When concluding a sales contract, some suppliers set a condition such as an advance payment. That is, in order to receive the goods, you need to pay an advance. As a rule, such transactions must be recorded in accounting records. But when such amounts are taken into account, confusion sometimes arises, which can lead to penalties. How to reflect the advance paid?
Instructions
Step 1
First, it should be noted that you should reflect the paid advances only on account 60 "Settlements with suppliers and contractors." If you are using account 76 "Settlements with different debtors and creditors", be prepared to pay a fine. It will also lead to a double display of receivables and payables in the balance sheet.
Step 2
To prevent confusion, to account 60 "Settlements with suppliers and contractors" open the subaccount "Advances issued". When paying a prepayment to this account, open a credit account that shows the source of payment, it can be 50 "Cashier", 51 "Current account" and others.
Step 3
If you have not repaid the paid advance at the end of the reporting period, then reflect it on line 230 (240) in the balance sheet.
Step 4
When goods have arrived at your address against an advance payment, reflect this using the correspondence of accounts: D08 "Investments in non-current assets", 10 "Materials", 20 "Main production", 41 "Goods" K60 "Settlements with suppliers and contractors" - capitalized goods on account of an advance paid earlier; D19 "Value added tax on purchased values" K60 "Settlements with suppliers and contractors" - VAT included; D60 "Settlements with suppliers and contractors" K60 "Settlements with suppliers and contractors" subaccount "Advances issued" - the advance paid to the supplier was taken into account; D68 "Calculations of taxes and fees" subaccount "VAT" K19 "Value added tax on purchased values" - VAT deduction was carried out.
Step 5
You can also deduct VAT until the goods arrive at your address. To do this, the supplier must issue an advance invoice with VAT allocated. Check the payment documents, namely the amount of tax. Check the agreement for the availability of the prepayment condition.
Step 6
After that, in accounting, make the entries: D60 "Settlements with suppliers and contractors" subaccount "Advances issued" K51 "Settlement account" - an advance has been paid to the supplier; D68 "Settlements for taxes and fees" subaccount "VAT" K76 "Settlements with different debtors and creditors "subaccount" VAT from advances issued "- accepted for deduction the" input "VAT from the advance; D 10" Materials ", 20" Main production ", 26" General expenses ", 41" Goods "K60" Settlements with suppliers and contractors " - the goods were capitalized against the advance paid earlier; D19 "Value added tax on purchased values" К60 "Settlements with suppliers and contractors" - included the input VAT; D60 "Settlements with suppliers and contractors" K60 "Settlements with suppliers and contractors" subaccount " Advances paid "- the advance paid to the supplier is credited; D 76" Settlements with different debtors and creditors "subaccount" VAT from advances issued "K68" Calculations of taxes and fees "subaccount" VAT "- the amount of VAT accepted for deduction during the advance is restored D68 "Calculations of taxes and fees" subaccount "VAT" K19 "Value added tax on acquired values" - accepted for deduction of VAT on purchased goods.
