Where are short-term accounts receivable shown on the balance sheet? Where are accounts receivable reflected?

Long-term accounts receivable are an asset that receives special attention because of its direct impact on the financial ability of an organization to meet its obligations arising in the course of business activities. In this article we will look at what long-term receivables are made up of. Let's look at which line of the balance sheet the information on it is entered into .

The concept of long-term accounts receivable

Accounts receivable is the total amount of debts to the organization. This includes the debt of buyers and suppliers, debts of the founders, employees of the enterprise and other counterparties.

To determine the amount of receivables, you need to collect the debit balances listed for all counterparties in the settlement accounts (60, 62, 68, etc.).

Accounts receivable are conventionally divided into current and long-term. Current includes debts of all counterparties, repayment of which is expected within a period not exceeding 12 months from the reporting date. Accordingly, a long-term receivable is a debt that is expected to be repaid within a period of more than a year.

The starting point for the specified 12-month period is determined by the date of the transaction for which the debt to the organization arose. The date of occurrence of the buyer's receivables is the date of shipment of goods or performance of work, unless otherwise provided by the terms of the contract.

Assessment of long-term receivables is an important stage in characterizing the solvency of an enterprise.

You can find out why this stage is needed, how the amount of accounts receivable and the possible timing of its repayment affect the financial position of the company; you can familiarize yourself with the stages and methods of conducting this kind of assessment in the article.

Long-term accounts receivable - line on the balance sheet

Clause 73 “Regulations on accounting and financial reporting in the Russian Federation” (Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n) requires that the company’s receivables be reflected in the statements in the amounts following from its accounting records, which are considered correct by default.

The forms of financial statements of organizations are approved by the order of the same name of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n. In the organization's balance sheet, line 1230 is allocated to reflect receivables. This line reflects all receivables, which are listed at the end of the reporting period in accounts 46, 60, 62, 68, 69, 70, 71, 73, 75 and 76, minus the credit balance on account 63. But there are nuances:

• organizations on OSN that have prepayments to suppliers or contractors as receivables for future deliveries of goods or performance of work, including VAT, show these amounts excluding VAT in line 1230. These are the recommendations of the Ministry of Finance (letter dated 01/09/2013 No. 07-02-18/01);
• line 1230 does not show prepayments to suppliers or contractors caused by the acquisition or construction of fixed assets - it should be shown in the section intended to reflect non-current assets.

This means that line 1230 of the balance sheet shows accounts receivable without breaking it down into current and long-term. But clause 19 of PBU 4/99 “Accounting statements of an organization” (Order of the Ministry of Finance of the Russian Federation dated July 6, 1999 No. 43n) requires the separation of information about the short- and long-term assets of the organization.

Order No. 66n in Appendix No. 3 contains examples of formatting explanations for the balance sheet. Section 5 of this application contains tables 5.1 and 5.2, intended to decipher information about existing receivables. Table 5.1, called “Availability and movement of receivables,” describes short-term debt separately and long-term debt separately. Table 5.2 reflects information about existing overdue receivables.

To more accurately reflect information, an organization can create additional lines to line 1230 to separately reflect debt for which repayment is expected within 12 months from the reporting date, and long-term debt.

You can familiarize yourself with all balance sheet items included in an asset or liability, with a breakdown of the balance sheet line codes and item indicators in the material.

Results

Long-term accounts receivable include all debts to the enterprise that are expected to be repaid within a period of time exceeding 12 months from the reporting date. When filling out financial statements, indicators of current and long-term debt are indicated together in line 1230 - with subsequent separate division into debt classified as current and non-current, in the form of an explanation to the balance sheet.

Currently, a widely used accounting software product is 1C. With the help of which reports from this program you can assess the status of accounts receivable at an enterprise, see the material.

Accounts receivable calculation - formula This calculation may vary from company to company. Find out what components it consists of and what it is used for from our material.

Why do you need to calculate accounts receivable?

Accounts receivable calculation(DZ) is a procedure familiar to balance sheet specialists. It is carried out during the preparation of financial statements, as well as when it is necessary to obtain information about remote control for management and (or) other purposes.

In order for data to appear in the balance sheet on line 1230 “Accounts receivable”, the following is required:

• Collect information on the accounting accounts on which the debt is recorded and analyze it (by amounts, types of debtors, repayment terms, etc.).

The material will tell you about the classification and types of remote sensing.

• Reconcile the amounts reflected in the accounting accounts with counterparties (for example, through bilateral agreement of mutual settlements in the reconciliation report).
• Take an inventory of settlements with counterparties (if an annual balance sheet is being drawn up or the debt is subject to write-off).

