Technological losses. Accounting and Taxation

Production and consumption waste are the remains of raw materials, materials, semi-finished products, other items or products that were generated in the process of production or consumption, as well as goods (products) that have lost their consumer properties.

Waste can be irretrievable or returnable.

Irrecoverable waste or technological losses cannot be used further in production or sold externally.

In this article we will consider the procedure for taxation and accounting of irrecoverable waste.

Technological losses

Technological losses are understood as losses that occur during the production or transportation of goods (work, services) and are caused by the technological features of the production cycle or transportation, as well as the physical and chemical characteristics of the raw materials used.
In particular, technological losses include:

• loss of flour when kneading dough (clause 7.2.2 of the Rules for organizing and maintaining the technological process at bakery enterprises, approved by the Ministry of Agriculture and Food of Russia on July 12, 1999);
• losses during the transfer of thermal energy arising through the heat-insulating structures of heat pipelines in the form of steam, condensate, water (clause 2 of the Procedure for determining standards for technological losses during the transfer of thermal energy, coolant, approved by Order of the Ministry of Energy of Russia dated December 30, 2008 N 325).

Technological losses and natural loss: taxation

What is the difference between technological losses and natural loss?

Technological losses

Assessment of technological losses

Accounting and tax accounting of technological losses

Losses in the form of natural loss

Calculation of the amount of natural loss

Tax and accounting of natural loss

natural norms , see
the help

On the norms of natural loss of individual goods when

storage
and
transportation
see references
Losses of inventory items during production processes are inevitable. In some cases this is due to the specifics of the technologies used, in others - to the physical and chemical properties of goods and materials. How to correctly account for losses incurred for profit tax purposes?

What is the difference between technological losses and natural loss?

For tax purposes, profits are treated as material expenses:

— losses from shortages and (or) damage during storage and transportation of inventory items within the limits of natural loss norms approved in the manner established by the Government of the Russian Federation (subclause 2, clause 7, article 254 of the Tax Code of the Russian Federation);

— technological losses during production and transportation (subclause 3, clause 7, article 254 of the Tax Code of the Russian Federation).

To avoid confusion, let us differentiate between these two concepts.

Natural decline

- this is a decrease in the mass of inventory items due to natural changes in biological and (or) physical and chemical properties while maintaining the quality of the assets within the limits of the requirements (standards) established by regulations. This definition of natural loss is contained in the Methodological Recommendations for the development of norms for natural loss, approved by Order of the Ministry of Economic Development of Russia dated March 31, 2003 N 95. Losses from natural loss arise during the storage and transportation of material assets. Natural loss includes shrinkage, attrition, weathering, evaporation, etc.

Please note: natural loss does not include technological losses and losses from defects, losses of inventory during storage and transportation, which are caused by violation of requirements and standards, technical and technological conditions, rules of technical operation of equipment and damage to containers.

Technological losses

arise in the process of processing, processing and delivery of values ​​due to the characteristics of the technologies used. For example, in metallurgy, part of the metal goes into slag, in woodworking, part of the wood turns into chips, etc.

When transporting goods, both technological losses and natural loss may occur. Therefore, these two types of losses must be distinguished. And for this it is necessary to establish the cause of the losses. For example, during drying, the mass of values ​​changes due to evaporation. That is, losses are associated with changes in physical and chemical properties: moisture turns into steam. During attrition, the mass of valuables changes as a result of dust settling from bulk cargo. In this case, the physicochemical properties also change. What if losses occur for technological reasons? For example, after transportation, a certain amount of oil remains at the bottom of the tanks, and some bulk cargo remains in the cracks of the cars. There are technological losses here. The physical and chemical properties of the transported materials do not change: the same oil remains at the bottom of the tank, and the same bulk cargo remains in the cracks of the car.

Technological losses

Technological losses during production and (or) transportation depend on the operational (technical) characteristics of the equipment used. The amount of losses in a specific technological process for profit tax purposes must be justified and documented in accordance with the requirements of Article 252 of the Tax Code of the Russian Federation. This is the position of the tax authorities.

Let's consider what documents need to be drawn up to confirm the legality of writing off losses.

For clarification, please refer to the letter of the Ministry of Finance of Russia dated September 2, 2003 N 04-02-05/1/85. It states that organizations independently determine the waste generation standard for each specific type of raw material used in production. To do this, organizations can use the services of third-party specialized organizations or attract their own qualified specialists.

When developing standards for technological losses, one should proceed from the characteristics of the technological process. The standards are fixed in the technological map * (1) or in another similar internal document. Provided that the standards are established and justified by technologists. After this, authorized persons sign the document. In addition, the norms for technological losses must be approved by order of the head of the organization.

To establish standards for the formation of technological losses, you can use industry regulations, calculations and research results of the enterprise’s technological services, or other limits regulating the progress of the technological process. It is advisable to use various unified reference materials on specific indicators of the formation of the main types of production and consumption waste, published by industry departments.

