What is reflected in account 62. Accounting for settlements with customers
To reflect transactions with buyers and customers that relate to the main activities of the organization, account 62 is used. In accounting, this account is active-passive, corresponds with the credit of accounts 90, 91 and the debit of current accounts 50, 51, etc., and is used for recording information about counterparty transactions and analysis of mutual settlements.
Let's take a closer look at the account card in the 1C: Accounting 8.3 program.
To open the Chart of Accounts, you must follow the navigation path: Main / Settings / Chart of Accounts.
Adding and setting up subaccounts is performed in this window. Each organization individually creates subaccounts for account 62 depending on accounting needs. It is standardly proposed to keep records in the context of counterparties, contracts, documents of settlements with the counterparty, as shown below in the screenshot.
Also, in the card of each subaccount, you can additionally access the settings for currency, total accounting and other parameters.
From the “Chart of Accounts” form, you can go to the information register “Accounts for settlements with counterparties”. By clicking the hyperlink “Accounts for settlements with counterparties”, the user can set accounts for settlements with the buyer, which will be inserted into all settlement documents according to the specified conditions. As an example, let's set account 62.01 as the default for all counterparties, contracts and types of settlements. If necessary, different subaccounts of account 62 are added when additional detailed conditions are specified.
To analyze account turnover and identify errors, the sales accountant generates the “Account balance sheet” report, located along the navigation path: Reports / Standard reports / Account balance sheet.
You must select the period for generating the report, specify the account, organization and click the “Generate” button.
The report shows the expanded balance at the beginning of the period, debit and credit turnover for the period, and the expanded balance at the end of the period. The balance sheet is the main report for checking mutual settlements. By creating a statement broken down by subaccounts, counterparties and contracts, the accountant performs a reconciliation against primary documentation and checks movements on account 62 before the month-end closing procedure.
To perform detailed settings, click on the “Show settings” button.
On the “Grouping” tab you can:
click the “Add” button to add a report grouping from the number of sub-accounts for the selected account;
click the “Delete” button to delete the report grouping;
Click the “Move up” or “Move down” button to change the order of the report groupings:
On the “Selection” tab, you can limit the data to be displayed in the report. At the same time, the restriction can be imposed both on the entire subconto and on the details of the subconto.
On the “Indicators” tab, the user can specify the fields to be output to the report. When checking tax accounting turnover, you must check the “NU”, “PR”, “BP” flags.
Additionally, to check account movements, it is recommended to refer to the reports:
- Subconto analysis;
- Account analysis;
- Account card;
- Account turnover.
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To reflect the analytical analysis of information about payment and shipment between the client and the contractor, it begins to be filled in register “Settlements with buyers and customers” 62 accounts.
To systematize and summarize information about business transactions between buyers and suppliers, accounting prepares accounting analytics for account 62. Each counterparty undergoes an individual analysis of transactions.
You can trace in detail all transactions performed by all participants:
- goods shipped or works and services provided;
- payment made within the terms specified in the contracts;
- overdue payment (accounts receivable);
- advances received;
- transactions with bills.
Details of settlement transactions with customers-clients are formed on sub-accounts:
- 01 – sales or shipment of products;
- 02 – advances received from customers;
- 03 – promissory notes received.
These are frequently used subaccounts of account 62 for conducting business activities. Each organization individually creates sub-accounts depending on the company’s work.
Count 62 is active-passive, which means that the balance can be formed by both debit and credit. It is better to display the opening and closing balances of the reporting period in expanded form on subaccounts.
This is due to the fact that:
- Debit balance means that the buyer has not yet paid for the goods shipped or the services provided have not been completed (accounts receivable).
- Loan balance indicates that an advance has been made, but the goods have not yet been shipped or the work has not been completed.
Analysis of analytical accounting allows you to maintain detailed records of transactions for each client of the enterprise.
The value of the balance sheet
The internal accounting register, which contains information about the movement of turnover and balances for any period of time of mutual settlements with customers, is (SAW). The generated SALT account 62 is used as the basis for providing a statement of reconciliation of settlements with customers.
