In this case, the same VAT return will show the tax accrued both on the advance payment and on the shipment made on account of this advance payment, as well as a deduction in the amount of VAT from the advance payment. You can read more about VAT accounting for advance payments in the article: “VAT accounting for advance payments and for gratuitous transfer”.

Also consider how promissory notes and advances received from a buyer are accounted for? If the assets are sold, and this is not the usual activity of the company, then D91 / 3 K68.VAT is posted.

It is possible that the organization, the seller, first receives an advance payment (advance) from the buyer, and then, on account of this advance, ships goods and products. Advances received from buyers are also recorded on account 62, but for convenience, a separate subaccount 62.2 “Received advances” is opened. In the case of received advances on the credit of account 62, the accounts payable of the enterprise is reflected.

This posting must be done on the day the advance is received. After that, the goods are sold to the buyer, VAT must also be charged on the sold goods by posting D90 / 3 K68.VAT, which is performed on the day of sale. As you can see, account 62 can take into account both the accounts payable of the enterprise (the goods have been shipped, payment has not yet been received), and the accounts payable (upon receipt of an advance from the buyer).

If the organization shipped the goods, products to the buyer and received a bill from him to secure the debt, then it must be taken into account on a separate sub-account 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 by a different posting. In this article, we will figure out how relationships with customers are taken into account in accounting.

Considered transactions in a regular sale, upon receipt of an advance from a buyer or a bill of exchange. To account for settlements with buyers, account 62 "Settlements with buyers" is used, the debit of which reflects the buyer's debt to the seller, and on the loan - payment for goods, works, services. Buyers can settle accounts with the seller either after receiving the goods, or by making an advance payment, that is, transferring the advance to the seller's account.

5. Registration of invoices for advance payment

It is necessary to calculate VAT from the sales value of goods (works, services) and send it for payment. Further, when goods, works or services are transferred to the buyer, VAT is charged again, this time from 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.

Reading out the advance payment in installments: how to deal with advance VAT

In this video lesson, account 62 "Settlements with buyers and customers" is examined, typical transactions and examples are considered. Dt 76 Kt 68 - VAT on prepayment is reflected. 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 on the sales amount, and not on the entire prepayment.

To the buyer, on the contrary, the transfer of the advance makes it possible to reduce the tax burden in the current tax periods. However, if for the buyer the application of a deduction for advance VAT is a right, then the accrual of VAT for the seller is an obligation, without which he can be held liable. When filling out the details of the document, you should pay attention to the choice of the value of the subconto "Agreements" of account 62.2 "Settlements on advances received (in rubles)".

Advance payment can also be made under the agreement "Without a contract (service; for payments without specifying a contract)". This means that when selling goods (products, works, services) to a given buyer, this advance can be credited, regardless of the contract under which the goods (products, work, services) were sold.

In the case when several different advances are indicated in the statement, the system will offer to select the desired payment from the list. In the generated posting on account 76.AB “VAT on advances”, the document “Invoices issued” that generated this posting is indicated as the value of the sub-account “Invoices issued”. Thus, in the accounting results, the accrued VAT is unambiguously related to a specific invoice. Based on the specified invoice, a new document "Record of the sales ledger" 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. Submit VAT to tax documents confirming the right not to charge.

VAT on the amount of the received prepayment is calculated on the condition that the date of its receipt precedes the day of shipment of goods (works, services). Let's say the contract states that the 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. Indeed, at the time of shipment of the goods to the buyer, the supplier has already charged VAT on their cost.

Some organizations take into account such VAT on account 62, analytical account 62-VAT-av "VAT on advances". If you work as an accountant, then articles and news are available for you free of charge. We will be glad to help you with your work. And as a gift for acquaintance to the e-mail address that you indicate during registration, we will send you a table of changes in taxes and fees. As for the work performed (services provided), as a rule, we are talking about the allocation 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 the deposit and the advance is the fact that in the event of non-performance of the contract, it remains with one of the parties to the contract. The following names can be assigned to accounting sub-accounts - "Calculations on advances issued", "Calculations on advances received", etc. Only after the fact of reflection in the accounting for the sale of products (goods, works, services), the amount of advances received can be reflected in the structure of the organization's income. It should be borne in mind 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 the forthcoming supply 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 terms similar to advance payments. Accordingly, the issue is being resolved with the adoption of the amounts of advance payments paid in reducing the tax base for income tax.

