Each organization in the process of functioning has a number of relations with other firms. All of them are called counterparties of a legal entity. A company acquires products and services from some, and these are suppliers, while the other, on the contrary, sells its products or services. These are buyers and customers.
All working conditions are usually stipulated in contracts, as well as in primary documents for each transaction. The task of the accountant is to systematize this information, record all transactions and display their financial results. Organization of accounting for settlements with suppliers, buyers and customers in any company is an urgent task. This problem is solved at all levels of leadership. Its consideration is impossible without a detailed analysis of settlements with buyers and customers.
Buyers and customers: who is it?
Business relations may be associated with the acquisition and delivery of goods, with the implementation of various works and the provision of services. For these goods delivered or services rendered, you must always pay in the amount specified in the contract (agreement).
Moreover, the fact of payment does not always correspond to the time of receipt of goods. In the resulting time gap, the concepts of debtor and creditor are created. But if accountants accurately record all business transactions associated with contractual relationships with business partners, then the size of these debts will be automatically determined as the balance in the relevant accounts.
Buyers and customers are organizations that buy manufactured products, goods, other values, consume the services rendered to them, and the work performed.
The debt of the counterparty to the company for the delivered goods is called accounts receivable. In the formation of the receivable, the partner is considered a debtor, and its amount of debt to the organization is reflected in the accounting records as a debit balance in the settlement account of the organization with this counterparty.
Accounting Features
Accounting for settlements with buyers and customers characterizes the effectiveness of the applied settlement policy with partners of the company. Shipment of goods on a prepaid basis and is actually associated with installment payment or barter. A variety of options for non-cash forms, as well as cash and cashless settlements with customers, automatically determine the risks of violation of the terms of payment, the occurrence of overdue and bad debts.
Monitoring the status of receivables is very necessary to monitor the status of debts in the following areas:
- The presence in the balance sheet of a decent amount of receivables leads to unreasonable lending to customers and can lead to an outflow of funds from the enterprise. This, in turn, does not allow the company to pay debts to creditors and repay its debts in a timely manner.
- The presence in the balance sheet of a large share of accounts payable indicates that the supplier is not fulfilling its obligations to deliver goods / products, services.
The accounting for settlements with buyers and customers includes:
- obtaining relevant data in the field of settlements;
- application of contractual relationships;
- formation of primary documentation for transactions;
- control over existing obligations;
- ensuring regular coordination with counterparties.
The accountant's task is to reflect all of the company's business operations in accordance with the laws of the Russian Federation: Federal Law No. 402-ФЗ, Civil Code of the Russian Federation, Russian Tax Code, Administrative Code, Order No. 34n, etc. The principles of the organization’s accounting policy should be adhered to for recognition of income, expenses and accounting of goods and materials.
Basic calculation rules
In order for all settlements with the company's customers to be in order, accountants use the 62 account “Settlements with buyers and customers” in accordance with the Order of the Ministry of Finance of the Russian Federation of 10.10.2000 No. 94n (as amended on 08.11.2010).
Accounting will vary depending on the type of company activity. This may be the provision of services, wholesale of goods, retail sales of goods.
In the case of wholesale, accounting is kept in a generalized form, while in retail it is necessary to use cash registers for accounting. 62 account “Settlements with buyers and customers” is active-passive, the balance on it can be both debit and credit. Analytics should be conducted in the context of each partner. For this purpose, separate cards or statements are created that reflect all contracts and transactions with the client.
For each counterparty, you need to establish a form of payment, delivery, payment terms, past due obligations. Balances must be displayed separately for each supplier or customer. A debtor is an asset, and a creditor is a liability. For example, in the balance sheet the amount of debit receivables in account 62 is reflected in section 2 of line 1230.
Types of settlements with customers and customers
The main types of settlements are: loan settlements, cash payments.
Cash payments are made within 100,000 rubles per transaction. Settlements with the participation of citizens, if the latter are not related to entrepreneurial activity, can be made in cash without limiting the amount. In non-cash payment, payments should be made only through banks in which organizations have open accounts, unless otherwise provided by law.
This procedure involves the transfer of funds from the current account and the sending of settlement documents to another bank to complete the relevant types of transactions provided for by law and contract.
The use of a particular form of payment is provided for in the contract between the parties (supplier and buyer), unless the bank establishes mandatory payment methods.
