Re-grading during inventory

Specifics of the audit

Inventory of goods is carried out in accordance with the Methodological Guidelines approved by Order of the Ministry of Finance No. 49 of 1995. Cases of mandatory audit are enshrined in Article 12 of Federal Law No. 129. Inventory of goods is carried out without fail:

Before preparing annual reports.
When changing the financially responsible person.
If facts of damage/theft of property or other abuses are detected.
After a natural disaster or other emergency.
During liquidation/reorganization of an enterprise.
In other cases established by law.

Re-grading act

As a template for drawing up this document, you can use the INV-3 form, approved by Decree of the State Statistics Committee of the Russian Federation dated August 18, 1998 No. 88, which provides for an inventory list based on the actual availability of goods and according to accounting data. 1 sheet of this form must contain the following information:

name of the organization (structural unit);
OKPO codes;
basis for assigning an inventory;
its date (beginning and ending);
number of the act and the date of its signing;
information about material assets in relation to which a discrepancy has been identified;
explanatory note from the financially responsible person;
the date when the remaining inventory items were recorded.

Sheets 2 and 3 of the form are filled out according to the diagram below.

This form is not approved, but only recommended, therefore the enterprise is not prohibited from drawing up an act according to its own scheme, approved in internal documents.

Documenting

The results of the audit are entered into a special form of a unified form - statement (form INV-3). In this document, the shortage of goods of one type is indicated in one line, and the surplus in another.

After filling out the form, it is sent to the accounting department, where a matching statement is generated (form INV-19). In this document, columns 18-23 are intended to reflect regrading. The information is also indicated in the INV-26 form.

In what cases is misgrading possible?

The conditions for offset are given in the Guidelines approved by Order of the Ministry of Finance No. 49. Offset is allowed if:

surpluses and shortages were identified in one audited period;
one employee is responsible for the occurrence of misgrading;
shortages and surpluses were identified for products of the same name and in equal quantities.

For example, if a surplus of red toys is found in warehouse No. 3, and a shortage of green toys is found in warehouse No. 4, then this will not be a re-grading of goods. Accordingly, offset is excluded. It cannot be carried out if there are shortages and surpluses of different products, and not identical, but of different types. The above conditions must be met simultaneously. If one of them is not met, the surplus is accounted for separately, and the deficiency is written off from the balance sheet.

Official regulation

Based on the literal interpretation of the regulatory provisions of the Methodological Recommendations approved by Order of the Ministry of Finance of the Russian Federation No. 49, the results of the inventory may be as follows:

compliance of actual product inventories with those indicated in the financial statements;
discrepancy between the indicators of inventory items located in the warehouse and the data from the documents, that is, misgrading.

Registration of regrading is carried out in accordance with the norms of clause 28 of the Regulations on accounting, approved by Order of the Ministry of Finance of the Russian Federation No. 34n dated July 29, 1998.

The following 3 factors are key to correctly accounting for misgrading when conducting an inventory:

All surplus goods that were identified during a routine inspection should be included in the financial results of the organization.
Losses within the established norms are taken into account as costs.
If the damage exceeds the established cost limits, the difference is compensated by the person responsible for causing the damage.

Explanatory note from the guilty employee

A commission is formed to identify all the circumstances of the incident. She is looking for the culprits. If misgrading is detected, the financially responsible employee (for example, a storekeeper) must provide an explanation.

It is addressed to the chairman of the commission. The financially responsible employee must indicate which goods were in surplus and which were in short supply, in what quantity, and the reasons why this situation arose. The head of the enterprise has the right to apply a disciplinary sanction to the person.

Proposal for offset

It is drawn up by the chairman of the commission addressed to the head of the organization. It is advisable to make a proposal for offset if all the conditions given above are met. Otherwise, completing this document will only be a waste of time. The proposal provides information about the inventory, during which misgrading was identified, names, codes and quantities of products, shortages and surpluses of which were discovered, are indicated. The document also reflects information from the explanatory note of the financially responsible employee. If necessary, additional information from the technologist's conclusion is provided, confirming the possibility of mutual replacement of products and the identity of product codes according to OKP.