To do this, in the journal "Invoices issued", you should place the cursor on the invoice entered when receiving the advance payment, which we credited, click the "Actions" button and select the "Enter based on" item. In this case, the amounts of advances received and prepayment are accounted for separately. Assignment of the right to claim debt from buyers and customers in favor of separate divisions.

You will find out in what cases it is discharged and what are the terms for issuing this document). To do this, you must register it in the purchase book, where you should note the proper information about the account.

In the case of working with documents in electronic form, you can register an account using the appropriate programs. This can be done either manually or in an automated manner.

Then, at the end of the current period in which the document was drawn up, it must certainly be submitted to the local inspectorate for its registration and the possibility of exercising the rights to the necessary deductions. You do not need to perform any other actions with the issued advance invoices.

When a seller receives money from a customer, he must do the following:

1. Subtract VAT from the received amount and make an accrual for payment transaction (examples of transactions below).
2. Prepare a s / f in 5 days (you can find out how to fill in the AFS and in what time frame, and we told you how to use indices and prefixes to number various types of invoices).
3. Register this account in the sales ledger in the quarter when the money is received.
4. On the day of actual shipment, issue a s / f again against the advance received earlier.
5. Send for payment previously charged VAT for shipment.
6. And the VAT calculated upon receipt of the prepayment amount should be sent for deduction.
7. Register the advance invoice in the appropriate purchase book.

The buyer needs:

• accept for deduction the VAT indicated on the advance invoice received from the supplier;
• allocate VAT on accepted goods and materials on account of the payment made earlier and send it for deduction;
• recover the advance tax.

In what reporting documents is it recorded?

After the prepayment for the transaction has been made, and the ASFs are created, they need to be registered.

For this purpose, as already mentioned, the purchase / sales books are used, which are at the buyer and supplier.

Also instead of using books, it is allowed to register accounts using electronic programs(for example, 1C). How to reflect the receipt of these documents will be described below.

At the same time, regardless of how the invoices are drawn up, the period for their registration should not exceed five days from the date of receipt (in some cases determined by law - within a month).

Registration options

When registering an account in the 1C program, there are several ways to register it.

1. Register always upon receipt of an advance... If you choose this option, all received advance invoices will be registered automatically for each accrued amount, except for advances that were credited on the day of receipt.
2. Do not register credits within 5 days... In this case, invoices will be created only for those amounts that were not credited within five days from the date of receipt. This method helps to implement the requirement in the tax code to register accounts within 5 days ().
3. Amounts credited before the end of the month are not recorded... This registration option is not suitable for all cases (otherwise, you can get a fine for late registration).

   You need to choose it only in those situations when the supply of goods or services occurs continuously in relation to the same person.

   It is suitable for advance payment for Internet access services, communications, electricity, as well as in other similar situations.

   That this practice is not a violation is explained in a letter from the Ministry of Finance dated March 6, 2009. At the same time, invoices of this kind must be drawn up no later than the 5th day of the month following the month of transfer of the advance.

   For example, the services of an Internet provider were paid in advance for July. In such a situation, an advance account will need to be issued no later than July 5 of the same year.

4. Do not register accounts credited before the end of the tax period... The use of this clause is controversial and may cause controversy with the tax authorities. It should be used only by those companies that are ready to defend their position.

   The opportunity to choose this option is due to the following: there is an opinion that the name "advance payment" should not relate to payments accrued in the same period in which the shipment takes place, since then they do not correspond to the very concept of "advance".

   And if so, then it is not necessary to draw up advance accounts for the current period. True, it should be said once again that when choosing this option, disputes with the tax service will be guaranteed.

5. Do not register incoming payments as advance payments at all... It is suitable only for organizations designated in the Tax Code in article 167. These include companies with a long production cycle of the final product, exceeding a period of 6 months.

