Doubtful debt- this is an organization that has not been repaid, or most likely will not be repaid within the period established by the contract (or other documents), as well as without providing appropriate guarantees (pledge, bank guarantee, surety, deposit). An account is used to record such transactions in accounting entries.

This is evidenced, in particular:

• violation by the debtor of the payment deadline;
• information about the debtor's financial difficulties.

Bad debt- a debt to an organization with an expired statute of limitations, as well as a debt that is impossible to collect, recognized as such on the basis of relevant regulatory documents or the liquidation of the organization. Such debt is precisely taken into account in the account.

Very often, an organization has to take measures to combat the consequences of accounts receivable. To ensure that these consequences are not so significant, enterprises can protect themselves by creating a reserve for doubtful debts. Thanks to this, the organization will be able to maintain uniform accounting of the costs of late “receivables”.

It is worth noting that there is no uniform method for forming a reserve for such debts. It is developed by the organization independently and recorded in its accounting policies.

Let's look at the main entries in the accounting account for reflecting doubtful debt using examples.

Postings in accounting

Adjustment of the reserve on account 63 during the year

1. Let’s assume that Company “B” transferred 50,000 rubles on October 15, 2014. in repayment of debt. Then the amount of the created reserve will be reduced:

Thus, the amount of the reserve at the end of the year is 68,000 rubles. Accordingly, in the balance sheet for 2014 it will be necessary to reduce the amount of “receivables” by this amount.

2. Assume that B was liquidated in June 2015. Thus, the debt owed to this debtor will be considered uncollectible and subject to write-off. Due to the fact that the previous debt

“B” was involved in the formation of the reserve, its write-off in the entries will be carried out at the expense of the reserve:

Carrying forward the reserve to the next year

According to clause “Regulations on accounting and financial reporting in the Russian Federation No. 34n” (hereinafter referred to as the Regulations), if the amount of the reserve is not fully spent by the end of the year following the year of its creation, the balance of the reserve will be included in the financial result of the reporting year."Carrying out the transfer of the reserve to the next year."

Regarding the example we considered, this means that if the debt is recognized as doubtful at the end of 2015, the balance of the unused reserve must be attributed to other income (91-1). At the same time, taking into account the requirements of the above Regulations, when forming a reserve at the end of 2015, the amount of debt is subject to re-accounting.

Due to the fact that the requirements of the Regulations are very ambiguous, it would be advisable not to write off the entire amount of the unused reserve and then restore it, but only to adjust the reserve at the end of the year. This procedure will help to exclude additional entries on “account 91”, and also not to overestimate the turnover on it, which is reflected in the reporting.

In a difficult economic situation, many enterprises become insolvent. To protect against possible losses and reduce financial risks, organizations create reserves for doubtful debts.

All the nuances of their formation and accounting will be discussed in this article.

What it is?

Accounts receivable taken into account by an enterprise are considered doubtful if the obligations for which were not paid within the period specified in the contract, and are also not provided with full guarantees in the form of a pledge or surety.

The exact amount of such debt is established as a result of a mandatory or initiative inventory of settlements. Based on the results of the audit, special reserves for doubtful debts are formed. These amounts are collected in account 63. It is contractual, that is, in the balance sheet, the amount of reserve accruals reduces the displayed amount of overdue receivables.

The amount of contributions to the reserve is determined by one of the following methods:

• Based on revenue and doubtful debt ratio. The value of the coefficient is the quotient of dividing the amount of overdue debt written off over the last 5 years and the total cost of revenue from the main activities of the enterprise for the same period. The resulting number is multiplied by the amount of revenue for the reporting period. This is how the reserve amount is determined. The resulting value is assigned to count 63.
• Based on the results of an analysis of the solvency of each counterparty. In this case, the debtor’s ability to repay the debt in whole or in part is established. The amount of established doubtful debts is accrued to account 63.
• Based on inventory results. The entire established amount of receivables is grouped depending on the period of delay. The amount of deductions to the reserve is calculated as the product of the doubtful debt ratio for each category of debtors and revenue from core activities for the reporting period. The received amount is transferred to account 63.

