60 the accounting account is “Settlements with suppliers and contractors”. This article is intended to summarize all the information about settlements with contractors and suppliers on the following points:
- accepted completed work;
- received inventory items;
- consumed services;
- delivery or processing of raw materials and much more.
Why is it needed?
For companies that operate on the basis of a construction contract, design, technological or research work, 60 an accounting account is the main tool for reflecting settlements with their subcontractors. It is worth noting the fact that any operations associated with such calculations should be displayed regardless of the time of payment.
60 an accounting account is an article that is credited to the cost of accepted work, services or inventory taken for accounting in correspondence with accounts of the accounting of such values. For services related to the processing of materials on the side or with the delivery of certain goods on credit, these accounts are carried out in correspondence with the accounts of production goods, inventories, production costs and others.
Regardless of how the assessment was carried out inventory items in the process of conducting analytics, 60 accounting account is an article that is credited in accordance with the settlement documents of the supplier. If the invoice was accepted and fully paid before the goods arrived at the warehouse, and when it was accepted, there was a shortage of more than the quantities specified in the contract or the price mismatch suddenly appeared due to the contract, crediting of this account is carried out for the corresponding amount in correspondence with 76th “Settlements with various creditors and debtors”.
At the same time, when it comes to unbilled deliveries, 60 an accounting account is an item that is already credited to the value of the received values, determined in accordance with the conditions and prices provided for by the contracts. Such an account will be debited for the amount of payment, including all kinds of advances, added to the correspondence together with cash accounts and others. In this case, the amount of advance payment and advances issued must be accounted for separately. Amounts owed to contractors and suppliers, which are secured by promissory notes issued by the company, will not be debited from this account, they should then be separately recorded in the analytical report.
Analytical records are held for each account submitted, and if we are talking about making settlements in the order of planned payments, then for each contractor or supplier.
How are such accounts held?
In this case, the general methodology for such calculations is quite simple compared to many others. If the company receives something, then 60 the account of the account is a debit, and if it issues, then a loan. Suppliers and contractors provide various services, perform work, as a result of which they are credited.
In this regard, the compilers of the chart of accounts should very clearly systematize the cases of entries on debit and credit, but systematization can raise a large number of questions,related primarily to the features of lending:
- Does the acceptance of the contractor or supplier result in payables automatically appearing?
- If the work is accepted or inventory was provided to the customer, but they did not receive invoices, then how should the accounting account 60 be compiled (postings, examples of which you will see below)?
- What should the accountant do if the data of the incoming documents, as well as the actual state of the incoming values or the quality and scope of work are inappropriate?
Does acceptance lead to the appearance of accounts payable automatically?
Of course, the invoices received by contractors or suppliers must be accepted by the management of the enterprise without fail, and in this case the values might not have been received, however, if the manager wrote “boogg. Opl. ”, after which he put the date and his own signature, the accounting department should already be engaged in lending through 60 accounts. Postings (examples below) of invoices must be made for any amounts that are payable, in particular this applies to VAT. The only thing worth noting is the possibility of partial acceptance, and then the 60th is credited only in the part where the management of the enterprise accepted it.
However, not everyone understands in which case you need to debit account 60 in accounting. Postings in this case in the form of invoice receipts from contractors or suppliers should be considered as an offer, and if management agrees to this and accepts this account, then it immediately appears payable. That is, the supplier makes a certain offer, and the company not only agrees to accept it, but also agrees to pay it in part or in full.
However, if at the time of acceptance the materials did not arrive at the warehouses or the completed work was not transferred, you cannot debit 41, 10, 46 and many other accounts, since the values themselves have not yet been received, not to mention the fact that the right ownership of them will not even pass to the enterprise after the acceptance. In such situations, account 15 must be debited, and only then after the transaction, that is, after receiving materials or accepting work, this account is credited, and all material assets accounts must be debited.
Of course, if the work is accepted or the values have been provided, there is no difficulty with how to compose account 60 in accounting - postings here are made without any problems.
How does this happen in practice?
In practice, the total amount of accounts payable is often reduced due to the fact that the acceptance on the accounting accounts will not be reflected, and account 60 is fixed after the direct acceptance of work and receipt of values.
However, there is another approach to how obligations to creditors should be reflected in accounting based on the legal relationship between consumers and sellers. The essence of this approach is that obligations arising to contractors or suppliers appear, change and disappear in accordance with previously concluded contracts, and the moment of their reflection in accounting records to the buyer fully coincides with the moment of reflection of expenses necessary for the acquisition of any or material assets or work.