In manual mode

There are two main ways to register ASF in the 1C program. The first is the manual method. It is suitable when you have to register a small number of accounts. Instructions:

Automatically

In a situation where there are a lot of incoming invoices, registering them manually becomes inconvenient and time-consuming. In this case, it is better to set up automatic registration. Instructions:

1. To do this, you need to go to the "banks and cash desks" subsection, where you can find "advance accounts". After selecting this item, a window will appear in which you should select the period for which the documents will be generated.
2. Then you need to click the "fill" button and select all unregistered accounts. In this case, the list can be easily corrected and, if necessary, delete unnecessary documents or add new documents.
3. When all the necessary advance invoices from the supplier have been selected, all that remains is to click on the "execute" button, after which they will be processed - this is how all the rules for offsetting the ASF will be observed.

   The list of all executed documents can be opened at any time by clicking on the link: "open the list of accounts for advance payment".

What transactions correspond to the issued document?

When an advance payment is received, a transaction is generated that records the funds received on the account of the service provider (seller). Then, after the seller has drawn up and received the advance invoice by the buyer, the ready invoices are posted when they are registered.

This can be done with each account individually, or in a general automated mode (as explained earlier).

The seller's wiring will be something like this:

• debit 51 Credit 62av - advance money received from the buyer;
• debit 62av. Credit 68 - the accrual of the added tax is marked, which is allocated from the advance;
• debit 62 Credit 90.1 - income from the sale of goods and materials is noted on the advance payment account;
• debit 90.3 Credit 68 - VAT is charged on the implementation transaction;
• debit 68 Credit 62av. - advance VAT is accepted for deduction;
• debit 62av. Credit 62 rub. - prepaid money is counted.

And in accounting:

As can be seen from the content of this article, the use of electronic programs for registering various accounts (including advance accounts) is more preferable. It allows you to store all the necessary information in one place, and due to the interconnectedness of documents, the possibility of making mistakes in them is minimal.

In addition, the massive automatic filling of documents allows you to significantly save working time.

Related Videos

How to properly register an invoice for advance is described in this video:

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In accounting, an advance payment is considered to be a full or partial prepayment for a concluded transaction. How advances are reflected in accounting, what transactions are formed upon receipt of an advance from a buyer, as well as transactions on advances issued, we will consider further.

Advance payment is often confused with a down payment. Both the advance payment and the deposit have one function - advance payment for a product or service, partial or full. There is no clear definition in the legislation to separate these concepts, but according to the established practice, an advance payment is considered to be the amount of an advance payment, for the transfer of which a separate agreement to the contract has not been drawn up:

Advances issued

An advance paid is an advance payment to the supplier against future supplies, work or services performed. The transfer of an advance payment for the supplier does not mean obtaining economic benefits, since the supplier, for various reasons, may not fulfill the obligations under the contract: not to ship the goods, not to provide the service. In this case, the advance payment is returned to the buyer's account if transferred through a bank, or to the cashier's office - if received in cash.

In general, there is no obligation to return the deposit from the supplier.

To account for VAT on advances in the chart of accounts, there is a subaccount on account 76, most often its code 76.

The buyer can accept VAT deduction only if the following conditions are met:

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• The presence of an advance payment condition in the agreement;
• Documents confirming the transfer of prepayment;
• The supply of goods (services, etc.) is intended for use in VAT-taxable activities;
• The presence of a supplier's invoice with a dedicated tax.

The buyer does not have the right to accept VAT deduction if all of the above conditions are not met. Acceptance of VAT deduction is not an obligation, but a right of the purchasing organization.

If an organization decides to use the deduction of VAT from an advance issued, then after the provision of the service and the closure of this advance, it will be obliged to restore this VAT to the budget.

Example

Let's say Altavista LLC transfers an advance payment of 23,600 rubles to D&D. (including VAT). Then Altavista LLC receives goods from this supplier in the amount of 23,600 rubles.

The rate and amount of incoming VAT are indicated on the invoice of the supplier.

