in December;
Balance of goods as of 01/01/2017: 15 pcs. for a total cost of 225,000 rubles.
(225,000+300,000)/(15+10)=21,000 rub. – unit cost of goods in January;
10*21,000=210,000 rub. – the total cost of goods written off in January;
Balance of goods as of 02/01/2017: 15 pcs. for a total cost of 315,000 rubles.
"FIFO (rolling valuation)":
Performed within the framework of full batch accounting. When calculating the cost, it is considered that the first batches received are also the first to be disposed of, i.e. Each consumption of goods is the consumption of the most recently received goods of this item. The balance at the end of the month is calculated based on the total cost of each batch.
The cost of each batch for the month = (balance in value at the beginning of the month + receipt in value during the month) / (balance in quantity at the beginning of the month + receipt in quantity during the month).
Case 2:
An organization involved in the sale of household chemicals also needed to choose a suitable calculation method. The company purchases goods abroad, therefore, the price of goods DEPENDS on the dollar exchange rate, therefore, because... The price for each delivery may differ significantly; the company maintains batch records. Deliveries of goods were carried out rarely, about 2 times a month. In this regard, RG-Soft specialists suggested choosing the “FIFO (rolling valuation)” method. Let's consider an example of calculating the cost of one item in a given company.
The information that was entered into the information base is presented in Table 2.
Table 2.
Calculations:
First batch: 10,000/100 = 100 - unit cost of goods from the first batch in June;
Second batch: 20,000/100 = 200 - unit cost of goods from the second batch in June;
The batches are written off according to the principle: the first batches received are also the first to be eliminated
50*100=5,000 rub. – the total cost of goods written off in June;
Balance of goods as of 07/01/2016: 150 pcs. for a total cost of 25,000 rubles.
First batch: 5,000/50 = 100 - unit cost of goods from the first batch in July;
Second batch: 20,000/100 = 200 - unit cost of goods from the second batch in July;
Third batch: 30,000/100 = 300 - unit cost of goods from the third batch in July;
It is necessary to write off 100 units of goods, according to the principle, the first batches received are also the first to be disposed of, first you need to write off 50 units from the first batch, and the remaining ones from the second.
50*100+50*200=15,000 rub. – total cost of goods written off in July;
Balance of goods as of 08/01/2016: 150 pcs. for a total cost of 40,000 rubles.
"FIFO (weighted valuation)":
As when calculating FIFO moving - when calculating the cost, it is considered that the first batches received are also the first to be disposed of, i.e. Each consumption of goods is the consumption of the most recently received goods of this item.
Feature: the balance at the end of the month is calculated based on the average cost of the balance of goods for all batches.
When calculating cost using the FIFO method, batches of retired goods are determined, separating them from batches of residuals. Then, for retired (sold, written off) lots, the average cost of disposal is determined, which reflects the consumption of each lot. The cost of inventory and the cost of disposal of goods may differ.
Cost of any batch for the month = (balance in value at the beginning of the month + receipt in value during the month) / (balance in quantity at the beginning of the month + receipt in quantity during the month)
Case 3:
Another organization engaged in the trade of accessories for mobile phones was suggested by RG-Soft specialists to choose the “FIFO (weighted valuation)” method. The company also maintains batch records, because goods are purchased abroad, and the price depends on the exchange rate. The choice of this method was due to the fact that deliveries of goods, unlike the previous example, were carried out much more often, about 10 times a month. The FIFO (weighted valuation) method avoids the accumulation of a large number of batches, because all batches received last month are reduced to one. Let's consider an example of calculating the cost of one item in a given company.
The information that was entered into the information base is presented in Table 3.
Table 3.
Calculations:
First batch: 4,000/20 = 200 - unit cost of goods from the first batch in October;
Second batch: 8,000/20 = 400 - unit cost of goods from the second batch in October;
