Of azerbaijan high technical educational institutions

PAHTEI 
PROCEEDINGS OF AZERBAIJAN HIGH TECHNICAL EDUCATIONAL INSTITUTIONS 
VOLUME 27 ISSUE 04 2023 
E-ISSN: 2674-5224 
effective forms of preliminary and current control over the observance of stock standards and the 
expenditure of material resources (Raffournier, B., 1995: p.78). 
An important condition for the efficient use of materials in production is the correct choice of 
accounting methods. The methodology for organizing the accounting of material resources 
involves the choice of one of several methods for their accounting and evaluation, which is fixed 
in the accounting policy of the enterprise. To select a method, it is necessary to analyze the 
consumption of materials. Thus, the determination of the actual cost of material resources written 
off to production is allowed to be carried out using one of the following methods for estimating 
reserves: at average cost, at cost of first-in-time purchases (FIFO). 
In addition, materials on the "Materials" account can be accounted for either at the actual cost of 
their acquisition (preparation) or at book prices. When accounting for materials at accounting 
prices (planned cost of acquisition, average purchase prices, etc.), the difference between the cost 
of valuables at these prices and the actual cost of acquiring valuables is reflected in the account 
“Deviations in the cost of materials”. 
Organizations have the right to independently choose the method of classifying material 
resources. The classifier should fully systematize the various materials available in warehouses, 
assume control over the correctness of accounting, contribute to a more accurate distribution of 
deviations in the cost of material assets by cost areas. 
It is also important to choose the accounting method in the warehouse, which should ensure the 
efficiency and reliability of quantitative accounting in the warehouse, systematic control over the 
correctness of documenting operations on the movement of materials and the correspondence of 
the balances of materials according to warehouse accounting with the balances of materials 
according to accounting. 
Inventory owned by the organization, but in transit or pledged to the buyer. are accepted for 
accounting in the assessment provided for in the contract, with subsequent clarification of the 
actual cost. 
As part of the information on the accounting policy of the organization in the financial statements, 
at least the following information is subject to disclosure: methods for estimating inventories by 
their types: consequences of changes in the accounting policy for methods for estimating 
inventories; the cost of inventories pledged; the difference between the actual cost of inventories 
and their cost of possible sale, attributed to the financial results of the organization, if the 
organization has stocks at the end of the reporting year (except for equipment for installation and 
low-value and wearing items) in an estimate exceeding the cost their possible sale, in the event of 
a decrease in sales prices, damage to values or if they are completely or partially obsolete; ways 
of transferring the cost of low-value and wearing items (Mcleay, S. Jaafar, A., 2007: p.201). 
In order to improve and increase the efficiency of accounting for inventories, it is necessary to: 
• timely and efficiently reflect all business operations in terms of receipts,
disposals, product losses; 
• promptly request missing documents in settlements with suppliers and contractors through the 
use of settlement reconciliation reports; 
• carrying out timely settlements with suppliers for purchased inventories, aimed at repayment of 
excessive accounts payable; 
• to control the state of settlements on deferred (overdue) debts through carrying out an inventory 
of settlements; 
• monitor the ratio of accounts receivable and accounts payable; 

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