OS upgrade: step-by-step design instructions and example

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

It often becomes necessary in organizations to change some features of objects. To achieve this goal, old elements are replaced with new ones. In other words, they are upgrading the OS.

General information

Due to operation, wear and tear of fixed assets occurs. For this reason, they are often changed. Before upgrading the OS, it is important to decide which way this will be done. The first option is economic, when the forces of the enterprise itself are involved. The second one is contracted, when the upgrade of the operating system is carried out by the involved employees of a third-party enterprise. This term should not be confused with renovation. The latter does not lead to a change in indicators, they remain at the same level.

In tax and accounting

In tax and accounting, OS upgrades will vary. So, there are differences in costs affecting the initial price of an item. In tax accounting, 2 methods are used - linear and non-linear.

When the procedure for upgrading the OS in accounting is completed, the terms of application of the element are increased without restrictions on the increase. Tax accounting leaves the terms at the same level. Main resourcehere - a property that meets the following requirements: the property is used for 12 months, the purpose is to make a profit, there is depreciation, and the price exceeds the restrictions.

Terms

Modernization is a procedure that improves the design, improves the performance of the element, expands the capabilities.

Accounting is the collection of data, their generalization, analysis, which affects the financial side of the enterprise.

Tax accounting is the systematization of information about expenses and profits.

Reconstruction is a measure taken to increase capacity and production levels.

Repairing core resources is considered a process of partial restoration of items to keep them in good condition.

Additional equipment is the addition of basic resources with parts that give additional characteristics to the original objects.

Depreciation is the transfer of the cost of an asset due to depreciation onto the cost of a product.

Why do it

Before you upgrade the OS, you need to figure out why it is being carried out. This procedure is aimed at restoring performance or indicators that do not affect the quality of the element. With its help, the elements are given additional functions.

Regulatory framework

In the Tax Code of the Russian Federation, in article 257, the goal of OS modernization is fixed. It consists in improving the initial characteristics of fixed assets. The same article indicates that the item's price may change in the process.

Article 259 of the Tax Code of the Russian Federation emphasizes that the cost of upgrading the OS is included in the cost of depreciation. Article 258 declares that in cases where the process does not increase the life of the element, the taxpayer must take into account the remaining life.

How it is done

Official documents OS upgrade along with the procedure is regulated. First of all, they accumulate the amount of expenses, then draw up documents. When the process is completed, the accumulated amount is written off. To recognize the results of the OS modernization procedure, documents from an accountant are required. Primary documents serve as evidence of the implementation of the procedure. They also serve as the basis for accounting. But if, for example, the OS upgrade is not documented, then it is not taken into account.

To carry out the procedure, the first step is to issue an appropriate order. It is he who gives the right to its implementation.

It must indicate the reason, duration, information about the responsible persons. Before the start of work, a commission is formed. It is she who inspects the elements, draws up a schedule and draws up documents. Then they conclude an agreement with the contractor in cases where the modernization is not carried out by the enterprise itself. And only then the elements are subjected to the procedure. An invoice is issued for the transfer of fixed assets. When the procedure has been carried out, an act is formed on the acceptance and delivery of objects to be modernized. It must contain the signatures of the members of the commission, management and representatives of those who carried out the work. Information oneach item is stored in inventory cards. With registration of the main resource, a card is also issued for it.

Formation of an order

In the absence of an appropriate order from the leadership, the procedure is never started. It is the documentation that indicates the reasons for the conduct, the duration of the work. In accounting in OS modernization, this document is fundamental.

Act for retrofitting

Additional equipment is carried out to give the main resources additional performance. That is, new parts are added to the tool without replacing old ones. The organization also conducts the procedure both by itself and with the involvement of third-party professionals. When attracting workers, they must conclude an appropriate contract.

The way the documents will be processed will depend on the method of the procedure. If the fixed assets are transferred to involved specialists, they draw up an act of acceptance and transfer of fixed assets for retrofitting.

There is no single form of the document, for this reason it is prescribed in any format. The act gives the opportunity to recover damages if the fixed assets are damaged as a result of the procedure. In cases where there is no act, guilt is unlikely to be proven. The document must contain the signatures of the members of the commission, responsible persons, workers responsible for the integrity of the element. Then the act approves the management, transfers it to the accountant.