The method of calculating the reserve chosen by the organization is described in. This document also discusses the calculation procedure in detail.

The amount of the new reserve must be changed taking into account the amount of the existing balance. That is, the difference between the calculated accrual to account 63 and last year’s balance is written off to the financial result of the enterprise:

• if the balance exceeds the new accruals, the write-off is made to income;
• if the balance amount is less than the amount of the reserve being formed, it is written off as expenses.

Reserve funds cannot be used to pay off debts that are not recognized as bad. It is also prohibited to use the reserve amount to write off the value of overdue debts for which there were no deductions to account 63. Unused funds are carried over to the next year.

Is this necessary or not? Who is responsible for creating it?

PBU No. 34n determines that the formation of RSD mandatory for all organizations, including small businesses.

The specific method for calculating these amounts is not established by law, so the company can choose the most convenient one for itself. The main condition is that this method must be fixed and described in the accounting policy.

The main reason why a reserve is created is the ability to calculate lower income taxes.

Accounts receivable arise because the buyer fails to pay its obligations for delivered products or services within the period established by the contract. That is, the company did not receive any money for the actions performed. Therefore, overdue contract amounts cannot be taken into account for tax purposes as income.

Accounting

The RSD value is fixed on the count 63. The accrual is reflected by the following posting:

With the help of this fund, all bad debts are written off. The procedure is carried out throughout the year. The grounds for write-off are:

• expiration of the statute of limitations for each amount;
• the enterprise has received a court decision on the impossibility of collecting the debt;
• liquidation of the debtor.

However, exclusion of these amounts from the property does not mean cancellation of the debtor's obligations. For 5 years from the date of write-off, the amount of the overdue debt is stored in an off-balance sheet account. If the debtor's solvency is restored, the amount can be demanded from him.

The procedure is accompanied by the following transactions:

Sometimes it happens that the RSD was not used to pay off doubtful debts during the year. In this case, the balance of the fund must be transferred to other income. The amount of reserves unused in the reporting year is written off as follows:

The procedure for reflecting the reserve in the accounting documentation is discussed in the following video:

Tax accounting

Tax accounting of reserves is regulated by Article 266 of the Tax Code of the Russian Federation. When using the fund, you should take into account not only the current accounting legislation, but also the recommendations of tax authorities.

There are the following differences between them:

• In the right of formation. Accounting provides that enterprises are required to create a reserve if they have overdue receivables. That is, the need for the existence of RSD is not related to the size of the company, the financial position of the company or contractors, or the scope of its activities. If, as a result of an inventory of payments, an overdue debt was discovered, the organization will have to create a reserve. Its absence is a direct violation of accounting legislation.
  The Tax Code establishes that a company has the right to form RSD if it uses the accrual method to recognize income, that is, revenue is accrued at the time of shipment of products. The formation of a fund is not mandatory. The chief accountant decides independently whether the company needs a reserve.
• When the debt arises. Doubtful debt in accounting can be recognized not only as overdue, but also as normal, if the counterparty, based on the results of the analysis, showed low solvency, the contract was not provided with certain guarantees.
  For tax purposes, only late payments are considered doubtful debt. In other cases, no deductions are made to the reserve. Even if it is obvious that the debtor is on the verge of losing solvency or has already begun the bankruptcy process, until the contractual payment deadline has arrived, the company does not have the right to reduce income tax.
• In the subject of debt. Accounting obliges to create a reserve for accounts receivable, regardless of the source of its origin. That is, any delays in settlements with different debtors can cause the formation of RSD:
  • advances transferred to suppliers for products not yet delivered;
  • paid but not shipped goods;
  • accrued fines, claims due to shortages or violations of contract terms, etc.

  Tax accounting recognizes as doubtful only late payments from buyers and customers, that is, strictly in the main activities of the organization. For example, debts from suppliers for advances transferred to them are not considered doubtful. Accrual of amounts on them to the reserve is a violation of the law, a deliberate underestimation of the amount payable.