For an algorithm for conducting a remote control inventory, see the material.

• Identify doubtful debts and debts with expired statute of limitations.
• Create a reserve for doubtful receivables (if unpaid and unsecured debts are identified).

The following material will help you understand the receivables reservation procedure.

• Register the write-off of financial assets from the accounting accounts (if there are grounds for such a write-off).
• Carry out other preparatory procedures (distinguish between loan receivables with a repayment period of up to a year or more, which may be required when preparing transcripts on line 1230, etc.).

Why do you need decoding of the remote control and how to prepare it, see the material.

• Calculate the amount of receivables to be reflected in the balance sheet on line 1230.

We will tell you what formula to use to calculate remote sensing in the next section.

How to calculate accounts receivable?

There is no universal formula for calculating remote sensing. In each company, the structure of receivables may be different, and therefore the composition of the formula is adjusted.

In general, the following formula is used:

DZ = debit balance (account 60 + account 62 + account 68 + account 69 + account 70 + account 71 + account 73 + account 76) - account 63,

sch. 60 - “Settlements with suppliers and contractors” for prepayment related to the supply of materials, performance of work, etc.;

sch. 62 - “Settlements with buyers and customers” for products shipped, work performed, services provided;

sch. 68 - “Calculations for taxes and fees” in terms of existing tax overpayments;

sch. 69 - “Calculations for social insurance and security” for excess amounts paid to the Social Insurance Fund and the Pension Fund of the Russian Federation;

sch. 70 - “Settlements with personnel for wages” in the presence of wage overpayment;

sch. 71 - “Settlements with accountable persons” for funds paid to employees on account;

sch. 73 - “Settlements with personnel for other transactions” for the amounts of loans provided to employees or for other transactions;

sch. 75 - “Settlements with founders” for the debts of the founders on contributions to the authorized capital of the company;

sch. 76 - “Settlements with various debtors and creditors” in connection with accrued income from joint activities, sanctions recognized by debtors for failure to fulfill contractual terms, etc.;

sch. 63 — “Provisions for doubtful debts” based on the amount of the formed reserve.

The general form of the formula for calculating the remote control is adjusted depending on the presence or absence of:

• debit balance on separate accounting accounts;
• reserve for doubtful debts.

For example, the company has no doubtful debtors, overpayments of taxes and contributions to extra-budgetary funds, no money is issued on account and there are no other monetary transactions for settlements with employees in the reporting period, and the authorized capital is fully paid by the founders. In this case, the adjusted formula for calculating the remote control will look like:

DZ = debit balance (account 60 + account 62 + account 76).

When the DZ indicator is used in other formulas, read on.

What formulas involve the accounts receivable indicator?

The DZ indicator is used in calculating various financial ratios, for example:

• financial stability;

For an algorithm for calculating financial stability, see the material.

• liquidity and solvency;

You will find formulas for their calculation in the material.

• asset turnover, etc.

Results

The calculation of accounts receivable is necessary for reporting and management purposes. Based on the calculated amount of receivables, financial ratios are calculated and the company’s activities are assessed.

Every year the company prepares a balance sheet. It is the main financial reporting document. After analyzing it, third-party organizations receive information about its solvency and creditworthiness. The balance sheet is divided into assets and liabilities, each of which in turn is divided into separate items. Next, let's look at accounts receivable and assets in more detail.

What are accounts receivable on the balance sheet

Let's give a definition. This is the debt of counterparties to whom services were provided or goods were sold, and they are obliged to pay it. The organization plans to receive its money in the near future. This also includes advances issued to suppliers. Amounts are entered from accounting records.

Attention: to track accounts receivable, it is reflected in the balance sheet as the number of all obligations of the enterprise as of the date of the document.

Any functioning enterprise has debts: receivables and payables. This is a normal phenomenon that occurs. The first includes the composition of working capital.

Data retention period

The limitation period for accounts receivable is limited to 3 years. The period begins to be calculated from the moment of the last movement of funds with the counterparty. After this time, the amount is written off. To write off, it is necessary to notify the counterparty in advance about his debt, provide a written justification and issue an appropriate order. The debt is written off at a loss.

If the counterparty is insolvent, the debt is also written off as a loss. However, his debt is not completely eliminated. It is recorded for 5 years on off-balance sheet accounts. When the debtor's condition stabilizes, they have the right to collect the debt.

Advice: if there are doubtful debts (defined below), the manager must decide to insure them by creating a reserve on his own. Wiring: Dt.91/2 – Kt63

Types of accounts receivable

Each asset of the enterprise is divided by time of use.