Refresh rate

This coefficient helps to identify and highlight part of the new operating systems next to those available by the end of the reporting period at the enterprise. The calculation is carried out as follows - the initi althe price of fixed assets received for the entire period is divided by the original price of fixed assets at the end of the period.

Using the coefficient, they reveal at what stage the enterprise is. If it is less than 1, the organization is considered to remain in the downsizing phase. But if it exceeds 1, then production expands. With a gradual decrease in the indicator, we can say that the organization is equipped with less OS.

Wiring

Upgrading the OS is reflected in the accounting. And there the use of postings becomes necessary. First of all, D 08 K 10 is used (the cost of materials used in the modernization is reflected in the accounting). D 08 K 23 reflects costs. D 08 K 60 reflects the debt to the counterparty for the work performed. D 08 K 68 - VAT calculation. D 68 K 19 - VAT presented for deduction. D 01 By 08 the initial cost has increased. It is important to be careful when processing these OS upgrade postings, as the slightest oversight will affect the amount of taxes.

Frequently Asked Questions

Often during the procedure, workers are asked a lot of questions. For example, you may be faced with the question of whether the fixed assets continue to be used when their depreciation is over. The upgrade of the OS with depreciation, which has come to an end, is carried out. Also, OS data continues to be used.

It is also often asked whether it is necessary to display OS repairs in accounting. In fact, it is always displayed both in tax and in accounting. Many are concerned about the question of how many acts of malfunction of fixed assets are needed. When carrying out workorganization will need only one act. But if foreign specialists were involved, then it is necessary to draw up a separate document for each participant in the process.

Zero residual value

Upgrading a depreciated OS is allowed by law. This element is subject to further use, because it continues to comply with legal requirements. A number of ways open up before the enterprise how to deal with these elements. You can re-evaluate these items and continue to record by their number. How to act, the management decides. On the issue of OS upgrade with depreciation, the law leaves legal entities free choice.

The accounting policy emphasizes that the revaluation of elements is carried out on a voluntary basis. This procedure is carried out when, on the reporting date, the price of the element will differ from its original cost. For this reason, re-evaluation is carried out. But take into account the fact that the appraiser must have the appropriate qualifications. Otherwise, the rating will be invalid. When revaluing a fixed asset, you need to know that the price is added to the original one, but the depreciation cost is not subject to change.

The liquidation value is set for these elements. When the revaluation is completed, the item is depreciated at the new price minus the disposal cost and based on the extended term.

In cases where they are re-evaluating an OS object, they review all the OS that are included in the group.

The second way is to quantify all fixed assets. If the company is unwilling to carry outrevaluation, it can use depreciated fixed assets, carrying out their quantitative accounting in accounting. The company chooses any path. Regardless of the choice, tax accounting will not change.

Major or current repairs

Restore the OS by carrying out repairs - basic, current or major. Spend it, pre-developing a plan. At least that's what it's recommended to do. During the current repair, parts are replaced to maintain the performance of the element. During a major overhaul, all worn-out objects are replaced at the same time. All this is reflected in the accounting without fail.

There is one more requirement. The need for repair must be confirmed by a special act drawn up as a result of the detection of OS malfunctions. Be sure to form a defective statement. When repairs are carried out on their own, additional documentation is not issued. But in the case of transferring the process to third parties, they must issue an invoice for movement. When the repair is completed, an OS-3 act is drawn up. Regardless of which way the procedure was performed, it is always drawn up.

There are a number of challenges before taking into account the repair of fixed assets. Firstly, it is the control of the correctness of the documentation, the identification of the volume and cost of work that has already been completed on the repair. It is also a control over the spending of funds that were allocated to the process. Among other things, this is a determination of the presence of deviations.

Overhaul is a global and complex process.

During its course, the element is completely disassembled,replacing parts that have worn out. Another option is current repairs. When documenting a major overhaul, several factors are always taken into account. So, the calculation coefficients are always included in the repair estimate. Estimated technical documentation is developed on the basis of the current level of prices and tariffs, and in the invoices of suppliers of elements there are always links to the price on the basis of which prices are set. When major repairs are carried out with a contract, the relevant acts are always issued. Every material is always invoiced. The completion of the overhaul is documented by acts of acceptance and transfer of the object.

Carrying out maintenance is carried out on a regular basis according to the relevant schedules. Defects must be corrected immediately. The amount of expenses for current repairs is always pre-registered in the plans of the enterprise.

