Account 07 in accounting is used to summarize data on the availability and movement of energy, technological, and production units. These include machines for workshops, laboratories, etc. The organization of accounting involves fixing operations for units that require installation in reconstructed (under construction) facilities. This article is used by real estate developers. Consider its features in more detail.
Categories of objects
Units requiring installation include those that are put into operation exclusively after assembling its parts and fastening them to a foundation or supports, with a floor, floor, and other supporting structures of structures. This category of objects includes sets of spare parts for such equipment. The units also contain instrumentation and other equipment necessary for installation.
Exceptions
Account 07 does not record:
- Vehicles.
- Machine tools standing free.
- Agreecultural machines. Agreecultural equipment.
- Building mechanisms.
- Production tool.
- Measuring and other equipment, except the one with which the equipment is installed.
- Production inventory.
The classification of accounts clearly separates the articles to summarize this or that information. So, the costs of acquiring units that do not require installation are recorded on the account. 08 as they arrive at the warehouse or other storage location. 
Organization of accounting
Units requiring installation are accepted by debit. At the same time, their actual acquisition cost is recorded. It consists of purchase prices and costs of transporting objects to the company's warehouses. When purchasing units from individuals and enterprises for a fee, account 07 is debited in correspondence with the account. 60 and others similar. Arrivals of objects may be recorded using invoice. 15, registering operations for the procurement and receipt of material assets. If it is not applied, then the acquisition is reflected in the manner similar to that established for operations with materials. When accepting the units contributed by the founders on account of their contributions to the joint (authorized) capital, account 07 is debited in correspondence with the account. 75.
Write-off
The classification of accounts provides for special articles for the depreciation of units commissioned for installation. In particular, it refers to in DB SCH. 08, summarizing information on investments in fixed assets. Along with this, the units brought to the construction site that require installation are accepted by the contractor for off-balance sheet item 005. The cost of the equipment or its parts is charged, respectively, from it. If the installation of equipment transferred to the contractor at the permanent place of its use has not actually been started, then its cost is not debited. In the case of gratuitous transfer, sale and other similar operations of units to be installed, their price is transferred to DB. Cf. 91, reflecting other expenses and income. Analytical accounting 07 is carried out in areas of storage of objects and their individual names (brands, types, etc.). 
Article specifics
Upon receipt of units that require subsequent installation, account 07 is debited and credited are items that affect the price of objects. These include:
- Cf. 60 - for settlements with contractors and suppliers.
- Cf. 76 - for transactions with various creditors / debtors and others.
The new Chart of Accounts clarifies that aggregate receipts may be reflected using invoice. 15 or without it, but in the appropriate order.Only after the transfer of objects for installation can the wiring be made:
- DB 08 Cd 07.
Explanations
In order for the company to switch to a scheme for reflecting the costs of receiving units through the account. 15, the appropriateness of its use should be analyzed. Cost accounting for the purchase of equipment intended for installation is carried out by its specific types. This is necessary to determine the initial cost of fixed assets. Application cf. 15 involves all costs divided by:
- The amount of costs at discount prices.
- The difference between them and actual costs.
Deviations
They should be recorded separately on mid. 16 with further debiting of articles on which the corresponding objects are reflected. It becomes obvious that deviations in the price of equipment requiring installation under this scheme should also be recorded by type of material assets and transferred to the account. 08 at the time of transfer of the units for installation. Restrictions on the formation of an assessment of the equipment intended for installation, depending on the moment at which it was adopted like an assessment of the operating system and intangible assets, it is permissible to determine not the average but the actual cost.
Use of borrowed funds
Units can be purchased with a loan. In this case, the interest on it should form an assessment of the equipment until it is transferred to the installation. Accrual operations% on bank loans that were received to purchase such objects should be reflected depending on the term for the provision of borrowed funds. Postings are as follows:
- DB 07 Cd 66 (67).
In the case of the implementation of the units before installation, the following entries are made:
- write-off: DB 91.2 Cd 07.
- the amount of the buyer's debt: DB 62 Cd 91.1.
As a result, count. 91, reflecting other expenses and incomes, the financial result from the sale of equipment will be revealed. This is due to the fact that the debit determines the cost of the sold material assets, and the loan - the amount received from the sale. In such cases, however, a loss may occur.
Units transferred to the contractor
This situation should be considered separately. Equipment that is transferred to the contractor for installation does not become its property. It remains in the legal possession of the customer. In this regard, the contractor does not debit account 07, but off-balance sheet item 005, reflecting the movement of material assets accepted for installation. It is credited with the direct transfer of objects to the destination.
Additionally
An inventory may reveal a shortage of units that were accounted for on account 07. In such situations, the article is credited. At the same time, the account is debited. 94, reflecting losses and shortages from damage to material values. The accountant can immediately use the account. 99, showing losses and gains. This is advisable in case of loss of units intended for installation due to emergency circumstances of economic activity. The latter, for example, include nationalization, accident, fire, natural disaster, and so on.