• In the amount of charges. Accounting assumes that the organization independently determines the amount of contributions to the reserve, taking into account the financial stability and solvency of the counterparty. This amount is an estimate. When new information about the debtor is received, the previously established value is recalculated. The calculation method is described in the accounting policy.
  Tax accounting strictly regulates the amount of charges to the reserve. It depends on the statute of limitations of the debt. There are three main categories:
  • period up to 45 days - no deductions are made for debts with such a delay;
  • from 45 to 90 days - in this case, a reserve is created in an amount equal to 50% of the debt;
  • more than 90 - contributions to the reserve amount to 100% of the debt.
• In the amount of the RSD itself. Accounting legislation does not limit the total amount of the reserve. Organizations can make transfers in the amount required to ensure the reliability of reporting.
  The Tax Code establishes that the maximum amount of savings in the RSD is an amount equal to no more than 10% of revenue in the corresponding reporting period. The company can independently set the maximum fund size, the main thing is that it is less than the legal limit. For example, an enterprise can make deductions until 7% of revenue is accumulated in account 63.
• In deductions. Accounting classifies accrued reserve amounts as other expenses. This is stated in PBU 10/99. Deductions are recorded in the debit of account 91. In tax accounting, these amounts are non-operating expenses.

In what cases is account 63 used, how to use it, what transactions should be used to reflect the formation and write-off of the amount of the reserve for doubtful debts - our article will help you answer these and many other questions.

Account 63

Account 63 reflects the turnover and balances of transactions related to the formed reserves for doubtful debts of counterparties. This account may reflect the amounts of reserves formed in connection with:

• violation by suppliers of the terms and conditions of shipment of goods;
• non-compliance by customers with terms and conditions of payment for services (work) received.

The account also reflects the write-off of amounts of debts recognized as bad (by a court decision, in connection with liquidation, bankruptcy of the counterparty, expiration of the statute of limitations, under other conditions).

Operations to form a reserve are carried out according to Kt 63; for their write-off and downward adjustment, Dt 63 is used.

Let's look at typical wiring:

Debit	Credit	Operation description	A document base
91.2	63	The amount of the reserve for doubtful debts was formed at the expense of other expenses	Minutes of the board's decision, accounts receivable statement, accounting certificate-calculation
63	62	The amount of debt recognized as uncollectible was written off from the reserve previously formed on account 63	Minutes of the board's decision, accounts receivable statement, accounting statement, court decision, liquidation (bankruptcy) document, etc.
63	91.1	The amount of unused reserve that was restored was taken into account	Accounting certificate-calculation
63	76.2	Write-off of the reserve amount in connection with satisfaction of the claim	Letter of claim, accounting certificate-calculation

Formation of a reserve on account 63

In April 2016, an agreement was concluded between JSC Samorodok and LLC Yantar for the supply of souvenir products made from amber. According to the agreement, “Yantar” ships “Nugget” a batch of souvenir products worth 124,380 rubles, payment for which must be received within 20 days after shipment.

In fact, the following operations for shipment and payment of souvenir products were carried out:

1. 04/03/2016 “Yantar” shipped “Nugget” a consignment of goods in full.
2. By April 24, 2016, payment for souvenirs had not been received from “Nugget.”
3. 05/12/2016 “Nugget” partially repaid the debt in the amount of 64,140 rubles.
4. As of December 31, 2016, the balance of the debt had not been repaid by Nugget.

Due to a violation of the terms of the agreement by “Nugget”, the management of “Yantar” decided to recognize the debt of “Nugget” as doubtful, and therefore a reserve was created for the amount of the debt.

The Yantar accountant carried out these operations in the following way:

Debit	Credit	Operation description	Sum	A document base
91.2	63	Reflects the amount of the reserve formed for the debt “Nugget” due to violation of the deadline for payment under the agreement	RUR 124,380	Minutes of the board's decision, accounting statement-calculation, supply agreement, accounts receivable statement
09	68 “Income tax”	OTA taken into account (deferred tax asset) 124.380 * 20%	RUB 24,876	Accounting certificate-calculation
51	62 “Goods shipped”	A partial amount was received from “Nugget” to pay off the debt on shipped souvenirs	RUR 64,140	Bank statement
63	91.1	The amount of the reserve previously formed was partially reduced	RUR 64,140	Accounting statement, bank statement
68 “Income tax”	09	The amount of OTA accrued earlier was reduced due to a decrease in the amount of the reserve (RUB 64,140 * 20%)	RUB 12,828	Accounting certificate-calculation
63	91.1	The amount of the reserve equal to the amount of the outstanding debt “Nugget, restored (RUB 124,380 – RUB 64,140)	60,240 rub.	Accounting certificate-calculation
68 “Income tax”	09	The amount of ONA repaid in connection with the reflection of the restored reserve is reflected	RUB 12,828	Accounting certificate-calculation
91.2	63	Reflects the amount of the reserve formed for the “Nugget” debt outstanding at the end of 2016	60,240 rub.	Accounting certificate-calculation
09	68 “Income tax”	IT is taken into account from the amount of debt outstanding by “Nugget” at the end of 2016 (RUB 60,240 * 20%)	RUR 12,048	Accounting certificate-calculation

Tax reserve formation operations

In January 2016, a contract for the supply of porcelain tableware was concluded between Sovremennik JSC and Smena LLC. According to the agreement, “Sovremennik” ships “Smena” a batch of dishes in the amount of 1,341,740 rubles, payment for which must be received within 20 days after shipment. The dishes were shipped to the Smena warehouse on April 12, 2016, but payment was not received from Smena by May 3, 2016.

To reflect the operation of creating a reserve in tax accounting, the Sovremennik accountant determined the revenue, which on an accrual basis amounted to:

• as of June 30, 2016 – RUB 17,410,000;
• as of September 30, 2016 – 21,520,000 rubles.

In the tax accounting of Sovremennik, on June 30, 2016, a reserve was created for the debt “Smena:

RUB 1,341,740 * 50% = 670.870 rub.

Due to the fact that as of September 30, 2016, the payment for “Smena” was overdue for more than 90 days, Sovremennik JSC has the right to create a reserve in tax accounting in the amount of up to 100% of the debt amount. In this case, the amount of the reserve should not exceed 10% of the amount of revenue as of September 30, 2016 – RUB 2,152,000. (RUB 21,520,000 * 10%).

In the tax accounting of Sovremennik, on September 30, 2016, a reserve was created for the debt “Smena:

(RUB 1,341,740 * 50%) * 2 = RUB 1,341,740

Due to Smena being declared bankrupt, the amount of debt was written off from the reserve.

The accounting records reflect the following:

Debit	Credit	Operation description	Sum	A document base
91.2	63	A reserve has been formed for the debt of “Smena”	RUB 1,341,740
09	68 “Income tax”	The amount of IT is taken into account ((RUB 1,341,740 – RUB 670,870) * 20%)	RUR 134,174	Accounting certificate-calculation
68 “Income tax”	09	ONA extinguished	RUR 134,174	accounting certificate-calculation
63	62 “Goods shipped”	The write-off of the amount of bad debt “Smenya” is reflected	RUB 1,341,740	Minutes of the board's decision, accounting certificate-calculation

Postings for using the reserve

As of 04/01/2016, the accounting records of Artemis JSC include the amount of unused reserve in the amount of 43,120 rubles. The list of doubtful and bad debts of Artemis JSC as of 04/01/2016 looks like this:

A reserve has been created for the amount of doubtful debts of “Hercules”.

Due to the liquidation of Minotaur and the classification of the debt as bad, the amount of debt was written off from the previously formed reserve.

Based on the operations performed, the amount of the reserve as of 04/01/2016 amounted to 169,570 rubles. (43,120 rubles + 168,410 rubles – 41,960 rubles).

Let's look at the entries made by Artemis's accountant:

Debit	Credit	Operation description	Sum	A document base
91.2	63	The amount of the reserve formed as of 04/01/2016 is reflected in other expenses	RUR 169,570
63	62	The debts of “Minotaur”, recognized as uncollectible due to its liquidation, were written off from reserve amounts	RUR 41,960	Accounting statement, accounts receivable statement
63	91.1	The restoration of the amount of the reserve unused at the end of 2016 is reflected	RUR 169,570	Accounting statement, accounts receivable statement

Restoring the reserve amount

In February 2016, a contract for the supply of flower products was concluded between JSC Crocus and LLC Ficus. According to the agreement, “Crocus” ships “Ficus” a batch of Dutch tulips in the amount of 84,340 rubles, payment for which must be received within 18 days after shipment. On 02/04/2016, tulips arrived at the Ficus warehouse (full batch). Payment was not received from Ficus by February 23, 2016, and therefore a reserve was formed. The debt was repaid on 02/28/14, the reserve was restored.