Example 1

The company produces furniture. The sawdust formation standard for plywood of grade “A” is 100 kg per 1 ton, for plywood of grade “B” - 120 kg per 1 ton. Sawdust from plywood of grade “B” is subsequently used in production in the form of returnable waste (chipboards are made). At the same time, 15 kg per 1 ton of sawdust is irrecoverable waste.

In March 2004, 900 tons of “A” grade plywood and 800 tons of “B” grade plywood were processed.

We will draw up an estimate of the technological process, or a technological map (see table on page 56).

Table. Technological map of plywood production for March 2004

———————————————————————————————————————————————————————————————————————

|Mar-|Standard |Recycling norms (t)|Actual data-| Deviation (t) |

|ka |education- | |new processing| |

| | waste-| |(t) | |

| |dov (%) | | | |

| |——————————|—————————————————————|————————————————|————————————————|

| |all-|is|isra-| waste |isra-| waste |isra-| waste |

| |th |number|sho- |———————————————|sho- |——————————|sho- |————————— —|

| | |without-|dova-|everything-|in that number-|dova-|everything-|in that|dova-|everything-|in that|

| | |possibly |but |no |no transport-|but |th |number|but |th |number|

| | |gate-| | |gate | | |without- | | |without- |

| | | | |(page 2 x | | |air- | | |air- |

| | | | | |page 4) | | |gate-| | |gate-|

| | | | | | | | | new | | | new |

|————|————|—————|—————|————|——————————|—————|————|—————|—————|————|—————|

| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |

|————|————|—————|—————|————|——————————|—————|————|—————|—————|————|—————|

|Mar-|10 | 10 | 900 | 90 | 90 | 900 | 90 | 90 | — | — | — |

|ka | | | | | | | | | | | |

|"A" | | | | | | | | | | | |

|————|————|—————|—————|————|——————————|—————|————|—————|—————|————|—————|

|Mar-|12 | 1.5 | 800 | 96 | 12 | 800 | 96 | 12 | — | — | — |

|ka | | | | | | | | | | | |

|"B" | | | | | | | | | | | |

———————————————————————————————————————————————————————————————————————

General Director: Petrenko Petrenko A.S.

Compiled by: Chief Economist Ivanov Ivanov P.A.

Technologists and economists of the enterprise must constantly ensure that the actual losses of raw materials do not exceed the approved standards. The excess of actual technological losses over established standards, as a rule, indicates either a violation of technology, or the use of low-quality raw materials, or incorrect calculations. If the established standards for process losses are regularly exceeded, it is necessary to reconsider.

It is important to distinguish between process losses and returnable waste. Returnable waste refers to the remains of raw materials (materials), semi-finished products, coolants and other types of material resources that were generated during the production of goods (performance of work, provision of services). During processing, these material resources partially lost their consumer qualities (chemical or physical properties), and therefore they are used at increased costs (reduced product yield) or are not used for their intended purpose (clause 6 of Article 254 of the Tax Code of the Russian Federation). For example, returnable waste includes pieces of metal and metal shavings that can be scrapped. Returnable waste does not include the remains of inventory items, which, in accordance with the technological process, are transferred to other departments as full-fledged raw materials, as well as by-products obtained during the production process.

Both technological losses and returnable waste are associated with technological features of production. At the same time, there is one significant difference between these types of losses: returnable waste can be used again (either in production, or sold externally), while technological losses are irreversible - their further use is impossible.

The volume of raw materials and materials written off for production is calculated based on technological standards for their consumption. The amount of irretrievable and returnable waste is also taken into account. In other words, quantitative standards for the consumption of raw materials initially take into account the volume of generation of returnable waste and irreversible losses in the production of products.

Raw materials are released into production on the basis of a limit card (requirements, estimates of consumption of raw materials and materials, other document), drawn up in natural units of measurement of the material resource. Typically, this document contains information about the weight of raw materials or material released into production. In practice, there are often cases when, when issuing, for example, a metal sheet from a warehouse for the preparation of a product, information about the volume of planned production waste is entered into the limit card.

Assessment of technological losses

Technological loss norms apply to quantitative indicators of inventory items. The cost of these values ​​in accounting and tax accounting is different. In tax accounting, the cost of inventory does not include non-operating expenses and expenses that are taken into account in a special manner:

— amount and exchange rate differences that arose before the values ​​were accepted for accounting;

— costs of insuring the delivery of valuables to the place of their use;

— interest on loans raised to purchase valuables, accrued before the valuables were taken into account.

Own-produced products that are used in the manufacture of products are valued as finished products. And, as you know, in accounting and tax accounting, the assessment of finished products is different. In tax accounting, these products are valued at direct costs. The list of such costs is small.