Let's give an example of OCB between the municipal unitary enterprise "Vesna" and the municipal municipality "Mikhailovsky Cultural Center": at the beginning of June 2017, sales of goods and payment in the amount of 25,513.18 rubles. was shipped and paid for. The movement by date is indicated in the table. In June 2017, goods worth 12,520 rubles were shipped, but payment for the goods was not received.
Bottom line: in the SALT for June 2017, receivables for the Mikhailovsky Cultural Center MKU accumulated in the amount of RUB 12,520.
| Turnover balance table for account 62 for June 2017 | ||||||
|---|---|---|---|---|---|---|
| Total expanded | 25513,18 | 25513,18 | 12520,00 | 38033,18 | 25513,18 | |
| Check | Opening balance | Period transactions | Closing balance | |||
| Counterparties | Dt | CT | Dt | CT | Dt | CT |
| Documents of settlements with the counterparty | ||||||
| 62 | 25513,18 | 25513,18 | 12520,00 | 38033,00 | 25513,18 | |
| Municipal government institution "Mikhailovsky Cultural Center" | 25513,18 | 25513,18 | 12520,00 | 38033,00 | 25513,18 | |
| Sales of goods and services 00000000293 from 04/27/2017 14:18:12 | 3830,18 | 3830,18 | ||||
| Sales of goods and services 00000000459 from 05/18/2017 0:00:09 | 12165,00 | 12165,00 | ||||
| Receipt to the current account 00000000006 from 05/23/2017 12:00:01 | 3830,18 | 3830,18 | ||||
| Sales of goods and services 00000000460 from 05/24/2017 14:49:51 | 9518,00 | 9518,00 | ||||
| Receipt to current account 00000000007 from 05/30/2017 12:00:00 | 9518,00 | 9518,00 | ||||
| Receipt to the current account 00000000008 from 05/30/2017 12:00:01 | 12165,00 | 12165,00 | ||||
| Sales of goods and services 00000000462 from 06/15/2017 13:12:00 | 12520,00 | 12520,00 | ||||
| Total | 12520,00 | 12520,00 | ||||
The final balance of SALT account 62 is displayed in the balance lines. If the loan balance, i.e. debt formed as a result of unshipped goods, then the amount will be in the liability side of the balance sheet. With a debit balance, this is a receivable - it increases the assets of the enterprise and is in the asset balance sheet.
Account 62 is correlated in debit and credit with the following accounts.
By debit 62:
- 46 — execution of unfinished work;
- 50 — cash payment in cash;
- 51 , 52 , 55 — payment to the bank’s personal account;
- 62
- 76 — settlement procedure with buyers (debtors and creditors);
- — revenue from trade;
- 91 — income and expense transactions not related to the company’s activities.
For loan 62:
- 50 — advance payment from buyers using the cash method;
- 51 , 52 , 55 — advance payment from buyers through a current account;
- — settlement transactions with performers;
- 62 — mutual settlements with counterparties;
- 63 — doubtful debts in reserve;
- — operations on short-term loans;
- 67 — operations on loans and credits for long periods;
- 73 — other settlements with employees;
- 76 — settlement procedure with clients (debtors and creditors);
- 79 — calculations for internal production operations.
In practice, for the economic conduct of commercial activities, main operations by count 62 are:
- Movement of settlements with customers-buyers for shipped goods.
- Advance payments from buyers.
- Operations with promissory notes.
General settlement transactions with customers
The supplier Partner LLC concluded an agreement with the client Zarya LLC for the sale of office supplies in the amount of 21,510 rubles, incl. VAT RUB 3,281.19 Payment for goods after shipment.
The accountant of Partner LLC forms the following in the accounting register: postings:
- Dt 62.01 Kt 90.01– 21,510, revenue from the sale of stationery (based on invoice);
- Dt 90.02 Kt 41– 10,000, cost of stationery based on calculation;
- Dt 90.03 Kt 68— 3281.19, VAT accrued on the invoice;
- Dt 51 Kt 62.01– 21,510, payment from the customer for stationery according to a payment order;
- Dt 90.09 Kt 99– 8228.81, profit from the sale of stationery.
