Contracts in economic turnover are crucial, because they become both a guide to action and the basis for cash settlements. The correct execution of contracts, including the correct accounting entries on them, directly affects the quality of further relations between the parties.
Work Contracts
In the business world, contracts for the production of certain works are widely used: construction, repair, research, design and others. The parties to the transaction are the customer and the contractor: the first undertakes to pay for the work, and the second - to fulfill the order efficiently and on time, in accordance with the agreements.
In such agreements, the most important thing is the moment of acceptance of the work, because, as a rule, the dates of further calculations are calculated from the date of acceptance. The long-standing practice has developed a document that fixes this transitional moment - the act of acceptance of work performed.
In correctly drafted contracts, usually a whole section describes how an act of completion should be executed. A sample of these conditions is contained in any model contract and includes the following clauses.
- The procedure for sending the act: who, to whom, and when transfers this document.
- Terms of signing the act by the parties.
- Procedure for reflection of possible claims.
- What are the consequences if an act of completion is not signed or returned.
A sample of the act itself, suitable for use in the work, is given below.
How execution of work is made out
The legislator orders the entrepreneur to reflect any transaction in accounting. This is done with the help of the so-called primary documentation, in which the parties confirm that a business operation has been completed.
One of these "primary organizations" is the act of completion. A sample of this document is not legally approved, but verified by judicial practice and business customs. The act is intended to record the fulfillment of the first part of the contract by the contractor and oblige the customer to carry out the calculation (if there was no prepayment).
The act, like the contract, is executed in the number of parties in duplicate. Its mandatory components are:
- date and place of compilation;
- details of the contract to which the act is drawn up;
- the cost of work and their volume;
- marks on the presence or absence of claims to the quality of work performed;
- signatures, seals and details of the parties to the contract.
Such a document becomes the basis for displaying a business transaction in the accounting registers.
Act of completion: sample document
date
Place of compilation
The customer (company, name), represented by the director (full name), acting on the basis of the Charter, on the one hand, and the Contractor (LLC, name), represented by the executive director (full name), acting on the basis of the power of attorney (No., date) and the Charter, on the other hand, they drew up this act stating that the repair work provided for in the work contract (No., date) with the cost (amount in words, rubles) was completed by the Contractor in full according to the technical tasks.
Since the signing of this act, these works have been accepted by the Customer, there are no complaints about the quality of work.
Signatures:
Customer
Firm "Name"
Director (signature)
seal
Executor
LLC "Name"
Executive Director (signature)
seal
What is the difference between a service agreement
There are also frequent transactions in the provision of services: information, advisory, design, entertainment and others.If the work is easy to measure, inspect, verify, then the services are intangible: they are aimed at meeting the specific needs of the organization or individual.
Due to their specifics, services especially need an identification document: their provision is carried out on the basis of an agreement and is confirmed by an act of the services provided. The quality and "completeness" of a contractual service can only be assessed by a customer who has a certain need.
Simply put, if the need for information is satisfied, then an information service is provided, about which an accounting document can be drawn up. By analogy with the performance of work in this case, the parties draw up an act of services rendered. Mandatory details will be the same, only the transferred object changes.
Act of services: sample
date
Place of compilation
The customer (company, name), represented by the director (full name), acting on the basis of the Charter, on the one hand, and the Contractor (LLC, name), represented by the director (full name), acting on On the basis of the Charter and power of attorney No. date, on the other hand, they compiled this act on the following:
- Information services provided by the contract for the provision of services (No., date) in the amount (in words of rubles) are provided by the Contractor in full.
- Advance payment in the amount of (in words, rubles) was made by the Customer to the Contractor’s bank account in full, in connection with which the parties consider the specified contract to be fulfilled, they have no mutual material claims.
Signatures:
Customer
Firm "Name"
Director (signature)
seal
Executor
LLC "Name"
Director (signature)
seal
A sample of filling in the certificate of completion of work or services is suitable for any transaction: it is enough to adapt it for your own needs.
