Perhaps one of the most unpleasant situations that the seller encounters during his activity is the return of goods from the buyer. For accounting, this operation means the automatic occurrence of an additional headache and the need to make changes to the accumulation registers. Especially careful should be with data that relate to the field of tax accounting. However, life after the return does not stop, but continues to rage and delight.
Return of goods from the buyer: scenarios
When the operation of transferring goods from seller to buyer occurs, this fact is displayed in the primary document, namely in the form of TORG-12. Accordingly, on its basis, data are entered into the tax accounting system. In the case of the return of the goods, an adjustment invoice comes into play. This is a rather important document, since on its basis there is a change in tax liabilities for value added tax. But there is one “but”: exchange, return of goods according to the above scheme are possible only if it is transferred in the proper form. After all, the law establishes that in this case the seller displays such a movement of material value only as implementation.
In case the goods cannot be recognized as high-quality, the display scheme changes slightly. The customer returns the purchased product along with an invoice, the seller’s accounting department reverses the postings in previously posted documents and issues an adjustment invoice.
Returns from Buyer: What about the product?
When the buyer brings the goods to the outlet, the latter should have all the seals, labels and other similar things. In any case, its appearance should not cause any objections. Otherwise, if the seller’s representative finds any defects, he will completely refuse to return it.
Be sure to have in the hands of the buyer should have a cash or commodity document, which proves the fact of a trade operation earlier.
However, do not forget that there is a certain category of inventory items for which it will not be possible to return goods from the buyer, since they are not subject to exchange at the legislative level. Usually in stores when buying a person they immediately warn that he will not be able to return this product.
Returns from Buyer: Postings
If there was a fact of sale of goods :
- Revenue is displayed (recorded in the waybill), Dt 62 - Kt 90-1.
- Cost is deducted (accounting reference), Dt 90-2 - Kt 41.
- The movement of VAT is displayed (accounting reference), Dt 90-3 - Kt 68.
- The flow of money to the current account (bank statement), Dt 51 - Kt 62 is displayed.
If there was a return to the point of sale of a part of a previously shipped batch:
- The return of goods is displayed (documents of the buyer), Dt 41 - Kt 60.
- The amount of VAT (buyer documents) is adjusted, Dt 19 - Kt 60.
- Mutual settlements are made (statement or act of netting), Dt 60 - Kt 51 (or 62).