Operations to form and restore the reserve on Crocus’ balance sheet were carried out in this way.

If an organization creates a reserve for doubtful debts in accounting, then write off bad debts only from this source.

Write-off procedure

Write off bad receivables in the following order:

• collect all the documents that allow you to recognize the debt as uncollectible (primary documents, contracts, letters of claims against the debtor, extracts from the Unified State Register of Legal Entities or certificates from the tax inspectorate about the liquidation of the debtor, court decisions and other documents);

• swipe inventory accounts receivable and determine the debt of counterparties for which the statute of limitations has expired (which is unrealistic for collection on other grounds);

• prepare an accounting statement justifying the need to write off the debt;

• issue an order from the manager to write off accounts receivable.

This procedure is provided for in paragraph 77 of the Regulations on Accounting and Reporting.

Accounting: use of reserves

Transactions related to the creation and use of a reserve for doubtful debts are recorded in account 63 “Provisions for doubtful debts”.

In accounting, reflect the write-off of accounts receivable from the reserve for doubtful debts by posting:

Debit 63 Credit 62 (71, 73, 76...)

- bad receivables are written off at the expense of the created reserve.

The reserve can be used only within the reserved amounts. If during the year the amount of expenses for writing off bad debts exceeds the amount of the created reserve, reflect the difference as part of other expenses (clause 11 of PBU 10/99).

When writing off the difference, make the following entry:

Debit 91-2 Credit 62 (71, 73, 76...)

- bad receivables not covered by the reserve are written off.

Writing off a bad debt is not canceling the debt. Therefore, within five years from the date of write-off, reflect it on the balance sheet in account 007 “Debt of insolvent debtors written off at a loss” (Instructions for the chart of accounts):

Debit 007

- written off accounts receivable are reflected.

During this period, monitor the possibility of its collection if the debtor’s property status changes (clause 77 of the Regulations on Accounting and Reporting).

An example of reflecting the use of the reserve for doubtful debts in accounting

ZAO Alfa conducts a quarterly inventory of accounts receivable and makes contributions to the reserve for doubtful debts in accounting.

The unused balance of the reserve for doubtful debts for the first quarter of 2013 amounted to RUB 45,400.

According to the results of the inventory as of June 30, 2013, the organization’s records included:

1) doubtful accounts receivable of organizations:

• LLC "Trading Company "Hermes"" - 170,700 rubles. The debt repayment period was April 9, 2013, the delay period was 82 days;

2) bad debt of OJSC “Production Company “Master”” in the amount of 45,400 rubles. In the second quarter, Master’s debt was recognized as uncollectible due to the liquidation of the debtor organization (confirmed by an extract from the Unified State Register of Legal Entities). As of June 30, 2013, the debt period was 379 days. Previously, the amount of debt was fully taken into account when creating the reserve.

Based on the inventory results as of June 30, 2013, Alpha’s accountant included Hermes’ debt in the amount of RUB 170,700 in the reserve for doubtful debts.

Master's bad debt was completely written off from the reserve.

In Alpha's accounting, a reserve was created in the amount of 170,700 rubles.

Taking into account the balance of the reserve as of March 31, 2013 and the written off bad debt of Master, the additional amount of expenses for the formation of the reserve in the second quarter of 2013 amounted to:
RUB 45,400 + 170,700 rub. - 45,400 rub. = 170,700 rub.

Debit 91-2 Credit 63
- 170,700 rub. - reflects the costs of creating a reserve for doubtful debts;

Debit 63 Credit 62
- 45,400 rub. - Bad receivables are written off against the reserve.

If by the end of the year following the year in which the reserve for doubtful debts was created, the reserve is not used, then include the unspent amounts in other income. This procedure is provided for in paragraph 70 of the Regulations on Accounting and Reporting.

