Vendor invoice accepted for goods received: posting with VAT

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

The vast majority of all existing firms, both large and small, can not do without deliveries (suppliers) in their business activities. The only exceptions are companies that themselves are large suppliers or firms whose main activity is not production and the like. These may, for example, include firms whose main activity is aimed at generating income from a share of the authorized capital of other firms.

This article will define what acceptance is (hereinafter AK), consider types of AK in accounting (hereinafter BU), types of operations, accounts for settlements with deliveries, forms of primary documents for settlements with deliveries, postings acceptance of the supplier's invoice for incoming materials and examples.

What is AK?

Before startingdescription of accounts related to settlements with suppliers, we will give explanations to some concepts.

Many do not understand the meaning of AK, which may appear in the BU. It appears infrequently, but can lead to bewilderment of accountants, especially beginners.

In general, this concept occurs quite often in everyday life and applies not only to BU. The word "accept" from both English and Latin is translated as "accept". Accepted means accepted. In the Russian Federation, the concept of AC refers to the unconditional and complete acceptance of any offer by the recipient.

In BU AK, it is considered the acceptance of a service, work or ownership of any value. The AK business transaction must be accounted for before payment. Otherwise, such a transaction is still often defined as a reflection of the firm's debt. Therefore, if the supplier's invoice is accepted for the materials received at the warehouse, this means the appearance of accounts payable.

Types of AK in BU

The concept of AK refers more to banking and finance, and to a lesser extent to accounting. In our case, AK is found only in settlements through the company's bank account. The main types of such settlements are a payment order (hereinafter referred to as PP) and a payment request (hereinafter referred to as PT). The difference between them is that with the help of the TP the deliverer requires the payer to pay for the goods, service or work (issuing an invoice), and with the help of the PP the payer instructs the bank to pay from his account for the goods, service or work from the deliverer.

AK is found in settlements through PT, which can be of two types: with AK and without AK. PT with AK means that the payer, before paying the invoice, must agree to this (accept the invoice) within three days. After this period, if the payer has not accepted and has not declared a refusal to pay, the PT is considered accepted. PT without AK does not include the consent of the payer, and the money is transferred from the payer's account to the carrier's account immediately. This type of payment (without AK) is possible only if it is specified in the contract between the supplier and the buyer (payer).

Transactions with postings of acceptance of the supplier's invoice for incoming materials are made on the basis of the acceptance type of PT. Refusal from AK (payment by account) can be full or partial. In case of full or partial refusal, the buyer must submit a refusal statement to his bank with a cover letter stating the reasons for the refusal and indicating those clauses of the contract that have not been fulfilled. Unreasonable refusals of the payer by the bank are not accepted, and the bank does not consider all possible disputes between the buyer and the courier.

There are also such concepts as preliminary and subsequent AK. In BU, they are almost never used, but they can occur. These concepts relate more to the field of finance. Preliminary AK is the type of AK described above. That is, the payer in this case must give prior consent before paying. Subsequent AK means the same procedure as an invoice without AK, when money is withdrawn from the payer's account immediately, but at the same time, the buyer retains the right to subsequently refuseAK after the withdrawal of funds. The subsequent AK has not been applied in the Russian Federation since 1992.

Type of operation with acceptance of the account of the deliverer

All business transactions in accounting are divided into 4 types:

1. Active-active correspondence (active debit account, active credit account).
2. Active-passive correspondence (active debit account, passive credit account).
3. Passive-active correspondence (passive debit account, active credit account).
4. Passive-passive correspondence (passive debit account, passive credit account).

Correspondence is a connection of BU accounts, when the same amount is reflected in two accounts at once. Two accounts in any transaction are called offset.

The first type of operations increases one active balance sheet item and decreases another active balance item by one amount. The balance value remains unchanged. The second type increases two balance sheet items by one amount. The balance value is increased by this amount. The third type reduces two balance sheet items by one amount. The balance value is reduced by this amount. The fourth type reduces one passive balance sheet item and increases another passive item. The balance value remains unchanged.

In our case, the active account "Materials" (materials received) and the active-passive account "Settlements with suppliers and contractors" (increased accounts payable) increase. That is, if the supplier's invoice for the received materials is accepted, the operation type will be the second.

Accounts for settlements with deliveries

These accounts are account 50 “Cashier”, account 51 “Settlement accounts”, account 52 “Currency accounts” and account 55 “Special bank accounts”. In most cases, settlements with deliveries are made using account 51, but sometimes money is issued in cash and in other ways using the above-mentioned accounts.

