2. Purchase, Inventory Variation and Other Operating Consumption
The following concepts that appear differentiated in the IRPF declaration are included within this category.
a. Purchase of stocks (merchandise and raw materials)
This category includes current acquisitions of goods made from third parties, provided they meet the following two requirements:
That are carried out to obtain income.
That these are assets that are part of current assets.
Additional expenses must be included in the acquisition price, such as transportation, insurance, loading and unloading and others directly attributable to the acquisition.
Said price is the amount invoiced by the seller (after any discount, price reduction or similar, as well as interest incorporated into the face of the debits), which will include additional expenses that occur until the goods are located for its sale (transport, tariffs, insurance...).
b. Inventory variation (only if there is a decrease in inventory at the end of the year)
To determine the consumption of inventories during the year, it is necessary that, in addition to taking into account the purchases made, the inventories not consumed during the year must be determined, that is, the variation in inventories. In this way, when the initial inventories are greater than the final inventories, that is, when there is a decrease in these, said variation will be reflected as an expense for the year.
Unlike the above, when inventories at the beginning of the year are lower than at the end of the year, that is, when there is an increase in inventories, they will be reflected as income.
With regard to the valuation criteria for stocks , it must be emphasized that the value of the final ones, which must coincide with the value of the initial ones of the following year, can be determined by their price of acquisition or production cost, with weighted average cost and FIFO being accepted as valuation criteria for homogeneous groups of inventories.
See within the "Full computable income" the section on “ Variation in inventories ” as well as the registration and valuation standard 10 of the General Accounting Plan, approved by Royal Decree 1514/2007, of November 16 (BOE of the 20th), dedicated to the valuation of stocks. Also see the Resolution of April 14, 2015, of the Institute of Accounting and Audit of Accounts, which establishes criteria for determining the cost of production.
c. Other operating consumption
This will include the consumption of other supplies (other than goods and raw materials) intended for the production process or used in the provision of services (incorporable elements and assemblies, fuel, spare parts, various materials, containers, packaging, office supplies, etc.).
Incorporable elements and assemblies are understood to be those normally manufactured outside the company and acquired by it to incorporate them into its production 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 assembled in facilities, equipment or machines to replace similar ones.
Miscellaneous materials are understood to mean other consumer materials that must not be incorporated into the manufactured product.
The consumption for the year will be the result of adding the acquisitions made during the year to the initial inventories of such goods, and of reducing said sum in the value of the final inventories of the period.
Note: Unlike inventories of merchandise and raw materials, in the case of “Other operating consumption” only what was consumed during the year will be reflected.