Organization of the settlement system
Consider the organization of settlements with customers and customers.
The accounting method depends on whether the transaction is a one-time income or a constant over time. In the first case, they reflect the amounts in other income on account 91, in the second - the postings on account 90. At the same time, funds received from current deliveries are reflected on account 62.1; on advance payments in terms of prepayment - on the account 62.2. Separately transferable bills received on debts should be distributed on account 62.3, and in case of interest reflection, account 91 should be used to pay interest.
Analysis of calculations
The method of analysis of receivables in accordance with the financial statements of the company includes:
- study of changes in the structure and value of debt obligations;
- analysis of receivables turnover;
- determination of deviations;
- valuation of receivables using correlation and regression analysis.
Debt quality is evaluated depending on the share of settlements on promissory notes in it, since they can be appealed, which incurs additional costs and loss of business reputation.
The growth of accounts receivable and its share in the structure of current assets may indicate an imprudent credit policy of the company in relation to customers, which may lead to insolvency and bankruptcy.
On the other hand, the company can reduce the shipment of products, then the accounts receivable will decrease.
The presence of bad debt creates financial difficulties for the company, as it feels a lack of financial resources to purchase goods, pay debts, etc.
Overdue receivables also mean an increase in the risk of default on debts and a decrease in profits. Therefore, each company is interested in reducing the maturity of payments.
The turnover ratio is calculated by the formula:
Cob = V / DZsr,
where Cob is the accounts receivable turnover ratio;
B - sales revenue, thousand rubles;
DZSR - the average balance of the entire receivables, thousand rubles
The turnover Ratio characterizes the number of turns that the entire accounts receivable for the reporting year.
Accounts turnover in days is calculated by the formula:
DDZ = 365 / Cob
where DDZ - accounts receivable turnover in days;
Cob - accounts receivable turnover ratio.
Organization of synthetic accounting
Accounting for settlements with buyers and customers for shipped products (works, services) is reflected in synthetic account 62 “Settlements with buyers and customers”.
This account is debited in accordance with accounts 90 “Sales”, 91 “Other income and expenses” for the amounts for which settlement documents are submitted.
In this case, the amounts of advance payments and advance payments are accounted for separately.
For a synthetic account, several sub-accounts are opened by type of settlement.
The reflection of settlements with customers in the synthetic accounting of settlements with customers and customers in the balance sheet of assets or liabilities depends on the type of receivables (which should be added to the asset) or payable (should be reflected in the liability). The entries in the debit of account 62 are made in accordance with the sales accounts - 90, 91 of the amount of income and show the fact of transfer of ownership to the counterparty, forming a receivable.
In the credit of account 62 you can see such accounts as: 50, 51, 52, 55, 60.
Account 62 has subaccounts:
- according to the calculations in the general procedure - 62.1;
- for settlements with enterprises in terms of advances - 62.2;
- according to calculations on bills - 62.3;
- according to calculations from the point of view of the currency - 62.21-62.22, 62.31-62.32.
Organization of analytical accounting
Analytical accounting of settlements with customers and customers is performed in chronological order for each invoice issued to customers (customers). When calculating planned payments - for each buyer or client.
In this case, the construction of analytical accounting generates the necessary data information by categories:
- buyers and customers whose settlement documents do not have a due date;
- buyers and customers for settlement documents that are not paid on time;
- on advances received;
- on bills of exchange for which funds have not yet arrived;
- on bills discounted (recorded) in banks;
- on accounts for which money was not received on time.
Terms of settlements with customers require that analytical accounting is carried out in the context of the following documents:
- settlement documents, the terms of which have not yet arrived;
- settlement documents whose maturity is overdue;
- Advances received
- bills with a maturity date, discounted at a banking institution and not paid on time.
Postings
When products are shipped or services are provided, payment documents are presented for payment in which the amount of proceeds from their sale (at the contract price with added value) reflects:
- Dt 62 “Settlements with customers and customers” - Kt 90 “Sales”, subaccount 1 “Revenue”.
Repayment of debt by buyers and customers (payment of settlement and payment documents) is reflected:
- Dt 51 “Settlement accounts”, 52 “Currency accounts”, 50 “Cash desk” - Kt 62 “Settlements with customers and clients”.
The company may receive advances for goods delivered. In the accounts reflect the postings:
- Dt 51 “Settlement accounts”, 52 “Currency accounts” and others - Kt 62 “Settlements with customers and customers”, sub-account “Advances received”.
