Postings for reflecting advances issued in accounting

Settlements with suppliers and contractors: accounting accounts

Typically, all settlements with suppliers are carried out on active-passive account 60 “Settlements with suppliers and contractors” in accordance with the Chart of Accounts, approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n (as amended on November 8, 2010).
It is advisable to provide sub-accounts for the invoice, the use of which will depend on how payment is made: for goods already shipped (60.1) or in advance (60.2). The working chart of accounts of the subject can also introduce additional sub-accounts to this account, if this is necessary to build correct analytical accounting. NOTE! For settlements with other suppliers and contractors, some business entities open a corresponding sub-account to account 76 “Settlements with various debtors and creditors”. Within the framework of this article, we analyze transactions involving account 60 - as the most typical for this section of accounting.

Transactions related to payment to the supplier are carried out in the debit of the specified account. How accounting entries appear in accounting and what they represent, we will describe below.

Accounting for settlements on advances issued ↑

When preparing financial statements, it is worth remembering that in some situations an advance payment is required.

For example, advances for contract work can amount to no more than 30 percent of the total cost at federal facilities.

In the event that the seller fails to fulfill its obligations, the buyer may demand a full refund of the advance amounts.

It is also possible to return paid products that were not sold by the seller. Let's consider how advances issued to suppliers are included in assets or liabilities.

Accounting entries

In accounting, advances issued are recorded in the account, which is associated with settlements for shipped goods. To implement accounting correctly, you should open a subaccount in addition to the balance sheet account.

For example, when accounting for funds that were issued to the supplier, a sub-account is opened to account 62 for settlements on advances issued.

Checking advance amounts in a period and calculating tax are provided when using 1C software.

When reflecting an advance given to an employee as wages, keep in mind that its amount should not be more than half of the salary. In other cases, the amount is negotiated individually.

Let's look at what wiring is used:

From the cash register

The rules for conducting cash transactions determine the rules for issuing funds for reporting. Money is issued, if there is a cash register (or not), by check from the cash registers of banking institutions.

The amounts that the accountable person received can only be used for the purpose for which they were issued. At a later date, the person will have to account for the advances spent.

All settlements with the accountable person must be reflected in asset or liability account 71. If there are funds left, they must be returned back to the cash desk.

Analytical accounting is carried out for a certain advance separately.

If the supplier

Suppliers are companies that supply production resources and products. Contractors are companies that perform specific work.

Material assets are supplied on the basis of an agreement drawn up between counterparties.

The rules for settlements between the company and the supplier and contractor are established taking into account the rules of non-cash payments in Russia. If there is an import, the rules of international payment are taken into account.

Deliveries within the country are carried out under conditions that determine the rights and obligations of the seller and buyer in relation to the products.

Which account is relevant? Account 60 reflects generalized information on settlements with the supplier:

• receipt of material assets, delivery, processing of such assets that must be paid through a bank branch;
• documentation is not received from the supplier;
• excess valuables that were identified during reception;
• obtaining transportation services, calculations for shortfalls and overcharges of tariffs. The payment period does not matter.

If delivery is ahead of schedule

Please note that an advance paid to an employee may be transferred earlier than the established deadlines. But it is worth remembering that salaries must be issued at least once every half month.

Otherwise, you will have to bear responsibility for late payment.

For supply of materials

In accounts receivable, this is account 60, which is credited for the price of valuables that are accepted for accounting in correspondence with account 15 or an account for accounting for certain expenses.

Delivery of material value, its processing on an account loan. 60 are reflected in correspondence with the account for accounting for production inventory, goods, and costs of the production process.

Regardless of the estimates of commodity and material assets in the analytical accounting of accounts. 60 in synthetic accounting is credited in accordance with the settlement documentation of suppliers.

The following entries will be made in accounting:

Advances in accounting for the sale of goods are reflected as expenses. For example, posting Dt 51, 52 Kt 62 with a subaccount for advance amounts received is used to reflect funds received from the buyer and customer for the upcoming delivery.

Nuances in budgetary institutions

Let's figure out what are the features of accounting for advances for business needs in a budgetary institution. The transferred advance amounts must be accounted for in account 0 206 00 000, as stated in paragraph 202 of Instruction No. 157n.

When accounting for advance payments made under contracts to a supplier, contractor, or performer, the following analytical accounts are used:

The obligation to pay advance amounts by budgetary institutions is carried out after the conclusion of contracts and the issuance of invoices and invoices by suppliers.