Accounting for advances received
On June 1, 2017, the supplier Partner LLC entered into an agreement with the buyer Zarya LLC for the supply of stationery in the amount of 21,510 rubles, incl. VAT—RUB 3,281.19. The contract stipulates an advance payment of 30% of the amount of shipped products, which is 6,453 rubles, incl. tax 984.36.
The advance payment was transferred on June 2, 2017 to the bank account of Partner LLC. On June 7, 2017, goods were shipped to Zarya LLC in the amount of 21,510.
On June 9, 2017, Zarya LLC transferred the remaining amount in the amount of 15,057 rubles, incl. tax (VAT) 2296.83 rub. Based on primary documents, the accountant creates following postings:
- Dt 51 Kt 62.02– 6453 rubles, receipt of advance payment to the current account according to a payment order;
- Dt 76 Kt 68— 984.36 (6453 * 18% / 118%) rubles, VAT on the advance payment is determined (issued for the amount of the advance payment, one copy - to the buyer);
- Dt 62.01 Kt 90.01– revenue of 21,510 rubles is reflected according to the invoice;
- Dt 90 Kt 68– RUB 3,281.19, VAT on goods shipped;
- Dt 68 Kt 76– 984.36 rubles, VAT accepted for accounting, deduction from advance payment;
- Dt 62.02 Kt 62.01– 6453 rubles, advance payment from Zarya LLC was credited;
- Dt 51 Kt 62.01– 15,057 rubles, funds were credited to the bank account (remaining amount);
- Dt 68 Kt 51– 3281.19 rubles, VAT transferred to the budget.
If the organization has received an advance payment, then after the goods have been shipped, it must be closed by internal posting to subaccounts, otherwise erroneous data will be provided and the organization’s reports will be unreliable. Posting Dt62.02 Kt61.01 closes the advance payment. Advice for accountants: constantly check the movement of transactions on account 62.
A bill is security, a promissory note that gives the owner (the holder of the bill) the right to demand payment from the drawer for goods shipped or work performed within a certain period. The issuance of such a bill means a deferred payment.
For transactions on bills of exchange opens subaccount 62.03 “Bills received”.
Let's give an example with accounting entries: LLC “Partner” sold stationery to LLC “Zarya” for the amount of 23,500 rubles, incl. VAT 3584.75. LLC "Zarya" issued a promissory note to LLC "Partner" with a nominal amount of 24,000 rubles, they are done in the accounting department following postings:
- Dt 62.01 Kt 90.01– 23,500, stationery shipment completed;
- Dt 90.03 Kt 68– 3584.75, VAT added;
- Dt 62.03 Kt 62.01– 23,500, receipt of a bill of exchange;
- Dt 008– 24,000, the bill was capitalized in an off-balance sheet account.
When paying for a bill, the postings will be following:
- Dt 51 Kt 62.03– 23,500, the bill has been paid;
- Dt 51 Kt 91.01– 500, the difference between the nominal price of the bill and the purchase price (24,000 – 23,500);
- Kt 008– 24,000, writing off the bill from an off-balance sheet account.
If there are overdue obligations on bills of exchange, then this amount relates to accounts receivable.
Can an account have a credit balance?
Account 62 is an active-passive register, i.e. Depending on the transactions performed, the ending balance can be either a debit or a credit.
The debit balance reflects expenses associated with product sales. Credit balance is the amount of revenue for shipped products transferred to the company's current account.
When compiling a balance sheet, the credit balance on account 62 will be reflected in line 1520 “Short-term accounts payable,” which indicates a decrease in the balance sheet asset.
The balance sheet for account 62 in 1C is presented below.
All mutual settlements for goods, works, and services that the company sold to third parties during the reporting period should be reflected in a separate accounting account. In this article we will tell you how to organize accounting on account 62 “Settlements with buyers and customers”.
Account 62 in accounting
In accordance with the current chart of accounts approved by Order of the Ministry of Finance No. 94n, the special account BU 62 should reflect settlements with buyers and customers for goods, works, and services that were sold in the reporting period.
