In this case, the same VAT return will show the tax accrued on both the advance and on the shipment made against this advance, as well as a deduction in the amount of VAT from the advance. You can read more about accounting for VAT on advance payments in the article: “Accounting for VAT on advance payments and gratuitous transfers.”
We will also consider how bills and advances received from the buyer are accounted for? If assets are sold and this is not normal look activities of the enterprise, then posting D91/3 K68.VAT is performed.
It is possible that the seller organization first receives an advance payment (advance payment) from the buyer, and then, using this advance payment, ships goods and products. Advances received from customers are also accounted for in account 62, but for convenience, a separate sub-account 62.2 “Advances received” is opened. In the case of advances received on the credit of account 62, it is reflected accounts payable enterprises.
This posting must be completed on the day the advance is received. After this, the goods are sold to the buyer; VAT must also be charged on the goods sold by posting D90/3 K68.VAT, which is carried out on the day of sale. As you can see, account 62 can take into account both the company’s accounts payable (the goods have been shipped, payment has not yet been received) and accounts receivable (when receiving an advance from the buyer).
If an organization has shipped goods or products to a buyer and received a bill of exchange from him to secure the debt, then it must be accounted for in a separate subaccount 62.3 “Bills received.”
OPTION 2. We restore the VAT deduction in the amount indicated in the invoice for the goods received
Receipt or non-receipt of revenue will be a different operation, which will be reflected in other accounts and with different postings. In this article we will look at how relationships with customers are taken into account in accounting.
Transactions during a regular sale, upon receipt of an advance from a buyer or a bill of exchange are considered. To record settlements with customers, account 62 “Settlements with customers” is used, the debit of which reflects the buyer’s debt to the seller, and the credit reflects payment for goods, work, services. Buyers can pay the seller either after receiving the goods, or by making an advance payment, that is, by transferring the advance to the seller’s bank account.
5. Registration of invoices for advance payments
It is necessary to calculate VAT on the sale price of goods (works, services) and send it for payment. Then, when goods, works or services are transferred to the buyer, VAT is charged again, this time on the proceeds. The figure below shows the main transactions of account 62 “Settlements with buyers and customers”. In fact, account 62 “Settlements with buyers” reflects the buyer’s debt to the seller, that is, accounts receivable.
We read off the prepayment in parts: what to do with advance VAT
In this video lesson, accounting account 62 “Settlements with buyers and customers” is discussed, typical wiring and examples. Dt 76 Kt 68 - VAT is reflected on the prepayment. In addition, according to sub. 3 p. 3 art. 170 of the Tax Code of the Russian Federation, the seller, having sold goods and materials for an amount less than the advance payment, can deduct VAT only from the sale amount, and not from the entire prepayment.
For the buyer, on the contrary, transferring an advance makes it possible to reduce the tax burden in the current tax periods. However, if for the buyer claiming a deduction for advance VAT is a right, then charging VAT for the seller is an obligation, failing which he may be held liable. When filling out the document details, you should pay attention to the choice of the value of the “Agreements” subconto of account 62.2 “Calculations for advances received (in rubles)”.
The advance can also be made under the agreement “Without an agreement (official; for payments without specifying an agreement).” This means that when selling goods (products, work, services) to a given buyer, this advance payment can be offset, regardless of the contract under which the goods (products, work, service) were sold.
If the statement contains several different advances, the system will prompt you to select the required payment from the list. In the generated posting for account 76.AB “VAT on advances”, the document “Invoices issued” itself, which generated this posting, is indicated as the value of the subconto “Invoices issued”. Thus, in the accounting results, accrued VAT clearly refers to a specific invoice. Based on the specified invoice, a new document “Sales Book Entry” will be generated, already filled in with the necessary information.
If the supplier has received an advance payment, he must determine the tax base and calculate the VAT payable to the budget.
In any case, on the date of receipt of the advance payment, the seller is obliged to calculate VAT payable to the budget. VAT file in tax documents, confirming the right not to charge.
VAT on the amount of the received prepayment is calculated provided that the date of its receipt precedes the day of shipment of goods (work, services). Let's say the contract states that ownership of the goods will pass to the buyer only after full payment of the cost of the shipped goods. There is no need to charge VAT on such prepayment amounts. After all, at the time the goods are shipped to the buyer, the supplier has already charged VAT on their cost.
Some organizations account for such VAT in account 62, analytical account 62-VAT-av “VAT on advances”. If you work as an accountant, then articles and news are available to you free of charge. We will be happy to help you with your work. And as a gift for making acquaintance to the address Email, which you indicate during registration, we will send you a table of changes in taxes and contributions. In terms of work performed (services provided), as a rule, we are talking about the provision of advances in the range of 30-50 percent of the cost of work (services).