Thus, various expenses and, accordingly, accounts payable to contractors and suppliers are recognized in accounting only after the following conditions are met:
- it is possible to determine the amount of consumption;
- the expense is carried out in full accordance with the drawn up contract, as well as the basic requirements of regulatory and legislative acts;
- there is full confidence that as a result of the operation, the economic benefits of the organization will decrease.
In accordance with paragraph 18 of PBU 10/99, in order to comply with the main principle of generating credentials, that is, to allow temporary certainty of any facts of economic activity, expenses can be recognized in the reporting period in which they were allocated. It is worth noting that the fact that the repayment of a certain debt on liabilities should not in any way affect the moment of reflection of operations to incur expenses or the appearance of accounts payable in accounting.
The moment when a debt arises and the main expenses of the enterprise are taken into account, determined directly depending on the terms of the contract. The date the costs are indicated, which will reflect subaccounts 60 of the accounting account, are determined directly by the moment of transfer of ownership of certain goods or the results of work.
The assessment of accounts payable in accordance with the same provisions is entirely determined by the terms of the drawn up contract between the supplier and the company. If the price was not provided for in advance in the drawn up contract and cannot be set in accordance with its terms, then to determine the total amount of payables, the price is taken into account at which the company determines costs in similar circumstances regarding similar stocks and values. In this case, in the case of different circumstances, it must be borne in mind that 60 accounting account is an active or passive type.
What to do if the receipt of values or the acceptance of work without the submission of accounts?
If goods have been delivered, but the company’s management is not going to pay for certain reasons and wants to return these products to him with a preliminary notification from the supplier, the accountant should off-balance sheet account leave a record "Debit 002". If this product is recognized as the property of the enterprise, then it will need to be capitalized, and the liability of certain employees extends to it. In particular, to capitalize such goods, the prices of contractors and suppliers should be used, and if they are present in the accompanying documentation, then no problems should arise. Otherwise, many accountants, using such an excuse, refuse to capitalize on such values, citing the fact that they will wait for bills from suppliers, which will indicate the exact cost.
Advances
Advances are funds that are paid to the company before work or the provision of goods. In this case, many do not know 60 accounting account active or passive. In this case, do not confuse the advance payment with an advance payment, as it is issued solely to provide the recipient with the opportunity to fulfill their obligations under the drawn up contract.
In this case, shows an advance debit 60 account account. This is an active account that reflects receivables that must be repaid by certain services, goods or some other values from the debtor.
In this case, to determine the advance is used own account. In this case, compiled 60.02 score accounting.
Payables repayment
In accordance with the drawn up supply contract, some capitalized or shipped goods were received into the ownership of the enterprise, and under the contract, some services could be provided to him. In both the first and second cases, the company has accounts payable, which will need to be paid, and in this case 60 the accounting account is a debit, and those accounts from which this debt was repaid are credited.
How is the price determined?
The value of goods or valuables that are transferred or to be transferred by the company are set in accordance with the price at which the organization often in similar circumstances determines the price of similar goods. Thus, if, in accordance with the terms of the contract, the procedure for repayment of debt is not provided in money, but in bills or certain inventory items, then their assessment should be carried out in accordance with the value of the provided values.
Prepayment
Prepayment is the payment of the value of certain values before they become the property of the payer. Its whole point is that before the values become the property of the consumer or the services are provided, the payer will have receivables, and it will be repaid only after the transfer of ownership of such goods. At the same time, from the accounting point of view, the only problem is that first, the account is debited to the account on 60.01, and only then it is credited.
Thus, after receiving certain material values or services, the accountant must make the following offset for subaccounts:
- The debit is 60 subaccount "Calculations for delivered inventory, services and work."
- Credit 60 sub-account "Advances and prepayments".
Example
Company A intends to buy the goods in accordance with the contract of sale. Under the terms of the papers being drawn up, the total value of this product is 100,000 rubles, while VAT at a rate of 20% reaches 20,000 rubles. The company offers to make payment through third party bills, the nominal value of which is 150,000 rubles. In this case, company A should receive the material assets in the valuation of 130,000 rubles (100,000 + (150,000 - 120,000)), and if the debt is settled by material assets during subsequent reporting periods, the company independently determines on which account reflect such an expense.