Advances paid - transactions

Advances received

When the organization sells goods, works or services, the buyer can transfer an advance payment before the sale.

According to the requirements of the Tax Code, the seller is obliged to charge VAT on the received advance. VAT is calculated using the formula:

VAT on the received advance = Sales amount * 18/100

Example

Consider the previous example from the point of view of the sales organization, that is, the D&D company. The accrual of VAT from the advance occurs at the time of its receipt, the refund of the amount of such VAT to the budget occurs at the end of the tax period - a quarter.

Sales VAT is charged at the time of shipment, that is, at the time of creating a sales transaction Dt 62 - CT 90.1.

Advances received - transactions

The accountant of the D&D company, upon receipt of an advance payment from the buyer, makes the following entries:

Advances received and issued in the balance sheet

When compiling the balance sheet, outstanding balances on advances received and issued are reflected in accounts payable (line 1520) and accounts receivable (line 1230) debts. In this case, the amounts of these advances and prepayments are taken together with VAT. VAT on advances (account 76 (advances)) falls into the lines of other current assets (1260) and other current liabilities (1550).

According to Art. 487 of the Civil Code of the Russian Federation, an advance payment is a full or partial payment for goods / services until the actual shipment by the seller. The prepayment is recorded on special sub-accounts of accounting and is not the income of the supplier using the accrual method until the organization fulfills its obligations. Consider the nuances of reflecting an advance payment as a business transaction, we will give the main transactions for advances issued and received.

Note! The legal status of prepayment is fixed in the terms of the contract, the normative regulation of the counter performance of obligations is carried out in accordance with Art. 328 CC.

Advances received - transactions

Accounting for advances received from buyers in payment for the goods before shipment is kept on account. 62.2 "Advances received". It also reflects prepayments for products in case the seller for various reasons violates the terms of implementation. Normal settlements are carried out on sub-account 62.1.

Example

Suppose that the supplier "Spectrum" and the buyer "Title" have entered into an agreement for the shipment of electrical equipment for a total amount of 708,000 rubles, including 18% VAT - 108,000 rubles. Under the terms of the transaction, payment is made with 100% advance payment, which was received on the account of Spectra on December 5, and the shipment was made on December 8. The Spectra accountant will reflect the operations as follows:

• 5.12 - an advance payment has been received from the buyer, posting D 51 K 62.2 for 708,000.
• 5.12 - VAT D 76.АВ К 68.2 was charged per 108,000.
• 8.12 - delivery of equipment D 62.1 K 90.1 for 708,000 was made.
• 8.12 - VAT D 90.3 K 68.2 allocated for 108,000.
• 8.12 - advance payment is credited, posting D 62.2 to 62.1 for 708,000.
• 8.12 - VAT D 68.2 К 76.АВ was restored to 108,000.

Conclusion - upon receipt of advances, postings regarding the calculation of VAT payable are made 2 times: at the time of receipt of money to the current account and directly during sale. Then, after shipment, the advance is credited and the VAT amount from it is restored through the return posting.

Advances paid - transactions

Advances transferred to the supplier counterparties of the enterprise are accounted for on the account. 60.2 "advances issued", normal operations are carried out on subaccount 60.1. In situations where the amounts of prepayments turn out to be more than the sales amounts, the difference remains with the supplier against settlements for planned deliveries or is returned at the request of the buyer to the specified details.

Example

Suppose LLC "Dorstroy" purchases materials for production from LLC "RPK". On November 25, Dorstroy transferred an advance payment in the amount of 354,000 rubles, and on December 2, the inventory was received in full. The Dorstroy accountant should reflect these operations in the following order:

• 25.11. - an advance was transferred to the supplier - posting D 60.2 to 51 for 354,000.
• November 25 - VAT is accepted for reimbursement in the presence of an advance invoice from "RPK" D 68.2 К 76.АВ for 54,000.
• 2.12 - materials D 10.1 K 60.1 per 300,000 were received.
• 2.12 - VAT D 19.3 K 60.1 allocated for 54,000.
• 2.12 - the advance payment was offset, posting D 60.1 to 60.2 for 354,000.
• 2.12 - previously refunded VAT D 76.АВ К 68.2 was charged for 54,000.
• 2.12 - VAT offset on the fact of the transaction D 68.2 К 19.3 for 54,000 has been completed.