How to arrange re-grading during inventory

Inventory is a responsible and serious process for entrepreneurs involved in retail trade. Almost every businessman involved in the sale of a wide range of goods has encountered mis-grading in his work.

What is this phenomenon?
Why might it occur?
How to minimize its occurrence?
And if it is nevertheless identified, how to correctly reflect the misgrading in accounting and tax records?

We will help clarify all questions regarding regrading in this material.

Re-grading - what is it?

The term “re-grade” came to us from the Soviet heritage - it refers to goods of the same name, but of different grades.

It is officially mentioned in accounting documents, but tax legislation does not give it a strict definition.

Re-grading is the result of an inventory that reveals a discrepancy between goods of different types having the same name, and the shortage of one type of product is covered by a surplus of another type.

NOTE! The concept of “product name” is also not reflected in the regulatory framework, so it can be interpreted in different ways. The Ministry of Finance recommends using the data from the All-Russian Product Classifier.

For example, according to the inventory commission of a furniture store, according to the documents, the balance should have included 10 “Antoshka” and 8 “Masha and the Bear” chairs, but in fact it turned out to be 8 “Antoshka” and 10 “Masha”: thus, a surplus of 2 chairs is recorded "Antoshka" and a simultaneous shortage of 2 units of "Masha and the Bear". This means that some sold “Antoshka” chairs turned out to be capitalized as “Masha”.

Official regulation of misgrading

During the Soviet Union, the concept of “regrading” was used quite widely, being in common use, so modern legislators did not consider it necessary to make additional adjustments to its regulation. There are only a few regulations that address this phenomenon.

Among the regulatory documents relating to regrading, we can highlight the Letter of the Federal Tax Service of Moscow dated February 17, 2010 No. 16-15/016379 “On accounting for profit tax purposes of the balances of goods by an organization engaged in retail trade,” in which it is officially given the current definition of misgrading, and its possible causes are listed.
The procedure for reconciling material assets, as a result of which, in particular, misgrading can be identified, has been in effect since July 13, 1995 - it was then that Order No. 49 of the Ministry of Finance of the Russian Federation came into force, which put into force the “Methodological Instructions for Inventory.”
The accounting reflection of the re-grading of goods is carried out in accordance with clause 28 of the Accounting Regulations, which was approved by Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n.

Possible reasons for misgrading

The situation when documents indicate one type of goods instead of another can arise under various circumstances:

absence or violation of the established procedure for receiving, storing and issuing goods from the warehouse;
problems with document management;
lack of internal control over product dynamics;
unintentional error of one or another employee (storekeeper, supply manager, loader, seller and other persons with access to goods);
poor performance of their duties by financially responsible persons (negligence or guilty actions).

When is offset possible?

Logic dictates that when regrading, the easiest way is to offset the missing and excess goods. But this can be done legally (according to the Methodological Instructions) only if a number of conditions are simultaneously met:

discrepancies between goods of different grades were identified in the same accounting period (during the general inventory);
responsibility for both shortages and surpluses is assigned to one person;
the discrepancy between goods is identical in quantitative terms (surpluses cover shortages, and vice versa).

For example, if a surplus of “Bera” pears is found in one warehouse, and a shortage of “Duchess” pears is recorded in another, this cannot be recognized as misgrading and offset, since different people are responsible for different warehouses. It is also impossible to offset, for example, a shortage of tubes of toothpaste and the same excess of soap - these are goods of different names.

What to do if misgrading is detected and recognized?

The algorithm for detecting mis-grading of goods as a result of inventory consists of the following sequential actions.

Establishment of the person financially responsible for these goods.

IMPORTANT INFORMATION! If the financially responsible person is found guilty, then the losses must be compensated at his expense by depositing money into the organization’s cash desk.