In the accounting and tax accounting of a trading enterprise, the valuation of goods will also be different. In accounting, goods are valued at actual cost, and in tax accounting - at direct costs. The latter includes only the purchase price of goods and the costs of delivering them to the warehouse.

For these reasons, losses of the same amount will differ in value in accounting and tax accounting.

Example 2

The company is engaged in sawing wood for furniture factories. The standard for technological losses in production is 0.5%. In January 2004, the company purchased 100 cubic meters. m of wood at a price of 840 rubles. for 1 cubic m.

The company exported wood at its own expense. The cost of transportation was 5,000 rubles. The company insured the cargo and paid the insurer a premium of 1,200 rubles. In February, all the wood was put into production.

Let's assume that the size of real losses corresponds to the normative one. Then, in tax and accounting, the enterprise can take into account 0.5 cubic meters of technological losses. m of wood (100 cubic meters x 0.5%). In tax accounting, the cost of wood consists of the purchase price and transportation costs. The cost of all wood will be 89,000 rubles. (840 rubles x 100 cubic meters + 5000 rubles). The cost of technological losses is 445 rubles. (RUB 89,000: 100 cubic meters x 0.5 cubic meters). Insurance costs are taken into account in a special manner in accordance with Article 263 of the Tax Code.

In accounting the picture is different. The cost of wood consists of the purchase price, transportation costs and cargo insurance. The cost will be 90,200 rubles. (840 rubles x 100 cubic meters + 5000 rubles + 1200 rubles). The cost of technological losses is 451 rubles. (90,200 rubles: 100 cubic meters x 0.5 cubic meters).

Accounting and tax accounting of technological losses

According to industry instructions for accounting for production costs, irrecoverable waste (losses) are taken into account in accounting accounts along with the raw materials that form them. In large organizations, materials are written off for production according to standards. Subsequently, deviations of the actual flow rate from the standard flow rate are calculated.

Does this mean that in tax registers containing information on the consumption of industrial raw materials, technological losses should also not be assessed as a separate line of calculation? For clarification, please refer to Article 318 of the Tax Code of the Russian Federation. It establishes a recognition mechanism for tax accounting purposes of material expenses, which include technological losses.

Material production costs for tax accounting purposes are divided into direct and indirect. This procedure is established by paragraph 1 of Article 318 of the Tax Code of the Russian Federation. These types of expenses are recognized differently for income tax purposes. Thus, indirect expenses are written off in full as expenses of the current reporting (tax) period. Direct - recognized in the current period only in part of expenses related to products sold. The remaining part is distributed among the balances of work in progress, finished products and products shipped but not sold. It is not included in the reduction of the tax base of the reporting period. Direct material costs include acquisition costs:

- raw materials and (or) materials used in the production of goods (when performing work, providing services) and (or) forming their basis or being a necessary component in the production of goods (performing work, providing services) (subclause 1, clause 1, art. 254 Tax Code of the Russian Federation);

- components for products undergoing installation, and (or) semi-finished products undergoing additional processing at the taxpayer (subclause 4, clause 1, article 254 of the Tax Code of the Russian Federation).

All other material costs are classified as indirect.

Technological losses are included in material costs on the basis of subclause 3 of clause 7 of Article 254 of the Tax Code of the Russian Federation and, it would seem, relate to indirect costs.

However, as practice shows, it is quite difficult to isolate technological losses from the composition of materials before the raw materials are put into production. According to the tax authorities, technological losses should be taken into account as part of raw materials. Like raw materials, process losses are direct costs. Therefore, in tax accounting they should not be assessed as a separate line of calculation.

According to subparagraph 3 of paragraph 7 of Article 254 of the Tax Code of the Russian Federation, for profit tax purposes, technological losses during production or transportation are written off as expenses. However, as already noted, as a general rule, expenses in tax accounting are recognized as justified and documented expenses (clause 1 of Article 252 of the Tax Code of the Russian Federation). The organization will be able to accept amounts of technological losses as a reduction in taxable profit only within the limits of justified and documented standards.

The amount of material production costs is reduced by the cost of returnable waste. Returnable waste, which can be used as a raw material for main or auxiliary production, but with increased costs (with a reduced yield of finished products), is valued at a reduced price of the original material resource (at the price of possible use). Returnable waste sold externally is valued at the selling price. This procedure is described in paragraph 6 of Article 254 of the Tax Code of the Russian Federation.

Example 3

LLC Salut produces mayonnaise. Vegetable oil is used in the production of products. Technological losses associated with pumping (transporting) oil, in accordance with the technological map, amount to 1.5% of the volume of oil released into production.

In January 2004, 10 tons of vegetable oil were transferred to production at a price of 18,000 rubles. per ton. Returnable waste in the form of sludge amounted to 120 kg. They were capitalized at the price of possible use - 7 rubles. for 1 kg. After processing the vegetable oil, the weight of the finished semi-finished product was 9.75 tons.