When accounting for VAT on prepayments issued, it should be borne in mind that you can refund the tax without waiting for the moment of shipment of goods. The justifying grounds are listed in Art. 172 clause 9. These are the following documents:

1. Advance invoice sent by the vendor.
2. A document confirming the payment of an advance payment.
3. Agreement indicating the conditions for the transfer of the advance.

Attention! When an advance is issued to the vendor (posting above), the invoice is issued for the prepayment amount, and upon shipment, for the sales amount. At the same time, it is allowed by law to restore VAT even with the complete termination of the transaction, for which an advance payment with VAT was previously transferred.

Advance reports - accounting transactions

In addition to settlements with counterparties - buyers and suppliers, the company regularly issues funds accountable to its employees. How to correctly make accounting entries on expense reports? And is it true that the amount from the expense report is deducted from the profit? Let's look at a specific example.

An example of settlements with accountable persons in terms of advances issued:

The company "Pit-stop" issued a report to the employee Kovalev E.I. for a business trip 8000 rubles. Kovalev spent 5,400 rubles, and the unused funds in the amount of 2,600 rubles. returned to the cashier. The accountant will need to do the following:

• An advance payment for travel expenses was issued - posting D 71 K 50 to 8000.
• The balance of unspent money was returned - posting D 50 K 71 at 2600.

The accountable person is obliged to report on the expenditure of funds within 3 days after the end of the issuance period, and in the case of a business trip - after the employee returns. The specific terms are set by the head of the organization. If the employee has spent more than the allocated funds without good reason and is not able to report on them, the surplus is withheld from his income. Bukh. The advance statement transactions in this situation look like this:

• The amount not returned on time is reflected - D 94 K 71.
• The shortage was withheld from the employee's earnings - D 70 K 94, but not more than 20% monthly.

Reflection of lease advances

Regulatory regulation of leasing transactions is regulated by Law No. 164-FZ dated October 29, 98. All payments made before the fulfillment of the lessor's obligations are considered prepayment. It is recommended that an advance payment under a lease agreement, transactions on which are carried out in accordance with Chart of Accounts No. 94n, be made to account. 76 with the creation of a separate subaccount.

Organizations in the course of their economic activities are faced with the issuance and receipt of advances. Advance transactions must be correctly reflected in the accounting of the enterprise.

Advance concept

Definition 1

Prepaid expense represents money or other material values ​​transferred by one party of the relationship to the other for the fulfillment of its obligations until the beginning of the fulfillment of counter obligations. An advance is an upfront payment that is often confused with a down payment. The difference lies in the fact that if the party does not fulfill the obligation, then the deposit is not returned. The advance payment in such a situation will be refunded. The advance is not a security for the agreement. The advance payment is only a proof of the fulfillment of the terms of the contract. An advance payment is always considered an advance, unless otherwise provided by the terms of the contract.

Advance payment is issued in the following situations:

• the management of the enterprise as a partial payment for employees;
• by the customer before the provision of services or the performance of work when concluding work contracts;
• the buyer to the supplier as a credit for deliveries prior to the actual shipment of products;
• the buyer of real estate, as a guarantee of the transaction.

Finished works on a similar topic

• Coursework 470 rubles.
• abstract Accounting for advances issued and received 240 RUB
• Test Accounting for advances issued and received RUB 190

Advance payments are regulated in Articles 380, 711, 735 and 823 of the Civil Code of the Russian Federation and in Federal Law No. 311-FZ of Russia. The payment of advance payments for income tax is covered in article 286 of the Tax Code of the Russian Federation. Transactions on payment of advances are reflected in accounting in accordance with PBU9 / 99 and PBU10 / 99.

There are certain specificities in situations related to the payment of an advance. For example, advances when performing contract work at federal facilities cannot exceed thirty percent of the total project cost. If the seller has not fulfilled the obligations under the contract, then the buyer has the right to demand a full refund of the advance amounts.