Settlement proposal. The chairman of the inventory commission prepares a document on the basis of which the regrading can be offset. This document is addressed to the head of the organization. It contains information about the result of accounting for goods, detailed data on misgrading, provides codes for mismatched goods according to OKP, and quotes an explanatory note from the financially responsible person.
Issuance of an order. The manager, if he agrees with the proposal received, issues a corresponding order to the chief accountant to offset the re-grading of goods and further calculations based on the updated data. The order duplicates information from the text of the proposal about the name and quantity of mixed up goods.
Comparison statements. They are prepared by accounting employees (the standard INV-19 form is provided for them). One of the 2 copies is intended for accounting, the second will be given to the financially responsible employee. The conclusion is drawn up according to the summary statement INV-26, which indicates whether offset occurs, whether shortfalls are written off or losses are attributed to the guilty party.

IMPORTANT! The regrading date indicated in all documents will not be the actual date when the error occurred (it is most often impossible to establish accurately), but the day when it was discovered, that is, the inventory date.

If this is not a re-grade?

If at least one of the above conditions is not met, offset cannot be made as a re-grading of goods. The law requires action according to the following scheme:

write off goods that are missing from the balance sheet;
surplus goods should be capitalized separately.

Accounting entries

In accounting documents, the misgrading of goods is recorded according to the following scheme:

debit 41 subaccount “Name of surplus goods”, credit 41 subaccount “Name of goods with shortage”: – amount of discrepancy (“Shortage taken into account...”);
debit 94, credit 41 “Goods with shortage” – amount (“The difference in the cost of goods discovered during misgrading is reflected”);
debit 73, credit 94 – amount (“The identified difference is attributed to the guilty party”);
debit 50, credit 73 – amount (“The specified amount was deposited into the cash register by the person responsible for the shortage”).

Re-grading act

As a template for drawing up this document, you can use the INV-3 form, approved by the Resolution of the State Statistics Committee of the Russian Federation dated August 18, 1998.

No. 88, which provides for an inventory list based on the actual availability of goods and according to accounting data.

1 sheet of this form must contain the following information:

name of the organization (structural unit);
OKPO codes;
basis for assigning an inventory;
its date (beginning and ending);
number of the act and the date of its signing;
information about material assets in relation to which a discrepancy has been identified;
explanatory note from the financially responsible person;
the date when the remaining inventory items were recorded.

Sheets 2 and 3 of the form are filled out according to the diagram below.

This form is not approved, but only recommended, therefore the enterprise is not prohibited from drawing up an act according to its own scheme, approved in internal documents.

Sample act of regrading

ACT No. 12-11 dated March 14, 2020 on crediting misgraded goods

“I approve” General Director of Fruktalino LLC

Generalov P.I.

Act on the crediting of re-grading from the storekeeper of warehouse No. 3 Razvodnovskaya R.E.

Ryazan 03/14/2017

Source: https://yokvadro.ru/stati/kak-oformit-peresorticu-pri-inventa.html

Collation statement

It records the inventory results and reflects data on regrading. The matching statement is drawn up in 2 copies. The first is to be transferred to the financially responsible employee, the second remains in the accounting department.

Information from the document is transferred to the statement according to f. INV-26. It, in fact, determines the method of eliminating discrepancies: by offset, write-off, or attribution to the culprit.

Features of reporting

When taking into account misgrading, many difficulties arise. For example, it happens that the total cost of different types of products, shortages and surpluses of which have been identified, differs. This situation may be due to differences in the prices of individual products. Meanwhile, this discrepancy does not prevent the regrading from being counted.

It happens that the shortage of products is greater than the surplus or vice versa. In this case, some of the products are counted as misgraded, and the rest are reflected according to the rules established for cases of compensation for damage to guilty parties. For example, if the total cost of products for which a shortage is identified is higher than the price of the surplus, then the responsible employee will compensate for the difference.

How to act if misgrading is detected

If misgrading is detected during inventory, the accountant should act as follows:

Demand from the person bearing financial responsibility an explanation regarding the identified misgrading.

This is necessary in order to identify the guilty workers who allowed misgrading to occur. Responsible employees must submit explanatory notes in writing.