Make an entry in accounting:

Debit 63 Credit 91-1
- the unspent reserve for doubtful debts was restored.

An example of reflecting in accounting the restoration of the unused part of the reserve for doubtful debts

ZAO Alfa conducts a quarterly inventory of accounts receivable and makes contributions to the reserve for doubtful debts in accounting. The unused balance of the reserve for doubtful debts of Alpha for the nine months of 2013 amounted to 45,400 rubles. The reserve was formed at the beginning of 2013 for doubtful accounts receivable from OJSC "Production Company "Master"".

On December 19, 2013, “Master” transferred 45,400 rubles to Alpha’s current account. and thus paid off his debt. According to the inventory results as of December 31, 2013, Alpha has no doubtful debts. Therefore, the reserve was restored in Alpha’s accounting.

Debit 63 Credit 91-1
- 45,400 rub. - the amount of the restored reserve for doubtful debts is reflected in income.

For information on the specifics of spending the reserve for doubtful debts when taxing profits, see How to use the reserve for doubtful debts in tax accounting .

The entity's assets and liabilities should be adjusted to reflect the estimates. This indicator is the reserve for doubtful debts - in the balance sheet the amount of debt is shown minus the created savings. This avoids overstatement of assets. Since 2011, the formation of a reserve for doubtful debts is the responsibility of the organization (according to clause 70 of PBU of the Russian Federation No. 34n). Although in the Tax Code of the Russian Federation this operation is prescribed as a right of companies. But if we take into account that this amount should be included in tax expenses, then many enterprises use the right to create reserves. You will learn from this article how to do this correctly, what transactions should be generated and how this operation is displayed in Accounting 1C.

Reserves in BU

“Accounting” and “tax” accumulated amounts for doubtful and bad debts are very different, therefore they need to be formed separately for different purposes. In the accounting system, the enterprise sets the calculation procedure independently. The Russian Accounting Regulations state that the amount of funds must be calculated using one of the following methods:

Separately for each debt, the enterprise determines the amount of debt that will not be returned and includes it in the reserve;

Based on information from previous periods: the share of the unpaid amount for several previous years is calculated;

For each amount in proportion to the period of delay. A similar method is used in NU.

The following are not questionable:

• Receivables for the obligations of suppliers who have received advance payment, as well as for goods not delivered within the time limits specified in the contract.
• Debt for fines for non-compliance with the terms of the contract.
• Debt under loan agreements and claims.

Confirmation of choice

The selected option must be approved by If management decides to use the expert assessment method, then the criteria for classifying debt as reserves should be clearly stated. In the proportional method, you need to set percentage values. When choosing an option for creating a reserve, it is important to consider the purpose of its creation. The higher this amount, the greater the net asset ratio. For “beautiful” reporting it should be minimal. This way, legal requirements will be met, and investors will not suffer. In accounting, the creation of a reserve for doubtful debts is reflected in the account. 63, analytical data is recorded separately for each debtor. Deductions to the reserve are displayed in “Other expenses” (account 91-2).

An example of reserve formation in accounting

LLC "X" shipped LLC "U" goods worth 120 thousand rubles. (VAT 18, 24 t rub.) 08/12/2013. The grace period of 10 calendar days was violated. The accounting policy of LLC X provides for the classification of amounts as uncollectible in full. Management decided to include 100% of the debt in the provision for doubtful debts. The wiring in this case will look like this:

Adjustment. On 10/15/13 the buyer decided to pay part of the debt in the amount of 50 thousand rubles. This operation should be reflected in the accounting account. 63 "Provision for doubtful debts". Postings:

At the end of the year, the debt in the balance sheet must be reduced by the amount of doubtful debts: 120 - 50 = 70 t rubles.

2. Let’s say that in June 2014, LLC “U” was liquidated. Since previously the amount of their debt was included in the fund, it will be written off from the same account 63 “Reserve for doubtful debts”. Postings:

3. According to PBU RF No. 34, if by the end of the period following the creation of the reserve, its value has not been completely spent, then the balance must be included in the financial results of the current period. In this example, if the balance is not written off by December 31, 2014, then it should be charged to other costs (account 91-1). But according to the same provision, at the end of the year a reserve for doubtful debts must be created again. The wiring is similar to that discussed above. Due to the ambiguity of the requirements, experts recommend not writing off the debt completely, but adjusting it in one direction or another.