This accounting account accumulates information about mutual settlements for products sold without taking into account their organizational and legal form. That is, on the account. 62 take into account settlements with legal entities, entrepreneurs and individuals.
Accounting account 62 for dummies is used to collect and summarize information on mutual settlements for sold, provided, shipped, completed goods and works of the company in favor of third parties - buyers and customers.
Account 62 is a mirror image of accounting account 60 “Settlements with suppliers and contractors”. The key difference between these accounting accounts is that for 62 accounts. reflect their GWS sold to other companies, and on the account. 60 - purchased from third parties.
Characteristics and features of accounting
This special account belongs to the active-passive group, that is, the working balance can be formed by both debit and credit. When products are shipped to the company's customers, the operation is reflected as a credit turnover in the correspondence of accounting accounts 90 or 91. When funds are received from customers as an advance for a future supply of goods and materials or payment, a credit account entry is created. 62 in correspondence with special accounting accounts 50, 51, 52.
Current legislation provides for the creation of separate sub-accounts for additional detail of accounting data. So, in the accounting of a company the following can be opened:
- subaccount 62-01 - for mutual settlements with customers according to general rules with payment in the current mode;
- subaccount 62-02 - information is reflected on settlements with customers and buyers under agreements providing for the transfer of advance payments;
- subaccount 62-03 - data on mutual settlements with customers is generated if payment is made by bills of exchange.
If necessary, the organization has the right to create other sub-accounts that reflect the features and specifics of the activity. This decision should be reflected in the accounting policies.
Retail trade can be reflected in accounting, bypassing the account. 62, that is, immediately on the sales account. We talked about what accounting entries to make in this case in a separate article.
Analytical accounting should be organized in such a way that when creating a card or balance sheet for account 62, it is possible to obtain information about mutual settlements and the amount of receivables and payables in the context of:
- documents for which the payment deadline has not arrived;
- documents with overdue payments;
- advances received from clients;
- bills of exchange for which the payment date has not yet arrived;
- bills of exchange accounted for in credit or banking organizations;
- bills overdue for payment.
For each operation, the company must prepare supporting documents: invoices, delivery notes, certificates of completion of work, checks, receipts and other documentation.
Typical postings for account 62
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Operation |
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An advance or payment has been received from the buyer |
50 – cash 51 — cashless payment 52 — payments in foreign currency |
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VAT is charged on the advance received |
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The shipment of goods is reflected |
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The advance received has been offset |
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The amount of accrued VAT has been restored |
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Reflects mutual offset between organizations |
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Uncollectible receivables were written off against the created reserve for doubtful debts |
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Written off accounts receivable are written off to other expenses |
Account 62 is intended to summarize information about settlements with buyers and customers in accounting. Find out what transactions are reflected in the debit and credit of this account.
This is an analytical account that reflects the supplier’s transactions with the buyer. It records the debt to the buyer (credit), as well as the buyer's debt (debit). In the balance sheet, an account can be included in both an Asset and a Liability. Read more below.
Account 62 in accounting
- credited in correspondence with cash accounts, settlement accounts for the amounts of payments received (including the amounts of advances received), etc. In this case, the amounts of advances received and prepayments are taken into account separately.
- debited in correspondence with accounts 90 “Sales”, 91 “Other income and expenses” for the amounts for which settlement documents were presented.
Analytical accounting is maintained for each invoice presented to buyers (customers), and for settlements using scheduled payments - for each buyer and customer. At the same time, it should show data on:
- buyers and customers on payment documents for which the payment deadline has not yet arrived;
- buyers and customers on payment documents not paid on time;
- advances received;
- bills for which the due date for receipt of funds has not yet arrived;
- bills discounted (discounted) in banks;
- bills for which funds were not received on time.
Accounting when paying with bills of exchange requires reflecting the debt to the counterparty on the credit of account 62 “Settlements with buyers and customers”.