In 1С

To upgrade the OS in 1C, you will not need much labor. The first step is to complete the paperwork for the service. To do this, select the column "Receipt of goods and services". Before upgrading the OS in 1C, they open a journal, create a new document. It is being filled. When the date is filled in, the counterparties, the procedure will be introduced, fill out the "Services". It captures all the necessary data here - upgrade invoices, its cost, and so on.

Before upgrading the OS in 1C, they must double-check the information. And then the procedure begins. To understand how it is carried out, it is better to familiarize yourself with the example of filling out the OS upgrade in 1C 8.3. Primarilycreate a new document, which is filled out by choosing an upgrade. Then they indicate the object itself and go to "Accounting". When applying for an OS upgrade in 8.3, this is necessary to calculate the cost of the operation.

Subtleties

Taxpayers who work under the simplified tax regime consider depreciable property as fixed assets. In other words, when the duration of work is more than 1 year, and the initial price is more than 20,000 rubles. Costs for the acquisition of fixed assets are taken into account from the beginning of the use of the object. If fixed assets were acquired before the transition to the simplified taxation system, then the amount of costs will depend on the period of useful use. When a resource is sold, first of all, they find out how much time has passed since the cost was taken into account. In cases where it turned out to be less than 3 years, the base is recalculated for tax accounting. For each period in which the base was recalculated, a document is presented.

Deductions for depreciation on the simplified tax system in accounting are carried out both every quarter and every month and year. When fixed assets are acquired, this is reflected in the balance sheet as an expense. They include funds given to the seller, shipping, taxes, duties, fees and other expenses.

There are 2 methods of creating the main resources in an enterprise operating under the simplified tax system - economic and contract. The procedure is documented. When selling the main resources, their cost is necessarily written off from the balance sheet. But first write off the cost of depreciation.

Depreciation is calculated every month for objects separately. An entity may reassess the underlyingfunds annually. Modernization is needed to return the element to action and improve its performance. The OS is being upgraded at NU and accounting. The process is always accompanied by paperwork.

Detailed instructions

When new objects are purchased, before upgrading the OS to 1C 8.3, it is important to place them in the warehouse according to the "Receipt" document. Then create a new document with the receipt type "Construction object". All data is entered into columns. You can use the Handbook. It can be accessed from the receipt document. This is done simply: just click on "Add", then the column will be displayed in the table, in the column "Object of construction" you need to click on "Show all". Then the corresponding directory will open, in which you can start creating a map of the object. To make it easier to understand this, you can use the example of OS upgrade in 1C 8.3 below.

Next, you need to go to the "Services" tab, where you need to enable the service of installing additional equipment. You need to click on "Add", and then select a service from the directory, indicating the price and number.

The 26th invoice will be reflected in the “Cost account” column, but when it is necessary to add the price of the service to the cost of modernization, it is important to change the indicator to account 08.03.

When viewing the movement of the document, you can see the separate dates for the receipt of additional equipment and services related to the invoice 08.03.

Then, the OS is upgraded. To do this, go to the tab "OS and NMA", and then to "Upgrading the OS". They create a new document, fill in the columns "Organization" and "Location of the OS", choosing the values in the directory.

On the “Construction object” tab, the name of the element is printed, as well as the accounts of the non-current asset. Next, click "Calculate". As with OS upgrades, 1C 8.2, 8.3 will automatically calculate the cost of fixed assets, taking into account upgrades and installations.

The “OS” tab contains a column with the name of the object subjected to the procedure. Add from the directory and press "Distribute". Then the amount will automatically be calculated. An increase in the cost of fixed assets will appear in the postings, taking into account the procedure.

Upgrading the OS in 8.2 is practically no different from the same process in 8.3.

Organization of accounting for the sale of fixed assets

When an enterprise makes a decision to sell a fixed asset, the accountant is faced with the task of correctly displaying this procedure in accounting. The deal will have several consequences.

Firstly, when transferring ownership of an object, the seller displays income. It is taken into account in the rest and displayed on the account 91.

Remember that income is only the net selling price, excluding VAT. But first of all, the full income is credited to account 91, and only then the VAT amount is displayed in the transaction.

The sale of a fixed asset leads to the need to attributeresidual value of fixed assets for other expenses of the enterprise.

