A netting act is drawn up in the event of an agreement reached on the repayment of mutual debts between economic entities. Often such transactions are carried out in order to preserve working capital, reduce the tax base.
Instructions
Step 1
The offsetting act is the primary settlement document. The absence of errors in accounting and tax accounting for such operations depends on the correctness of its registration. There is no unified form for this document, but it must meet all the requirements for primary documents.
Step 2
Offsetting is carried out in 2 stages. The first is identifying debt. A reconciliation act is drawn up, which reflects settlements between organizations. The second - a netting act is drawn up and signed, which indicates what amount of debt is considered to be repaid. The second stage ends with the sending of a letter - a notification in case of unilateral offsetting or signing of an act - in case of a bilateral one.
Step 3
Indicate in the act the amount of obligations for each clause of the offset agreement. The total amount owed is shown as a grand total. VAT is allocated separately for each item of debt and at the end of the total amount. The figure indicated in the act must be confirmed by documents: invoice, invoices, etc.
Step 4
It is imperative to register the date of drawing up the act, the grounds for the requirements specified in the act (contract, agreement), as well as the timing of their execution. The act must contain the phrase that the indicated amounts of mutual debt are considered repaid. This document is signed by the head of the organization or an authorized representative by proxy.