Creation of a reserve for doubtful debts in NU

This calculation procedure is clearly stated in Article 266 of the Tax Code of the Russian Federation. It states that the taxpayer can create/make deductions for any debt. The exception is interest on loans. The same article states that a reserve for doubtful debts can be created only based on the results of an inventory of debts at the end of the reporting period. This operation must be carried out no earlier than the obligation to pay taxes has arisen. The accounting policy must reflect the fact of creating or refusing to create a reserve. This must be done before the beginning of the year. You cannot make any changes during the current period.

The purpose of the inventory in this case is to determine the timing of the delay in payment of the debt. Based on the calculations received, the company determines the amount of the overdue amount, and then classifies it as hopeless (if the debtor was liquidated) or doubtful. In the first case, the debt should be written off against the created reserve, and in the second, included in it. Fund funds can only be used to cover the costs of bad debts.

These deductions relate to non-operating expenses, reducing the base for calculating enterprise income tax (EPT), that is, only EIP payers can carry out such operations. The amount of deductions is determined for each debt:

• < 90 дней просрочки - 100%;
• 45-90 days - 50%;
• > 45 days - 0%.

Moreover, if the amount of debt is completely included in the reserve, then it should not exceed 10% of the revenue of the current period.

Calculation example

LLC X established the formation of reserves in 2014. Payments under NPP are paid once a quarter, accordingly, the reserve is adjusted at the same time.

1. An inventory of the reserve for doubtful debts on March 31, 2014 showed that four debtors had overdue loan payments. The company's revenue is 3 million rubles. The reserve amount is calculated as follows:

	Delay, days	Amount of debt, t. rub.	Amount of deductions, t. rub.
			200 (200 * 100%)

Total reserve amount: 200 + 50 + 150 = 400 thousand rubles.

Tax restrictions: 3000 * 0.1 = 300 thousand rubles.

Amount of the formed reserve: 300 thousand rubles.

2. Adjustment. In the second quarter, the 3rd debtor paid off with the supplier, and the first was liquidated. No new doubtful amounts have appeared, so these transactions should be reflected on the balance sheet accounts.

In NU, the hopeless debt is written off in full. If it exceeds the amount accumulated in the fund, it should be classified as non-operating expenses. So, the calculation of the reserve for doubtful debts in the second quarter should look like this:

Total reserve: 100 + 400 = 500 thousand rubles.

Tax restrictions: 6000 * 0.1 = 600 thousand rubles.

Amount of deductions: 500 thousand rubles.

There are 100 thousand rubles left from the first quarter. unused reserve. Accordingly, it is adjusted upward, and 400 thousand should be attributed to non-operating costs.

Transfer of debt

According to Art. 266 of the Tax Code of the Russian Federation, the amount of doubtful debt not completely written off in the current period can be transferred to the next. The newly created reserve must be adjusted to the amount of the balance: if it is less, then the difference relates to non-operating income; if more - to expenses.

At the end of the year, adjustments occur as follows. If a decision is made to form a reserve for the next year, the amount is transferred. If not, then the remainder should be included in

Typical accounting entries

		Business transaction
subaccount "Other expenses"		Creation of a reserve.
		Debts previously recognized as doubtful have been written off (at the end of the statute of limitations, by a court decision, after liquidation, or bankruptcy of the debtor). The amount indicated in this posting must be duplicated in an off-balance sheet account. 007 and remain there for the next 5 years. If the debtor's financial situation improves, it may be possible to write off the debt.
		The VAT on the written-off deed is shown.
		The unused amounts of reserves are combined to the profit of the current period, which follows the period of creation.
		Full repayment of debt.
		Attributing the excess balance to income. If the reserve was not created, then bad and other debts should be included in the organization's expenses.
		The debtor repays the debt in whole or in part. The same amount must be displayed for loan 007.