The following entries were made in accounting:

Debit 20 Credit 10

— 180,000 rub. (RUB 18,000 x 10 t) - vegetable oil transferred to production;

Debit 10 Credit 20

— 840 rub. (7 rubles x 120 kg) - returnable waste is capitalized.

Irreversible technological losses of vegetable oil amounted to 130 kg (10,000 kg - 9,750 kg - 120 kg), or 1.3% (130 kg: 10,000 kg x 100%).

As we can see, the amount of technological losses (1.3%) does not exceed the established norm (1.5%). Consequently, such losses can be taken into account for profit tax purposes in full, that is, in the amount of 2,340 rubles. (RUB 18,000 x 0.13 t).

As already noted, when calculating income tax, technological losses are included in direct material costs for taxpayers whose activities are related to the processing of raw materials. Such losses are classified as direct material costs.

The amount of material costs is reduced by the cost of returnable waste. Therefore, direct material costs of Salut LLC will amount to 179,160 rubles. (180,000 rubles - 840 rubles).

Sometimes it happens that deviations of technological losses from established standards are too large. The reason is low-quality raw materials, breakdown of production equipment or incorrect standards. In this case, one technological map is not enough to confirm the actual consumption of raw materials. There must also be a document explaining the reasons for what is happening. For example, the conclusion of competent specialists (commission). If there is documentary evidence, excess technological losses can be accepted in tax accounting.

Continued use of low-quality raw materials in production or the use of outdated equipment will require the development of a new technological map taking into account the technological features of the process.

Losses in the form of natural loss

The reasons for the occurrence of natural loss lie in the peculiarities of the physical and chemical properties of materials. As already mentioned, natural loss can occur due to shrinkage, weathering or evaporation, for example during storage.

To identify such losses, it is necessary to use the norms of natural loss. The norms of natural loss should be understood as the maximum permissible value of irretrievable losses of materials. Such losses occur during transportation and storage of inventory items due to changes in the physicochemical and biological properties of materials.

The Decree of the Government of the Russian Federation dated November 12, 2002 N 814 “On the procedure for approving norms of natural loss during the storage and transportation of inventory items” says the following. Norms for natural loss are developed by the relevant ministries and departments, taking into account the technical conditions for storing and transporting inventory, climatic and seasonal factors affecting their natural loss. The standards are subject to revision as necessary, but at least once every five years.

To date, these standards have not been developed for most sectors of the economy. To date the following have been approved:

- norms of natural loss of grain, products of its processing and oilseeds during storage (order of the Ministry of Agriculture of Russia dated January 23, 2004 N 55, registered with the Ministry of Justice of Russia on March 3, 2004 N 5603);

— norms of natural loss during storage of chemical products (order of the Ministry of Industry and Science of Russia dated January 31, 2004 N 22, registered with the Ministry of Justice of Russia dated March 3, 2004 N 5599);

— norms of natural loss in the metallurgical industry during transportation by rail (order of the Ministry of Industry and Science of Russia dated February 25, 2004 N 55, registered with the Ministry of Justice of Russia on March 9, 2004 N 5651).

In accordance with Article 7 of Federal Law No. 58-FZ of June 6, 2005 “On Amendments to Part Two of the Tax Code of the Russian Federation and Some Other Legislative Acts of the Russian Federation on Taxes and Fees,” organizations are allowed to use the old norms of natural loss in tax accounting . In accordance with paragraph 4 of Article 8, the effect of Article 7 extends to legal relations that arose from January 1, 2002.

Calculation of the amount of natural loss

Losses are calculated strictly according to the norms of natural loss, approved in the prescribed manner - as a percentage for each product separately. Natural loss is written off based on the results of the inventory. The amount of natural loss is determined by the formula:

E = T x N: 100,

where E is the amount of natural loss;

T - the number of goods transported (transferred to the warehouse) during the inter-inventory period;

N is the established rate of natural loss.

In batch accounting, the loss of goods is calculated based on the actual period of their storage in warehouses.

If the organization does not maintain batch records, the average shelf life of goods in the warehouse should be established. This period is calculated by dividing the average daily balance of goods for the inventory period by their daily turnover. The average shelf life is calculated in complete days of circulation.

To determine the average daily balance of goods, it is necessary to sum up the balance of goods for each day of storage in the inventory period and divide the resulting amount by the number of days in the inventory period.

One-day turnover is determined by dividing the number of goods sold during the inventory period by the number of days in this period.

Tax and accounting of natural loss

Losses as a result of natural loss are written off as a reduction in taxable profit only within the limits of standards approved by the relevant ministries and departments. This is provided for by subparagraph 2 of paragraph 7 of Article 254 of the Tax Code of the Russian Federation. In those sectors of the economy for which norms of natural loss have not been approved, this provision of the Code cannot be applied. The “old” norms of natural decline, which were in force before Chapter 25 of the Tax Code of the Russian Federation came into force, cannot be applied. This is the position of the tax authorities.