If interest is provided on the received bill of exchange securing the debt of the buyer (customer), then as this debt is repaid, an entry is made in the debit of account 51 “Currency accounts” or 52 “Currency accounts” and the credit of account 62 of accounting (for the amount of debt repayment) and 91 “Other income and expenses” (percentage).
Accounting for settlements with buyers and customers within a group of interrelated organizations, about the activities of which consolidated financial statements are prepared, is kept separately on account 62.
Subaccounts of account 62
You can open six sub-accounts for account 62:
- 62-1 "Settlements under government contracts";
- 62-2 "Settlements with procurement and processing organizations of the agro-industrial complex";
- 62-3 "Settlements on bills received";
- 62-4 "Calculations for advances received";
- 62-5 "Intra-group settlements of interrelated organizations";
- 62-6 "Settlements with other buyers and customers."
Subaccount 62-1 - to summarize data on settlements with government agencies for sold products and livestock. As sales are recognized for the fulfillment of government orders, the debt of authorized bodies is reflected in the debit of this subaccount in correspondence with account 90 “Sales”. If the shipment of agricultural products was made to repay a previously received commodity loan, then at the same time an entry is made in the debit of accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings” and the credit of subaccount 62-1 “Settlements for government contracts."
Subaccount 62-2 - to summarize information on payments for sold agricultural products, animals and services provided for their delivery, in the order of fulfillment of contracts. As sales to procurement organizations are recognized, the debt is reflected in the debit of this subaccount in correspondence with account 90 “Sales”, subaccount 1 “Revenue”. If an agricultural organization and a procurement organization are part of an interrelated group, then such calculations should be taken into account in subaccount 62-6 “Intra-group calculations of interrelated organizations.”
Subaccount 62-3 reflects information about the debt of buyers and customers, secured by bills received. If interest is provided on the received bill of exchange securing the debt of the buyer (customer), then as this debt is repaid, an entry is made to the debit of account 51 “Currency accounts” or 52 “Currency accounts” and the credit of account 62 “Settlements with buyers and customers” (on the amount of debt repayment) and 91 “Other income and expenses” (by the amount of interest).
Subaccount 62-4 is used to reflect information on settlements for advances received in accordance with contracts for the supply of inventories or for the performance of work performed for customers on partial completion. The amounts of advances and prepayments received are reflected on the credit account 62-4 in correspondence with the cash accounts. Funds received in advances and prepayments, offset upon presentation by the buyer or customer of payment documents for delivered products, are reflected in the debit of subaccount 62-4 and the credit of subaccounts 62-2 and 62-6.
Subaccount 62-5 reflects information on settlements of interrelated organizations (holdings, financial and industrial groups, etc.) for products sold, animals, work performed and services provided. The information from this sub-account is used to determine the adjustments necessary for the preparation of summary (consolidated) statements.
Subaccount 62-6 reflects information with other buyers and customers (legal entities and individuals) on transactions for the sale of finished products, goods, animals, as well as the performance of work and provision of services not provided for in other subaccounts of account 62. In particular, on the specified subaccount The following calculations may be reflected:
- with an individual entrepreneur without forming a legal entity for the products sold by him and the work performed;
- with agricultural organizations for services provided (processing of customer-supplied raw materials, work performed by auxiliary production, etc.).
When shipping products, animals, materials; For the execution of work and provision of services, the corresponding primary documents are drawn up: invoices, acceptance certificates for completed work, etc. The main documents for the emergence of settlement relationships between agricultural and procurement organizations are acceptance receipts. The form of receipts depends on the type of products sold: grain, milk, livestock, etc. In accordance with tax legislation, the information reflected in the listed documents is subject to registration in invoices of the established form. When receiving funds in the form of advances or other payments for upcoming deliveries of animal products (performance of work, provision of services), the organization also draws up an invoice.
