What KOSGU code should be used to reflect the expenses of a budgetary institution for payment of contracts for the purchase (production) of gift, souvenir, printed and letterhead products? How is the acquisition of souvenirs and their issuance during the event reflected in the accounting accounts?

Answer: In accordance with Directions No. 65n<1>expenses of a budgetary institution for payment of contracts for the purchase (production) of gift, souvenir, printed and plank products are reflected from January 1, 2016 according to expense type 244 “Other purchase of goods, works and services to meet state (municipal) needs.” In accounting, article 290 “Other expenses” or 340 “Increase in the cost of inventories” of KOSGU should be applied, depending on the economic content of the concluded agreement (see Letter of the Ministry of Finance of Russia dated 02/12/2016 N 02-05-10/7682).

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<1>Instructions on the procedure for applying the budget classification of the Russian Federation, approved. By Order of the Ministry of Finance of Russia dated July 1, 2013 N 65n.

Rationale: According to the requirements of Directions No. 65n, Instructions No. 157n<2>in accounting, expenses for payment of purchase (manufacturing) contracts:

– gift and souvenir products not intended for further resale should be reflected in Article 290 “Other expenses” of KOSGU. At the same time, the category of gift products includes greeting cards and inserts for them, greeting addresses, certificates of honor, letters of gratitude, diplomas and certificates of laureates of awarding competitions, etc., flowers. However, this list is not closed;

– objects of non-financial assets (necessary to ensure the performance of the functions of the purchasing institution), belonging to the category of material reserves (including printed products (except for products intended for acquisition of library collections) and blank products (except for strict reporting forms)), – under Article 340 “Increase in the cost of inventories”.

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<2>Instructions for the application of the Unified Chart of Accounts for public authorities (state bodies), local governments, management bodies of state extra-budgetary funds, state academies of sciences, state (municipal) institutions, approved. By Order of the Ministry of Finance of Russia dated December 1, 2010 N 157n.

Example. A budgetary institution uses blank products (forms, cards, magazines). The organization entered into an agreement with the printing house for the production of blank products in the amount of 70,000 rubles. Payments are made by transferring an advance payment in the amount of 30% of the contract amount. In addition, the organization purchased greeting cards from the Rospechat branch by bank transfer in the amount of 3,000 rubles. All expenses were made at the expense of a subsidy allocated for the implementation of the state task.

Thus, taking into account the norms of clauses 128, 129 of Instruction No. 174n<3>The purchase of blank products will be reflected in accounting as follows:

Contents of operation	Debit	Credit	Amount, rub.
Advance paid under the printing contract (RUB 70,000 x 30%)	4 206 34 560	4 201 11 610	21 000
Blank products received by the institution have been accepted for accounting	4 105 36 340	4 302 34 730	70 000
The advance has been offset	4 302 34 820	4 206 34 660	21 000
The final payment under the contract has been made (RUB 70,000 – RUB 21,000)	4 302 34 830	4 201 11 610	49 000
Purchased greeting cards from Rospechat	4 109 00 290	4 302 91 730	3000
Payment for greeting cards has been made	4 302 91 830	4 201 11 610	3000

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KVR and KOSGU are special codes that are necessary for the work of public sector accountants. Let's talk about the 2019 changes in the use of expense type codes (KVR) and the classification of operations of the general government sector (KOSGU).

New provisions are established in Order of the Ministry of Finance dated June 8, 2018 No. 132n (as amended on November 30, 2018) regarding the formation of budget classification codes. Now budgetary and autonomous institutions are required to apply the new procedure when determining the CVR for all operations performed.

The rules for the formation of KOSGU have also been changed - the new Order of the Ministry of Finance of Russia dated November 29, 2017 No. 209n (as amended on November 30, 2018). It is unacceptable to work according to the old rules!

Recipients of budget funds, such as chief managers of budgetary funds (GRBS), government, budgetary and autonomous institutions, must keep records, draw up plans and reports according to uniform standards and in accordance with legal requirements. A list of requirements and rules for the use of special codes that determine the corresponding values ​​of the budget (accounting) account is established by the Ministry of Finance for all participants in the process.