Reflection in the balance sheet (line)

The issuance of an advance is reflected in the balance sheet as follows.

Accountants often confuse the advance payment and the costs of the future period. The issuance of advance amounts is reflected on line 230, 240.

Many people ask whether advance amounts really belong to debt (receivables and payables) on the balance sheet without value added tax.

The Ministry of Finance does not provide clear explanations on this matter. This means that when preparing reports you should rely on your experience and rely on your opinion

VAT is a tax that is paid by the end buyer. When receiving advances, many accountants calculate tax using the posting Dt 76 Kt 68. Some used the posting Dt 62 Kt 68.

When it was decided to accept value added tax deductions from the advance payment to the supplier, a subaccount was introduced as part of account 76. The posting Dt 68 Kt 76 was used. The balance on Dt 76 Kt 76 increases the balance sheet currency.

Posting - transferred from the current account to suppliers

Purchasing raw materials, materials, goods, fixed assets, intangible assets, works, services by transferring non-cash funds is a simple process. This usually happens in several stages:

1. A supply agreement (performance of work, provision of services) is concluded between economic entities.
2. The supplier issues an invoice for payment for materials (work, services).
3. The buyer transfers in whole or in part - according to the terms of the contract - the amount indicated in the invoice.
4. The shipment is made to the buyer's address.

The stages may vary: someone does without a contract, while all the conditions are written down in the invoice; valuables (work, services) can be paid after their shipment (fulfillment, provision).

The following entries appear in the accounting:

• Dt 60.2 Kt 51 - based on the payment order and bank statement, the transfer of funds to the supplier is reflected on account of the future supply of materials (works, services).
• Dt 08, 10, 20, 25, 41... Kt 60.1 - valuables, works, services are capitalized on the basis of transfer documents (invoices, acts, etc.) Valuables can be delivered directly by the supplier to the buyer, sent through a freight forwarding company, or the buyer picks them up by proxy.
• Dt 19 Kt 60.1 - VAT is reflected if it is highlighted in the supplier’s invoice.
• Dt 60.1 Kt 60.2 - the transferred advance payment is counted against received valuables, works, services.

If payment occurs after shipment, then the last entry in accounting is not made, and account 60.1 will correspond with account 51.

Basic settings and nuances when paying an advance

Advance amount

The amount of the advance must be clearly stated in local regulations and cannot be symbolic: salaries for each half of the month should be accrued in approximately equal amounts - excluding incentives and compensation payments (Article 72 of the Labor Code of the Russian Federation, Article 129 of the Labor Code of the Russian Federation, Letter of the Ministry of Health and Social Development of the Russian Federation dated February 25, 2009 N 22-2-709).

Unlike wages at the end of the month, when paying an advance, the Payroll . Therefore, before paying the advance, it is necessary to determine its size, which can be set:

• common for all employees of the organization in the section Salaries and personnel - Directories and settings - Salary settings - General settings - Salary accounting procedure - Salary tab.
• individual for each employee in the Hiring and Personnel Transfer in the Advance .

Learn more Setting up an advance payment

Statement for payment

Regardless of how and in what form we issue an advance, the program must generate a statement for its payment. The document used in 1C depends on the value of the Salary payment specified in the Employees directory:

• According to the salary project PDF or To a bank account PDF - document Statement to the bank. Consider with an example.
• Cash PDF - document Statement to the cash desk.

It is this field that is responsible for automatically filling out the documents Statement to the Bank and Statement to the Cashier .

Other transactions - the supplier’s invoice for materials, work, services has been paid

The current account, the transactions with which we examined in the previous section, is most often used in settlements between economic entities. However, payment can be made not only from it; there are other ways to make it. Account correspondence can take the following form:

• Dt 60 Kt 50 - paid to the supplier in cash, the supplier's cash receipt must be attached to the receipt documents if he is obliged to use a cash register;

Important! Recommendation from ConsultantPlus: How to arrange payment to a supplier for goods in cash If the goods are paid for by an employee of your organization, do the following: 1. Give him cash on account. In RKO, in the line “Base”, indicate the content of the business transaction. For example, for this line you can indicate: …. See K+ for all the details.

• Dt 60 Kt 52, 55 - if payment is made by bank transfer from a foreign currency or specialized account in a banking institution.

The choice of subaccount for account 60 in the proposed entries will also depend on when the payment occurred - before or after the receipt of products, works, services, etc.