In the documentation for the sale of a fixed asset, the company draws up the transfer by means of an acceptance certificate.

There is a separate discussion about the sale of unfinished objects. When conducting transactions, a situation may arise when an enterprise decides to sell a fixed asset that has not yet been completed. Then a number of nuances appear in accounting.

Thus, the income from the sale of these objects is part of other income and refers to the credit of account 91 in the amount paid by the buyer.

But you need to remember that objects that have not been completed are not recognized as fixed assets and do not have a formed initial cost. Then the accountant is faced with the question of what exactly to attribute to expenses.

In this situation, other expenses include the costs already incurred during the construction of the fixed assets, including the costs that accompanied the sale process.

As with the sale of a fixed asset, with the sale of unfinished objects, income is written off on the date when the transfer of ownership occurred.

When transferring a former OS to the authorized capital of another enterprise, one must be aware that the procedure needs to be properly documented. So, in this case, a special act is needed. It is designed both in free form and according to the model. It is important that the document reflects the residual value of the fixed asset, VAT recovered due to the transfer of fixed assets as a contribution to the authorized capital of another organization.

OS that was transferred,the receiving party evaluates to determine the amount of the contribution that was made by such a fixed asset. For this reason, the entity must be aware that if the receiving party values the fixed asset at a price higher than its book value, the difference will be charged to the firm's income. Otherwise, if assessed at a lower amount, the debt on the contribution to the authorized capital will be considered outstanding. For this reason, the difference is always included in other expenses and debited to account 91.

On the liquidation of fixed assets in accounting

This process has a number of subtleties. Since there is no income for the retired fixed asset, the company records only the expense. It includes: the residual value of the liquidated object, the amount of costs for the work that accompanied the procedure, the amount of VAT paid by the enterprise due to the liquidation of the fixed asset.

It is also important to remember that after this procedure, the organization receives new material (for example, parts). It is entered in the debit of account 10.

Accrued depreciation - direct expense

The accounting policy emphasizes that the accrued depreciation of fixed assets, which are used in the course of the business activities of the enterprise, is a direct expense. The right to determine the list of direct costs is exercised in separate chapters of the accounting policy.

Include depreciation in their account if there are financial justifications. In this case, the procedure is associated with the technological process and production features. Often, the tax authorities try to challenge the list of direct expenses, which istaxpayer. She is trying to expand the list. Although the taxpayer himself chooses the rules of the game in the field of accounting policy, he himself deals with direct expenses, the Tax Code of the Russian Federation does not consider that this procedure depends only on the taxpayer himself.

When tax disputes arise regarding the inclusion of depreciation in direct or indirect costs, the participation of fixed assets in the production process is taken into account.

In addition, one of the weighty arguments that plays into the hands of the taxpayer is the accounting policy for the purpose of tax accounting. It specifies the principle according to which depreciation is allocated to direct and indirect costs. According to this algorithm, depreciation charges are written off for expenses outside the useful life of fixed assets.

But there are a number of court rulings in which the judiciary is inclined to a different way of calculating the depreciation of upgraded fixed assets without increasing the useful life.

Zero Value Object Details

Often, modernization is carried out in relation to elements of fixed assets that have been depreciated. The regulatory authorities explain that with an increase in the useful life of the element after the implementation of this procedure, the enterprise can begin depreciation according to the new standards. They are calculated taking into account the new deadlines.

The enterprise has the right to increase these terms within the limits that were established for the corresponding depreciation group, which previously included fixed assets.

However, earlier experts announced thatthat after the implementation of the modernization procedure, it is necessary to use the depreciation rate that was established when the OS element was put into operation.

For example, in the practice of the judiciary came across the following situations. In disputes, the enterprise carried out the modernization of the fixed assets depreciated to the end for the purposes of tax accounting. The useful life has already expired. The item was no longer depreciated when the upgrade was completed. Thus, the depreciation period has come to an end. The issue was to determine the methods for calculating the amount of depreciation in relation to depreciated fixed assets that have undergone a modernization procedure. And there are many such disputes.

Conclusion

It is important to carry out accounting of fixed assets in the manner prescribed by law. That is, take into account the fixed asset on the date of bringing it to the state of readiness for operation. When fixed assets are sold, the amount is included in income, and the residual value is included in expenses. The same principle applies to unfinished facilities.