For specialists, this means that state (municipal) expenses and revenues are classified according to various criteria: planned and unplanned, current and capital, according to the level of ownership of the corresponding budget, and, consequently, according to the use of special codes, etc.

Since 2019, the procedure for applying the KBK and KOSGU has been changed!

Basic concepts of KVR and KOSGU

Even for those who know what KOSGU is in the budget, decoding can be difficult. The classification of operations of the general government sector is part of the account classification, which allows you to group the costs of the public sector of the economy depending on the economic content and includes a group, item and subitem.

Since 2016, KOSGU is not used by recipients of funds when forming plans for income and expenses, but is used in accounting and reporting. In 2019, it is required to apply it to public sector institutions and organizations when drawing up a working chart of accounts, maintaining records and reporting. The procedure for approving the chart of accounts for budget accounting is enshrined in Order of the Ministry of Finance No. 162n (as amended on March 31, 2018).

OSSU classification consists of the following groups:

• 100 - income;
• 200 - expenses;
• 300 — receipt of non-financial assets (NA);
• 400—retirement of equipment;
• 500 — receipt of financial assets (FA);
• 600—FA retirement;
• 700 - increase in liabilities;
• 800 - reduction of obligations.

Previously, KOSGU was used in the structure of the budget classification code (BCC), but since 2015, in terms of costs, this code has been replaced by a code for types of expenses.

Very often the question arises: CWR - what is it in the budget? This is part of the BCC classification, therefore part of the accounting account. It includes group, subgroup and expense element element. Almost every accountant tries to figure out on his own what the CVR in the budget is, the decoding of which is encoded by three numbers from 18 to 20 digits in the structure of the BCC of budget expenses.

KVR is represented by the following groups:

• costs of payments to personnel in order to ensure the performance of functions by state (municipal) bodies, government institutions, management bodies of state extra-budgetary funds;
• procurement of goods, works and services to meet state (municipal) needs;
• social security and other payments to the population;
• capital investments in state (municipal) property;
• interbudgetary transfers;
• provision of subsidies to budgetary, autonomous institutions and other non-profit organizations;
• servicing state (municipal) debt;
• other appropriations.

Special cases when using KOSGU and KVR in 2019

In 2019, the accounting treatment of some expenses for KOSGU has changed. Lawmakers introduced completely new codes, for example, to reflect revenues. The names of the old encodings were also changed and the meanings of the existing ones were expanded.

For example, a new KOSGU 266 has been introduced, which should include social benefits and compensation provided to the personnel of a state (municipal) institution in cash. What should be considered these social benefits? At KOSGU 266, include temporary disability benefits for the first three days of illness. That is, a benefit paid at the expense of the employer. Also, a monthly allowance for child care up to three years old (in the amount of 50 rubles) must be attributed to this code. All categories of payments and compensation are enshrined in Art. 10.6.6 Chapter 2 of Order No. 209n.

Officials from the Ministry of Finance communicated to the user a separate Letter dated June 29, 2018 No. 02-05-10/45153, which reflects methodological recommendations on the application of the new KOSGU.

Also, in the practice of procurement for several CWR, issues arise with the correct reflection of codes, which is determined by the use of classification. For this case, 34-36 digits of the procurement identification code are formed in a special way: 34-36 digits are set to “0” if these expenses are subject to reflection across several CWR.

table of correspondence

Since KVR is a larger grouping than KOSGU, to simplify the application of the corresponding codes, the Ministry of Finance has approved a correspondence table. A comparison of CVR codes and KOSGU codes for 2019 for budgetary institutions and public sector organizations is presented in a table. The document contains the latest changes that should apply in 2019.

Responsibility for violation

It is worth separately identifying the level of responsibility that is provided for violation of budget legislation. In fact, the level of punishment for incorrectly reflecting CVR and KOSGU in the accounting records of institutions directly depends on their type.

For example, if a government agency makes a mistake and a business transaction is reflected according to an incorrect CVR, controllers have the right to recognize such a mistake as an inappropriate use of budget funds. Violations of this nature are subject to administrative liability under Article 15.14 of the Administrative Code.