To date, for most inventory items, norms for natural loss during storage and transportation have not been approved. Therefore, corresponding losses are not taken into account for tax purposes.

What to do if organizations have losses in excess of the norms of natural loss? First of all, the amount of excess losses must be recorded. Damage is compensated either at the expense of the financially responsible persons or at the expense of the guilty persons. If there are no guilty persons, and also if the losses occurred as a result of theft, the perpetrators of which have not been identified, excess losses in tax accounting are accepted only if there is a corresponding document from the authorized government bodies. This is stated in subparagraph 5 of paragraph 2 of Article 265 of the Tax Code of the Russian Federation.

When writing off expenses in the form of technological losses or natural loss, the question arises: is it necessary to restore the value added tax attributable to such expenses? No no need. There is no such requirement in the Tax Code. What about VAT on excess losses? In order not to restore the tax, the organization must prove that the raw materials included in the losses were used to carry out operations subject to VAT. And this is quite difficult to do. An organization may try to prove that the losses occurred as a result of the use of materials to produce products subject to VAT. Perhaps these arguments will convince the tax inspector. Otherwise, the organization will have to restore VAT.

For accounting purposes, losses within the limits of natural loss norms are included in operating expenses on the basis of paragraph 11 of PBU 10/99 “Organizational expenses.”

The amounts of identified shortages are initially taken into account on account 94 “Shortages and losses from damage to valuables.” Within the limits of natural loss, these shortages are written off at actual cost to the debit of production cost accounts (selling expenses). Accounting for excess expenses depends on whether the culprits are found or not. If there are none, losses are also included in operating expenses.

Example 4

A batch of millet weighing 3,500 tons and costing 1,000 rubles. for 1 ton arrived at the warehouse on January 7, 2004. It is stored in the organization's warehouse in bulk. As of March 31, 2004, the balance of the grain consignment was 2970 tons. During the inter-inventory period, 500 tons were sold. The shortage of millet as of March 31 was 30 tons (3000 tons - 500 tons - 2970 tons).

The rate of natural loss according to the order of the Ministry of Agriculture of Russia dated January 23, 2004 N 55 for three months will be 0.11% of the total stock. Consequently, due to natural loss during storage of millet, only 3.85 tons (3500 tons x 0.11%) can be written off. Thus, for accounting and tax accounting purposes, the organization will be able to attribute only 3,850 rubles to expenses. (1000 rub. x 3.85 t).

The following entries will be made in accounting:

Debit 94 Credit 43

— 30,000 rub. (1000 rubles x 30 tons) - the shortage of millet in the warehouse is reflected as losses from a shortage of valuables;

Debit 91 Credit 94

— 3850 rub. — the shortage of millet within the limits of natural loss was written off as expenses.

If the persons responsible for the shortage are not identified, the following posting is made:

Debit 91 Credit 94

— 26,150 rub. (1000 rub. x 30 t - 3850 rub.) - the shortage of millet was written off, for which the perpetrators were not identified.

If the perpetrators are identified, the costs are reimbursed at their expense:

Debit 73 Credit 94

— 26,150 rub. - the shortage of millet was attributed to the perpetrators.

Excessive costs in the amount of RUB 26,150. (1000 rubles x 30 tons - 3850 rubles) cannot be recognized in tax accounting. Unless the organization receives a document from authorized government bodies confirming the absence of persons who are responsible for the shortage.

O.A. Lositsky,

Head of Group General Audit Department

"Russian Tax Courier", No. 12, June 2004.

________________________________

*(1) Technological map (technological process estimate)

- a document that does not have a unified form and is approved by the enterprise as an internal document. — Note. ed.

WAREHOUSE OF LAWS

Accounting

Irrecoverable waste or technological losses cannot bring economic benefits to the organization, and therefore they are not accepted for accounting as assets and, accordingly, are not assessed (clause 7.2, clause “a”, clause 7.2.1, clause 8.3 Concepts of accounting in the market economy of Russia (approved by the Methodological Council on Accounting under the Ministry of Finance of Russia, the Presidential Council of the Institute of Professional Accountants on December 29, 1997)).
A similar procedure for irrecoverable waste is established by some industry recommendations for accounting for production costs (for example, clause 60 of the Methodological Recommendations for accounting for production costs and calculating the cost of products (works, services) in agricultural organizations, approved by the Order of the Ministry of Agriculture of Russia dated 06.06.2003 N 792, clause 7 of the Methodological recommendations (instructions) for planning, accounting and calculating the cost of products of the timber industry complex, approved by the Ministry of Economy of Russia on July 16, 1999, clause 27 of the Basic Provisions for planning, accounting and calculating the cost of production at industrial enterprises (approved by the State Planning Committee of the USSR , State Committee for Prices of the USSR, Ministry of Finance of the USSR, Central Statistical Office of the USSR 07/20/1970)).