Date of receipt of advance payment and date of shipment of goods
The main difference between a deposit and an advance is the fact that in the event of non-fulfillment of the contract, it remains with one of the parties to the contract. Accounting subaccounts can be assigned the following names - “Calculations for advances issued”, “Calculations for advances received”, etc. Only after the sales of products (goods, works, services) are reflected in the accounting records can the amounts of advances received be reflected as part of the organization’s income. It must be taken into account that, in accordance with tax legislation the amounts of advances received are included in the tax base for value added tax.
They should be understood as payments received by the taxpayer on account of upcoming supplies of goods (performance of work, provision of services). Only if, based on the results of the agreement (transaction), the amount of the deposit can be recognized as an advance payment, it is subject to inclusion in the VAT tax base on conditions similar to advance payments. Accordingly, the issue is resolved with the adoption of a reduction tax base for income tax on the amounts of advance payments paid.
To do this, in the “Invoices issued” journal, place the cursor on the invoice entered upon receipt of the advance payment that we credited, click the “Actions” button and select the “Enter based on” item. In this case, the amounts of advances received and prepayments are taken into account separately. Assignment of the right to claim debt from buyers and customers in favor of separate divisions.
Advance payments- a certain system of financial relationships associated with the issuance and receipt of advances for the supply of valuables, performance of work, payment for products and work performed for the customer or acceptance upon partial completion. The terms of the contract may provide for an advance in a certain amount. At the same time, the organization provides separate accounting for each advance received.
If an organization receives advances from buyers (customers) for the upcoming delivery of material assets (performance of work, provision of services), then an account is opened to account for such amounts. 62 subaccount “Calculations for advances received.”
If an organization is a VAT payer, then it must allocate tax from the advance received to pay it to the budget. For this you can use additional account 76, on which a sub-account “VAT on advances received” is opened.
If an advance payment is received from the buyer, account 62 will behave as a passive account: accounts payable (liability) are formed on the loan, and debt is repaid on the debit (liability reduction).
Postings for accounting for advances received (account 62):
Example 3.
The organization Alpha LLC received advance payment from the company Beta LLC for the shipment of finished products in the amount of 236,000 rubles. A week later, the company Alpha LLC shipped part of the finished products in the amount of 47,200 rubles. (including VAT RUB 7,200)
Debit 51 Credit 62.2– 236,000 rub. - receipt of the advance payment to the organization's bank account.
Debit 62.2 Credit 68– 36,000 rub. – VAT accrual on advance payment at a rate of 18%
Debit 62 Credit 90.1– 47,200 rub. – sales of finished products.
Debit 90.3 Credit 68– 7,200 rub. – VAT accrual on product sales.
Debit 68 Credit 62.2– 7,200 rub. - the amount of VAT previously accrued on the advance received was restored.
Debit 62.2 Credit 62– 47,200 rub. – advance received from buyers is credited.
Example 4.
Olympus JSC received an advance in the amount of 118,000 rubles from Saturn LLC. The advance was received for the upcoming supply of goods subject to VAT at a rate of 18%. Prepare accounting entries.
The Olimp accountant must make the following entries:
on the day of receiving the advance:
Debit 51 Credit 62.2– 118,000 rub. – an advance was received to the current account;
Debit 62.2 Credit 68 subaccount “VAT calculations”– 18,000 rub. (RUB 118,000 × 18%: 118%) – VAT is charged on the advance received;
on the day the proceeds from the sale are reflected:
Debit 68 subaccount “VAT calculations” Credit 62.2– 18,000 rub. – VAT accrued on the advance payment has been restored;
Debit 62 CREDIT 90-1– 118,000 rub. – revenue from the sale of goods is reflected;
Debit 62.2 Credit 62 -– 118,000 rub. – the advance payment previously received from the buyer is offset;
Debit 90-3 Credit 68 subaccount “VAT calculations”– 18,000 rub. – VAT payable to the budget has been accrued.
Settlements on bills received
Promissory notes received from buyers and bills of exchange issued by the buyer are considered as a means of securing debt. To account for such debt, it opens to Account 62 has a separate sub-account “Settlements on bills received”.
Sometimes the nominal value of a bill received from a buyer (customer) exceeds the contractual value of the sale of goods (work, services).
The amount of this excess, often referred to as interest included in the note, must be reported in the same way as the sale itself.
Postings to account 62 when paying by bill of exchange:
Example 5.
