Enterprises often resort to various entertainment expenses for holding official receptions, paying for a business lunch, organizing gifts and other events that help improve relations with counterparties. These costs are of a specific nature, so the accountant has an important task of correctly reflecting them in the accounting.
Instructions
Step 1
Check out clauses 5 and 7 of PBU 10/99 "Expenses of the enterprise", which notes that entertainment expenses are related in accounting to the expenses of the organization for ordinary activities in the amount of actual expenses incurred. To recognize these costs in tax accounting, it is necessary that they comply with the requirements of clause 1 of article 252 of the Tax Code of the Russian Federation, be documented and justified.
Step 2
Draw up an order from the head of the company on the use of a certain amount of money for specific entertainment expenses. In this case, it is necessary that all costs be confirmed by primary documentation or an act on the implementation of entertainment expenses. In some cases, the tax office may require an explanatory note and the feasibility of such costs, so think in advance about the rationale for these actions.
Step 3
Reflect in the accounting the representation expenses on the debit of account 20 "Main production", account 44 "Sales expenses" or account 26 "General expenses". The selected account must fully comply with the goals that the company pursued when making such expenses. In this case, the credit of these costs will be opened on account 60 "Settlements with suppliers", account 71 "Settlements with accountable persons" or another account of section VI of the Chart of Accounts.
Step 4
Refer the entertainment expenses to other expenses of the company in tax accounting. Moreover, their size should not exceed 4% of the total amount of remuneration for the reporting period. Otherwise, they cannot be accepted in the calculation of taxable profit. According to the legislation, these costs are recognized on the date of actual occurrence, regardless of the time of actual payment.
