In 2026, when applying the separate accounting method, a VAT payer maintains separate records of tax amounts on goods, works, and services used for taxable and non-taxable turnover (Article 489 of the Tax Code of the Republic of Kazakhstan). Manufacturing in 1C is recorded sequentially: receipt of raw materials, transfer of materials to production, output of finished goods, transfer to the warehouse, and cost calculation. The manufacturing accounting procedure is established in the accounting policy, analytical accounting is configured to reflect the organization’s activities, and business transactions are supported by source documents.
How to Set Up Manufacturing Accounting in 1C
Before recording output, directories and manufacturing analytics must be prepared. Raw materials, supplies, semi-finished goods, finished goods, and manufacturing services must be entered in the database. It is important to select units of measurement for each item and ensure consistent use of the item catalog: the same material should not be entered multiple times under slightly different names.
The “Manufacturing” section may include bills of materials, routing sheets, shift production reports, transfers of finished goods to the warehouse, provision of services, item assembly, work in progress, and cost calculation. The availability and names of individual commands depend on the configuration used and its settings.
A bill of materials helps describe the planned composition of a product: which materials and in what quantities are required for production. A routing sheet may supplement this composition with information about processing stages. However, it is not sufficient for an accountant to enter the standards only once: they must be reviewed whenever the formulation, technology, packaging, or component composition changes.
Before starting work, it is useful to check:
- that the raw materials and finished goods directories are complete;
- the links between products and bills of materials and routing sheets;
- the storage locations for raw materials and finished goods;
- analytics by department, order, or product type;
- the list of direct and allocable expenses;
- the consistency of the settings with the organization’s accounting policy.
Manufacturing in 1C 8.3: From Raw Materials to Finished Goods
The first stage is the receipt of raw materials. The receipt document records the item description, quantity, and cost of the purchased components. After posting the document, the accountant checks that the materials have been received at the correct storage location and are available for subsequent write-off.
The materials are then transferred or written off to production. The document must show exactly which inventories were used, in what quantity, and for the manufacture of which products. The organization’s completed source documents serve as the basis. If actual consumption differs from the established bill of materials, the discrepancy should be identified and documented rather than arbitrarily corrected to match the standard.
Output is recorded using a production document. It specifies the products manufactured, their quantity, and the raw materials used. Depending on how work is organized, this may be a shift production report or another document provided by the configuration. After production, the finished goods are transferred to the warehouse if this operation is treated as a separate stage.
The practical sequence is as follows:
- Record the purchased raw materials as received.
- Check the quantity and cost of the materials.
- Transfer or write off the materials to production.
- Record the output of finished goods.
- Transfer the goods to the warehouse if provided for by the process.
- Record the remaining manufacturing costs.
- Calculate the cost.
- Reconcile material movements, output, and final reports.
Documents should be posted in chronological order. If output is recorded before the receipt or transfer of raw materials, the calculation may be based on incomplete data. After corrections are made, the cost must be recalculated.
Cost and Work in Progress in 1C
The cost of goods is not limited to the cost of raw materials. Manufacturing accounting may include labor costs and overhead expenses. The organization determines the specific composition of costs and how they are allocated, taking into account its activities, the applicable accounting standards, and its adopted accounting policy.
For an accurate calculation, all expenses related to output must first be collected. It is then necessary to ensure that the materials have been written off to the correct product or production area. After production operations are completed, the program calculates the cost based on the entered data and configured settings. Automated calculation does not replace control: an incorrect item, an omitted expense, or incorrect analytics will distort the result.
Work in progress in 1C reflects the costs of goods whose production has not yet been completed as of the reporting date. Such expenses should be separated from costs relating to finished goods of the current period. Based on accounting data and source documents, the accountant must separate completed output from goods that remain in production.
When reviewing work in progress, the following are compared:
- materials transferred to the workshop or production area;
- raw materials actually used;
- the quantity of completed goods;
- balances of semi-finished goods and goods in production;
- expenses relating to future output.
The results of the inventory count of manufacturing balances are compared with the data in 1C. Identified discrepancies are investigated, documented, and recorded in accordance with the organization’s accounting policy.
When applying the separate accounting method, VAT on goods, works, and services used simultaneously for taxable and non-taxable turnover is allocated between amounts eligible and ineligible for offset. VAT ineligible for offset is accounted for in accordance with tax legislation (Article 489 of the Tax Code of the Republic of Kazakhstan).
Accounting Controls and Training in Manufacturing Operations
After calculating the cost, reports on costs, output, and balances should be reviewed. The total amount of raw materials written off should be reconciled with output, work in progress, returns, and documented variances. It is useful to separately analyze sharp changes in the cost of the same product.
Common causes of errors include duplicate items, outdated bills of materials, recording output without writing off materials, an incorrect storage location, incomplete recording of expenses, and incorrect allocation of overhead costs. It is necessary to check not only the final amount but also the documents from which it was derived.
Manufacturing courses for 1C should be selected for the specific configuration and the enterprise’s workflow. The training program should cover setting up directories, bills of materials, receipt and write-off of raw materials, output, warehouse operations, work in progress, cost calculation, and error detection. Practical training should be conducted using a copy of the database or a training example without changing live data.
Before applying these instructions, the program release must also be taken into account. For “Accounting for Kazakhstan,” the 3.0.74.x release series is current in 2026. The interface and command names may differ between configurations and releases, so the path to the document should be determined directly in the database being used.
Frequently Asked Questions
How do I record manufacturing in 1C 8.3? — First, record the receipt of raw materials, followed by their transfer or write-off to production, the output of goods, and, if necessary, their transfer to the warehouse. After entering all expenses, calculate the cost and review the reports.
Where can I find manufacturing in 1C? — The “Manufacturing” section may contain bills of materials, routing sheets, shift production reports, output, work in progress, and cost calculation. The set of commands depends on the configuration and database settings.
How do I account for work in progress in 1C? — Costs related to completed output must be separated from expenses for goods that remain in production. The program’s data is compared with the actual balances and completed source documents.
Why is the cost calculated incorrectly? — Check the receipt and write-off of raw materials, bills of materials, cost analytics, completeness of expenses, document posting sequence, and allocation settings. Recalculate after making corrections.
What should 1C manufacturing courses include? — Practical training on directories, bills of materials, material write-offs, output, warehouse movements, work in progress, cost calculation, and identifying accounting errors.
Sources
Tax Code of the Republic of Kazakhstan: Article 489 establishes the procedure for determining VAT amounts eligible for offset when applying the separate accounting method to goods, works, and services used for taxable and non-taxable turnover.