According to the supply agreement, the supplier shipped goods to the buyer in the amount of 147,500 rubles. (including VAT - 22,500 rubles). To secure the debt, the buyer issued his own bill of exchange to the supplier in the amount of 150,000 rubles. Upon expiration of the maturity date, the bill is paid by the buyer.
Prepare accounting entries.
shipment of products and presentation of payment documents to the buyer:
Debit 62 Credit 90.1– 147,500 rub. - Revenue from sales of goods is reflected.
Debit 90.3 Credit 68– 22,500 rub. – VAT accrual on product sales.
receipt of a bill:
Debit 62.3 Credit 62– 147,500 rub. – the bill received from the buyer is taken into account.
Debit 62.3 Credit 91.1– 2500 rub. – reflects the difference between the amount specified in the bill of exchange and the amount owed by the buyer for the delivered products.
payment of a bill:
Debit 51 Credit 62.3– 150,000 rub. – The received bill has been repaid.
It is worth paying attention to this point here. The refund of the received advance VAT, which was accepted with 100% prepayment for supplies made in separate batches, occurs in an amount corresponding to the amount of tax indicated in the invoices. There is no need to highlight the prepayment amount as a separate item in the invoices themselves. Example Let's take the conditions from the previous problem. On May 15, the buyer transferred an advance in the amount of 118,000 rubles to the seller’s account. On May 25, the seller shipped the goods against the funds received in the amount of 100 thousand rubles. The process of generating VAT from advances received and transaction registration transactions are presented below.
Advances issued: postings
VAT to the budget:
- Dt 68, s/ac "Calculations for VAT" - Kt 51 "Current account": 7,200 rub. – payment of VAT to the budget.
When the goods are shipped, a shipment invoice should be issued, which is also noted in the sales ledger. After this, the invoice for the previously issued advance payment can be included in the purchase book.
The amount of VAT sent to the budget from the amount of the advance received can be included in the deduction amount after one of two events:
- goods, services or work for which the advance was received have been delivered (performed) in full;
- the contract under which the advance was transferred was terminated with the return of the advance to the buyer.
Registration of VAT deduction from the advance received after fulfillment of obligations After fulfillment accepted obligations and payment of VAT on their amount, the supplier may accept for reimbursement the VAT previously paid in advance (Article 171 of the Tax Code of the Russian Federation, clause 8).
Accounting entries for advances from customers and suppliers
But what about a buyer who transfers funds at the end of the current period if the seller does not issue an invoice? According to the interpretation of the arbitration court, an “advance on supplies” can be recognized as a payment received in the same period in which the sale of goods occurred. In addition, for failure to fulfill the obligation (invoicing), according to Art.
120
NK, the company may be held liable:
- 5 thousand rubles if the violation occurred during one period;
- 15 thousand rubles. – in several periods;
- 10% of the amount (minimum 15 thousand rubles), if the tax base was underestimated.
In the case of long-term supplies (oil, gas, etc.), invoices can be prepared at least once a month. The document must be issued in the same period in which the prepayment was made.
Postings for advances issued and advances received
- Which advances are subject to VAT?
- How to account for VAT on advances received?
- VAT on advances received: postings
- Registration of VAT deduction from the advance received after fulfillment of obligations
- Registration of VAT deduction from the amount of advance received after its return
- VAT on advances issued
- VAT on advances issued - postings
Advance payments are considered to be payments in the amount of 100% or partially of the contract amount, made before the goods or service are actually received, work is completed, etc. Their primary goal is to ensure the fulfillment of obligations in terms of timing, volume and quality.
Based on Article 487, paragraph 1 of the Civil Code of the Russian Federation, prepayment, or advance payment, is considered to be payment received by the supplier or seller before he actually fulfilled his obligations.
VAT on advances received: postings, examples
- 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. Accounting for tax from the buyer The client who has made an advance payment on account of supplies is subject to deduction of the tax amounts presented by the seller on the basis of the following documents:
- accounts;
- payment slips confirming the transfer of funds;
- agreement.
Let's take a closer look at them.
The Ministry of Finance does not provide a special form of invoices used for prepayments. Therefore, you can use standard sample document.
The procedure for reflecting advances received from customers
VAT is considered and payable on advances received. Then, when goods, works or services are transferred to the buyer, VAT is charged again, this time on the proceeds.
