Account 44 in accounting: "Cost of sale"

Account 44 in accounting is collective, it reflects all current expenses for the sale of goods or services, which include many items of relevant costs. The account is used mainly by trade organizations, but is often used to reflect the costs of the sale of goods by manufacturing and other enterprises.

Account Description

To correctly make the postings, you need to know for sure: is account 44 active or passive in accounting? The score is active, synthetic and collective. The latter means that the balance at the end of the period is written off to another account. For the whole month in the debit of account 44 write the expenses of the company for the sale of goods, which are reflected in the accounts of the financial result.

The debit balance in the balance sheet (Article "Work in progress") is indicated only if the goods were not fully sold during the reporting period.

Analytical Accounts

Many of the costs associated with the sale of goods are debited to account 44 in accounting. Subaccounts used for detailed reflection of information:

• 44.1 - opens to collect information on business expenses that are directly related to the process of selling goods or services;
• 44.2 - is created to account for the costs of the implementation process, that is, for the deduction of wages, social benefits, depreciation costs and other expenses;
• 44.3 - takes into account the amounts written off to the cost of sales (using the partial write-off method).

In addition to analytical accounts of the first level, sub-accounts of the second level can be used. They are used to more accurately reflect the costs of certain cost items, these may be accounting accounts:

• transportation costs;
• salary expenses;
• tax payments and social contributions;
• depreciation deductions;
• representation and other expenses.

Account 44 in accounting has a different gradation of allocation of costs to it, depending on the direction of the company.

Use of account 44 by trade organizations

For a company engaged in the sale of goods, work or the provision of services, account 44 is the main method of accounting for selling expenses. Here business expenses are collected, as well as distribution costs.

Account 44 in accounting for the provision of services or trading activities of an enterprise may also reflect managerial expenses if this is the only area of ​​financial activity.

Application of account 44 in production

Cf. “Sales costs" reflects information on the following types of costs at production enterprises:

1. Tare and packaging of products at the finished goods warehouse.
2. Transport services for the delivery of goods.
3. Fees for sales intermediary commissions.
4. Advertising costs.
5. Storage, sorting and other expenses for the sale of goods.

It is assumed that all expenses directly related to the product sales process are accounted for in account 44. The remaining costs of the production process are reflected in the accounts of section III of the standard chart of accounts.

Account 44 in the accounting of agricultural enterprises

Organizations involved in the harvesting and processing of agricultural products use 44 accounts to reflect costs such as:

• transportation of goods;
• rental of premises;
• maintenance of buildings and necessary equipment;
• storage of products;
• advertising and hospitality;
• other expenses.

If at the end of the month the products were not sold, the method of partial write-off of expenses on sale can be used.

The order of reflection of costs in case of incomplete implementation

The following types of expenses are subject to write-off at the end of the reporting month:

1. At manufacturing enterprises, they write off to account 90: packaging costs and transportation services. At the same time, expenses are divided between types of shipped goods on a monthly basis on the basis of weight, volume, cost of production and other data.
2. At agricultural enterprises, they are written off to account 11 and 15: the costs of harvesting raw materials, poultry and livestock.
3. In trade organizations write off to account 90: the cost of transportation services, which are calculated as the difference between the costs of transporting already sold goods and stock balances. The operation is performed at the end of each reporting period.

All other expenses related to the sale of goods are attributed to their cost (Dt 90 Kt 44). The decision to apply a partial or full write-off of the amounts from account 44 in case of incomplete sale remains with the management of the enterprise.

Fare

Transportation services provided by an intermediary are included in subaccount article 44.2. At the end of the reporting period, account 44 is closed in accounting. Transportation costs in case of incomplete sale of goods are partially written off. In order to identify the amount to be debited to sales (in the debit of account 90), it is necessary to determine the amount of transportation costs for residual products. Actions are carried out in the following sequence:

1. The amount of transportation costs attributable to the balance of products at the beginning and end of the reporting period (Rtrn + Rtr.tek) is calculated.
2. The amount of sold and residual goods in the reporting month is revealed.
3. The result of the ratio of the number obtained in the first paragraph to the number of the second paragraph is calculated. The result is called the average percentage of transportation costs to the total cost of goods.
4. The sum of the balance of products at the end of the month is multiplied by the average percentage of transportation costs (the number from paragraph 3).
5. The amount of write-off costs is determined.

The calculation points can be described by the formula:

- Rtr.k = Skt × ((Rtr.n + Rtr. Tech) / Obkp + Skt), where:

• Skt - the final balance in account 41 (the value of unsold goods).
• RTR.n - the value of the cost of transport services attributable to the balance of goods at the beginning of the reporting month.
• RTR.Tek - current expenses for transport services of the reporting period.
• Obkp - turnover on the loan account "Sales" (the amount of goods sold).

The remaining expenses are written off to the debit of account 90: Dt 90 Kt 44. The costs of transport services of intermediaries attributable to unsold goods remain on account 44 and are transferred to the next period.

Postings to account 44 in a trade organization

Enterprises that only sell goods or services use account 44 in accounting. Trade includes many items of expenses and settlement transactions, which must be correctly and promptly reflected in the documents of the enterprise.

Account 44 for debit can correspond with accounts 41, 42 if the amount of the cost of goods or mark-up on the needs of the organization has been spent.

Account 44 in accounting is the main method for recording and collecting information on waste on the sale of goods by enterprises whose activities are related to the sale of products, works or services.