If the buyer transfers his own bill of exchange as a guarantee of payment for goods, works, services, then accounts payable from account 60 are not written off, but are reflected in a separate sub-account intended for accounting for bills of exchange. Posting - the supplier's invoice is paid with its own bill of exchange - may look like this:

Dt 60.1 Kt 60 “Settlements on bills issued.”

When repaying his own bill, the buyer will write:

Dt 60 “Settlements on bills issued” Kt 50, 51, 52, 55.

For all the details on recording transactions for the purchase of goods and the transfer of bills of exchange in payment for them in the buyer’s accounting, see the Ready-made solution from ConsultantPlus. Get trial access for free.

Read about how to create a balance sheet for account 60, taking into account all the entries made in accounting.

Postings for advance received from buyer

If an enterprise receives an advance payment for services or work that has not yet been completed under the contract, then such an advance is taken into account. This account is also used when funds are received for any products that were not delivered to the customer at the time the money was received.

An example of a reflection of an advance received for goods (services, work)

Let’s say that “Factor” has entered into an agreement for the supply of printed products, where “Omega” is the supplier and “Factor” is the buyer. The contract amount is 321,000 rubles. On 10/01/2015 the customer makes full prepayment under the contract. 01..2015 the supplier transfers part of the goods in the amount of 120,000 rubles.

This operation will look like this:

Results

Settlements with suppliers involve the use of account 60 with the opening of sub-accounts for it, provided for by the working chart of accounts of an economic entity.
In addition to account 60, account 76 may also be involved in such operations. Payments to suppliers are reflected in the debit of these accounts. The choice of the account corresponding to the loan will depend on how the payment was made: non-cash (from a current, foreign currency or specialized bank account) or in cash. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Checking mutual settlements

You can check mutual settlements with an employee using the Account Analysis report “Settlements with personnel for wages” in the Reports - Standard reports - Account Analysis section.

The report shows that in the period from July 11 (the next day after the payment of salaries) to July 31, the organization paid an advance to employees. At the end of July, the organization still had a debt that must be paid by the 10th of the next month.

For the continuation of the example, see the publication:

• Payment of wages through the cash register

See also:

• Salary settings in 1C
• Payroll
• Advance payment through a bank

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VAT calculation

The process algorithm has not changed. The base is determined either on the day of shipment or at the time of payment. The seller must pay tax on the amounts transferred, and the buyer must pay VAT on advances received.

Example. An advance payment in the amount of 118 thousand rubles was received on the LLC account on May 15. (including tax - 18%). The organization made a shipment on May 25 in the amount of 85 thousand rubles. In the accounting of the enterprise, this operation will be reflected as follows:

• DT 51 CT 62 – prepayment reflected (118 thousand rubles);
• DT 76 CT 68 – 18 thousand rubles – VAT on advances received. The postings were generated based on the invoice dated May 15.

DT 19 KT TS (Technical account for accounting of settlements with counterparties) – 18 thousand rubles.

DT 68 CT 19 (presentation of VAT for deduction) – 18 thousand rubles.

The supplier's debt is reflected in the financial statements in full. VAT appears on tax invoices.

• DT 90 CT 41 – cost of goods sold (85,000);
• DT 62 CT 90 – income from sale (118,000);
• DT 90 CT 68 – accounting for tax on revenue (18,000);
• DT 68 CT 76 – deduction of VAT on advances received (18,000);
• DT 62 “Prepayments” CT 62 “Settlements with customers” – prepayment (118,000).

This is how VAT is calculated on advances received.

Advance offset: posting

When, after transferring an advance payment to the supplier, the buyer registers goods, works and services, he creates an accounting entry for the credit of account 60:

Debit accounts 10 “Materials”, 41 “Goods”, 44 “Sales expenses”, etc. – Credit account 60

If the delivery occurred on account of a previously issued advance, the supplier's receivables must be offset.

Since transactions for advances issued and received involve separate subaccounts to accounts 60 and 62, respectively, the offset of advances represents transactions for closing the advance subaccounts in whole or in part (depending on the amount of the prepayment).

So, if a previously issued advance is offset, the posting will be internal to account 60. But given the presence of sub-accounts for accounting for advances issued and received values, then the postings for offset of the advance to the supplier are usually as follows:

Debit of account 60, subaccount “Payments for delivered goods, works, services” - Credit of account 60, subaccount “Advances issued”

Or: Debit account 60.01 – Credit account 60.02