The accrued amount of VAT on the advance received is restored, and then an entry is made to offset the advance. Postings for accounting for advances received (account 62): Debit Credit Name of transaction 51 62. Advance received An advance was received from the buyer to the current account 76. VAT on advances received 68 VAT accrued on the advance received 62/1 90/1 Revenue from the sale of goods is reflected 90 /3 68 VAT accrued on goods sold 62. Advance received 62/1 Offset of advance against debt repayment 68 76. VAT on advances received Accepted for deduction of VAT in connection with the sale of goods paid in advance Accounting for bills received from the buyer: If the buyer issued to the seller a promissory note, it must be accounted for in subaccount 3 “Bill received” of account 62.
Accounting for VAT on advance payments
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 credited, the posting will be internal to account 60.
But taking into account the presence of subaccounts for accounting for advances issued and received values, the entries to offset the advance to the supplier are usually as follows: Debit account 60, subaccount “Payments for delivered goods, works, services” - Credit account 60, subaccount “Advances issued” Or: Debit account 60.01 – Account credit 60.02 Subscribe to our channel in Yandex.
Offset of advance posting
VAT refundable, basis - invoice of Vesna LLC. After receiving the sun loungers:
- Dt 10 - Kt 60, s/c “Calculations based on received materials”: 80,000 rub. – receipt and posting of materials (sun loungers) excluding VAT;
- Dt 19 s/ac "VAT on acquired values" - Kt 60 s/ac "Settlements on advances received": 14,400 rubles. – input VAT is taken into account in the price of the sun loungers received;
- Dt 60, s/ac "Calculations for materials received" - Kt 60, s/ac "Advances issued": 47,200 rubles. – repayment of a previously issued advance;
- Dt 76, s/ac “VAT on advances issued” - Kt 68, s/ac “Calculations for VAT”: 7,200 rub. – the amount of VAT previously accepted for deduction from the advance payment has been repaid;
- Dt 68, s/ac: “Calculations for VAT” - Kt 19: “VAT on acquired values”: 7,200 rubles.
Offset of advance posting budget
Info
Registration of VAT deduction after termination of the contract with an advance payment previously received by the supplier. Let us assume that in the situation discussed above, the contract for the supply of sun loungers for Vesna LLC with Leto LLC in July was terminated, but before that Vesna LLC had already received an advance payment in May and transferred VAT on it. The VAT then paid to the budget is accepted for reimbursement.
This will require postings: In the month of May:
- Dt 51 - Kt 62 s/sch “Advances received”: 47,200 rubles. – advance payment is transferred from the buyer;
- Dt 76, s/account “VAT on advances and prepayments” - Kt 68, s/account “Calculations for VAT”: 7,200 (RUB 47,200 * 18% / 118%) – VAT is charged on the amount of the advance received;
- Dt 68, s/ac "Calculations for VAT" - Kt 51 "Current account": 7,200 rub. – transfer of VAT to the budget based on the results of the second quarter.
In the month of July:
- Dt 62 subaccount “Advances received” - Kt 51: 47,200 rubles.
Crediting advance payment to wiring supplier
Such control is required because:
- The invoice is independently generated by the client in 1C, issued and printed in 2 copies.
- The advance amount is calculated based on the data in the “Debt Repayment” document. If the “Automatic” calculation method is selected, the difference will be calculated based on the balances of 62.01. After closing all debts, the balance will be carried forward to 62.02. This amount will appear on the invoice. Therefore, before registering a document, you need to make sure that the information provided in the database is up to date.
2.
The invoice was issued in only one copy. A document “Registration of invoices for advance payments” is created, which will automatically generate balances for all unclosed prepayments. This method has its limitations.
We also discussed accounting for settlements with in our consultation. We will talk about the features of accounting for advances issued and received in this material.
Advance paid to supplier: posting
When a prepayment (advance payment) is transferred to the supplier, the entry in the buyer’s accounting is formed, at first glance, the same as when repaying the debt for goods, works, and services supplied:
Debit of account 60 “Settlements with suppliers and contractors” - Credit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, etc.
However, in accordance with the Chart of Accounts accounting and the Instructions for its application (Order of the Ministry of Finance dated October 31, 2000 No. 94n), analytical accounting on account 60 should ensure separate presentation of information, including on advances issued.
In addition, according to general rule offset between items of assets and liabilities in balance sheet not allowed (clause 34 of PBU 4/99). This means that accounts receivable for advances issued and accounts payable for settlements with suppliers should be shown separately in the balance sheet: in assets and liabilities, respectively.
To achieve these goals, a subaccount “Advances issued” is usually opened to account 60.
Therefore, for advances issued, the posting will look like this:
Debit account 60, subaccount “Advances issued” - Credit accounts 50, 51, 52, etc.
