The company's activities are related to sales, whether it is work, services or products. A common way to make a profit is to sell goods. Postings describing this process are very important in accounting. We will analyze in detail the stages of the transfer of goods to customers and the rules for creating account assignments.
Accounting for goods and materials for sale
Summarized information about the availability of goods and their movement contains the account 41. Its use in accounting is typical for enterprises of trade, supply, marketing and public catering organizations. Industrial organizations use it very rarely and only in cases where it is necessary to register products whose cost is reimbursed by customers separately.
Accounting for goods on account 41 can be made at both purchase and sale value. If the receipt is made out using selling prices, an additional account 42 is opened, on which the mark-up value is reflected.
What is an implementation?
After taking goods to a warehouse or manufacturing finished products, the company is interested in earning income as soon as possible in order to continue its activities. Under the implementation understand the sale of products by concluding an agreement between the parties to the transaction or in retail.
The presence of a document regulating the implementation of the clauses of the agreement between the seller and the buyer is usually typical for wholesale. This is the sale of products to other legal entities who plan to use goods and materials for further resale or production needs. Direct sale of works, services or goods involves retail relations.
Accounting for the implementation process
In accounting, the implementation of a business transaction is described using correspondence accounts. It is already known that the initial position of goods and materials in the warehouse is fixed on 41 accounts. But where do the funds go further, describing the fact of the sale?
Regardless of the type of trade and the focus of the enterprise, the implementation process and its results are described by account 90 in accounting. Its subaccounts are provided for collecting information on both the amount of revenue and the amounts of VAT, the cost of goods sold and summing up the overall financial result.
Account 90 in accounting is active-passive, in credit indicate amounts that increase the income of the enterprise, and in debit - the results of expenses. It is here that the sales of goods are debited from account 41 and distribution costs (cf. 44).
Sale of goods: wiring from wholesalers
The company, acting as a supplier, agrees with the buyer the terms of delivery of the goods using the contract. In addition, the seller should generally send the following papers:
- accompanying or commodity;
- payment request;
- invoice.
The reflection of the implementation process in accounting documents depends on the method of recognition of the transfer of ownership of the goods shipped. Consider the situation when the organization recognizes it at the time of shipment, regardless of the timing of payment. Accompanying papers must contain information on the sale price of goods, as well as the amount of VAT from it. The buyer is in arrears in the amount of the cost of the supplied products plus the amount of VAT. The operation requires at the same time to make accounting entries for the sale of goods:
- Dt "Settlements with customers" Kt "Revenue" - recorded the amount of receivables of buyers, including VAT.
- Dt "Cost of sales" CT "Goods" - written off the amount of shipped products at the purchase price.
- Dt “VAT on sales” Kt “VAT liabilities” - accepted for accounting of VAT for payment.
Implementation Costs
After the posting of Dt 90.2 Kt 41 is written off, the selling expenses, which include the cost of production. The values of their amounts are on account 44. Data is accumulated until the sale of goods and services occurs. At the same time, depending on the directions of the accounting policy, the following can be made:
- Dt 90.2 Kt 44 - expenses related to sales are written off;
- Dt 90 (subsch. Commercial expenses) Kt 44 - the sum of the distribution costs of the sold products is written off to commercial expenses.
The second account assignment is feasible only if it is installed at the enterprise. A more characteristic and generally applicable method of writing off distribution costs is the first posting.
Sale of goods: postings in retail
Direct sales of products to consumers are most often carried out using cash payments, but bank cards, settlement checks, a commission agreement or installment payments can also be used. KKM, which are mandatory for use in enterprises working with the population, help to track the revenue in the cash register. Indicators of the machine at the end of the day form the amount of money that the sale of goods brought. Postings - an example of assigning account 50 amounts to a financial result - are prepared as follows:
- Dt "Cash desk" Ct "Revenue" - revenue from sales of goods at selling prices including VAT;
- Dt "Cost of sales" CT "Goods in retail" - written off the amount of the purchase value of the goods;
- Dt “Sales” (subsch. “VAT”) Ct “Calculations for VAT” - VAT is payable.
We must not forget about the overhead costs of a commercial enterprise, which are written off in this way:
- Dt "Cost of sales" CT "Costs of sales" - the cost of sales includes the amount of distribution costs.
- When creating a separate subaccount on the account. 90 account assignment looks like this: Dt 90 (selling expenses) Kt 44.
During the reporting month, the accounting department can make the described transactions more than once. The data of account 90 in the context of subaccounts is accumulated for the period and then written off. The set of debit rev. 90.2, 90.3, 90.4 and loan amounts 90.1 determines the financial result and is written off by the posting Dt 90.5 Ct 99 or Dt 99 Ct 90.5. There is no account 90 at the end of the month.
Accounting for the sale of goods at selling prices
Commodity margin is taken into account on account 42. When taking products into the warehouse, the accountant reflects the amount of the difference between the purchase and selling value in the debit. After making sales and writing off the results to account 90, the red reversal method is used, which involves the reflection of a negative amount. The operation is characterized by a wiring Dt 90.2 Kt 42 (red reversed). Amounts written off include VAT. After allocation of the tax amount, the remaining part of the funds is allocated to cover expenses. Further account assignments are performed similarly to the purchase price accounting method.
As you can see, the sale of goods is directly related to VAT. The transactions characterizing the allocation of tax and its payment to the budget are made as follows:
- Dt "Sales" (subsch. "VAT") Ct "Calculations for VAT" - revealed the amount of tax that was received from buyers and payable;
- Dt "Calculations for VAT" Kt "Settlement account" - the amount of tax transferred to the state. budget.
Commission sales of goods: postings, characteristics
The main feature of the sale of non-food products, adopted by the commission, is that with the transfer of property, the right to own it is retained by the principal. Relations between the parties are governed by the contract.
For accounting purposes, products accepted for commission are used in account 004. When accepting goods for commission, the amount is shown in debit, and when debited, on credit. Commissioner's fee is reflected by posting Dt 76 Kt 90.1.
Implementation and its fixation in documents is an important component of accounting. Misrepresentation of the data will entail an incorrect calculation of the tax base and an incorrect assessment of the results of financial activities.