Things are different with budgetary institutions. Thus, in the agreement to provide a subsidy for the implementation of a state or municipal task, the CWR is not indicated. Consequently, the budget organization determines the encodings independently. And it is impossible to sue a government agency for misuse if the CVR is chosen incorrectly. However, the incorrect code will be reflected in the reporting - and this is already a violation of the rules of accounting (Article 15.11 of the Administrative Code) and reporting (Article 15.16.6 of the Administrative Code).

To regulate the budget process of the Russian Federation and account for budget flows, the BCC is used. The KBK has a twenty-digit structure from 1st to 20th digit. The place from the 18th to the 20th category in the structure of the KBK is occupied by KOSGU. The article will talk about KOSGU, namely its subarticle 226.

In the budget accounting of institutions, all operations on income and expenses are distributed based on the classification according to KOSGU. The specified classifier is necessary in accounting when forming the accounting policy of an organization in order to fully take into account information about the transactions performed.

This classification was established by order of the Ministry of Finance of the Russian Federation dated July 1, 2013 No. 65n. Such accounting is used directly in the sphere of public administration.

Structurally, the classifier consists of eight groups of codes. The group, in turn, includes an article, and the article has a subarticle. Below we will consider these groups in more detail.

• The first group includes income transactions– code 100. It includes subarticles from 110 to 180, this includes all types of income that the organization has. Subsection 110, for example, includes all income from taxes. Subsection 120 includes profits from property (rent, etc.). 130 includes profit from services rendered. And other sub-articles.
• The second group includes the organization’s expense transactions– code 200. The code has subgroups from 211 to 290. Operations on wages, payment of benefits, pensions, paid organizations, rent and much more are grouped here.
• The third group includes receipts of assets not related to financial– code 300. The specified assets can be either production or non-production. The group consists in detail of sub-articles 310–340. This includes income from the increased value of the organization’s property, from an increase in the cost of maintaining software and databases, etc.
• The fourth group includes the disposal of assets that are not financial– this is code 400. This group includes 410–440 subarticles. If the value of the company’s property has decreased, compensation for damage, etc.
• The fifth group includes the receipt of financial assets– code 500. The group has subgroups 510–550. This includes income from shares, bills, increases in loan balances, and more.
• The sixth group includes disposal of financial assets– code 600, which consists of 610–650 articles regulating the disposal of assets.
• The seventh group includes an increase in liabilities– code 700, consisting of 710–720 subgroups. Here we are talking about increasing the organization's debts.
• The eighth group includes a decrease in liabilities– code 800. It consists, in turn, of subarticles 810 and 820, and includes operations to reduce various debt obligations.

For example, code 200 – expenses, contains article 220, which includes payment for work and services. Article 220 consists of subsections 221-226. Taken together, subarticles 221–226 include payment for various services and work under agreements and contracts.

Let's take a closer look at subarticle 226, which reflects other works and services.

Subarticle 226 “Other work, services”

This subarticle contains the organization’s expenses under concluded contracts, which are not taken into account when paying under Articles 221-225 of KOSGU.

In this article we will look at KOSGU codes. Let's learn about definitions from regulations and analyze the most common mistakes.

It's no secret that keeping records of transactions in government agencies is different from commercial organizations. This is due to the fact that in addition to standard legislative acts regarding accounting and tax accounting for government organizations, especially for budgetary institutions, there are a number of laws that maximally control their activities and regulate the definition of each operation through the use of special codes for quickly identifying it in the relevant control service.

KOSGU codes: disclosure of the term and concept

These codes are a classifier of income and expenses of government organizations and until recently they were used when paying to identify expenses. But for more than a year they have not been used for the purposes of payment and procurement procedures, but government agencies use them within the framework of internal accounting, including accounting, as well as in reporting.

The procedure for using the operation classifier

In the accounting department of any government agency, you can find a table with transaction codes that apply to almost all accounting entries related directly to the main activities of the enterprise. In the classifier, all operations are grouped according to a single principle depending on their economic content. Moreover, each group has a more detailed classification (divided into sub-items) for income, expenses and budget financing. This simplifies the process of accounting and reporting.

