MBPs in operation are written off due to their unsuitability for further use or transfer to fixed assets. At the same time, the depreciation of the IBP is written off, and the material assets received from the disposal of such items are also capitalized (at net realizable value).
Before writing off an IBP, an organization issues a write-off order. The order indicates the date of write-off, the classification of IBP (soft and hard equipment), and the composition of the commission. The order must be certified by the manager and registered in the order journal.
Hardware, equipment and computer technology subject to write-off must be accompanied by a “statement of defects of the device subject to write-off”. Which indicates the name of the institution, location, name of the device, type and model, date of manufacture, serial number, inventory number, date of commissioning, initial cost, reasons for failure and unsuitability of the device, conclusion of the chief specialist in the operation of medical technological equipment, date and signature of the engineer.
A commission appointed by order inspects low-value and wear-out items in use and recognizes them as having become unusable and subject to scrapping. The above is documented in the “Act for write-off of low-value and wear-and-tear items”, which indicates the name, item number, inventory number, unit of measurement, quantity, date of receipt, price, amount, service life, reason for write-off.
The items listed in this act, in the presence of the commission, were turned into scrap, which is subject to capitalization according to the invoice: soft equipment - rags, hard equipment and others - scrap metal and boards.
Scrap that is not subject to accounting is destroyed. This act is certified by the chairman of the commission and all members of the commission.
Also, the enterprise can draw up a “Certificate of Disposal of Low-Value and Wearable Items”, which is used to document the breakdown and loss of tools (devices) and other low-value and wearable items.
Drawed up in one copy by the foreman and the initial workshop (section) for one or more workers.
In case of breakdown, damage or loss of the IBP due to the fault of the employee, the report is drawn up in two copies. One copy remains in the workshop (at area 0, and the second is sent to the accounting department to deduct the cost of a broken, damaged or lost item from the employee in accordance with the established procedure.
When an employee presents a disposal certificate, a good one is issued instead of an unusable one and is recorded in the record card for low-value and wearable items. Retirement acts are subsequently attached to write-off acts.
The following accounting entries are prepared for transactions related to the write-off of small business enterprises;
1. The wear and tear of the MBP is written off when they are removed from service. On account 213, an entry is made under subaccount 213/2 “Low-value and wear-and-tear items in use”:
- 2. reflects the net sales value of materials received upon write-off (liquidation) of the IBP:
- a) within the estimated residual value of the IBP:
b) in excess of or in the absence of the estimated residual value of the IBP:
3. reflects the difference between the estimated residual value of the written-off SBP and the net sales value of the materials received. The posting is made if the net sales value of the materials received is lower than the estimated residual value of the written-off IBP:
Also, low-value and wear-out items may be discarded due to various reasons, the main of which are:
- - sales to other enterprises and individuals;
- - transfer to the authorized capital of other enterprises and as loans;
- - reduction (adjustment) of the cost of IBP received in previous years;
- - free transfer;
- - transfer to fixed assets;
- - write-off when shortages, theft or damage are identified, including due to accidents, fires, natural disasters and other reasons.
Accounting entries for transactions related to other disposals of small business enterprises:
The cost of IBPs donated free of charge as financial assistance is reflected:
The amount of reduction (adjustment) in the cost of MBPs received in previous years but not yet put into operation is reflected:
MBPs lost as a result of natural disasters, accidents and other emergency events have been written off:
The book value of small business enterprises transferred free of charge to other enterprises and persons has been written off:
low-value, wear-and-tear inventory accounting
In the month when the MBP was purchased, its full cost was reflected in the entries and unjustified profits immediately increased. And although in the future the amount gradually decreased due to wear and tear and, accordingly, contributed to a decrease in profits in the future, this was still not entirely correct. Both methods of writing off IBP are considered imperfect from a scientific point of view. There is another significant drawback in accounting for IBP, which concerns things with very low prices. Write-off of IBP according to Shchuko To facilitate the accounting of products, accountants ensured that low-value funds were immediately written off as current expenses in the month of their receipt. In this case, there is no need to calculate the percentage of depreciation or amortization, which is a convenient point for accounting. Theorists were outraged by this write-off procedure, but this did not affect the outcome of the case.
