Purchase, Inventory Variation and Other Operating Consumption

Stock Purchases

Includes the supply of merchandise and raw materials at their acquisition price.

The purchase price will include the price stated on the invoice plus all additional costs incurred until the goods are in the warehouse, such as transport, customs, insurance, etc.

The cost of production of products manufactured by the company itself will be determined by adding to the purchase price of raw materials and other consumables, the costs directly attributable to the product, as well as the reasonably corresponding part of the indirect costs incurred during the manufacturing process.

Variation of existences

The variation in stock is the difference between the initial and final stock of the accounting period, the latter valued at their acquisition price. Thus, when the valuation of the initial stock is greater than the valuation of the final stock, this variation must be reflected as an expense.

Other operating consumption

This would include consumption in the financial year of other supplies (other than merchandise and raw materials) intended for the production process or used in the provision of services (incorporatable elements and assemblies, fuels, spare parts, various materials, containers, packaging, office supplies, etc.).

• Incorporatable elements and assemblies are understood to be those normally manufactured outside the company and acquired by it to incorporate them into its production process without subjecting them to transformation.

• In the case of fuels, only the consumption of energy materials that can be stored will be included.

• Spare parts are parts intended to be installed in installations, equipment or machines to replace similar ones.

• Miscellaneous materials are understood to be other consumable materials that are not to be incorporated into the manufactured product.