Thus, separate accounting of expenses in the form of technological losses is not carried out.

Natural loss rates

Since the process of reduction of goods for natural reasons is considered normal, losses occurring due to it can be taken into account in costs for tax purposes, but only on condition that their volumes fall within the standards approved in the manner determined by the Government of the Russian Federation (subclause 2 p. 7 Article 254 of the Tax Code of the Russian Federation). Natural losses exceeding such norms will have to be written off against net profit or attributed to the guilty parties, if any are identified.

Is it possible to recognize losses as expenses for income tax purposes if the norms of natural loss have not been approved? This question is a tricky one. A selection of law enforcement practices from ConsultantPlus will help you make the right decision. You can view it in the Encyclopedia of Controversial Situations. Trial access to the system is provided free of charge.

Norms of natural loss are developed for specific goods, taking into account the conditions under which they are stored, transported and prepared for sale, and must be reviewed at least once every 5 years (clause 1 of the Government of the Russian Federation of November 12, 2002 No. 814). Their development was entrusted to:

• Ministry of Health;
• Ministry of Industry and Trade;
• Ministry of Construction;
• Ministry of Agriculture;
• Ministry of Energy.

Standards that meet the requirements established by the Government of the Russian Federation exist for many types of both food and non-food products. However, for a number of goods those that were introduced back in the USSR still continue to apply. Their use before the development of more modern standards is permitted by Art. 7 of the Law “On Amendments to Part Two of the Tax Code of the Russian Federation...” dated 06.06.2005 No. 58-FZ.

The standards apply to all types of inventory items classified as material expenses for the purpose of calculating income tax (methodological recommendations approved by order of the Ministry of Economic Development of the Russian Federation dated March 31, 2003 No. 95).

The rules are not applicable:

• to piece and packaged goods subject to drying out;
• quality losses.

The loss of quality is always documented in an act and written off against net profit, unless such loss is revealed to be the fault of the person from whom the damage caused can be withheld.

Loss rates are set as percentages and, according to general rules, are applied to the quantitative volume:

• a batch of the corresponding goods received from the supplier, if the loss is detected at the time of its acceptance;
• sales of a certain product for a period if its loss is established during the sales process or during inventory.

For specific types of goods, the specific application of standards may be established by industry recommendations.

Determining the value of losses for a particular product, which can be included in costs, is done by multiplying the missing quantity by the price (methodological instructions approved by order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n):

• supplier specified in the accompanying documents for the goods, excluding VAT (clause 58);
• for which the goods were registered for the period used to calculate losses, including transportation and procurement costs attributable to the cost of the goods, if they are accounted for separately (clause 29).

Tax accounting

For tax accounting purposes, technological losses are understood as such losses of raw materials and supplies that arise during production or transportation and are associated with the technological features of the production cycle or transportation process, as well as the physical and chemical characteristics of the MPZs themselves.
Essentially, this is irrevocable waste that arises due to technological features. They are part of material expenses (Subclause 3 of clause 7 of Article 254 of the Tax Code of the Russian Federation).

Technological losses as expenses for profit tax purposes are taken into account as part of material expenses. Moreover, separately from the costs of purchasing raw materials and materials.

Technological losses are written off as expenses based on paragraphs. 3 paragraph 7 art. 254 of the Tax Code of the Russian Federation, and raw materials and materials used in production are reflected in paragraphs. 1 clause 1 art. 254 Tax Code of the Russian Federation.

Features of taxation of technological losses

The magnitude of the resulting technological losses affects the tax base for calculating a number of taxes:

• On profit (⊕ tax base of income tax);
• MET (⊕ how to calculate MET in 2022);
• VAT (⊕ VAT tax base);
• Excise taxes (⊕ excise tax base).

When calculating income tax

Documented technological losses within the norms are taken into account to reduce the tax base when calculating income tax as part of material expenses . The timing of recognition of technological losses is determined by the method of calculating income tax:

• When using the accrual method - in the same reporting period;
• With the cash method - during payment and processing of used raw materials.

Returnable waste reduces the amount of material costs allocated for production. Returnable waste, which is subsequently used for the production's own needs, is charged at the cost of its possible use. The possibility of further sale evaluates the returnable waste according to the selling price.

Example 2. Perspektiva LLC is engaged in the production of mayonnaise. Technological losses during the transportation of vegetable oil, according to the technological map, amount to 1.3% of the amount of raw materials transferred for processing.

• Over the past month, the company processed 6,500 kg of vegetable oil, the purchase price of which was 28 rubles. /kg.
• Returnable waste obtained as a result of settling the feedstock, in the amount of 83 kg, was capitalized at a possible use price of 7.5 rubles/kg.
• Processed vegetable oil was capitalized in the amount of 6340 kg.