• Short-term accounts receivable line in the balance sheet– funds must be returned within 1 year.
• Long-term accounts receivable line in the balance sheet– funds must be returned after a year or more.

Advice: if your company has accounts receivable, you should not trust your debtors and believe that they will repay the debt on time. Remind them through letters and phone calls.

From the above, it follows that debt is classified according to the fact of its repayment:

• Expected - the closing date is documented in the contract or other documents and occurs after the delivery of goods or provision of services;
• Doubtful - for such an amount a third party guarantee for payment is concluded. For example, a bank guarantee is issued or the debt is purchased by another person.
• Overdue accounts receivable on balance sheet– upon liquidation of a counterparty or its reorganization (merger, separation of part, change of form of ownership).

Attention: doubtful accounts receivable are reflected in the balance sheet, minus the reserve for doubtful accounts, and overdue accounts are reflected in off-balance sheet accounts.

In which section of the balance sheet are accounts receivable reflected?

The debt of debtors (for a short or long period of time) is reflected in the current assets of the enterprise.

In, subdivided:

• debt with a repayment period of up to 1 year;
• debt with a repayment period of more than 1 year and doubtful debt (defined above).

Reflection of debt on balance sheet accounts

One fixed account for its reflection in the balance sheet has not yet been invented. Next, we present the accounts through which the debt of counterparties to enterprises is posted.

Receivables accounts:

• Account 60: advance payment + refund for low-quality products;
• Account 62 and account 76: the shipped goods are reflected according to the scheme received goods - paid money;
• Account 68 and account 69: to calculate tax for the reporting period, advances issued are reflected in the balance sheet;
• Account 71: settlements with your employees who have been issued funds, but have not yet received supporting documents about the reasonable expenditure of the enterprise’s funds;
• Account 70 and account 73: consequences of inventory - deduction of shortages from employee salaries; accounting of issued loans and advances;
• Account 75 – deferred amounts and obligations for the debts of the founders.

Attention: the actual debt of the counterparty can be obtained from several synthetic accounting accounts.

Analytics

The amount of accounts receivable is entered into the balance sheet on a certain date. To analyze debt and repayment terms, each organization maintains analytical records separately for each buyer and supplier.

Attention: despite the possibility of accounts payable and receivable arising in one register, they are posted in the balance sheet to different accounts.

Example of closing accounts receivable

To repay the debt, the counterparty must deposit the amount of the debt into the cash register or current account. The terms of payment under the agreement will be fulfilled. The wiring will close.

• Account 50-cash;
• Account 51-current account;
• Account 62 - settlements with customers.

Wiring: Dt50/51 (52) – Kt62

Here's an example:

Astra LLC bought shrubs worth 38 thousand rubles from Sad LLC. (including VAT 5 thousand rubles). There is a way out of situation 2: sell the debt to Neptune LLC or write off the debt after 3 years due to the statute of limitations. The company chooses option 1. The following entries are made:

• For VAT calculation: Dt90-Kt68;
• Sale of debt to Neptune LLC: Dt76-Kt91.1;
• Closing the transaction for the counterparty Astra LLC: Dt91.2-Kt62;
• Loss on sale in the amount of VAT 5 thousand rubles: Dt99-Kt91.9;
• Result: in the balance sheet on line 1230 the amount is entered: 38 thousand rubles - 5 thousand rubles = 33 thousand rubles.

Let's summarize. The main document for every enterprise is the balance sheet. It reflects the financial condition of the enterprise for the reporting period, including accounts receivable. It represents the debts of counterparties for services rendered or goods purchased. It is reflected on line 1230 in the balance sheet.

At each enterprise, debt is represented by both debtors and creditors. If it is impossible to receive funds from counterparties for debts, the company has the right to write them off after 3 years. The countdown begins from the moment of the last movement of funds between the organization and the debtor (Article 203 of the Civil Code of the Russian Federation “Current, interruption and restoration of the statute of limitations”).

Accounts receivable are divided

• for long-term and short-term. The first includes debts over 1 year, the second up to 12 months.
• Based on the fact of repayment, it is divided into expected - the payment date is fixed, doubtful - third parties have guaranteed payment, overdue - the debtor company has been reorganized or liquidated.

To analyze the debt for each counterparty, analytical accounting is maintained. The article also discussed an example of closing accounts receivable for the posting Dt50/51(52)-Kt62

The forms of financial reports and instructions for filling them out were approved by Order of the Ministry of Finance dated July 2, 2010 No. 66n. With regard to accounts receivable, the official recommendations provide explanations for entering data into line 1230 of the balance sheet: the decoding of the data is given in relation to the code designations of the cells.

