Contracts between organizations sometimes provide for advance payments. The main purpose of the advance payment is to ensure the fulfillment of obligations. Most often, the amount is 30 - 50% of the total amount, although there are times when the advance payment reaches 100%.
Instructions
Step 1
When drawing up financial statements, remember that there are certain situations, the advance payment of which is spelled out in the legislation of the Russian Federation. For example, an advance payment for contract work at a federal construction site is no more than 30% of the total investment for the specified site.
Step 2
If the seller of the products, who received a certain amount of advance payment, does not fulfill his obligations related to the transfer of the goods within the agreed period, the buyer can legally demand the return of the amount of the advance payment in full or the return of the paid goods not sold by the seller.
Step 3
In accounting, draw up advance payments on balance sheet accounts that are directly related to settlements for shipped products. For correct accounting of advance payments, in addition to balance sheet accounts, open accounting subaccounts. For example, to account for the amounts issued to suppliers, to balance sheet account 62, additionally open the subaccount "Calculations on advances issued".
Step 4
When compiling accounting records, reflect this situation as follows:
debit of account 62 credit of account 51 subaccount "Calculations on advances issued"
Step 5
For advance payments received in accounting, make the following entry:
Account debit 51 credit account 76 subaccount "Settlements on advances received"
Step 6
Sometimes it happens that the parties decide to terminate the contract. In this case, the advance payment received by the seller must be refunded in full. The return of the payment made must be reflected in the accounting for debit 91 and credit 60 "Return of the advance paid".
Step 7
To check advances for the periods for which there were movements in the accounts of settlements with partners and buyers, as well as for the correct calculation of VAT on advances, use software, for example, 1C.