The economic services of the organization made the following accounting entries:

Actual technological losses in the amount of 1.18% do not exceed the approved standard, therefore they are fully included in direct material costs and are accepted when calculating income tax.

Losses arising during mining

For regulatory losses arising during the extraction of mineral resources, a zero rate is applied in the calculation of the mineral extraction tax. The amounts of possible permissible losses are approved by law by the Government of the Russian Federation and are reflected in the project documentation for field development. The project contains detailed information:

• Exact location of losses;
• Name and type of minerals;
• Amount of losses.

The 0% rate cannot be applied to excess irrecoverable waste. In the absence of established standards, all identified losses in the process of mining are classified as excess.

VAT accrual on the amount of technological losses

There is no need to recover VAT on the amounts of technological losses generated according to the data of the technological map and not exceeding the standard. If inventory items are not used in business transactions subject to VAT, then the tax amounts are subject to restoration.

Date of recognition of material expenses in the form of technological losses

Date of recognition of material expenses in the form of technological losses art.
272 of the Tax Code of the Russian Federation has not been established. In our opinion, material costs in the form of technological losses can be taken into account as a separate type of material costs on the date of actual identification of these losses.

At the same time, material costs in the form of the cost of materials used in production, recognized on the date of transfer of materials into production, must be reduced by the amount of identified technological losses. This follows from paragraph 5 of Art. 254 Tax Code of the Russian Federation.

LOSSES IN THE PRODUCTION PROCESS: TYPES AND CAUSES

Losses of resources during the production process can be both obvious and hidden. For example, product losses as a result of manufacturing defects are quite easy to identify and calculate the amount of damage from them. And losses in the form of payment of wages for the time spent by staff on unnecessary movements or downtime are much more difficult to determine, but the total damage from them can be even higher than losses from manufacturing defects.

Before starting work to reduce losses, company management must decide on their classification and understand the reasons why these losses appear in the production process.

The concept of “lean production” suggests that all losses arising in the production process can be classified into seven groups (see figure).

Let us consider the essence and main reasons for the occurrence of each type of specified losses in the production of products.

Losses from unnecessary personnel movement

During the work process, production personnel make movements that are not related to the production itself, hence losses from unnecessary movements. As a result, the company pays these employees for time not related to production operations.

Most often, such losses occur for the following reasons:

• irrational location of production equipment. In this case, personnel lose time due to unnecessary movements between different types of equipment or different production facilities;

• irrational organization of workplaces for production personnel, which leads to unnecessary waste of working time on moving for tools, equipment or inventory.

Losses from unreasonable movement of materials

These losses arise due to additional handling of raw materials/semi-finished products or finished products that are not associated with the production process. They are expressed both in unnecessary costs for staff working hours and in the costs of equipment used for unreasonable movement of materials.

The main reasons for such losses:

• inefficient layout of premises used in the production of products, which requires additional movement of materials between production equipment;

• irrational location of auxiliary and production premises, requiring additional movements of materials between them during the production process.

Losses from unnecessary processing of products

These losses arise in cases where company resources are spent on creating properties or characteristics of the product during the production process that are not important to the customer or consumer.

The most common reasons for such losses:

• release of products with functions unnecessary for the customer/consumer;

• unreasonable complication of the design or parameters of products;

• use of unreasonably expensive packaging for manufactured products.

Losses from downtime of personnel and equipment

Losses from downtime arise both directly during technological operations and in the time intervals between them and are expressed in the cost of remuneration of production personnel during downtime and in the amount of lost profits from unmanufactured products during downtime of equipment.

Losses in this group occur for various reasons:

• breakdown of production equipment;

• failure of software for production of products;

• lack of raw materials or semi-finished products for technological operations for production;

• lack of technological or regulatory documentation necessary for the production of products;

• waiting for instructions from management.

Losses from overproduction

This is perhaps the most significant type of loss, the magnitude of which cannot be determined by simple calculation. The sum of such losses is:

• from fees for the use of additional loan funds for the purchase of raw materials;

• costs of using additional storage facilities;

• expenses for additional loading and unloading operations with excess products;

• losses of finished products due to natural loss;

• losses from markdowns and disposal of products not sold due to expiration.

There are many reasons for such losses:

• production of products in volumes exceeding demand for it;

• release of products for which consumer demand is minimal;

• production of products in too large quantities;

• production of products based on maximum capacity utilization;

• poor planning of product sales to the company's customers.

Losses from excess stocks of raw materials and supplies

Such losses occur in cases of purchasing raw materials and materials in volumes exceeding the actual production needs.

Purchasing services often justify increased purchases by benefiting from price discounts from suppliers, minimizing transportation costs, and the need to eliminate production downtime due to shortages of raw materials and supplies in the warehouse. However, often these benefits are offset by losses from additional costs for renting warehouse space, costs of paying additional labor for warehouse employees, costs of attracting credit funds for purchases, as well as losses in the form of natural loss and spoilage when storing raw materials in warehouses.