Account 62 correspondence
| by debit | on loan | ||
| 46 | Completed stages of unfinished work | 50 | Cash register |
| 50 | Cash register | 51 | Current accounts |
| 51 | Current accounts | 52 | Currency accounts |
| 52 | Currency accounts | 55 | Special bank accounts |
| 55 | Special bank accounts | 57 | Transfers on the way |
| 57 | Transfers on the way | 60 | Settlements with suppliers and contractors |
| 62 | Settlements with buyers and customers | 62 | Settlements with buyers and customers |
| 76 | 63 | Provisions for doubtful debts | |
| 79 | On-farm settlements | 66 | Calculations for short-term loans and borrowings |
| 90 | Sales | 67 | Calculations for long-term loans and borrowings |
| 91 | Other income and expenses | 73 | Settlements with personnel for other operations |
| 75 | Settlements with founders | ||
| 76 | Settlements with various debtors and creditors | ||
| 79 | On-farm settlements | ||
Account 62 postings
| Debit | Credit | Operation |
|---|---|---|
| 62 | 46 | Write-off of the cost of completed stages of work. The cost must be paid by the customer and all work on the project is completed. |
| 62 | 50 | Return from the cash register to the buyer of overpaid funds |
| 62 | 50 | Refund from the cash register to the buyer of the advance payment |
| 62 | 51 | Return of overpaid funds from the current account to the buyer |
| 62 | 51 | Refund from the current account to the buyer of the advance payment |
| 62 | 52 | Return from a foreign currency account to the buyer of overpaid funds |
| 62 | 52 | Refund from a foreign currency account to the buyer of the advance payment |
| 62 | 55 | Return from a special account to the buyer of overpaid funds |
| 62 | 55 | Return from a special account to the advance buyer |
| 62 | 57 | Postal order to the buyer |
| 62 | 62 | Advance from the buyer is offset against debt repayment |
| 62 | 76 | |
| 62 | 90 | Reflection of revenue from the sale of goods (services) |
| 62 | 91 | Inclusion of the amount of advance payment from the buyer into other income due to the expiration of the statute of limitations |
| 62 | 91 | Inclusion of positive exchange rate differences in foreign currency in other income |
| 62 | 91 | Reflection of proceeds from the sale of fixed assets and other property |
Credit 62
| Debit | Credit | Operation |
|---|---|---|
| 50 | 62 | Incorporation of proceeds - cash received from the buyer - to the organization's cash desk |
| 50 | 62 | Depositing an advance payment from the buyer to the cash register |
| 51 | 62 | Crediting cash from the buyer to the organization's current account |
| 51 | 62 | Transfer of advance payment by the buyer to the organization's bank account |
| 52 | 62 | Crediting funds from the buyer to the organization's foreign currency account |
| 52 | 62 |
Transfer by the buyer of an advance payment to the organization’s foreign currency account |
| 55 | 62 | Transferring funds from the buyer to a special account of the organization |
| 55 | 62 | Transfer by the buyer of an advance payment to a special account of the organization |
| 57 | 62 | Transfer of funds by the buyer through a post office or savings bank |
| 60 | 62 | Settlement of counterclaims of the same type |
| 63 | 62 | Debt write-off from the reserve for doubtful debts upon expiration of the statute of limitations |
| 66 | 62 | Repayment of debt on a short-term loan through offset of similar counterclaims |
| 67 | 62 | Repayment of debt on a long-term loan through offset of counter similar claims |
| 73 | 62 | Debt of the organization's employees for products sold to them |
| 75 | 62 | Offsetting the claims of the founders for the payment of income to them through the repayment of debt for the products supplied to them |
| 76 | 62 | Settlement of counterclaims of the same type |
| 91 | 62 | Inclusion of negative exchange rate differences in foreign currency as part of other expenses |
Account 62 in accounting accumulates data on settlements with buyers and customers. The features of its use are described in this article.
Accounting for accounts receivable on account 62
The rules that need to be kept in mind when working with account 62 “Settlements with buyers and customers” are indicated in the chart of accounts and instructions for it, approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n. Count 62 is used to reflect:
- accounts receivable (hereinafter referred to as receivables) of buyers and customers for goods, works, services sold (hereinafter referred to as GWS);
- accounts payable in the form of advances received.