Eight main groups have been approved at the legislative level; they represent very comprehensive articles that give a general understanding of the completed or planned operation. The meaning of such groups is determined by the first digit of their three.

Code	Name	Description
100	Income	This group reflects all income related to the direct activities of the institution.
200	Expenses	This group reflects all expenses associated with the direct activities of the institution.
300	Increase in non-financial assets	This group reflects transactions related to the receipt of assets unrelated to production activities
400	Decrease in non-financial assets	This group reflects transactions related to the disposal of assets unrelated to production activities
500	Increase in financial assets	This group reflects transactions related to the receipt of assets, such as deposits, checks, cash, obligations of other organizations to this institution, etc.
600	Decrease in financial assets	This group reflects transactions related to the disposal of assets, such as deposits, checks, cash, obligations of other organizations to this institution, etc.
700	Increase in liabilities	This group reflects transactions related to an increase in the institution’s liabilities
800	Reducing liabilities	This group reflects transactions related to the repayment of the institution’s obligations

Detailing of operation classification codes

The articles listed above have a fairly comprehensive meaning, so in practice, for ease of planning, a more detailed list of articles is used. This detailing occurs already in the second character of the last three in the code. Detailing occurs according to the main areas of activity for income (there is also an article for accounting for other income), and these articles can be detailed, if necessary, by the third sign in order to separate the types of income:

110 – Group defined for tax revenues of a budget organization, which are transferred by tax agents within the established time limits and in the amount calculated within the framework of tax legislation;

130 – Group of income from paid services provided by a state institution to the population and other organizations;

160 – Group of income from the transfer of insurance premiums established by tax legislation;

180 – Group of other expenses, defined for all expenses that were not included in previous items.

Similar detailing is provided for other groups, including expenses of a government agency. Until recently, these codes in terms of determining costs were used when creating a procurement plan:

210 – A group defined for all expenses related to the salaries of employees of a given government institution, while this article also has detailing in the third digit;

211 – Expenses associated with the remuneration of employees, which takes into account all expenses that are, in one way or another, related to this area of ​​spending funds of a state institution, except for insurance premiums and all other expenses determined by tax legislation;

213 – Expenses related to the remuneration of employees who were not included in the previous article, which include all transfers to budget funds and tax liabilities;

220 – The group is intended to account for all expenses for purchased works, services, rent, etc. At the same time, like other groups, this group of expenses is detailed in the third digit;

260 – Expenditures on social security of the population, which include pensions, medical, insurance and other benefits, as well as other obligations of budgetary institutions to the population;

290 – A group of other expenses that, for objective reasons, were not included in the previous items, and this expense item should not exceed ten percent of the total amount of expenses.

Regulatory acts governing KOSGU

The table describes legal acts:

Application of the classification of operations in the work of government agencies

As mentioned above, this classifier is used in government agencies in several cases:

1. In accounting and reporting for maintaining and controlling all internal activities of the institution, as well as for public finance statistics;
2. When paying, in the process of filling out a payment order, the corresponding transaction code and payment purpose are indicated;
3. In the procurement plan, when forming a procurement plan for each expense item, a specific code from the classifier is assigned.

Expense type codes as an alternative to KOSGU

At the beginning of 2016, changes were initiated by the Ministry of Finance, which defined a new classification system for indicating the purpose of payment in the payment order and drawing up the procurement plan in order to formulate a planned budget for organizations engaged in the public sector. Currently, expense type codes are used for these purposes. At the same time, this new system provides more detailed detail for some items.