The main reasons for this type of loss are:

• stocks of raw materials and supplies in warehouses are not standardized;

• the dynamics of stocks of raw materials and supplies in warehouses is not controlled;

• volumes of purchases of raw materials and supplies are higher than the actual production needs for them;

• stocks of illiquid raw materials and materials in warehouses are not monitored, and work is not carried out to minimize them.

Losses from rejects and product defects

These losses arise as a result of the release of defective products (i.e. products with fatal defects) and products that, due to various defects, require either elimination or markdown. The amount of such losses is calculated as the sum of disposed defects, the cost of reworking defects and the amount of losses from markdown of defective products.

Reasons for such losses:

• insufficiently high quality of input raw materials;

• non-compliance with technological regulations for production of products;

• the state of production equipment does not allow ensuring the required quality of products;

• insufficient qualifications of production personnel.

Documentation of technological losses

In accordance with paragraph 1 of Art.
252 of the Tax Code of the Russian Federation, for the purpose of calculating income tax, the payer reduces the income received by the amount of expenses incurred (except for the expenses specified in Article 270 of the Tax Code of the Russian Federation). Based on para. 2 p. 1 art. 252 of the Tax Code of the Russian Federation, expenses are recognized as justified and documented expenses (and in cases provided for in Article 265 of the Tax Code of the Russian Federation, losses) incurred (incurred) by the taxpayer.

By virtue of para. 3 p. 1 art. 252 of the Tax Code of the Russian Federation, justified expenses are understood as economically justified expenses, the assessment of which is expressed in monetary form.

According to para. 4 paragraphs 1 art. 252 of the Tax Code of the Russian Federation, documented expenses are understood as expenses confirmed by documents drawn up in accordance with the legislation of the Russian Federation, or documents drawn up in accordance with business customs applied in the foreign state in whose territory the corresponding expenses were made, and (or) documents , indirectly confirming the expenses incurred (including a customs declaration, business trip order, travel documents, report on work performed in accordance with the contract).

Any expenses are recognized as expenses, provided that they are incurred to carry out activities aimed at generating income.

Taking into account the requirements of Ch. 25 of the Tax Code of the Russian Federation, an organization, in order to confirm the costs incurred due to technological losses, must have developed technological maps (sheets, etc.) justifying these losses. This is necessary to comply with the requirements of Art. 252 of the Tax Code of the Russian Federation.

At the same time, the issue of regulation and approval of standards is related to the industry affiliation of the organization.

Therefore, in addition to developing local documents, the organization should also take into account the industry specifics of a particular production.

It is based on the technological features of the organization’s own production cycle and transportation process that, for example, the standard for the formation of irrevocable waste for each specific type of raw materials used in production can be determined.

This standard must be confirmed by the relevant internal documents of the organization, developed by specialists who have certain powers and control the technological process (for example, production technologists, chief engineers), and approved by the head of the organization.

In the absence of the documents under consideration, to calculate losses taken into account when calculating taxable profit, industry regulations, calculations or other limits regulating the course of the technological process can be used.

In Letter dated 08/29/2007 N 03-03-06/1/606, the Russian Ministry of Finance noted that, based on the technological features of their own production cycle and the transportation process, taxpayers can determine the standards for the generation of irrevocable waste for each specific type of raw material used in production. These standards can be established, in particular, by technological maps, process estimates or other similar documents, which are internal documents that do not have a unified form, which are developed by enterprise specialists who control the technological process (for example, technologists) and approved by persons authorized by the enterprise management ( for example, chief technologist or chief engineer).

In Letters dated 01.10.2009 N 03-03-06/1/634, dated 05.07.2013 N 03-03-05/26008, dated 31.01.2011 N 03-03-06/1/39, the Ministry of Finance of Russia confirmed the immutability of its position .

Judges adhere to a similar position (Resolution of the Federal Antimonopoly Service NWO dated 07/02/2008 N A05-6193/2007).

Normalization of the value of technological losses

Based on the approved norms and standards for the formation of irrevocable waste, the technological services of the enterprise monitor compliance with the established limit for the amount of technological losses.

Irrevocable waste is divided into:

• Regulatory;
• Excessive.

Write-off of actual material losses generated in accordance with the calculated technological maps and not exceeding the approved standards occurs at the time of transfer of raw materials to production. An increase in technological losses that significantly exceeds the standards can occur for a number of reasons:

• Violation of the technological cycle;
• Use of low-quality raw materials;
• Errors in calculations.

To reasonably include production losses in material costs that significantly exceed the calculated data, an expert opinion on the cause of the deviation is required. The constant excess of the amount of actual irrecoverable waste over the standard ones should serve as a basis for revising existing technological standards.