Form MB-8. act on write-off of low-value and wear-and-tear items
During the work, members of the commission examine quickly worn-out equipment and study the technical documentation attached to it. Thus, the degree of wear and suitability of the inspected tools and other materials associated with the production process is established.
When writing off certain items, the commission is based not only on examination data. All characteristics set out in the technical documentation are taken into account.
When filling out the columns of the form for writing off IBP, their initial cost is first displayed. It is taken from the costs that were actually spent on their acquisition or production.
If it is decided that such items can be sold, then this can happen either at the same cost or at a price different from the original price of the product.
Act on write-off of low-value and wear-and-tear items
For this purpose, the commission or the head of the unit draws up a normative act in the MB-8 form. The document should reflect the following parameters:
- positions and individual details of commission members
- name of the IBP
- the retiring quantity in units of measurement that is used to account for these materials or products
- reason for write-off
After filling out the information about the recycled IBP, the commission members sign the act. It must also contain the signatures of the accountant for accounting of inventory items and the financially responsible person. After signing by all these persons, the document is endorsed by the chief accountant and the manager.
How to issue an order on a commission for writing off small business enterprises In order to regulate issues of writing off small business enterprises at an enterprise, a permanent commission is appointed by order of the head.
Deciphering the IBP in accounting
What are the accounting entries for the IBP? In the process of creating accounting for the IBE, several methods have been developed for reflecting them in the entries:
- Upon receipt, they were received and transferred for use with the cost entered into account 12 “Low-value wearable items.” At the end of each month during the year, 1/12 of the purchase price was written off.
Although the period of use could exceed a calendar year, the cost of the MBP was subject to complete write-off within 12 months. - When an item was handed over to the facility’s workflow, the amount was immediately reduced by 50% due to wear and tear. The remaining half was not touched until the final moment of its decommissioning.
Since the second write-off method was much simpler for an accountant, it was preferred by organizations. When writing off using the first method, its shortcomings were identified.
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Disposal of low-value and high-wear items
Kt - 213 b) in excess of or in the absence of the estimated residual value of the IBP: Dt - 211 Kt - 612 3. The difference between the estimated residual value of the written-off IBP and the net sales value of the materials received is reflected. The posting is made if the net sales value of the materials received is lower than the estimated residual value of the written-off MBP: Dt - 714 Kt - 213 Also, low-value and wearable items can be disposed of due to various reasons, the main of which are: - sale to other enterprises and individuals; — transfer to the authorized capital of other enterprises and as loans; — reduction (adjustment) of the cost of IBP received in previous years; - free transfer; — transfer to fixed assets; — write-off when shortages, theft or damage are identified, including due to accidents, fires, natural disasters and other reasons.
Reason codes for writing off MBP
If one of the commission members is absent at the time of decommissioning, a temporary order is issued to appoint another commission member in his place for the duration of his illness or other reason for not going to work. Inventory of IBP As a rule, an inventory of IBP is carried out at the end of the year.
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This procedure is carried out before drawing up the annual report. But if during the production process there is a replacement in the position of a person whose duties include financial responsibility, then an additional inventory of available material assets is carried out.
The process itself during the inventory is carried out by a separate group of people enrolled in the working commission by order of the manager. They start by checking the presence and condition of inventory cards and other technical documentation on the MBP. While studying the documentation, a parallel inspection, checking the availability and safety of inventory is carried out.
Reason codes for writing off low value items
If the product is suitable for further use, then it is included in the inventory of actual availability. The list of items during the inventory is compiled according to the following characteristics:
- product name
- assigned inventory number
- technical specifications
- purchase price, etc.