KVR code	Descriptions	KOSGU code	Descriptions
110	A group defined for all expenses related to the salaries of employees of government institutions	210	A group defined for all expenses related to salaries and other payments to personnel
120	A group defined for all expenses related to wages of employees of state (municipal) institutions
130	A group defined for all costs associated with the salaries of employees in the national security, law enforcement, and defense sectors.
140	A group defined for all expenses related to the salaries of employees of state extra-budgetary funds
244	Other acquisition of various goods, works, services	221	Expenses for communication and telecommunications services
		222	Expenses for services related to transportation
		223	Utility costs
		290	other expenses

KOSGU in the payment order

Typical errors in using KOSGU

Mistake #1. Distortion of statistical data

An incorrect code from the classifier will ultimately lead to errors in recording transactions in the organization’s accounting records, as well as to distortion of statistical data when preparing reports. The existing classification system is quite simple and transparent, so if the payer has any questions regarding the definition of the code, it can always be clarified directly in the structural department of the institution to which the funds should be transferred.

Mistake #2. Formation of a procurement plan

Drawing up a procurement plan is probably the most difficult and painstaking work for any government agency. This is due to strict control by the inspection authorities of this particular aspect of the activities of institutions. Any error in the generated plan (incorrect transaction code) can lead to it not being agreed upon, and this can lead to many problems, the main one of which is the failure to receive budget funds on time to pay off existing obligations.

Mistake #3. Payment using online systems

Nowadays, the need to leave the office or home to pay off your obligations is actively decreasing; to do this, you just need to use the online portal of the public service and make payments through the bank’s online application. But we must never forget that even in this case, it is always necessary to check the correctness of all details and codes from the classifier to prevent possible errors, as well as delays in the transfer of funds and payment identification.

Common questions and answers

Question No. 1. What KOSGU code is required to pay VAT?

Answer: When generating a payment order, all details of the payment purpose must first be clarified with the relevant tax service in order to avoid the possibility of making mistakes. For tax payments, code 130 is provided - this is tax revenue of budgetary organizations.

Question No. 2. Are there penalties for incorrectly linking KOSGU and KVR codes?

Answer: All possible combinations according to the two classifications are approved at the legislative level. It is necessary to clearly understand that these codes are used in the accounting of each specific government agency, which means that an incorrect code can lead to distortion of accounting data. Such violations may, of course, result in penalties.

What is KOSGU. Decoding of KOSGU 226 in Russia in 2019. Examples in budgetary organizations.
Budgetary organizations occupy a significant share in the economy of the Russian Federation.

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State-funded enterprises. Their presence makes it possible to provide social support to the population from the state.

Providing basic life-saving services in terms of medicine, education, etc. for free. Such institutions have their own accounting and tax accounting features.

Particular attention is paid to financial processes at budgetary enterprises for the reason that their activities are financed from the state budget.

Therefore, it is especially important to note and verify the intended use of all incoming and outgoing funds.

General points

The financing of all budgetary organizations is controlled by the Treasury. For this they have their own special accounting system.

As part of this, several classifiers have been developed to systematize the necessary information.

One of such tools is KOSGU. What is its essence, what is its main purpose and how to use it, we will consider further in the article.

Like most classifiers, KOSGU has a digital value. This makes working with documentation easier.

Instead of a verbal description of the action, a digital code is used that displays the information established by the classifier.

What it is

KOSGU is a classification of operations of the public administration sector, which is a grouping of operations according to their typical economic significance.

It allows you to systematize the economic processes occurring in the enterprise and simplify the process of leaving reports.

The classification of operations of the general government sector consists of the following groups:

In this article, we will look in more detail at KOSGU 226, which marks an operation associated with expenses for other work and.

As a rule, the most questions are associated with this subgroup, since it is very difficult to determine the operations that, according to the law, relate specifically to it.

This subgroup includes those articles that cannot be classified as 221-225. Next we will look at examples of work and services that this category includes. This will allow you to use KOSGU more expertly.

What is his role

KOSGU is a code that is used by treasury authorities and is intended to systematize collected statistical data.

KOSGU is a specific classifier used exclusively by enterprises directly subordinate to government administration. Their activities are monitored by the Treasury.

Funding for these enterprises also passes through this body. KOSGU acts as a unique interpretation of the chart of accounts for budgetary institutions.

It is intended to systematize information about the movement of financial resources in an enterprise; these processes are reflected in accounting and tax reporting.

