For accounting purposes, the cost of goods can be written off as one of the methods: FIFO, the unit cost, average cost (item 16 PBU 5/01). For tax purposes apply the above three ways and also have the ability to write off the cost on a LIFO (PP. 3 clause 1 of article 268 of the tax code). Method write-off of goods sold is established in the accounting policy of the organization (accounting and tax).
The sale of goods in the accounting records reflect transactions: the debit 62 Credit 90/1 - proceeds from sales (including VAT);- 90/3 debit the Debit 68 "VAT" - the accrued VAT revenues.
Debiting cost of goods sold, when they implement the flip transactions:Debit 90/2 Credit 41/1 or Debit 90/2 Credit 41/2.
The method of writing off goods at average cost based on the assumption that goods are sold at the average cost that can be calculated by dividing the actual cost of goods of each type to the number of goods of the same kind. The valuation by the average cost produce for each type of inventory with the figures at the beginning and end of each month. With a difference of price for each shipment of goods, calculate the weighted arithmetic means in order to determine the average cost of the goods.
Method FIFO (first party in the ward - the first batch in the flow) is based on the assumption that goods are sold in the order they are received from suppliers. So, first and foremost sold goods received in the warehouse before, and therefore in the cost of goods sold is taken into account the cost of income earlier in time. The essence of the method of FIFO is that on disposal of the goods is deducted first product of the first received shipment. After complete write-off of goods from the first party proceed to the cancellation of the goods from the second party, etc.
LIFO is totally opposite to FIFO, that is, in the cost of goods sold based on the price of the last batch of manufactured or purchased products.
Use the simplest, but most time consuming way of writing off of cost on the unit cost after the implementation of each of the goods, the transaction displays the cost of this specific product.The latter method is good for use in the implementation of piece goods and in the implementation of large shipments accountants prefer to use the method of writing off the goods at their average cost.