Products and materials that have become unusable are not included in the inventory register. They are included in a separate list indicating the time of commissioning, the reasons that caused their loss of functionality, and other indicators. Then, according to this list, write-off acts are drawn up. Note! Inventory records are compiled separately for fixed assets and small business enterprises. Moreover, the latter are recorded in separate lists according to the place of their storage and use, as well as by financially responsible persons.
It must be taken into account that when they are sold for an amount exceeding their cost, the difference must be included in the organization’s income. In other cases, an act is drawn up for the write-off of low-value and wear-and-tear items, the form of which is filled out separately by type of similar items in a single copy. The completed form is transferred to the warehouse together with the MBP to be disposed of. Storekeepers are required to sign the form to confirm that materials have been written off. From the warehouse, the document goes to the accounting department as a fundamental act for removing unsuitable materials and tools from accounting.
Reason code for writing off low value
At the same time, in production they often resorted to a price limit, without taking into account the service period. In this way, IBEs were formed into an independent group, which was dealt with by entire departments of institutes, conducting various studies on them. How to draw up an act To draw up an act, a special type of entering information is provided. The form was developed according to the MB-8 form, approved at the legislative level of the Russian Federation. The document code is indicated in the OKUD classifier with the value 0320004. But, despite the same requirements for the execution of this act, organizations can edit it and make their own changes for ease of filling out. Before you begin to draw up documentation for the write-off of an IBP, a decision must be made about this by the management of the organization. It can also be accepted by representatives of the commission, which includes experts. The order to appoint competent members of the commission is issued by the head of the organization.
The items listed in this act, in the presence of the commission, were turned into scrap, which is subject to capitalization according to the invoice: soft equipment - rags, hard equipment and others - scrap metal and boards. Scrap that is not subject to accounting is destroyed. This act is certified by the chairman of the commission and all members of the commission. Also, the enterprise can draw up a “Certificate of Disposal of Low-Value and Wearable Items”, which is used to document the breakdown and loss of tools (devices) and other low-value and wearable items. Drawed up in one copy by the foreman and the initial workshop (section) for one or more workers. In case of breakdown, damage or loss of the IBP due to the fault of the employee, the report is drawn up in two copies.
Add to FavoritesSend by email The act of writing off low-value and wear-and-tear items is of interest to any organization, especially for small companies where most of the property does not have significant value. This article will discuss in what cases such a document is drawn up, as well as how to draw it up correctly. When should you draw up an act for writing off low-value items What is important to remember to correctly fill out the act Results When should you draw up an act for writing off low-value items Any company has one or another property that it uses in its activities, but is not reflected in accounting as a fixed asset ( OS), since the cost of such property does not exceed 40,000 rubles. This could be, for example, computers, scanners, printers, some office furniture, etc.
Form MB-8. act on write-off of low-value and wear-and-tear items
Read more about the criteria for classification as fixed assets in the article “Guidelines for accounting of fixed assets.” Despite the fact that such objects are not considered fixed assets, they have a certain service life, after which the company can no longer operate them. In such a situation, it becomes necessary to write off these property items.
For these purposes, a special act is drawn up. NOTE! Currently, there is no single form of the act in question that is mandatory for all companies. At the same time, until 2013, this was the MB-8 template, approved by Decree of the State Statistics Committee of the Russian Federation dated October 30, 1997 No. 71a. Therefore, when writing off low-value property in 2017, a company can use the standard form of the MB-8 act or draw up a write-off act developed independently.
Act on write-off of low-value and wear-and-tear items
As a rule, the unified form MB-8 is used for this. FILESDownload a blank form of the MB-8 form .docDownload a sample of filling out the MB-8 form .doc What applies to low-value and wearable items In all organizations, one way or another, there is inexpensive and not particularly valuable property that is used in the current work. It is not reflected as a fixed asset and its cost is quite small.