Unlike the chart of accounts, it is not used for primary reporting. But it plays an equally important role, since with its help a number of final reports are compiled that are sent by the board to the treasury.

KOSGU is used in planning. It is used to organize a procurement schedule, product sales and other financial and non-financial transactions.

Regulatory regulation

Like most processes in the economic sphere, the use of KOSGU is regulated by a number of regulations.

The main ones can be identified:

This list can also be supplemented by municipal legislative acts, since many budgetary enterprises and organizations are financed from local budgets and are controlled accordingly by them.

Explanation of KOSGU 226 for budgetary institutions in 2019

Budgetary institutions, due to their specificity, have, as mentioned above, their own financial accounting system.

One of these features is the use of KOSGU. It includes accounts to record all transactions carried out in the enterprise.

But of the many accounts of KOSGU, 226 attracts the most attention. The problem is that it is difficult to determine which operations should be assigned to it and which ones should precede it.

To understand this, you need to know how this account is correctly deciphered.

Account structure

The KOSGU account consists of a three-digit number, the first number of which determines the assignment of the operation to one of eight economic groups. In turn, each group is divided into subgroups.

Which of them the operation belongs to depends on the scope of its implementation. Let's look at this using account 226 as an example. The first digit of the code determines that the operations assigned to this group belong to expenses (200).

Having opened this article, we see that account 220 includes expenses associated with payment for work and services.

Well, having looked at what subgroups the 220 account includes, we determine that 226 includes other works and services. Now let's look at how the operation performed at the enterprise relates to this account.

To do this, let’s simulate the situation of “attributing the salary of a cook in a school canteen,” since this expense is charged to account 200.

Well, since feeding schoolchildren is not the main activity of the enterprise, it should be included in other expenses, namely in account 226.

List of works taken into account in this article

To reveal in more detail and accurately the picture of displaying an operation under Article 226, let’s look at an example of what kind of work can be displayed on it.

Budgetary organizations include a number of works in KOSGU 226 that cannot be displayed in other expense groups.

Depending on the specifics of the enterprise’s activities, the following works are displayed here:

• work involving a preparatory stage before the start of production;
• design, development of drawings and plans of objects;
• design work;
• disposal of equipment and other property (not in all cases);
• landscaping;
• and others.

In addition, expenses under subsection 226 of KOSGU include payment for copyright.

Determining whether this type of work performed belongs to account 226 or whether it should be displayed under other items is actually not at all difficult.

To do this, you need to decide for what purpose the work was performed. The list, for example, contains the item “equipment disposal”. As a rule, it is displayed under article 225.

But if it was not on the organization’s balance sheet, for example, it was taken in and completely failed during the period of use, then the costs associated with the removal of the equipment and its disposal are attributed specifically to account 226. Note that in this case the cost of the equipment itself is not displayed.

List of services included in the accounting of government institutions in the two hundred and twenty-sixth

In addition to work that can be performed by both employees and third parties, services are included in account 226 at the enterprise.

The assignment of an operation to one or another subgroup primarily depends on the specifics of the enterprise’s activities.

When maintaining accounting records according to KOSGU 226, budgetary institutions use the following expense transactions:

• installation of equipment;
• informing;
• printing services;
• provision of food;
• waste removal;
• organization of tenders;
• services as part of modernization;
• other services.

A typical mistake of most financiers is to assign transport costs to this subgroup. Therefore, it is advisable to note that they belong to the 225 subgroup.

But 226 can include expenses such as, for example, publishing leaflets with instructions on safety rules at an enterprise or fire evacuation plan diagrams, which all work premises must have.

In this case, when expenses are displayed, the product not received is paid for, but the service for its creation provided by another organization or hired workers.

Cleaning services are no exception, especially if third parties are hired to carry them out.

Such work is provided for absolutely at all enterprises, but they do not directly relate to the execution of the work process. Often, enterprises need advice from specialists in various fields of activity.

They may specialize in providing consulting services in the production process, solving financial or legal issues. In any case, it is also advisable to charge payment for these services to account 226.

The specifics of accounting by budgetary organizations and institutions include the use of KOSGU.