Reflection of trade margin in accounting
Posted: Sun Dec 22, 2024 6:55 am
Retail stores keep records of goods both at purchase prices and at selling prices. The accounting method chosen by the store must be reflected in the accounting policy. If the accounting system at selling prices was chosen, it is necessary to keep records of the markup. The selling price consists of the purchase price plus the markup amount, and it is recorded on the debit side of account 41 "Goods". The difference between the selling and purchasing prices, or the markup, is reflected on the credit side of account 42 "Trade markup".
If the cost of a store's goods includes various taxes and fees, they should be included in the markup, so it is necessary to draw up a price register, which is the primary document russian business email list for organizing the markup.
The form of the register is not documented, but it is accepted that it should contain the following data:
company name;
date;
number;
details and signatures of the director, chief accountant;
organization seal;
product name;
purchase price excluding VAT;
markup;
VAT amount;
price per piece.
Example of calculating trade margin
Source: shutterstock.com
Using a clothing store as an example, we will analyze the transactions for trade margins.
The store received 10 pairs of trousers from the supplier at a price of 840 rubles per pair, including VAT 20% - 140 rubles. The total cost of the purchase was 8400 rubles. The store keeps records of goods at selling prices. The markup on trousers was 100%.
The accountant compiled a price register, which included the following indicators:
the price of trousers without VAT is 700 rubles;
trade markup – 700 rubles;
selling price – 1400 rubles;
VAT on the selling price – 280 rubles;
The selling price of a pair of trousers was 1,680 rubles.
Register of retail prices No. 49 dated 09.09.2020
Item No. Product name Supplier price (excluding VAT), RUB. Trade margin of the organization VAT amount, RUB Retail price, RUB
% Amount, RUB
1 Men's trousers 700 100 700 280 1680
The following entries were made in accounting:
debit 41 credit 60 – 7000 rub. – trousers accepted for accounting;
debit 19 credit 60 – 1400 rubles – VAT on the goods taken into account;
debit 60 credit 51 – 8400 rubles – payment transferred to the supplier;
debit 68 sub-account “VAT settlements” credit 19 – 1400 rubles – VAT accepted for deduction on accepted and paid trousers;
debit 41 credit 42 – 7000 rubles (700 rubles x 10 pieces) – trade markup accrued on trousers accepted for accounting.
Frequently asked questions about trade margin
Summarizing all of the above, it becomes clear that simple formulas can help determine the trade margin. It is important to keep in mind the size of the optimal percentage of the trade margin. It is determined by the entrepreneur himself, taking into account various factors.
The most difficult moment in calculating the markup is determining the reaction of buyers to the appearance of a new product, the price of which with a trade markup should not cross the psychological threshold.
If the cost of a store's goods includes various taxes and fees, they should be included in the markup, so it is necessary to draw up a price register, which is the primary document russian business email list for organizing the markup.
The form of the register is not documented, but it is accepted that it should contain the following data:
company name;
date;
number;
details and signatures of the director, chief accountant;
organization seal;
product name;
purchase price excluding VAT;
markup;
VAT amount;
price per piece.
Example of calculating trade margin
Source: shutterstock.com
Using a clothing store as an example, we will analyze the transactions for trade margins.
The store received 10 pairs of trousers from the supplier at a price of 840 rubles per pair, including VAT 20% - 140 rubles. The total cost of the purchase was 8400 rubles. The store keeps records of goods at selling prices. The markup on trousers was 100%.
The accountant compiled a price register, which included the following indicators:
the price of trousers without VAT is 700 rubles;
trade markup – 700 rubles;
selling price – 1400 rubles;
VAT on the selling price – 280 rubles;
The selling price of a pair of trousers was 1,680 rubles.
Register of retail prices No. 49 dated 09.09.2020
Item No. Product name Supplier price (excluding VAT), RUB. Trade margin of the organization VAT amount, RUB Retail price, RUB
% Amount, RUB
1 Men's trousers 700 100 700 280 1680
The following entries were made in accounting:
debit 41 credit 60 – 7000 rub. – trousers accepted for accounting;
debit 19 credit 60 – 1400 rubles – VAT on the goods taken into account;
debit 60 credit 51 – 8400 rubles – payment transferred to the supplier;
debit 68 sub-account “VAT settlements” credit 19 – 1400 rubles – VAT accepted for deduction on accepted and paid trousers;
debit 41 credit 42 – 7000 rubles (700 rubles x 10 pieces) – trade markup accrued on trousers accepted for accounting.
Frequently asked questions about trade margin
Summarizing all of the above, it becomes clear that simple formulas can help determine the trade margin. It is important to keep in mind the size of the optimal percentage of the trade margin. It is determined by the entrepreneur himself, taking into account various factors.
The most difficult moment in calculating the markup is determining the reaction of buyers to the appearance of a new product, the price of which with a trade markup should not cross the psychological threshold.