Each commercial organization is interested in a thorough analysis of financial results throughout the entire period of economic activity. For timely monitoring of current income and expenses, several accounting accounts are used: 99, 90, 91. Obtaining reliable information about the structure, dynamics, volume of results of operations is possible only if the data are correctly reflected on these accounts.
Account Description
Account 90 “Sales” is the most complex in structure, which makes it possible to obtain and evaluate the intermediate results of the enterprise. It should be noted that the main direction of work, which is prescribed in the statutory documents, is implied. This type of activity brings a constant financial result, which in the amount of the total indicator takes at least 5-7%, if possible, the company is engaged in any type of work permitted by the law. As the main directions can be allocated:
- Release of various types of products (goods, semi-finished products, raw materials, etc.).
- The provision of a specific list of services (communications, transport, utilities, household, etc.).
- Performance of work of varying degrees of complexity on a contract basis (non-industrial and industrial nature).
90 account serves to reflect the sum of all income for the main activity and expenses associated with it.
Accounting Reflection
The account 90 is synthetic, active-passive, depending on the subaccount used in a particular situation. It does not have a balance (balance) at the beginning and end of the period, it is not reflected in the balance sheet. The main purpose of this account is to determine the financial (interim) result from the work of the enterprise for the current period. The calculated amount is transferred to form a general indicator of profitability or loss of work. The economic result is calculated as the difference between the turnover of sub-accounts. 90 account has a distinctive feature: it is completely closed only in the process of reformation of the balance sheet, at the end of each calendar year. On the debit of the account, all expenses are reflected, on the loan - the income received (sales revenue).
The structure of analytical accounting
For correct operation, sub-accounts of account 90 are opened for the following positions:
- 90/1 “Trading Revenue”;
- 90/2 "Production cost of goods";
- 90/3 “VAT”;
- 90/4 “Excise taxes”;
- 90/5 “Export duties”;
- 90/9 “Profit and / or loss from sales”.
Each subaccount is filled out throughout the year by business operations. The formed turnover at the end of each period closes 90/9 and does not have an intermediate balance. The financial and economic result of work for the month is calculated as the difference between the debit turnover and the total credit turnover for sub-accounts. Depending on the sign, the obtained value is posted to subaccount 9, which is closed to account 99.
Revenue
To reflect assets recognized under PBU (accounting regulations) 9/99, subaccount 90/1 has been created as income from the main activity. It takes into account revenue from sales of goods, work performed, sold goods, services, etc. The amount of income received appears on the credit of the subaccount in correspondence with the 62 account “Settlements with buyers” for debit. Wiring can also be used:
- Dt 76, Kt 90/1 “Proceeds from other debtors and creditors”.
- Dt 50, 55, 52, 51, Kt 90/1 “Revenue is credited to the settlement, currency, special account or to the cashier of the company.”
- Dt 79, Kt 90/1 "Income from a branch or subsidiary."
- Dt 98, Kt 90/1 “Part of the revenue received is attributed to the income of the next period” (for advance payments).
The total loan turnover 90/1 is summed up and shows the revenue from sales in the current month, which will subsequently serve to calculate the financial result from the main types of economic activity of the company.
Expenses
The production (full) cost of manufactured products is formed on the calculation accounts and debited to account 41, 43, 45, 40. At this price, it is recorded in the finished goods warehouse, where it is stored until the time of sale. When selling goods, products, providing various services and performing work, any organization incurs additional costs not included in the cost of production. This type of cost is called the commercial costs that arise as a result of the preparation and sale of products. According to PBU No. 10/99, they include the costs of advertising, additional packaging, transportation and storage. Account 90 posting in this case forms the following:
- Dt 90/2, Kt 43, 40, 41 "Written off goods (finished products) at the discount price."
- Dt 90/2, Kt 42 "The trade margin is carried out."
- Dt 90/2, Kt 44 "accrued the sum of commercial (selling) expenses."
Trading enterprises do not form the cost of production; assets purchased for sale are reflected in 45 accounts. Upon implementation, all additional (commercial) expenses are spent at CT 44 “Costs of circulation”.
Taxes
If the enterprise, in the manner prescribed by law, is a payer of excise tax, VAT, then the sale of works, products, services is performed with the inclusion of these types of tax in the total cost. Taxes 90/3, 90/4 set for payment to customers are taken into account. If the enterprise conducts international trade, the export duty is taken into account on account 90/5. When calculating VAT 90, the account corresponds to the following transaction when performing a business transaction :
- Dt 90/3, Kt 68 "The amount of VAT on goods sold is set."
Similarly, all taxes payable to budgets of various levels are reflected.
Reformation balance
90 the account is closed in stages, first of all, the turnover for the current period for each sub-account is determined. Each of them is closed by 90/9 wiring. Closing account 90 is carried out in a certain order, according to the scheme:
- The amount of operations is calculated on the sub-account 90/1, posting the sub-account is closed Dt 90/1, Kt 90/9.
- The turnovers of expenses are summarized and the final values are posted Debit 90/9, Credit 90/2, 3, 4, 5.
- Turnovers in all subaccounts and balances 90 should be equal to zero.
- On the 9th sub-account, we determine the financial result, which is calculated as the amount reflected in Dt - the turnover of the account CT. Depending on the result, it is debited to account 99.
- Balance on account 9 “Profit, loss from sales” should be closed at the end, that is, be equal to zero.
The account 90 is not reflected in the balance, it is necessary to check on all the final registers, perhaps, for a calendar year, as a result of an error, this account has an open turnover. If such an amount exists, then it must be written off by appropriate posting, to carry out a reformation of the balance sheet before reporting. At the same time, the total value of account 91 “Other expenses and income” is written off, as a result of closing 90 and 91 accounts for 99, a financial result from the organization’s work for the current year is formed.
Accounting Automation
The work of a modern accountant involves the competent use of specialized programs. The closure of all necessary accounts occurs automatically when the period is closed. The duties of an accounting employee include a thorough check of the results of the conduct and reflection of business transactions. Studying
the balance sheet and the analysis of the account will make it possible to track the correctness of sequential closing of accounts to obtain an accurate result of work. The account 90 is debited before the balance sheet is created, it is of great importance for obtaining objective information. Therefore, for the chief accountant, the process of reformation of the balance is especially important. It implies not only the correct closing of the account, but also the verification of its maintenance during the entire period.