In the minutes of the inventory commission, explanations must be given regarding the difference in price from re-grading, which did not cover the shortage of products.

Ensuring the issuance of an order to offset the misgrading.

Taking into account misgrading when conducting an inventory is allowed only by decision of the director of the company.

If the director makes a positive decision, he must issue a corresponding order to the organization. If the culprits of misgrading have been identified, this must be reflected in the order.

Reflection of regrading in accounting.

There are several options for accounting for misgrading during inventory. Let's look at them in detail.

Option 1. There are surpluses and shortages of the same product in the same quantity and at the same price. The following entries are made in accounting:

D41-1 – K41-1 – mutual offset is reflected by surpluses of shortages.

Option 2. Shortages and surpluses of the same product were identified in the same quantity, but at different prices. In this case, the size of the surplus is greater than the size of the shortage. Accounting is reflected as follows:

D41-1 – K41-1 – mutual offset with surpluses of shortages;
D41-1 – K92-1 – reflection of the inventory difference.

Option 3. A surplus and a shortage of one product are detected in the same quantity, but at different prices. In this case, the size of the shortage is greater than the size of the surplus. The culprit of the misgrading was not found during the inventory. There are no documents that can confirm that the culprits have not been identified. The following entries must be made in accounting:

D41-1 – K41-1 – offset of shortages with surpluses.
D94 - K41-1 - a reflection of the shortfall in the amount of the negative difference resulting from offset.
D94 – K68-2 – VAT accrual on the amount of the shortage.
D92-2 – K94 – writing off the shortage of products as non-operating costs.

Option 4. Shortages and surpluses of the same product were found at different prices and in different quantities. The amount of the shortage is greater than the amount of the surplus. The culprit of the misgrading has been identified. The following transactions are made:

D41-1 – K41-1 – offset with surpluses of shortages.
D94 – K41-1 – shortage of products resulting from offsets in the form of a negative difference.
D94 – K41-1 – shortage of products obtained as a result of offset.
D94 – K68-2 – VAT is charged on the amount of the shortage that is not covered by the surplus.
D73-2 – K94 – attributing the shortage to the guilty employee.
D70 – K73-2 – withholding the amount of the shortfall from the salary of the guilty employee.

Document the results of the inspection performed.

Information about regrading must be reflected in the inventory list (matching sheet). The shortage is reflected on one line, and the surplus on the other. It is necessary to indicate the cost and quantitative characteristics of the product. Information about regrading is reflected in columns eight through fourteen.

A special act must also be drawn up. A sample regrading act is given below:

Any discrepancies found are recorded in the minutes of the meeting of the inventory commission. In it, as well as in acts of write-off within the limits of natural loss norms, references should be made to decisions of judicial authorities that confirm the absence of guilty workers.

The decision of the meeting of the inventory commission must be submitted to the director of the company for consideration. He will have to make a final decision on taking into account misgrading during inventory.

What to do if the culprit is not identified?

In this case, the difference is recognized as a shortage in excess of the norm of natural loss and, accordingly, is written off as costs. In such a situation, the head of the enterprise must document the absence of the culprit. The inventory commission, in turn, in its conclusion must justify the reasons why it is impossible to recover losses from the responsible persons.

As established in the Tax Code (Article 265, paragraph 2), losses can be attributed to non-operating expenses. If items in surplus are more expensive than those in short supply, the difference is written off as other income. It must be said that regrading is reflected differently in tax and accounting. In the first case, it is necessary to indicate the entire amount of detected deficiencies and surpluses. To put it simply, in taxation, regrading is the write-off of some products and the capitalization of others.

Process automation

Let's look at how to reflect regrading in 1C. The procedure will be as follows:

In the Menu you need to open “Warehouse and delivery”, then “Surplus, damage, shortages” and “Warehouse acts”.
In the list of acts form, you must click the “Create” button.
Among the items you should select “Regrading”.
The new document indicates the enterprise to which the shortages will be written off and the surpluses resulting from the re-grading, the warehouse where it arose, and the division will be credited.
On the item “Receive products at write-off cost” you need to check the box.
The item of expenses to which the shortage will be attributed, the item of income to which the surplus will be transferred is indicated.
In the “Products” tab, indicate information about the products for which you want to reflect the regrading, after which you should click the “Post” button.

