Industrial and commercial enterprises are sometimes faced with situations where it is necessary to return a defective product to a supplier or accept it from a retail buyer. How to reflect the return in accounting?
Instructions
Step 1
If you are a supplier, but for some reason your wholesale buyer had to return the goods, you will have to make a cancellation of the previously received value of the goods and the amount of proceeds received from its sale.
Step 2
If both the sale and the return of the goods were made within one year, you need to do it as follows:
- Debit 62 Credit 90.1 (adjustment of the proceeds you received by the amount of the goods returned to you);
- Debit 90.2 Credit 41 (adjustment of the purchase value of the returned goods);
- Debit 90.3 Credit 68 (VAT subaccount) (adjustment of the amount of VAT attributable to the goods sold.);
- Debit 62 Credit 50 (51) (posting the payment of money for the returned item).
Step 3
If the return of the goods was returned not in the year of sale, but in the next year, the reversal adjustments will be reflected as follows:
- Debit 91 Credit 62 (reflection of the amount of the previous year's loss identified in the reporting period);
- Debit 91 Credit 41 (reversal adjustment of the cost of goods);
- Debit 68 Credit 91 (VAT sub-account) (posting of VAT deduction on returned goods).
Step 4
If, on the contrary, your company returns the goods to the supplier, it should be done in this way:
- Debit 76 Credit 41 Credit 19 (posting the amount of the returned goods);
- Debit 68 Credit 19 (VAT sub-account) (posting for the amount of VAT);
- Debit 51 Credit 76 (posting amounts returned by the vendor).
Step 5
If you are an accountant of a store to which a defective product was returned, make the following entries:
- Debit 90.1 Credit 76 (the debt to the retail buyer is reflected);
- Debit 90.2 Credit 41 (a transaction that adjusts the cost of goods sold by the amount returned);
- Debit 90.3 Credit 68 (VAT sub-account) (calculated VAT is adjusted);
- Debit 90.2 Credit 42 (the transaction by which the existing trade margin on the product is written off);
- Debit 76 Credit 50 (posting according to which money is paid for the returned goods);
- Debit 76 Credit 41 Credit 19 (posting the amount of the returned goods);
- Debit 68 Credit 19 (VAT sub-account) (VAT reversal adjustment);
- Debit 51 Credit 76 (posting refunds to vendors).
