A clear definition of regrading in the regulations is missing. But the tax authorities understand it as the simultaneous surplus of one commodity and shortage of another kind of goods under the same name, for example the lack of shoes 20 and over.
Confusions are detected during the inventory reflected on the form INV-3. The shortage of one commodity should be written on one line, and the excess in the other.
The decision to offset the shortage and the surplus is taken by the head of the company on the basis of information prepared by the counting Commission. This is possible if the excess and the loss of the goods arose: - the same financially responsible person;– for the same accounting period;– to goods of the same name and in identical quantities.
If you have difficulty with the definition of supplies of goods to one name, use the national classification of products OK 005-93. In case of regrading, make sure you install the employee responsible for its appearance. He must submit to the counting Commission explaining the reasons for the emergence of regrading. You write off the difference in value of goods – this happens when the value of the missing goods exceeds the value of goods in surplus.
In the absence of the guilty person the difference in the cost of goods will consider as excessive product loss and write off on costs. Make sure that the absence of the guilty person for the re-grading was documented by the public authorities. Otherwise, the cost of regrading not included.
Please note that Tax code concepts regrading, so the excesses and deficiencies, try to consider separately.