In tax accounting, goods refer to raw materials, purchased and produced goods, services, and work. Expenses incurred in acquiring raw materials, services, and work are divided into direct and indirect costs. Expense codes are created for each type of expense. Direct expenses relate to costs for raw materials and other materials that are essential for produced output. To reduce the taxable profit base, only expenses for materials that are used in production or realized during the current period are accepted. Expenses related to unfinished production and unrealized products are excluded from current period expenses.

All other costs for goods acquisition are considered indirect expenses. They reduce the taxable profit base during the period in which they are consumed.

The tax account for other warehoused goods (purchased goods) differs from raw materials and other materials only in that for this group, there is no unfinished production. Hence, its write-off from the warehouse automatically leads to the generation of an expense.

According to the tax account, material cost prices can be calculated in one of the following methods: FIFO, LIFO, or average cost price.

Goods flow registers can be grouped as follows:

  • Warehoused goods flow register

  • Warehoused goods flow (totals) register

  • Non-warehoused goods flow register

  • Goods issue register

See Also