Warehouse operations, stocktaking and costing methods

In this lesson you will learn

Know the main warehouse documents and their entries
Carry out a stocktake in 1C and record its results
Calculate cost of sales with FIFO and weighted average

Year-end stocktake. According to the program there are 120 notebooks in the warehouse, but the shelf holds 115. For another item there are 2 units too many. Which figure is right? The shelf! The accountant's job is to bring the books in line with reality and post the difference to the right account.

The main warehouse documents

Document	When	Entry
`Перемещение товаров`	goods move from one warehouse to another	Dr 205 — Cr 205 (same account, only the warehouse detail changes)
`Требование-накладная`	materials are issued to production	Dr 202 — Cr 201
`Инвентаризация товаров`	the physical count	no entries
`Оприходование товаров`	a surplus is found	Dr 205 — Cr 611 (other operating income)
`Списание товаров`	a shortage or damage	Dr 731 — Cr 205 (other operating expenses)

Typical entries with the Azerbaijani chart of accounts. The exact account depends on the accounting policy: for example, if the person responsible is known, a shortage can be charged to them.

Stocktaking in 1C

1
Put the documents in order
All purchase, sales and transfer documents up to the count date must be entered and posted, otherwise the book quantity will be wrong.
2
Create and fill the document
Склад › Инвентаризация товаров → Создать, choose the warehouse, then bring in the book quantities with Заполнить (Fill). Print the count sheet and give it to the count team.
3
Enter the actual quantities
Type the counted figures into the actual quantity column; the program shows the difference for each row. Save with Записать — the document itself creates no entries.
4
Record the differences
From the stocktake use Создать на основании to create Списание товаров (write-off) for shortages and Оприходование товаров (write-on) for surpluses, and post them.

The result of the stocktake

Notebooks: 120 in the books, 115 counted, cost 12 ₼ each. Calculators: 40 in the books, 42 counted, cost 25 ₼ each. Which entries will be made?

Show solution

Notebooks: shortage 120 − 115 = 5 pcs × 12 = 60 ₼ → Списание товаров: Dr 731 — Cr 205, 60 ₼.
Calculators: surplus 42 − 40 = 2 pcs × 25 = 50 ₼ → Оприходование товаров: Dr 205 — Cr 611, 50 ₼.
After the stocktake account 205 goes down by 60 − 50 = 10 ₼.

Debit	Credit	Amount, ₼	Description
731	205	60	`Списание товаров`: shortage of 5 notebooks × 12 ₼
205	611	50	`Оприходование товаров`: surplus of 2 calculators × 25 ₼

Entries for the results of the stocktake.

Cost of sales: FIFO and weighted average

If the same item was bought at different prices, which cost goes to 701 when it is sold? The method chosen in the accounting policy decides. FIFO (ФИФО, “first in, first out”) writes off the oldest batches first. Weighted average (По средней) uses the average price of all batches. Under IFRS (IAS 2) the LIFO method is not permitted.

Average unit cost = (V₀ + V_purchases) / (Q₀ + Q_purchases)Average unit cost = (V₀ + V_purchases) / (Q₀ + Q_purchases)

where:

V₀, Q₀value (₼) and quantity of the opening stock
V_purchases, Q_purchasesvalue and quantity purchased during the period

Same sale — two different results

At the start of the month there are 10 pcs × 20 ₼. Purchases: 30 pcs × 22 ₼ and 20 pcs × 25 ₼. During the month 45 pcs are sold. Find the cost of sales and the closing stock with FIFO and with the weighted average.

Show solution

Total: 60 pcs, 200 + 660 + 500 = 1360 ₼.
FIFO: 10 × 20 + 30 × 22 + 5 × 25 = 200 + 660 + 125 = 985 ₼; closing stock 15 × 25 = 375 ₼.
Average: 1360 / 60 ≈ 22.67 ₼; cost of sales 45 × 1360 / 60 = 1020 ₼; closing stock 1360 − 1020 = 340 ₼.
When prices are rising, FIFO shows a lower cost of sales and a higher profit.

Debit	Credit	Amount, ₼	Description
701	205	985	Cost of 45 units sold — FIFO
701	205	1020	The same sale — weighted average (alternative)

Depending on the method, a different amount goes to 701; the accounting policy picks only one method.

Key points

Перемещение товаров doesn't change the account, only the warehouse; Инвентаризация товаров creates no entries at all.
A shortage is posted with Списание товаров (Dr 731 Cr 205), a surplus with Оприходование товаров (Dr 205 Cr 611).
Record differences with separate documents on the stocktake date, never by editing old documents.
FIFO writes off the oldest batches first; the average method uses the mean price of all batches; IFRS does not allow LIFO.

Check yourself

10 questions. Every correct answer earns XP.

1 / 10

Goods were moved from “Central warehouse” to “Shop”. Which entry is made?