62 an accounting account is a separate article that is intended to summarize all available information regarding the settlements between customers and customers. Such settlements are debited in correspondence with accounts 91 and 90 for the amounts for which settlement documents were provided.
What is this account?
In correspondence 62, an accounting account is an article that is credited with accounts for accounting for material assets, as well as various calculations for the amount of payments received (including also the amount of advances made), etc. It is worth noting the fact that the above amounts should accounted for separately.
In the event that certain promissory notes provide for certain interests on a bill of exchange, through which a consumer’s debt is secured, debit entries are made in the process of repaying such debt in accordance with accounts 51 or 52, as well as credit of account 62 and 91.
Analytical accounting for 62 accounts
Analytical accounting, for which an accounting account 62 is used, is a procedure that is carried out for each account provided to customers, and in the case of settlement through planned payments, it is carried out for each customer or buyer. It should be noted that the construction of analytical accounting should provide the opportunity to obtain the necessary information on:
- settlement documents, which at the moment has not yet arrived payment juice;
- unexpired bills;
- discounted bills;
- buyers and customers;
- advances received;
- bills for which cash was not provided on time.
Why do I need such an account?
In general, we can say that the 62 account of accounting is a reflection of the facts of the seller’s business life, which are registered by the consumer on account 60. After debit of this account, that is, transfer of ownership of the goods shipped to the buyer, the company immediately receives a receivable indebtedness, as a result of which article 62 is offset against, together with 90.1, as well as 91.1. In the event that the work was carried out in accordance with a long-term contract, credit is also provided for the account 46.
According to established traditions, buyers can often deposit a certain amount of funds in advance, that is, provide an advance or credit an advance payment. In this case, account 62 in accounting already provides for payables. In this regard, many are asking questions about why this account is compiled.
First of all, account 62 in accounting is required to reflect the debt of consumers for any realized values that may be services or work. To date, in the overwhelming majority of cases, PBUs require mandatory reflection of any transactions that are related to implementation directly at the time of their release, which is a consequence of the assumption of temporary certainty of doing business, that is, regardless of any payment or time of receipt Money.
Obligations of customers and buyers in the compiled accounting must be reflected immediately at the time of their occurrence, but it is worth noting: due to the fact that customer obligations appear at the time of the direct fulfillment by the seller of his obligations in terms of transferring goods, there are two options reflection of receivables of consumers, the determination of which is carried out in accordance with the individual terms of the contract.
First option
The first option of how buyers' accounts receivable through the 62 accounting account appear in the balance sheet, involves the use of the terms of the agreement on the transfer of ownership of a particular product in the process of fulfilling obligations on the part of the contractor or supplier. In this case, the obligations of the customer or consumer arise along with the fulfillment of the obligations of the supplier, as well as the transfer of ownership of certain products. At the same time, the fulfillment of the contractor’s obligations in accordance with the contract constitutes the basis for the accounting account to reflect the revenue from the sale of services, goods, work or certain products. Sub-accounts in this case can also be compiled.
When should revenue be reflected?
In accordance with applicable law, revenue is displayed subject to the following conditions:
- the amount of revenue cannot be determined;
- the organization has the right to receive its own revenue, which follows from the terms of the drawn up contract or is confirmed in some other way;
- there is a firm belief that after a certain operation, an increase in economic benefits for the company may occur (this happens if the organization receives a certain asset as payment or if there is no uncertainty regarding the receipt of the asset);
- after completing work or providing a certain product to the customer, the right of ownership passed to him from the company;
- costs that were or will be spent on this operation can be determined in advance.
At the same time, it is worth noting that there is a certain feature of how the 62 account is compiled. What it is? To reflect the proceeds from the sale, all of the above conditions must be fulfilled immediately, and if at least one of them is not met, then any assets or funds that this organization received in payment for its services or goods will be recognized in the company’s records as payables, and not in the form of repayment of the present receivables.
The accounts receivable of the consumer in the accounting of the company should be formed together with the reflection of full information regarding the proceeds from the sale of certain goods or services if all these conditions are met by recording on the accounts.
Second option
The second option for reporting data on receivables is based on the terms of the contract, which relates to the transfer of ownership right at the time of payment for the products, goods or the occurrence of any other obligations. In this case, any obligations to pay for products on the part of the buyer have no connection with the transfer of ownership, as well as reflection on the accounts of accounting. In the generally accepted practice of Russia, in this case, no off-balance accounts or 62 posting accounting accounts are used. Active or passive off-balance sheet account can be drawn up in accordance with contracts, under the terms of which the transfer of ownership is provided, and by debit it will already reflect the total amount of consumer obligations under the contract for the goods or products received.
How is accounting for contracts with trade discounts?