String structure

The balance sheet is filled out as of the reporting date. Information is entered into it based on the balances shown in the accounting cards. When calculating the balance of accounts receivable, which should be shown on the balance sheet, you need to focus on the debit balances of the set of accounts.

As a result, this is what line 1230 of the balance sheet consists of:

• in the final amount of debt, it is necessary to take into account the size of completed tasks for unfinished work reflected in account 46;
• balance of settlements with suppliers on account 60;
• the status of the debt of debtors, whose roles are buyers or customers of works/services - account 62;
• the final total for the debit of account 68, if there are overpayments of taxes and fees;
• to designate the receivable for insurance premiums, take account balance 69;
• also, line 1230 may contain information about overpaid funds to personnel (salaries overpayments are reflected in account 70, accountable funds to be returned are recorded in account 71, other transactions - account 73);
• if the debtor of the company is the founder, it is necessary to sum up the debit balance of account 75;
• The calculation must take into account the balance of account 76, which accumulates information on all groups of debtors not included in the previous categories.

Methods for adjusting accounts receivable

After summing the debit balances, the total must be adjusted before entering the data into the report. The fact is that cell 1230 is a balance sheet line intended to reflect the indicator of receivables in the net valuation (justification - clause 35 of PBU 4/99). Therefore, from the resulting value you need to subtract:

• credit balance of account 63 to minimize the error created by provisions for doubtful debts;
• debit balance formed on account 73.1 in the amount of loans taken at interest;
• the debit balance of account 60 must be reduced by the amount of advance transfers for construction work;
• VAT claimed by suppliers on prepayments is also subject to exclusion (justification - letter of the Ministry of Finance dated 01/09/2013 No. 07-02-18/01);
• should not be included in accounts receivable and VAT, which is accrued on advance transfers received.

Accounts receivable belong to the assets of the organization.

As an object of accounting, accounts receivable is a monetary assessment of the amount of debt of debtors (debtors) to an organization (creditor).

Accounts receivable are accounted for in active-passive settlement accounts: 60 (advances issued), 62, 68, 69, 70, 71, 73, 75, 76.

The following rules have been established for reflecting accounts receivable in the financial statements:

1. Offsetting between items of assets and liabilities is not allowed (clause 34 of PBU 4/99). For example, on the reporting date, the collapsed balance on account 71 “Settlements with accountable persons” is 50 thousand rubles. At the same time, the organization’s debt to employee Ivanov according to the advance report on travel expenses approved by the manager amounts to 10 thousand rubles. In the balance sheet as of the reporting date:

— accounts receivable (line 1230) reflects the debt of employees to the organization for advances issued to these employees on account in the amount of 60 thousand rubles;

— accounts payable (line 1520) reflects the organization’s debt to its employee in the amount of 10 thousand rubles.

2. In the case of the issuance of advances and prepayment for work, services, etc. related to the acquisition (manufacturing, construction) of objects (property, non-property rights), which will subsequently be accepted for accounting as part of non-current assets, the amount of advances issued and prepayment are reflected in the balance sheet in section I “Non-current assets” (see letter of the Ministry of Finance of the Russian Federation dated April 11, 2011 No. 07-02-06/42).

3. Accounts receivable expressed in foreign currency (including those payable in rubles), for reflection in the financial statements, are recalculated into rubles at the rate in effect on the reporting date (clauses 1, 5, 7, 8 PBU 3/2006 ).

The exception is accounts receivable that arise as a result of the transfer to counterparties of an advance, prepayment or deposit. Such debt is shown in the financial statements at the exchange rate valid on the date of transfer of funds (clauses 9, 10 of PBU 3/2006).

4. In the case of an organization transferring payment, partial payment for upcoming deliveries of goods (performance of work, provision of services, transfer of property rights), receivables are reflected in the balance sheet as assessed minus the amount of VAT subject to deduction (accepted for deduction) in accordance with the tax legislation (see appendix to the letter of the Ministry of Finance of the Russian Federation dated 01/09/2013 No. 07-02-18/01).

For example, in accordance with the terms of the contract, the organization transferred an advance in the amount of 118,000 rubles to the supplier. (Debit 60 Credit 51). Based on the supplier’s invoice, the organization accepted for deduction the VAT paid in the advance amount in the amount of 18,000 rubles. (Dt 68, subaccount “Calculations with the budget for VAT” Credit 76, subaccount “VAT on advances issued”). As of the reporting date, no goods were received from the supplier. In the balance sheet, the organization reflected on line 1230 the supplier’s receivables in the amount of 100 thousand rubles. (118,000 – 18,000).