Turnover in the debit of account 62 occurs when reflecting the debt of buyers when the sale of goods and services takes place. The second side of the posting will be income accounts 90.1, 91.1 or account 46 for the gradual reflection of income from long-term work. Thus, receivables are reflected simultaneously with revenue. In accordance with the accounting rules, revenue is shown in accounting if a number of conditions are met (clause 12 of PBU 9/99 “Organizational Income”, approved by order of the Ministry of Finance of Russia dated May 6, 1999 No. 32n):
- existence of a legally valid right to receive proceeds;
- availability of total revenue value;
- having confidence in receiving payment;
- a transfer of ownership was carried out, i.e. the buyer accepted the GWS;
- the presence of the total value of the corresponding expenses incurred to obtain this revenue.
If at least one condition is not met, then the payment received by the organization should be reflected as accounts payable, and not repay accounts receivable.
When payment is received from the buyer, account 62 is credited, and a debit entry is made in the cash accounts.
Analytics of 62 accounts should allow checking its balances for the presence of overdue debts, that is, carried out in the context of counterparties, issued invoices, and payment terms. To ensure transparency of reporting, overdue debt must be reserved by posting Dt 91.2 Kt 63 (clause 70 of the Regulations on accounting and financial reporting in the Russian Federation, approved by order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n). In the balance sheet, receivables are shown minus reserves. Debts that cannot be repaid and debts with an expired statute of limitations must be written off (clause 77 of the PBU) at the expense of the reserve by posting Dt 63 Kt 62, and if they were not reserved, then they are written off to the financial results of Dt 91.2 Kt 62. When In this case, for another 5 years, the written off debt is reflected on the balance sheet (account 007) in order to track changes in the financial condition of the debtor and the possibility of repaying the debt.
Accounting for advances received
Payment of goods and materials prior to their shipment or transfer is accounted for separately on account 62; subaccount 62.2 “Advances received” is usually used, while subaccount 62.1 “Settlements with buyers and customers” is used to account for receivables from buyers. In the balance sheet, advances received are included in accounts payable, that is, they are shown as a liability; it is impossible to show advances minimized from accounts payable. In addition, upon receipt of an advance payment, the supplier must charge VAT (clause 1 of Article 167 of the Tax Code of the Russian Federation).
Example:
In July, Pchelka LLC (buyer) and Vasilek LLC (seller) signed an agreement for the purchase of paving slabs worth RUB 944,590. In the same month, Pchelka LLC made a full prepayment. The following entries are made in the accounting of Vasilek LLC:
Dt 51 Kt 62.2 - 944,590 rub. — an advance payment from Pchelka LLC has been received into the bank account;
Dt 76 subaccount “VAT on advances received” Kt 68 subaccount “VAT” 144,090 rub. (944,590 × 18/118) - VAT is charged upon receipt of an advance payment.
In August, Vasilek LLC shipped all the paving slabs to the buyer and recorded the following entries:
Dt 62.1 Kt 90 — 1,944,590 rub. — revenue accrued;
Dt 90.3 Kt 68 subaccount “VAT” - 144,090 rubles. — VAT is charged on sales;
Dt 68 subaccount “VAT” Kt 76 subaccount “VAT on advances received” 144,090 rubles. — previously accrued VAT on the prepayment received is accepted for deduction;
Dt 62.2 Kt 62.1 - 944,590 rub. — the previously received prepayment has been offset.
Payments by bill of exchange
The instructions for the chart of accounts also pay attention to the peculiarities of settlements with bills of exchange. If the buyer issues his own bill of exchange to the supplier, then the debt is not repaid, but by this action a deferred payment is issued and a guarantee of payment is issued. To account for bills received, it is recommended to allocate a separate sub-account, for example, 62.3 “Bills received”. The following entries are made in the seller's accounting:
Another situation arises if the debt is paid by a bill of exchange from third parties. Such a bill of exchange is recognized as a financial investment and is accounted for in account 58. The entries shown in the table are made in the supplier’s accounting:
Results
For different types of debt, the chart of accounts provides for special accounts. One of them is account 62, which can be either active or passive, since it is used to account for both debt from buyers and customers, and creditors in the form of advances and prepayments received.