The most active movement of the organization’s financial flows occurs during settlements with counterparty enterprises. The cash flow rate, existing debt indicators, the presence of penalties are the criteria for evaluating a company's solvency. All these positions are evaluated by potential partners before concluding contracts.
Chart of accounts used for accounting
For the correct work of the accounting of organizations conducting accounting and tax accounting, a unified standard chart of accounts has been created. All used business transactions are reflected in the corresponding position. To increase the effectiveness of the application, they are divided into groups according to purpose. The section for interaction with company counterparties begins with the number 6, settlements with suppliers - 60 accounts, with customers - 62, etc. The described group consists of passive and active-passive accounts that reflect the movement of financial flows under concluded business contracts.
The challenges facing the accounting system of settlements with counterparties
Analysis of the economic activity of the enterprise, the effectiveness and profitability of its work is evaluated by many criteria. These include tracking financial flows in settlements with suppliers. Account 60 allows you to obtain information that enables you to perform the following tasks:
- Monitoring the status of amounts owed to contractors and suppliers of goods and materials (information is relevant both for owners and for the provision of reliable reporting).
- Formation of an information base. Based on it, tracking of the speed of turnover occurs. It is used in the formation of management reports.
- Monitoring compliance with contractual obligations, dates, volumes of deliveries and payment for them.
- Drawing up a payment plan for suppliers in the distribution of financial resources.
- Elimination of the possibility of violation of the law and tracking of late payments.
Account number 60
60 account is used by enterprises as a balance sheet, passive regardless of the chosen accounting system, from the legal form of activity. It is intended to reflect information on each of the suppliers and contractors. The basis for the start of accounting are:
- conclusion of an agreement for the supply of goods and materials, fixed assets, intangible assets;
- the provision of various services (utilities, repair and maintenance of buildings, structures, machinery and equipment);
- transportation of goods;
- execution of contract work, etc.
In the standardized chart of accounts 60, the account is called “Settlements with suppliers and contractors”. Synthetic generalized accounting is maintained across all organizations. For analytics, subaccounts are created. In the balance sheet, account 60 is shown in accumulative form and shows the amount of the company's debt for all suppliers and contractors. Analytical accounting for obtaining reliable and objective information must be kept under a separate counterparty or contract.
Workflow for 60 accounts
To form the movement of settlements with company counterparties, 60 accounts are used. Movement on it is due to the receipt of the following documents:
- An invoice, bill of lading are documents for the occurrence of an enterprise’s debt for delivered materials or services rendered or for the settlement of an advance payment amount. The invoice and TTN are also the rationale for the formation of the shopping book (VAT received).
- A payment order or claim, bank statement serves to pay off accounts payable to contractors and suppliers.
- An expense order, partial or complete elimination of debt in cash, through the cashier of the payer organization.
- The certificate of completion, which is signed by both parties, is accepted as the basis for payment of the amount specified in the contract.
- A receipt order is held on account 60 in case of return of the advance paid earlier, repayment of the claim by the supplier in cash to the cashier of the enterprise.
When delivering goods without a document, the fact of receipt is also reflected in registers. At the time of presentation of the consignment note 60, the account is adjusted for the difference between the accounting prices and the value of the goods according to the submitted documents.
Transactions on account K 60
The balance sheet passive account 60 shows the amount of arrears that the company owes to counterparties. Balances at the beginning and end of a period are usually recognized on credit. For certain suppliers, the balance may be debit in case of prepayment according to the terms of the contract. In correspondence with 60 credit accounts, the debit can be of the following accounts:
- 07, 08 - purchase, modernization, capitalization of non-current assets;
- 10, 15 - materials, goods received from the supplier;
- 19 - the amount of VAT reflected in the goods and transport documents;
- 20, 23, 25, 26 - work performed by third parties is attributed to an increase in the cost of primary, auxiliary production, general or general production expenses ;
- 41 - purchased goods;
- 43, 44 - increase in trading costs due to the provision of services by contractors;
- 50, 51, 52, 55 - refund of cash or non-cash funds from the supplier (excessively paid amounts, making part of the advance payment due to the impossibility of delivering the agreed consignment of goods or sending it to the partner for quality or other reasons, settlements on claims made);
- 60 - offset of amounts previously paid as an advance;
- 66 - repayment of a part of a short-term loan (loan) at the expense of the assignment agreement;
- 76 - the amount of claims presented to the buyer;
- 79 - the parent organization paid for goods delivered to the branch or subsidiary of TMC;
- 91.2 - exchange rate (negative) difference in settlements using the currency is written off as other expenses.
Transactions on account D 60
The debit of the account reflects operations related to the repayment of accounts payable for a specific counterparty. Account 60 debit postings in correspondence with the following items:
- 10, 15 - return of goods and materials received from the buyer;
- 50 - payment of the invoice or repayment of existing debt through the cash desk of the organization in cash;
- 51 - non-cash transfer from a current or other account;
- 52 - settlement with suppliers in currency (according to the terms of the contract);
- 55 - payment by funds blocked until the fact of delivery (money is preliminarily transferred from the settlement or other account of the organization to a special letter of credit at the recipient's bank, the amount is prescribed in contractual obligations, sealed by the signatures of both parties);
- 60 - the advance payment paid earlier is set off;
- 66 - repayment of the amount of debt to counterparties at the expense of short-term loan funds;
- 76 - transfer of debt under a cession agreement in favor of a third organization;
- 92 - cancellation of accounts payable in the following cases: expiration of the statute of limitations, liquidation of the creditor’s enterprise, exchange rate differences, revaluation of the amount of debt, penalties provided for by the contract.