Next, you need to select “Act of Regrading,” print it and submit it for approval.

On what date should regrading be recognized?

It is practically impossible to determine when a mistake was made that led to the formation of misgrading. It is clear that this happened in the period between the penultimate and last checks. In this regard, they do not indicate the date of regrading, but the date when it was discovered, that is, the day the inventory was taken.

Postings for re-grading

Let's look at the features of reflecting discrepancies using an example. Let's say a company sells flour. Before the formation of annual reporting, an inventory was carried out, during which a shortage of premium products was revealed in the amount of 200 kg at a cost of 17.50 rubles and 150 kg of surplus first grade at a price of 13.20 rubles. The commission found that the storekeeper was to blame for the discrepancies. By order of the manager, a regrading test was carried out.

The accountant reflects transactions according to the following scheme:

db sch. 94 CD count. 41 subconto “Premium flour” – 3500 rub. (200 x 17.50) – shows the shortage of premium products.
db sch. 41 subconto “Flour p/s” CD count. sch. 94 – 1980 rub. (150 x 13.20) – reflects the surplus of first-grade products.
db sch. 41 subconto “Premium flour” CD count. 41 subconto “Flour p/s” – 1980 rub. – product credit is shown.

The cost of deficiencies exceeds the total cost of surpluses by 645 rubles (150 x (17.50 - 13.20)). After the offset at the enterprise, the shortage of premium products remained in the amount of 50 kg. Its book value is 875 rubles. (50 x 17.50). As a result, after offset by misgrading, the amount of the shortage transferred to account 94 for premium products is equal to 1,520 rubles (875 + 645). Due to the fact that the storekeeper was responsible for the discrepancies, the specified amount will be withheld from his earnings.

Accounting entries

In accounting documents, the misgrading of goods is recorded according to the following scheme:

debit 41 subaccount “Name of surplus goods”, credit 41 subaccount “Name of goods with shortage”: – amount of discrepancy (“Shortage taken into account...”);
debit 94, credit 41 “Goods with shortage” – amount (“The difference in the cost of goods discovered during misgrading is reflected”);
debit 73, credit 94 – amount (“The identified difference is attributed to the guilty party”);
debit 50, credit 73 – amount (“The specified amount was deposited into the cash register by the person responsible for the shortage”).

Nuances

Based on Article 246 of the Labor Code, the amount of damage caused to the employer is established in accordance with the actual losses. They, in turn, are calculated at the market value in effect at the time of the damage in the area. However, it cannot be less than the book value of material assets.

Let’s assume that the market price of premium flour on the date of harm was 17.60 rubles. In this case, the discrepancy between it and the book value will be 20 rubles. (200 x (17.60 – 17.50)).

The accountant will make the following entries:

db sch. 73 subaccounts 73.2 CD count. 98 – 20 rub. – reflects the difference between the book value and market value of the product, attributed to the guilty employee.
db sch. 50 CD count. 73, subaccount. 73.2 – 1540 rub. – the debt for the shortage has been entered into the cash register.
db sch. 98 CD count. 91, subaccount. 91.1 – 20 rub. – recognition of the difference between the book value and market value of flour as other income.

When recovering damages from the perpetrator, it is necessary to strictly comply with the requirements set out in the Labor Code.

Why is misgrading dangerous?

As a result of the resulting misgrading: - there is a shortage of individual product items, which cannot always be compensated for by the resulting surpluses; — there is a possibility of direct loss of funds; — confusion is created in accounting, commodity reports and, as a result, large losses of time by various services; — product orders may be incorrect, since they are compiled on the basis of incorrect accounting balances; — trust on the part of buyers is lost, especially when an error when paying for goods did not occur in their favor.