The difference between NU and BU

As stated above, taxpayers who decide to create NU and BU reserves will inevitably encounter differences in data. This is due to the following reasons:

1. The amount of the reserve for doubtful debts in the accounting system includes only the amount for unpaid sold GP. Debt for sold fixed assets and other property is not included.

2. On the accounts of the accounting department, the amount of doubtful debt is displayed according to the decision of management. In the Tax Code, if there is a delay of more than 90 days, the amount in the reserve is taken into account in full.

3. In accounting, the unused balance must be attributed to the financial results of the organization. In the Tax Code it can be transferred to the next period (year).

The enterprise must create a accounting register and keep records of reserves for doubtful debts in it. The results of the inventory of the reporting period must be confirmed in the relevant act (No. INV-17) with the following chapters added:

Date of debt occurrence (3 groups from Tax Code);

Deduction percentage (0 or 100).

The accountant must track the transition of doubtful debts to bad debts, and transfer the remaining amount or include them in financial results.

Displaying operations in "Accounting 1C"

Standard configuration settings allow you to track the amount of overdue debt separately for each client. But for this you need to install checkboxes. In the "Accounting Parameters Settings" window on the "Settlements with Counterparties" tab, you should specify the period after which the overdue period will begin to count. But this rule will apply if in the accounting policy on the “Settlements with counterparties” tab the checkbox “Create reserves in accounting and/or accounting” is selected. If both checkboxes are activated, there will inevitably be a difference in the numbers. The reasons for its appearance have already been indicated above.

If the debt period is more than 45 days, then during the closing of the month a reserve will be accrued in the amount of 50% of the total amount for DT 62 and DT 76.06. If the period is more than 90 days, then - 100%. For overdue payments in foreign currency, the reserve amount will have to be generated manually. You can check the correctness of the calculations in the database in the help of the same name.

• If the client used the old configuration, in which analytics were not carried out for each shipment document, then after updating the configuration, you need to create a new accounting policy, distribute the total amount of the reserve among the shipment documents using “Operation (accounting and accounting)”.
• Dt 91.02 Kt 63 - posting is created automatically on the last day of the month.
• The reserve is formed for each client. The program analyzes the balance for DT 62 and 76.06. If the client has an advance payment under one contract, and a debt of more than 45 days under another, then the reserve will still be accrued. And if this amount differs from the NU, the difference will automatically be taken into account.
• Dt 63 Kt 91.01 - reserve restoration posting, which is generated automatically at the end of the month. The amount is reduced if the client has paid for the goods.
• Dt 63 Kt 91.01; - transfer of debt.
• Dt 63 Kt 62 (76.06) - write-off of DZ. This posting is generated by the “Debt Adjustment” document with the “Write-off” type. You should indicate “Provision for doubtful debts” account 63 and indicate the subaccount.

If the company keeps records in NU and BU, then it is necessary to change the amounts separately. To do this, in the “Debt Adjustment” document you need to activate the “Manual adjustment” checkbox. Then, in posting Dt 63 Kt 62.01, indicate the amount of the reserve, and assign the balance to permanent and temporary differences. The program correctly calculates the NPP if the following condition is met: BU = NU + PR + VR.

The balance of the debt not covered by the reserve in the National Account should be credited to the account. 91.02 “Write-off of debt (credit).” That is, negative permanent and temporary differences arise on debit and credit.

The amount of the written-off debt, for which more than three years have passed, should be listed on off-balance sheet account 007 for another 5 years. But if during this time the client returned at least part of the money, then this operation is reflected in the following entry: Dt 50 (51) Kt 91.02. If the money is not returned, then the account is closed with “Operation BU (NU)” for the entire amount.

Summary

At the end of the reporting period, the enterprise must create reserves for doubtful debts, that is, for those amounts the return of which is unlikely. The methods for calculating such amounts in NU and BU are different. If management decides to display amounts not only in reporting documents, but also in accounting policies, then adjustments will have to be made in the database manually. It is important to understand the purpose for which this reserve is formed. The higher the amount of doubtful debts, the higher the net assets. For “beautiful” reporting that is submitted to the bank, this is not always good.