Accounting for advances issued and received

Advances issued in accounting are reflected in the account associated with settlements for the goods shipped. For correct and visual accounting, it is necessary to open subaccounts to the balance sheet account. When accounting for the funds issued to the supplier as an advance, a subaccount is opened to account 60 to reflect the calculations for the advances issued. In accounting, the operation is reflected by the posting:

• Debit 60 subaccount "Advances issued"
• Credit 51 "Current account".

Advances received from customers are reflected in the following transaction:

• Debit 51 "Current account".
• Credit 62 subaccount "Advances received".

Features of accounting for an advance paid to an employee as remuneration

Reflection of the advance paid to the employee as remuneration is accounted for by debit 70 of the account and the credit of the settlement accounts. The specific date of the advance payment is not established by the legislation of the Russian Federation. Article 136 of the Labor Code of the Russian Federation determines that wages must be paid at least every half month.

The minimum amount of advance payment for labor remuneration cannot be lower than the employee's salary for the hours worked. Accordingly, the minimum that an employee can count on is the wage rate or salary in an amount proportional to the actual hours worked for the first half of the month.

When determining the amount of the advance payment, it is necessary to take into account all components of the employee's monthly income, including additional payments, allowances for special working conditions, payment for additional work, payment for combining positions, replacement.

You can calculate the advance payment without taking into account weekends and holidays, or it can be based on the number of working days in the first half of the month.

Regardless of the algorithm for calculating the advance, personal income tax must be withheld only once in the final calculation of wages for the past month. The date of receipt of income as wages is recognized as:

• the last day of the month for which it was charged;
• the last day of work in the employee's organization, if he leaves before the end of the month.

Remark 1

Often there is a need to issue funds on account of employees for the implementation of business transactions. The amounts received by the reporting person can only be used for the purposes for which they were issued. At a later date, the accountable person will have to report to the organization on the advances spent. Settlements with accountable persons are reflected on account 71. If there are unused funds left, they must be returned to the cashier of the enterprise. In accounting, the funds issued for the account are reflected by the entry: Debit 71 Credit 50 (51). The money spent, according to accepted and approved advance reports, is reflected by postings on the debit of accounts 25, 26, 10, etc. and credit 71 accounts.

Accounting for VAT on advances

According to general rules, upon receipt of an advance, the contractor must charge VAT payable to the budget. This is defined in paragraph 1 of Article 167 of the Tax Code of the Russian Federation. According to it, the day of full or partial payment for the upcoming supply of goods, performance of work or provision of services is recognized as the moment the tax base is determined.

The only exceptions are the following cases:

• advance payments are received by a company that is exempt from VAT;
• advance payments were received on account of the future delivery of goods, performance of work or provision of services, the place of sale of which is not the territory of Russia;
• advance payments received against future supplies subject to 0% VAT;
• advances were received for the future delivery of goods, performance of work, provision of services that are not subject to VAT;
• advances were received by manufacturers of goods, works, services, the production of which has a long production cycle - over six months.

There is one more specific feature: in case of termination of the agreement, VAT can be deducted from the previously paid advance. But this requires the fulfillment of two conditions:

• the agreement has been terminated or its terms have been changed;
• the advance is returned to the buyer.

It is possible to issue a deduction of VAT on advances in two cases:

• when selling goods, if their payment was made before shipment (deduction is possible from the day the goods were shipped);
• when the conditions are changed, as well as in the event of termination of the contract and refund of the amount of the advance payment (deduction is possible only after the adjustments are reflected in the accounting records, but no later than 1 year from the date of termination.

Writing off the debt to the buyer on the previously received advance due to the expiration of the limitation period described above does not satisfy the conditions.

Advances identified in the inventory process with expired statute of limitations are subject to write-off for each obligation on the basis of inventory data, written justification and order of the head of the enterprise. In this case, overdue payables are recognized in other income in the reporting period in which the limitation period ended, in the amount reflected in the accounting records of the organization.