The very fact of the presence of mis-grading indicates problems associated with the lack of standardization of business processes of product distribution, control over their implementation by the store director, and impunity for the personnel responsible for the mis-grading. As a result, misgrading affects the financial results of the trading enterprise and, to a certain extent, reduces the culture of customer service. Is it possible to avoid mis-grading of goods in a retail store? I think it's possible. Practice shows that each trading enterprise, based on its own experience, develops its own unique ways of dealing with misgrading. In my opinion, the only solution to the problem of misgrading lies in preventing possible accidental mistakes by workers.

To do this, it is necessary: - to develop and monitor the implementation of job descriptions of personnel that are directly related to the occurrence of misgrading; — constantly carry out explanatory work with staff.

Responsibility for intentional and unintentional misgrading of goods.

If the controlling authority establishes the fact of misgrading, then it will be practically impossible to prove that the misgrading was unintentional. And regarding liability, the Code of the Russian Federation on Administrative Offenses speaks. Article 14.7. Deception of consumers Measuring, weighing, shortchanging, misleading regarding consumer properties, quality of goods (work, services) or other deception of consumers, except for the cases provided for in Part 1 of Article 14.33 of this Code, in organizations selling goods, performing work or providing services to the population, as well as citizens registered as individual entrepreneurs in the field of trade (services), as well as citizens working for individual entrepreneurs - (as amended by Federal Laws dated 08.12.2003 N 161-FZ, dated 04.09.2007 N 45 -FZ) entails the imposition of an administrative fine on citizens in the amount of one thousand to two thousand rubles; for officials - from one thousand to two thousand rubles; for legal entities - from ten thousand to twenty thousand rubles. (as amended by Federal Laws dated December 8, 2003 N 161-FZ, dated June 22, 2007 N 116-FZ) Article 14.8. Violation of other consumer rights 1. Violation of the consumer’s right to receive necessary and reliable information about the product (work, service) being sold, about the manufacturer, about the seller, about the performer and about the mode of their work - entails the imposition of an administrative fine on officials in the amount of five hundred to one thousand rubles; for legal entities - from five thousand to ten thousand rubles. (as amended by Federal Law dated June 22, 2007 N 116-FZ)

Product defects: concept, classification.

Non-compliance - failure to comply with requirements (GOST R ISO 9000-2001). One type of nonconformity is defects.

Product defects are the absence of one or more quality characteristics of a product. Defects are divided according to several criteria: degree of significance, the availability of methods and means for detecting them or eliminating the harm caused, between detections.

According to the degree of significance, criteria are distinguished as critical, significant and insignificant.

1) critical defects - non-compliance of goods with established requirements that may cause harm to health, property or the environment. Products with critical defects cannot or are not economically feasible to be used for their intended purpose.

2) significant defects - inconsistencies that affect intended use, but do not affect safety for the consumer and the environment (for example, store apples for the winter, but they have stains - they cannot be stored).

3) minor defects - inconsistencies that do not have a significant impact on the consumer properties of the product, primarily on the purpose, reliability, safety (for example, deviations from shape or color. The bread is not very raised or not brown).

Depending on the availability of detection methods and means, defects are divided into:

- explicit - for which detection methods and means are provided (for example, bombing, wet bread);

- hidden - which cannot be detected by the organs of vision, for which neither methods nor means of detection are provided (for example, shoes);

Depending on the availability of methods and means of elimination, defects are divided into:

- removable - defects, after elimination, which the product can be used for its intended purpose;

- fatal - defects that are impossible or economically unprofitable to eliminate;

Depending on the place of occurrence, all defects are conventionally divided into:

— technological — defects caused by shortcomings in the design or development of products, raw materials, non-compliance or imperfection of production processes;

— pre-sales — defects arising as a result of transportation, storage, preparation for sale or sale of goods (for example, damage during storage, deformation);

— post-sales — defects that arose during storage, operation, or use of the product by the consumer. The causes of these defects may be

be:

— violation by the consumer of the rules of operation, storage, transportation or consumption;

— manifestation of hidden technological or pre-sales defects.