Making advance payments in accounting is a rather complicated process for many accountants. They must be carried out in accordance with the terms of the contract and drawn up by the appropriate invoices. Special attention should be paid to the tax accounting of advances, especially in the presence of received and issued payments.
Instructions
Step 1
Issue an invoice upon receipt of an advance from the buyer so that VAT can be deducted. The document must be drawn up taking into account clause 1 of article 162 of the Tax Code of the Russian Federation. Record the invoice in the sales ledger and transfer it to the counterparty. If you pay an advance payment under the terms of the contract, then ask for a similar document from the supplier.
Step 2
Reflect the receipt of a non-cash advance to the current account in accounting. To do this, open a debit on account 51 "Current accounts" and a credit on account 62.2 "Calculations on advances received" for the amount of payment. When an advance is issued to the supplier, account 51 will be in credit, and in correspondence with him, the debit of account 60.2 "Calculations on advances issued" is taken.
Step 3
If the payment was accrued in foreign currency, then it must be converted into rubles in accordance with the rate of the National Bank of the Russian Federation on the date of receipt of funds. The offset of the issued or received advance is carried out by opening a debit on account 60.2 (62.2) and a credit on account 60 "Settlements with suppliers" or 62 "Settlements with customers".
Step 4
Consider advances in tax accounting as a movement on accounts payable and receivable. When making an advance payment, the taxpayer has the right to accept VAT for deduction, and it is necessary to determine the period of its restoration. According to subparagraph 3 of clause 3 of article 170 of the Tax Code of the Russian Federation, the date can be determined by the actual issuance of the invoice, the date of return of the advance payment or termination of the contract. The tax is recovered in the amount that was accepted for deduction upon payment of the advance.
Step 5
Set off advances against advances received. In this case, it is necessary to calculate the amount of VAT in both cases and reflect the resulting difference in tax accounting to determine the amount of refund or payment. If the received advances are greater, then the transfer of VAT to the budget is reflected in the credit of account 51 and the debit of account 68.1 "Calculations for VAT".