5. In the balance sheet, data on accounts receivable for goods sold, products, work performed and services rendered are reflected, if significant, separately from the amounts transferred by the organization in accordance with advance payment agreements (see letter of the Ministry of Finance of the Russian Federation dated January 27, 2012 No. 07-02-18/01).

6. Fines, penalties and penalties recognized by the debtor or for which court decisions on their collection have been received are included in other income and, until they are received, are reflected in the balance sheet as part of accounts receivable on line 1230 (clause 76 of PVBU No. 34n).

7. Accounts receivable for which the statute of limitations has expired, other debts that are unrealistic for collection are written off for each obligation as other expenses or from the reserve for doubtful debts (if such a reserve for this obligation has been formed) on the basis of (clause 77 PVBU No. 34n):

— inventory data;

— (and) order (instructions) of the head of the organization.

8. Accounts receivable written off due to the insolvency of the debtor are accounted for in off-balance sheet account 007 for 5 years from the date of write-off (clause 77 of PVBU No. 34n).

Line 1230 of the balance sheet, what does it include?

Line 1230 of the balance sheet gives us an idea of ​​the state of the accounts receivable of our company (organization). The data indicated in the line is very important, both for the owners of the organization itself and for external users (stakeholders), as they give an idea of ​​the debt that the company must receive from buyers, accountable persons, customers and borrowers. In this article, let's clearly look at and show what the balance line 1230 reflects.

What accounting balances does line 1230 of the balance sheet consist of?

Data on line 1230 is reflected in the active part of the balance sheet, in the second section “Current assets” and includes indicators as of December 31 for the following accounting accounts:

• The debit balance (hereinafter referred to as D-tu) of account (hereinafter referred to as account) 60 “Settlements with suppliers and contractors” reflects the total indicator for advances issued to suppliers of goods, services, and work;

• Balance on the debit side of the account. 62 “Settlements with buyers and customers”, takes into account the debt on products, goods, work, services sold to the buyer;

• Account debit balance 68 “Calculations for taxes and fees,” speaks of the debt of budgetary authorities to the organization. Accounts receivable on this account may arise due to amounts transferred during the year, advance payments for taxes from budget funds. The amount of transferred advance payments exceeds the amount of calculated tax for a certain period of time;

• Debit balance by account 69 “Calculations for social insurance and security” tells us about the debt of the social insurance authorities to your company. It may arise, for example, due to the amount of excess expenses calculated by the organization on certificates of incapacity for work before accrued insurance premiums;

• Balance on the debit side of the account. 70 “Settlements with personnel for wages”. A debit balance is very rare. It may arise, for example, due to transfers of amounts to an employee (employee) for accrued leave (labour or pre- and post-natal leave). This happens when, at the beginning of the month, the organization’s employees are paid arrears of wages accrued on the last day of the month, and payment is also made for accrued maternity and postpartum leave. The accrual amount will be reflected in the accounting accounts only on the last day of the month, and payment will be made on the current date;

• Debit account balance 71 “Settlements with accountable persons.” Payments to persons to account for funds, non-cash and cash are accounted for on the debit side of the account. 71. After payment, submits a report on expenses incurred to the company’s accounting department. This may include payment for business expenses, payment for purchased materials, expenses for staying in a hotel during a business trip, expenses for moving to and from the place of business trip, and others;

• Debit account balance 73 “Settlements with personnel for other operations.” All relationships between employees of the organization are reflected in this active-passive account, except for payroll calculations and payments of funds to the account. The debit of the account reflects the employee's debt to the organization. An employee may be provided with borrowed funds for construction, rent, and other business needs. Also, the employee may have a relationship to compensate for material damage to the company. These are the situations that are reflected in the score 73;

• Balance on the debit side of the account. 75 “Settlements with founders.” The formation of the authorized capital is taken into account according to the D account. 75 and K-tu account. 80 “Authorized capital”. Until the founder deposits personal funds in the amount of the authorized capital, the debit balance will remain on account 75;

• Debit account balance 76 “Settlements with various debtors and creditors.” Account 76 is active - passive, it reflects debts not reflected in account 60, 62 and other accounts. The account may reflect arrears of payment to the insurance company; claims settlements; withholding funds from employee salaries for third-party companies and persons under executive documents (acts).

Read also: Disqualification of an arbitration manager

It is advisable, for convenience in accounting, to open analytical accounting on account 76 on subaccounts. For example, on subaccount 1, reflect the debt for voluntary insurance in the context of employees (employees) of the organization, in subaccount 2 reflect the debt on claims in the context of counterparties, in subaccount 3, calculations of dividends in the context of founders, and so on.