This includes:
- computer and office equipment;
- Consumables;
- pieces of furniture;
- workwear;
- dishes;
- cleaning and detergents, etc.
This group also includes some tools, equipment, inventory, spare parts, in general, everything that is used to solve various problems in production, but quickly wears out and requires constant replacement.
Deciphering the IBP in accounting
Which indicates the name of the institution, location, name of the device, type and model, date of manufacture, serial number, inventory number, date of commissioning, initial cost, reasons for failure and unsuitability of the device, conclusion of the chief specialist in the operation of medical technological equipment, date and signature of the engineer. A commission appointed by order inspects low-value and wear-out items in use and recognizes them as having become unusable and subject to scrapping. The above is documented in the “Act for write-off of low-value and wear-and-tear items”, which indicates the name, item number, inventory number, unit of measurement, quantity, date of receipt, price, amount, service life, reason for write-off.
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In order to determine that an item is truly of low value and wears out quickly, you need to make sure that its shelf life does not exceed one year, and its cost does not exceed 40 thousand rubles. The meaning of the write-off act All property that the organization has must be recorded in special documentation. The fact of its presence has a direct impact on taxation (although only when using certain schemes, for example, the general tax system).
At the same time, in order to get rid of the property registered to the enterprise, it is necessary to draw up a special act - such a document allows you to write off unnecessary, obsolete, worn-out materials, equipment, etc. in a legal way.
Disposal of low-value and high-wear items
Filling out the header of the MB-8 form The “header” of the form contains several lines for approval by its director - without his autograph the act will not acquire legal force. Then it is indicated:
- number assigned to the act;
- name of the organization and structural unit in which the write-off occurs, its OKPO code.
Filling out the front page of the MB-8 form Under the “header” of the document there is the first table, where you enter:
- date of drawing up the act;
- transaction type code (in accordance with the classifier);
- structural unit that writes off inventory items;
- type of company activity (according to OKVED);
- information about the subaccount and analytical accounting code.
Below you enter the date of formation of the commission, the order number and the fact of write-off is recorded.
Reason codes for writing off MBP
The second table includes detailed information about the property being written off:
- its name,
- quantity,
- cost,
- date of receipt,
- service life,
- reason for write-off and other characteristics.
Filling out the back page of the MB-8 form On the back of the act, first there is a continuation of the previous table, at the bottom of which the totals for the items being written off are summarized. Below it is indicated the total number of items, numbers and dates of their disposal. The last table of the act includes information about disposal.
What to pay attention to when drawing up The execution of the act is completely left to the compiler. Form MB-8 can be filled out in handwriting or on a computer, while when printing it, you can use the organization’s letterhead or an ordinary sheet of paper.
Reason codes for writing off low value items
Important
The decision on which form will be used for this purpose is fixed in the accounting policy. You can download the MB-8 standard form on our website. Download standard form No. MB-8 Documentation of the fact of write-off must be preceded by a decision of a special commission that a specific low-value object is no longer practical to use in work.
The document in question is drawn up in 1 copy. As soon as the act is drawn up and the written-off property is transferred to the storage room as scrap, such a document should be transferred to the company’s accounting department. For information on the procedure used when writing off fixed assets, read the material “Unified Form No. OS-4 - Act on the write-off of fixed assets.”
What is important to remember for correctly filling out the act Filling out the act in the MB-8 form does not present any difficulties.
The appointment of commission members occurs by drawing up an appropriate order, which also approves the need to write off low-value items and which is issued on behalf of the director of the organization. Members of the commission perform the following actions:
- study technical documentation (if any),
- certify the fact that the property has fallen into disrepair, is outdated or worn out,
- looking for reasons for this
- record that repair and further use of these inventory items is impossible.
Features of drawing up an act, sample Today, there is no mandatory, unified form of an act for writing off low-value and wear-and-tear items, so employees of enterprises have every right to write an act in any form or, if the organization has a developed and approved sample document, using its template .
