How to make a proper physical inventory?

Service-Tax

The end of the year is a number of obligations incumbent on taxpayers. Among them, there is a physical inventory, which is the last entry in the KPiR which is its closure. When should it be prepared? What data should it contain? How to make its valuation? We explain below.

Natural inventory - when?

Taxpayers are required to create a physical inventory for: January 1, the end of each tax year, the date of commencement of operations during the tax year, as well as a change of shareholder, change in the proportion of shareholders or liquidation of the business.

What does physical inventory count include?

Each time the physical inventory should include:

  • commercial goods,
  • basic and auxiliary materials (raw materials),
  • semi-finished products,
  • work in progress,
  • finished products,
  • shortages and waste.

It should be remembered that it should be prepared carefully and permanently. Finally, signatures of people participating in the physical inventory are required. From January 1, 2019, taxpayers taxed in the form of a lump sum were released from the obligation to prepare a physical inventory.

Physical inventory - what data?

Information on what data should be included in the physical inventory should be found in par. 25 sec. 2 of the Regulation on the operation of the KPiR. According to this provision, the necessary elements are:

  • name and surname of the plant owner (company name),
  • date of the inventory,
  • sequence number of the physical inventory sheet item,
  • detailed identification of the goods and other ingredients listed in par. 24,
  • unit of measure,
  • the amount found during the census,
  • price in PLN and grosze per unit of measurement,
  • value resulting from the multiplication of the quantity of the product by its unit price,
  • total value of physical inventory,
  • the value resulting from the multiplication of the quantity of other ingredients listed in § 24 by their unit price
  • the total value of the physical inventory and the clause "The inventory ended on the item ..."
  • signatures of persons drawing up the list and signature of the plant owner (partners), provided that when running:
    • bookstores and antiquarian bookstores - a physical inventory can include one item of a publishing house of the same price, regardless of the name and surname of the author, divided into books, brochures, albums and others,

    • currency exchange operations - the physical inventory should include unsold foreign exchange values,

    • special departments of agricultural production - the physical inventory should include materials and raw materials not used in the course of production, as well as the number of animals by species, broken down by groups.

The obligation to prepare a physical inventory as at 1 January of the tax year does not apply to taxpayers who have prepared a physical inventory at the end of the previous tax year. In this case, instead of the physical inventory as of 1 January of the tax year, the book is entered with the physical inventory prepared as of 31 December of the previous tax year.

Object of the valuation

Method of valuation

commercial materials and goods

at purchase or acquisition prices or at market prices on the date of the inventory, if they are lower than the purchase or acquisition prices

semi-finished products (semi-finished products), finished products

and the shortages of own production

by manufacturing cost

utility waste which has lost its original value in use in the course of its activity

according to the value resulting from the estimation taking into account their suitability for further use

unsold foreign exchange values

according to the purchase price on the date of the census, and on the day ending the tax year - according to the purchase price, but in the amount not higher than the average rate announced by the National Bank of Poland on the day ending the tax year

work in progress (for service and construction activities)

according to production costs, however, it cannot be a value lower than the costs of direct materials used for work in progress

animal production

according to market prices on the date of the census, taking into account the species, group and weight of animals

Valuation of physical inventory elements

Another important thing is that the valuation according to the above-mentioned principles should be made no later than 14 days from the date of completion of the physical inventory.

Natural inventory in KPiR

The physical inventory should be entered in the book of revenues and expenditures in accordance with the individual types of its components or in one item (total), if a separate, detailed list of its individual components has been prepared on the basis of the inventory. It should be remembered that the said statement should be kept together with the KPiR.

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Natural inventory in the wFirma.pl system

To enter the inventory of the nature as of December 31, 2020, in the wFirma.pl system, go to the tab RECORDS »REMANENTS» ADD RETURNS »in the window that appears, in the TYPE field, select FINAL REMANENT. After entering the value and saving, the final inventory will be included in the KPiR in column 15, and the system will automatically generate an initial inventory for January 1, 2021, for the same value as the final inventory.