All these account balances are added up, then the balance on the passive account is subtracted from them. 63 “Provisions for doubtful debts”.

Just remember that the balance on all accounts must be expanded. It is necessary to specify in the settings when creating a reverse balance sheet a list of accounts with a detailed balance.

When creating a balance in the 1C program, check how you generated the data on line 1230, since when filling in automatically, it happens that the program does not correctly record the detailed balances on the accounting accounts, and accordingly, the indicator for accounts receivable is indicated incorrectly.

Line 1230 of the balance sheet “Accounts receivable”

Accounts receivable (line 1230)

This line of the balance sheet reflects the accounts receivable to the company, which was formed as of December 31, 2015. In this case, line 1230 includes debts whose repayment period is equal to or less than 12 months. If the repayment period of the debt exceeds 12 months, then its amount is included in non-current assets in line 1190 “Other non-current assets”. The amounts of advances transferred to contractors for future work related to capital construction are also indicated here.

Lines 1230 and 1190 indicate the debit balance of accounts for accounting for settlements:

60 “Settlements with suppliers and contractors” in terms of advances transferred towards the upcoming supply of material assets, performance of work, provision of services;

62 “Settlements with buyers and customers” regarding the cost of goods, work or services shipped but not paid for by buyers and customers;

68 “Calculations for taxes and fees” regarding taxes excessively transferred to the budget or collected by the tax authority;

69 “Calculations for social insurance and security” in terms of contributions to compulsory social insurance, excessively transferred or collected to extra-budgetary funds;

70 “Settlements with personnel for wages” regarding overpaid wages;

71 “Settlements with accountable persons” in terms of accountable amounts issued to employees of the company and unspent or unreturned at the end of the reporting period;

73 “Settlements with personnel for other transactions” in terms of the amount of loans provided to the company’s employees and their debt for compensation for material damage;

75 “Settlements with founders” regarding the debt of the founders for contributions to the authorized capital of the company;

76 “Settlements with various debtors and creditors” in terms of sanctions accrued and recognized by debtors for violation of the terms of business contracts, dividends due from other organizations, accrued income from joint activities, the amount of issued interest-free loans, debts of third parties for other transactions.

The company can provide details of the amounts of receivables by type and composition (for example, debt from buyers or customers; budget or extra-budgetary funds; personnel of the organization; shareholders or participants, etc.) in Section 5 of the Explanations to the Balance Sheet and Statement of Financial Results. Table 5.1 is intended for this purpose.

For doubtful accounts receivable related to payments for goods, works or services supplied, which are not repaid within the time limits established by the contract and are not provided with appropriate guarantees, the company is obliged to create a special reserve. This is provided for in paragraph 70 of the Regulations on Accounting and Financial Reporting. Warning
Whether the creation of such a reserve is determined by the company’s accounting policy or not is not important. It is reflected in the credit of account 63 “Provisions for doubtful debts” in correspondence with account 91 “Other income and expenses” subaccount 2 “Other expenses”. If such a reserve is created, then the accounts receivable minus the amount of the reserve are indicated in the balance sheet (that is, the debit balance on accounts 62 and 76 minus the credit balance on account 63).

Please note: in the balance sheet, accounts receivable and accounts payable are indicated in detail. The receivables are in the asset, and the creditors are in the liabilities. That is, these debts do not balance. Even if there were both debit and credit balances for the analytical accounts of the same account.

The company received materials worth RUB 1,180,000 from its counterparty. (including VAT - 180,000 rubles). At the same time, she transferred an advance to the same supplier for the upcoming delivery of goods in the amount of 2,000,000 rubles. Goods are not subject to VAT.

These transactions were reflected in the entries:

DEBIT 19 CREDIT 60 subaccount “Settlements with suppliers”

180,000 rub. — “input” VAT on capitalized materials is taken into account;

DEBIT 10 CREDIT 60 subaccount “Settlements with suppliers”

1,000,000 (1,180,000 - 180,000) — materials were capitalized;

DEBIT 68 CREDIT 19

180,000 rub. — accepted for deduction of VAT on materials;

DEBIT 60 subaccount “Settlements on advances issued” CREDIT 51

2,000,000 rub. — funds are transferred as advance payment for goods.

In this situation, accounts receivable in the amount of 2,000,000 rubles. indicated on line 1230 of the balance sheet. At the same time, line 1520 reflects the amount of accounts payable in the amount of RUB 1,180,000. (1,000,000 + 180,000).

Formation of accounts receivable.

