The inventory surplus is neither deemed sales nor a situation in which input tax cannot be deducted. Therefore, no value-added tax treatment is required.

The inventories of small-scale taxpayers are accounted for based on the total price and tax, and input tax is not allowed to be deducted. Therefore, if a small-scale taxpayer has an inventory loss, the amount that enters the current profit and loss is the total price and tax, which is also No special VAT treatment is required.

Accounting treatment of inventory surplus, inventory loss, and damage:

Accounting standards stipulate that inventory with excess inventory should be recorded at its replacement cost and passed through the "property to be disposed of" Accounting treatment will be carried out under the "loss and excess" account, and the management expenses of the current period will be offset after approval according to the management authority. < /p>

After approval:

Debit: Pending property losses and losses - Pending losses and losses on current assets

Credit: Management expenses

Extended information :

The difference between inventory surplus and fixed asset surplus:

As mentioned in Article 11 of "Accounting Standards for Business Enterprises No. 28 - Accounting Policies, Accounting Estimate Changes and Error Corrections" "Early-period errors usually include calculation errors, errors in the application of accounting policies, omissions or misinterpretations of facts, the effects of fraud, and excess inventory and fixed assets."

The excess inventory and fixed assets are all early-period errors. , but the inventory surplus is usually small in amount and will not affect the financial statement users' judgment on the company's financial status, operating results and cash flow in previous years.

Therefore, when the inventory is in surplus, it will be accounted for through the "Property Loss and Overflow to be Processed" account, and the "Administrative Expenses" will be offset after approval according to the management authority, and the statements of previous years will not be adjusted. Fixed assets are tangible assets with high unit value and long service life. Therefore, for enterprises with standardized management, it is rare and abnormal to find overstocked fixed assets during inventory.

And the fixed asset surplus will affect the financial statement users' judgment on the company's financial status, operating results and cash flow in previous years. Therefore, the fixed asset inventory surplus should be treated as a previous error and accounted for through the "Profit and Loss Adjustment of Previous Years" account.

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