When refunding advances received earlier, and upon presenting invoices to buyers for fully completed work or goods sold:
- Dt account 62 “Settlements with buyers and customers”, sub-account “Advances received” - Kt 62 “Settlements with customers and customers”.
Accounting documents
It is necessary to compile all transactions with buyers and customers, based solely on primary documents. In particular, the fact of the transaction must be confirmed by the contract, you can also attach to it business correspondence regarding the terms of delivery and payment.
Shipment must be confirmed by the actions of the work (services), invoices. Payment is confirmed by any options: bank statements, payment requests, orders or checks. Reconciliation acts, offsetting operations on debt obligations are used.
Accounting Example
Start LLC, which manufactures products A, received an advance payment per ton of product units from Phoenix LLC in the amount of 221,700 rubles.
After 10 days, 2 tons of products were delivered in the amount of 443,400 rubles. The cost of sales amounted to 360,000 rubles.
At the time of the sale, Start LLC received payables from Phoenix LLC for exterior painting of an office building in the amount of 317,000 rubles. The parties signed an act on lump-sum claims in the amount of 221,700 rubles.
The accountant at Start LLC made the following entries in the account:
| Operation | Debit | Credit | Amount, tr |
| Painting costs of Phoenix LLC | 26 | 60.1 | 268644 |
| VAT on accepted work | 19 | 60.1 | 48356 |
| Counterparty advance | 51 | 62.2 | 221700 |
| Advance VAT | 76, “Advance VAT” | 68 | 33819 |
| Sales revenue | 62.1 | 90.1 | 443400 |
| Cost price | 90.2 | 43 | 360000 |
| VAT on sales | 90.3 | 68 | 67637 |
| VAT from advance to deduction | 68 | 76, “Advance VAT” | 33819 |
| Advance paid | 62.2 | 62.1 | 221700 |
| Settlement with LLC Phoenix | 60.1 | 62.1 | 221700 |
| Paid a part of the debt of LLC “Phoenix” | 60.1 | 51 | 95300 |
Settlement Audit
The main objective of the audit of settlements with buyers and customers is to confirm the correctness of the reflection of operations in accounting and accounting. To do this, resort to the help of third-party auditors. Often for large organizations, the presence of an audit report is a mandatory element when submitting reports to government agencies.
Audit of settlements with buyers and customers is a list of procedures that the auditor must carry out to ensure that the facts of economic life are correctly reflected in the documentation.
Among the documents analyzed by the auditor in this area of accounting, you can list:
- contracts for the supply of products and services;
- bank statements for payments made, containing dates and names of counterparties;
- Reconciliation materials
- sales books.
An important audit procedure for settlements with customers and customers is the audit of the correct writing off of finished products for sale. This also includes procedures for the formation of the cost of goods sold.
The procedures for checking settlements with buyers and customers are also aimed at:
- Checking the correctness of advances.
- Checking the correctness of the calculation of VAT, in particular for advances received.
- Validation of tax calculation.
- Checking write-offs of bad debts.
Settlements with buyers and customers have a number of differences. In settlements with customers, the subject of the contract is the goods; accordingly, the auditor relies on the sales contract or delivery to verify the correctness of the estimated amounts.
Settlements with customers reflect calculations for work performed, which can be performed in stages. In this case, the auditor works with contracts for the provision of paid services, as well as research and development.
Particular attention is paid to checking overdue debts and amounts of debts that are hopeless. It is necessary to search for the reasons that led to the emergence of such a debt, as well as to form an idea of the measures taken to restore it.
Accounts receivable can be checked by sending requests to company counterparties. The selection of counterparties who will be asked to confirm the balance of payments is as follows: the balance on account 62 is evaluated by the counterparty, all credit balances that are material are identified if they are tangible, and the sample is taken as counterparties for verification.
The selected partners are then sent requests for confirmation of the amount of debt. If no response is received, alternative procedures apply.
Conclusion
The reflection of receivables is inextricably linked with the reflection of income, therefore, to obtain reliable information about the debts of buyers and customers, it is necessary to take into account the conditions that must be met to recognize the main income.
The organization of accounting for settlements with buyers and customers is a very important link in the entire accounting system of the company.
Organizations should strive to minimize bad debts, including through the use of such options to pay off counterparty obligations, as well as compensation or transfer of claim.