The procedure for generating receivables depends on the terms of the transaction within which they arose. In general, its amount is equal to the contract price of the goods, works or services sold. Moreover, in a number of situations it is formed in a special order. Thus, the amount of debt can be increased or decreased if the company provides customers with a commercial loan, if the debt is expressed in conventional monetary units or foreign currency, if it arose as a result of the transfer of an advance, etc. In addition, a special procedure has been established for debts on commodity exchange transactions.

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Registration

Reflection of accounts receivable on the balance sheet

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The state of the company's assets and liabilities is reflected in the main document - the balance sheet. Each of the assets is important. It is necessary to analyze the sources of funds and the availability of loans.

Based on mobile and liquid working capital, the efficiency and solvency of the enterprise can be assessed. Particularly important in this matter is accounts receivable on the balance sheet.

The registration of this type of asset must be correct. It can be used to determine the company's debt obligations. Therefore, the work is carried out by experienced accountants. To compose correctly, you need to study the various intricacies of the process.

Definition and types

All companies that do business have receivables and payables. Their presence is determined by supply contracts, the taxation system, and company calculations. Accounts receivable on the balance sheet is the amount that reflects the obligations of various entities, both legal entities and individuals, to date. It is included in the general working fund.

Debt obligations are formed from the issuance of loans by a company. To maintain financial stability, it is important to increase their size so that accounts payable do not exceed their volume.

The concept includes several components:

• repayment of debt on loan obligations;
• goods sold but not paid for;
• current assets for financing from personal accounts and loans.

Accounts receivable are divided into several types. It can be short-term, when the amount is returned within a year. If we are talking about long-term debt, then the period is from 12 months.

If the fact of debt repayment is taken as a basis, the division can be made differently:

If the debt is expected, the products have already been transferred to the buyer

At the same time, the company received an advance, but the final payment did not occur. The debt will be considered normal if repaid within the period specified in the agreement.

Doubtful debt is one of the types of overdue

It occurs when there is no transfer of funds from an individual or organization that is a tax payer. If the debt is overdue, it cannot be confirmed by bank guarantees or guarantors. This type has a statute of limitations.

A bad debt is one that is not repaid by the borrowers.

Read also: Cancellation of enforcement proceedings by bailiffs

It is determined by a negative court decision, insolvency or bankruptcy of the borrower, or hiding it from the enterprise. The debt is repaid by the borrower himself if the term exceeds five years.

Central provisions and boundaries of action

When forming accounts receivable, it is important to determine some points. It is necessary to find out which accounts may be included in the documentation, the conditions for filling out papers and processing debt. After this, analysis and forecasting are carried out.

Basic rules of reflection

When forming accounts receivable, it is necessary to focus on active and passive settlement accounts. These include: 62, 68, 69, 70, 71, 73, 75, 76 and advances issued 60.

There are several rules according to which debt is reflected:

• It is important to separate where the asset or liability is for a particular debt. An item from each balance sheet cannot be counted into one.
• If an advance was issued during settlement, the funds will be considered non-current assets. They must be indicated in the appropriate section.
• When reflecting foreign currency debt, a recalculation is necessary. Currency is calculated using the exchange rate at the reporting date.
• Accountants cannot always determine whether a debt for which partial payment has been made is reflected in VAT or not. It is necessary to document the amounts, subtracting VAT in accordance with the Tax Code.
• Accounts receivable for goods and work sold are recorded separately from the amounts transferred as an advance or prepayment.
• Other income that has not yet been received are fines and penalties recognized by the debtor or the court. They are defined on page 1230, where other things are reflected.
• When the statute of limitations has expired, the debt is written off from the reserve for doubtful debts according to inventory data, provided there is a written justification and an order from management.
• After the receivables are written off, they remain in off-balance sheet account 007 for the next five years.

Conditions for filling out and contents of papers

To reflect accounts receivable, there is a long-term line 1230, which records the debit balance for several accounts.

These include calculations:

• with suppliers and contractors (60) in rubles, c.u. and foreign currency advances;
• with buyers and customers (62) on shipped orders in rubles, bills, c.u. and currency;
• on taxes and fees (68), which were excessively transferred by the tax service or enterprise;
• on social insurance and security (69), which were excessively transferred to the Social Insurance Fund, Pension Fund, and Compulsory Medical Insurance Fund;
• with payroll personnel (70);
• with accountable persons (71);
• with personnel for other transactions (73) when issuing loans to employees or material compensation;
• with the founders (75) on contributions to the authorized capital;
• with debtors and creditors (76) on personal and property insurance, claims, dividends and income in ruble and currency equivalent.

If revenues from goods supplied or services provided do not arrive on time, the company may create a reserve for doubtful debt. This is a right and not an obligation of the company.