And if an advance was received from the buyer, the entry will be similar to the entry for the buyer’s repayment of his debt. However, similar to account 60, to differentiate between the debit and credit balances of account 62, subaccounts are added to it.
So, for advances received the posting will be as follows:
Debit of accounts 50, 51, 52, etc. - Credit of account 62, subaccount “Advances received”
It is clear that the accounting entry “Debit 51 - Credit 62” means that the seller received funds from the buyer to the current account.
Note that if an advance is issued to a supplier, the posting is made to a separate subaccount to account 60. But if an advance is issued for travel expenses, posting to a separate subaccount to account 71 “Settlements with accountable persons” is not made. This is due to the fact that the same accountable person cannot have both receivables and payables at the same time.
Advance offset: posting
When, after transferring an advance payment to the supplier, the buyer registers goods, works and services, he forms accounting entry on account credit 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 of issued and received values, then the entries 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
We've dealt with suppliers, now let's move on to buyers. How is customer accounting kept, what are the features of settlements with them, what entries in account 62 reflect mutual settlements with customers in the general case, when receiving advances or bills from them.
Buyers are individuals or legal entities to whom the organization sells goods, products and other material values and assets. Accounting for settlements with customers is kept on account 62. On account 62, analytical accounting can be kept for each individual buyer. The same account may reflect services provided and work performed.
Account 62 is active-passive, that is, accounting is kept on it. This account was analyzed in more detail in, read.
Several sub-accounts can be opened on account 62:
- Subaccount 1 – for accounting for calculations in the general case;
- Subaccount 2 – for accounting for advances received;
- Subaccount 3 – for accounting for bills received.
Accounting for settlements with customers
Debit account 62 reflects the cost of shipped inventory items, that is, the buyer’s receivables to the organization are formed here (proceeds from the sale).
The debit of account 62 corresponds with the credit of accounts for sales or other income and expenses. used when selling goods or products to a buyer, when this is a normal activity of the organization. used for one-time sales of assets: fixed assets, materials, intangible assets when this is not a normal activity of the enterprise - posting D62 K90/1 or D62 K91/1.
Credit account 62 reflects receipt of payment from the buyer, that is, repayment of existing debt. Credit account 62 corresponds with the debit of accounting accounts Money(counts 50, 51, 52, 55) – postings D50 (51, 52, 55) K62.
The cost of sold inventory items is reflected in the debit of account 62, taking into account VAT.
If an organization is a payer of this tax, then it must be calculated in accordance with the applicable rate and paid to the budget. The accrual of value added tax is reflected using entry D90/3 (91/2) K68/VAT (depending on what is sold). Tax payment is reflected using entry D68/VAT K51.
These postings are reflected during a regular sale, when the organization ships inventory items, and the buyer then pays for them.
In this case, account 62 behaves as active: the debit reflects the receivables (asset), and the credit reflects the repayment of debt (reduction of the asset).
Accounting entries for account 62 in the general case:
Accounting for advances received
Another option for settlements with customers is possible, when the organization first receives an advance payment from the buyer (advance payment), after which it makes the shipment. Accounting for settlements will be conducted slightly differently.
First of all, an additional subaccount 2 “Advances received” is opened. In this case, the first subaccount records calculations in the general case.
Receipt of an advance payment is reflected using posting D51 K62/2, and the seller’s accounts payable to the buyer is formed.
If an organization is a VAT payer, then it must allocate tax from the advance received to pay it to the budget. To do this, you can use additional account 76, on which a sub-account “VAT on advances received” is opened. The posting for calculating tax payable on an advance received has the form: D76/VAT on advances K68/VAT, posting is made on the day the advance is received.
On goods sold, VAT must also be charged for payment by posting D90/3 K68.VAT, posting is carried out on the day of shipment.
After the shipment has been made, it is necessary to offset the advance received as payment for the shipped valuables using posting D62/2 K62/1.
As for VAT, we see that the tax is assessed for payment twice: on the advance payment and on the sale. Of course, the organization will not pay it in double amount, so it is necessary to subtract VAT from the advance payment; for this purpose, posting D68/VAT K76/VAT from advances is performed.
If an advance payment is received from the buyer, account 62 will behave as a passive account: accounts payable (liability) are formed on the loan, and debt is repaid on the debit (reduction of liability).
That is why account 62 is active-passive, since it can behave as a passive and as an active account.
Postings for accounting for advances received:
Accounting for bills received
Another way to receive payment from the buyer for shipped valuables is to receive a bill of exchange from him to secure the arising accounts receivable. The bills received are reflected in subaccount 3, account 62.
