Many accountants have trouble writing off advertising costs. The fact is that some of them cannot be clearly defined for non-standardized purposes of taxation. As a result of incorrect determination of advertising costs, the company may have a conflict with officials, or lawsuits may appear.
Instructions
Step 1
Read the Order of the Ministry of Finance of the Russian Federation No. 33n "Organization expenses" PBU 10/99 dated May 6, 1999. Clause 5 of PBU 10/99 indicates that advertising costs relate to spending on ordinary activities that are associated with the sale, purchase or manufacture of products, performance of work or provision of services. Clause 16 of PBU 10/99 regulates that expenses will be recognized in accounting if they are made on the basis of a specific contract that complies with legislation and regulations; their amount has a certain value; they are performed as a result of a specific operation that reduces the economic benefit of the organization. If at least one condition is not met, then the company is charged with receivables. According to clause 18 of PBU 10/99, advertising costs are recorded in the reporting period when they were made, regardless of the actual date of payment. Advertising costs on the basis of clause 7 of PBU 10/99 are classified as commercial, since they contribute to the sale of products.
Step 2
Collect a package of documents confirming the implementation of advertising services or works. This will allow advertising expenses to be recognized as business expenses in the ordinary course of business. The package of documents consists of: an agreement for the provision of advertising services, a protocol for agreeing prices, a certificate of the right to place an advertisement, a passport for an advertising space, an approved design project, an act of acceptance of services rendered, an invoice, payment documents, invoices, acts of write-off of goods and devaluation acts for goods.
Step 3
Retain printed media, audio or video tapes that contain information about the advertisement. The specified data will help you when conducting inspections by the tax authorities.
Step 4
Fix in the accounting policy of the enterprise one of the options for writing off advertising costs provided for by the legislation of the Russian Federation. The amount of advertising expenses of the reporting period, which was recognized by the organization in full, reflect in accounting by opening a debit on account 90-2 and a credit on account 44.
Step 5
If it was decided to attribute only part of the costs to the reporting period, then write off only part of the recorded costs for a similar posting. The second option for writing off advertising costs occurs according to an act of work performed or an invoice from an advertising organization. First, reflect the debt to the advertising company upon completion of work by opening a debit on account 44 and a credit on account 60. Next, take into account the amount of VAT charged on the invoice, opening a debit on account 19 and credit on account 60.