Reason code for writing off low value
Who needs to be appointed in such cases and what are the nuances of its design? The commission must include any persons from the administration of the enterprise who are competent in matters of wear and tear and accounting of small-scale equipment. These can be persons from the engineering and technical staff of the enterprise, accounting department, quality control department, laboratory, if there is one in production. The main thing is that people can competently assess and justify the deterioration of the MBP.
The order indicates the positions and individual details of each member of the commission. Then they enter the reason for issuing the decree: “In order to organize work to establish storage periods for documents, carry out their selection for archival storage and use, I order: Create an expert commission.” Next comes a list of the members of the commission, starting with the chairman.
The issue is not regulated by legislative acts.
The time limit for suitability for classifying things as IBP changed periodically. Only the service life remained constant for one year. Based on these justifications, it can theoretically be assumed that there are 4 main options for evaluating purchased items for the group we are considering:
- The price of the item is below the monetary limit, but its useful life may be more than one year.
- The cost of the inventory is more than the limit, but it is suitable for use for up to 1 year.
- The material does not exceed the cost of purchasing it from the established upper limit, but will last more than 12 months.
- The item lasts less than 1 year and costs less than the price limit.
Quite recently, only by the fourth characteristic of an object could it be included in the IBP. As for the first, second and third groups, previously these were fixed assets.
Certificate of write-off of goods (form TORG-16) is issued to write off damaged, defective or expired goods. Such a need may arise, for example, due to improper storage. Or the product has a fairly short shelf life, during which it did not have time to be sold. If, after accepting the valuables for accounting, a defect was discovered, the validity period of the product has expired, or it has lost its consumer properties, then it can be written off by drawing up an act in the TORG-16 form.
It should be noted that the unified form TORG-16, approved by the State Statistics Committee, is not at all mandatory for registration. The organization has the right to draw up its own version of the act and use it in the process of identifying low-quality goods.
In order to write off damaged or defective goods, the manager appoints a commission that assesses the condition of inventory items and draws up an act on the need to write off these values. Representatives of the supervisory and sanitary authorities may be present among the members of the commission.
Certificate of write-off of goods (form TORG-16)
An example of the design of the front part of a product write-off act
When filling out this part of the TORG-16 form, you need to pay attention to the table in which you need to reflect the following information:
- Date of receipt of goods - acceptance for accounting (according to the supplier’s documents: or);
- The date of write-off of the goods is the day the act was drawn up;
- No. and date of the invoice on the basis of which the valuables were accepted from the supplier;
- Reason for write-off – signs of deterioration in the quality of the product are indicated (“packaging is broken”, “expiration date”, “mechanical damage”, “defects”, “damage”, etc.), if there is a coding system by which a specific code is assigned to each reason for write-off , then this is also reflected in the corresponding column.
The document on the basis of which expired, damaged or defective goods are written off is the order or order of the manager, the number and date of which is also reflected on the title page of the TORG-16 form.
An example of the reverse side of a goods write-off act
The reverse part of the TORG-16 form also contains a table that provides detailed information about the product being written off. All names of assets subject to write-off are sequentially entered into this table, indicating quantitative and price indicators. The “Total” line displays the total cost of written off inventory items.
Below, under the table, this cost is written in capital letters. The members of the commission sign the written-off form completed in this way. The figure below shows the act of writing off the goods and highlights the main fields.
The manager gets acquainted with the document and makes his decision on where to write off the damaged valuables. On the title page, next to the word “I approve,” the manager writes his full name, signature and puts the date of approval of the document, after which it is possible to physically write off the damaged, expired or defective goods.
The act in form TORG-16 is drawn up, as a rule, in triplicate:
- the first is for accounting, which must make the necessary write-off entries;
- the second is transferred to the department in which the inventory items are written off;
- the third one remains with the financially responsible person (for example, a warehouse worker).
You can download the unified form at the top of the article, and below is an example of filling out the TORG-16 form for download.