In accordance with the drawn up agreement, a clearly defined price for the goods or products may be provided, but the procedure for determining the price may be determined depending on whether the buyer fulfills certain conditions. In particular, we are talking about the time of purchase of goods or products, their quantity, as well as the timing of payment for products already shipped. All this provides for an account 62, the postings of which include such elements.
Reducing the price after the buyer fulfills any of the conditions specified in the contract is usually called a trade discount. The form of its provision can be in-kind or in value, that is, the goods can be sold absolutely free or at a lower price. In the case when it comes to the natural form of granting a discount, then the revenue and the total amount of receivables are determined by the contract as a whole taking into account the value of the goods transferred in accordance with the established price, which is equal to zero or non-zero .
It is worth noting the fact that various trade discounts that are provided to consumers for the purchase of goods out of season or in sufficiently large quantities can be taken into account in order to determine the receivables even at the stage of shipment of goods to the consumer. It should be noted that the accounting account 62 (active or passive) does not provide the opportunity to take into account the discounts provided to the consumer in case of payment for the goods over a certain period of time, at the time of shipment of goods to the buyer. In this regard, the reflection of receivables in the accounting may be carried out in two versions.
What to use?
The first option is quite traditional for Russia and the CIS countries and suggests taking into account receivables without specifying trade discounts, that is, they are initially taken into account in full in such a way that the buyer does not use the system for providing discounts on the due date and is not going to do this in the future. In this case, if the buyer complies with the payment terms by the due date, and he is still given a discount, subsequently the receivables drawn up are simply edited for the amount of the discount provided.
If the debtor makes the payment after the reporting date, then the adjustment is made at the reporting date in accordance with the amount of the discount. In accordance with paragraph 9 of PBU 7/98, all information on the company's obligations must be reflected in the financial statements, taking into account events that occurred after the reporting date, which confirm the economic conditions existing at that time in which the organization conducted its own activities, or indicating that after the reporting date such conditions appeared.
In accordance with paragraph 3 of the specified PBU, 62.02 score Accounting provides as a fact of economic activity that affects the performance of the company, its financial condition, as well as the movement of cash flows or any results of the company. At the same time, events after the reporting date that should be taken into account in the process of preparing the financial statements will include only those that occurred between the indicated reporting date and the date of signing of the financial statements for the year.
The consequences of events after such a date can already be expressed in the financial statements by clarifying information on the relevant obligations or by disclosing relevant information.
What to consider?
It is worth noting the fact that, in accordance with paragraph 6.2 of PBU 9/99, 62.01, an accounting account drawn up in the process of performing work, as well as when selling any goods on the terms commercial loan in the form of installments or deferred payment, must include the receivables in full in accordance with the drawn up contract.
If the company receives claims regarding the payment of the cost of products or services of inadequate quality, as well as a reduction in the price of the contract, in this case, the company must agree to the requirements received from the customer or solve this issue already in a judicial proceeding.If everything is resolved peacefully, then, in agreement with the requirements of the consumer, a record must be made on all accounting accounts, which reduces the total amount of customer receivables.
How should advances received be reflected?
Buyers provide advances in order to enable the seller company to fulfill the terms of the contract. Various research or construction works are carried out in accordance with the work contracts, and after receiving the advance payment, the contractor begins to carry out the work, and subsequently begins to hand over them in parts, at the end of each established stage, issuing an interim invoice. At the same time, the amount or a certain part of the advance payment received earlier is deducted from the total cost of the stage, which is usually called a set-off, and it should also include 62 accounting (posting) accounts. Examples of such transactions may be as follows:
Company X ordered company Y to construct a building, the cost of which is 2.1 million rubles. For all work, 3 stages are provided, the cost of each of which is 700 thousand rubles. To start the work, company X pays an advance in the amount of 420,000 rubles. Thus, the accounting of company X includes a record:
- Debit 60 Credit 51. 420 000 rub. - Advance payment to the contractor.
At the same time, company Y records in the report:
- Debit 51 Credit 62. 420 000 rub. - the received advance payment amount is credited.
After the first stage of the work is completed, company X has the following entries:
- Debit 60 Credit 51. 420 000 rub.
- Debit 60 Credit 51. 560 000 rub. The cost of the work is 700,000 rubles. but at the same time, 20% of the indicated value is paid off against the advance payment issued earlier, that is, the amount of the invoice that was issued for payment is reduced by 140,000 rubles.
At the same time, company Y has the following entry:
- Debit 51 Credit 62. 420 000 rub.
- Debit 51 Credit 62. 560 000 rub. The payment for the completed and commissioned work phase is credited.
Moreover, in the process of how account 60 and 62 will be drawn up in accounting, such moments as types of incoming property, which can be considered in the form of advances, as well as determining the valuation of these obligations in the balance sheet, should be taken into account.
