Registering other people’s trust goods with us

Registering other people’s trust goods with us
What registration is issued for the inventory of other’s trust goods with us?

To answer this question, we must check how the ownership of other people’s trust goods is with us, which has two dimensions.
First, I have a definition of product ownership.
The point of ownership is the point of transfer of benefits and risks.

The first dimension: the inventory of trust goods is kept only in a place owned by the company (warehouse, store, etc.) and the ownership is not transferred because the benefits of the relevant goods and materials have not been transferred.

In this case, it will not be registered in the books as inventory and will only be registered in the police accounts for their statistical control.

Administrative accounts – trust goods of others with us ×
                                                      The side of police accounts ×
This registration is based on the number or quantity of the relevant goods or another characteristic and has only a statistical aspect.

The second dimension: the inventory of trust goods is obtained based on another intention and not just keeping in the warehouse.

For example, the company needs a certain type of material to carry out its production, which it does not have access to. For this reason, from one of the companies of the same group, which also has a similar activity, he receives some inventory of the relevant materials and uses them in production until he prepares the relevant materials and returns them to the said company. In this case, the ownership of the inventory of trust goods is transferred and must be examined from two aspects.
One is that it should be registered in terms of quantity in the administrative accounts like the one above so that its control measures can be carried out easily.

On the other hand, according to the consumption of materials and their inclusion in production factors and the need to include them in the cost of manufactured goods, another registration should be issued that shows the identification of other people’s trust goods with us in the accounts.
Inventory of goods – other people’s trust goods with us ×
                                        Accounts payable – relevant person x
that this registration will be registered in the amount of the daily value of the trust materials and goods.

In order to clean the materials and goods, the trust company or the company buys the relevant materials and goods and hands them over to the lending company, in which case the goods purchase record is issued like the usual records and the above issued record is also returned. If the purchased amount of inventory is different from the registration issue price, the difference will be applied to the cost price.

Because other people’s trust goods with us are included in the cost of production and the purchased goods have been returned to the lending company, the amount of the high registration price is removed from the inventory against accounts payable, and if the purchase price changes compared to The high registration price is applied to the difference in the cost of production.

On the other hand, it is possible that the lending company agrees to receive an amount for the trust goods, which means that the accounts payable for the money paid will be reduced to the balance, and the trust goods of others with us are also included in the cost of production. will be In case of paying more than the balance (that is, the same registration above), the difference will be considered in the cost of production.

This post is written by Day59