The reserve is needed only to pay off debt that is considered bad. The amount written off for a doubtful debt for which an advance was made will be considered incorrect.

In case of bad debt, cancellation will not be made. Cash funds are reflected for five years in off-balance sheet account 007.

Stages of organization and analysis

All budgetary institutions have accounts receivable. It consists of debt obligations of individuals or firms in relation to an enterprise.

After repaying the debt, the company experiences economic benefits. It will be considered an asset if the probability of return is high. If this is not possible, debits are made from your own accounts.

An important point for every organization is accounts receivable management.

There are several measures to work with it:

• company size planning;
• calculation of customer credit limits;
• exercising control;
• personal motivations of managers.

Some explanations about the amount of debt and the number of debtors are important for management.

You can find out information at:

• information about unpaid invoices issued by debtors;
• time of delay;
• the amount of debt recognized as doubtful and hopeless;
• credit history of debtors.

Such information is contained in the company's accounting records.

Management is carried out subject to several important points:

1. It is imperative to plan the size of accounts receivable.
2. At the second stage, the amount of debt is controlled. It is required to compare planned and actual indicators.
3. The third stage is to investigate the causes of accounts receivable.
4. At the next stage, solutions are developed to eliminate debt.
5. The fifth point is the implementation of decisions that have been made.

It is important to analyze accounts receivable. First, large debts, which may be doubtful or hopeless, are taken under control. More minor debts are discussed below. The analysis can be current or long-term.

To determine the level of debt obligations, the following are taken into account:

• types of products;
• market saturation;
• turnover;
• enterprise calculations.

The analysis is possible if management or auditors want to ensure that the debt is reflected correctly.

In simple words, outsourcing is the transfer of secondary functions of the company to outside specialists who have the appropriate professional skills.

How to reflect received loans and borrowings, as well as expenses on them, in accounting, you can read here.

Design details

Sometimes the buyer wants to pay off a payment that has a past due status using a promissory note. It cannot be accepted as repayment of a debt. The bill system is allowed for deferment of payment. Then the debt obligations are entered in a special section of line 1230. To account for debt, a sub-account is opened with received bills of exchange.

It contains a transcript of the transfer of funds in the form:

Credit 62 subaccounts Settlements on bills received.

An example of reflecting property in the balance sheet

In practice, it turns out that the bill is worth more than the debt that the person or company has. The difference in amounts is taken into account as interest paid on the late payment. Due to this, the amount can be increased. Based on this, an additional code is entered into line 1230 of the balance sheet.

Loans and debts mentioned

Loans that were transferred to other organizations are recorded in account 58, Appendix “Financial Investments”.

• documentary confirmation of the right to the asset and receipt of funds;
• transfer of financial risks when receiving assets (price changes, insolvency, liquidity);
• generating income in the future.

With interest-free loans, the last criterion may not be met. It is important to meet the condition of return on investment. Therefore, such loans are entered in line 230 or 240.

If the loan is denominated in rubles and is not considered an investment, then it can be recorded in account 76. When issuing a loan to employees of an organization, it is reflected in account 73.

Accounts receivable are not recognized for debts that cannot be collected.

The main content of accounts receivable in the balance sheet

Accounts receivable are reflected in the balance sheet based on its active part. Maturity period is paramount in determining debt obligations.

Line 240 includes short-term debts that can be repaid within 11 months. The coefficient is written in account 62. If we are talking about long-term liabilities, then line 230 is selected. Such debts are repaid after one year.

A similar division is made in column 1230. Short-term (1231) and long-term (1232) liabilities are referenced.

The analysis of the company’s financial activities and further forecasting depend on how correctly the balance sheet is filled out. Therefore, it is important to separate types of debt by form.

The reserve for outstanding debts is made on account 63. Next, the formula for calculating receivables is carried out without these funds.

Debts that cannot be repaid are reflected as debts that cannot be collected from the created reserve (D63 K62). The amount is recorded in off-balance sheet account 007. It is determined for each debtor based on his solvency and repayment risks.

Sources of risk and insurance

If there are accounts receivable, certain risks arise for the enterprise.

• credit risk associated with failure to fulfill their obligations by debtors;
• risk of loss of liquidity. in which obligations are not fulfilled by debtors to creditors;
• operational risk due to insufficient control and management.

To eliminate risks, work is carried out at the initial stage before concluding a contract. It is important to assess the client’s reliability by analyzing information about him in relation to litigation and tax disputes. Due diligence will be required.

It is important to introduce a prepaid system. But market conditions dictate a deferred payment in order to find a compromise between the seller and the buyer.