There are no particular difficulties in settling with delivery companies using these accounts, except for cash settlements through account 50. There are many pitfalls in this situation that deserve to be covered in a separate article. Here we consider only the most basic points.

Withdrawing cash to the delivery person without any headache and delay is possible only if the money is issued personally to the head of the company who is the delivery person (this can be an individual entrepreneur, for example). In all other cases, the original power of attorney to receive money must be required from the representative of the deliverers. Even better, if such a form of payment is provided in advance in the contract with the supplier, and it is indicated that cash payment is possible only if the representative of the supplier has the original power of attorney.

Another problem with paying cash to a delivery person is that the delivery person has to issue a sales receipt. To do this, he must have a mobile cash register at hand in order to issue a check at the time of unloading the goods. There is also an option with a pre-prepared receipt, but it must be issued on the same date as the day the goods were shipped.

If the supplier's invoice for the received materials is accepted, it is reflected in the accounting through account 60 "Settlements with suppliers and contractors" and the connection with the above accounts. However, there are cases when the invoice of the deliverer was accepted and paid before the unloading of the goods, and during unloading a discrepancy in the order amount was revealed, which violates the contract or does not correspond to the delivery note. Here account 60 will correspond with account 76.2.

Document forms for settlements with deliveries

Before describing the postings - the supplier's invoices for incoming materials are accepted, here is a list of documents used in settlements with deliveries:

Consignment note (TORG-12) - issued to the buyer by the delivery person. When issuing the rights to the goods are automatically transferred to the buyer

Invoice (Invoice) - issued to the buyer by the courier. It confirms two facts: the shipment of goods and the payment of the specified amounts of VAT for their further deduction. This document is compiled by those deliveries who work on VAT

Universal transfer document (UPD) - can replace both TORG-12 and SF. Introduced since 2013

Consignment note (1-T) - is issued to the buyer by the deliverer, if the delivery of goods is carried out usingtransport and through the intermediary firm that delivered the goods

Transactions when recording debt for material and goods

Accepted the supplier's invoice for materials received at the warehouse. The wiring will be as follows: Dbt 10 Kdt 60. And the second option.

Accepted the invoice of the deliverer for the received goods. The wiring will be as follows: Dbt 41 Kdt 60.

Entries when recording debt for work and services

Accepted the invoice of the deliverer for works and/or services. The wiring will be as follows: Dbt 20 (23, 25, 26, 44) Kdt 60.

VAT postings and payment to the supplier or contractor

The above entries will be sufficient if the supplier or contractor is not a VAT payer.

Supplier invoice for incoming materials accepted. The posting with VAT will be as follows: Dbt 19 Kdt 60. Next, you need to close account 19 with the following posting: Dbt 68 Kdt 19. These entries should go immediately after one of the postings from the sections above, that is, in this case (if the counterparty pays VAT) there will be three wiring. After that, payment is made to the supplier or contractor by the following transaction: Dbt 60 Kdt 50 (51, 52, 55).

Problems with solutions as examples

Problem 1

The delivery man shipped materials for 330,400 rubles. including VAT 18%. Reflect on BU accounts.

Dbt 10 Kdt 60 - supplier's invoice for received materials accepted.

Posting 280000.

Dbt 19 Kdt 60 - VAT (posting 50,400).

In this problem, VAT is included inCost of materials. To calculate VAT in this case, you need to use the formula - CM / 1, 180, 18, where CM is the amount including VAT.

Dbt 68 Kdt 19 - VAT offset (posting 50,400).

Dbt 60 Kdt 51 - payment to the delivery person (posting 330 400).

Problem 2

The deliverer sent the materials by rail (through a third-party organization - Russian Railways). Materials arrived and received. The cost of materials is 200,000 rubles. with VAT on top 18%, railway tariff - 45,000 rubles. Reflect on BU accounts.

Dbt 10 Kdt 60 – supplier's invoice for received materials accepted (railway tariff + goods=245,000).

Dbt 19 Kdt 60 – VAT (36,000).

In this problem, VAT is not included in the cost of the material and must be calculated differently. To calculate VAT in this case, you need to use the formula - CM18 / 100, where CM is the amount excluding VAT.

Dbt 68 Kdt 19 - VAT deductible (posting 36,000).

Dbt 60 Kdt 51 - payment to the delivery person (railway tariff + goods + VAT=281,000).

We hope that this article clarified many issues and helped in recording the transaction - the supplier's invoice for the received materials was accepted.