Accounts receivable: accounting and reporting

• Purpose of the article: reflection of information on accounts receivable
• Line number in the balance sheet: 1230
• Account number according to the chart of accounts: Debit balance 60, 62, 68, 69, 70, 71, 73, 75, 76 – credit balance 63

Accounts receivable in the balance sheet are the amounts generated in the accounting accounts at the end of the reporting period. They show what debts suppliers, customers, employees and tax authorities have to the company. Accounts receivable may include:

• advances paid to suppliers for work, supplies, services;
• debts of buyers, contractors for services received but not paid for (goods, work);
• debt of accountable persons, that is, employees of the enterprise;
• overpayment of taxes, fees, insurance contributions to funds;
• wage debts of employees;
• debt of participants (founders) on contributions to the authorized capital;
• other types of arrears.

Line 1230 of the balance sheet: what does it consist of?

Line 1230 of the organization’s balance sheet as of the reporting date reflects, after certain adjustments, the amount of the debit balance of the following accounts (Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n):

• 46 “Completed stages of work in progress”;
• 60 “Settlements with suppliers and contractors”;
• 62 “Settlements with buyers and customers”;
• 68 “Calculations for taxes and fees”;
• 69 “Calculations for social insurance and security”;
• 70 “Settlements with personnel for wages”;
• 71 “Settlements with accountable persons”;
• 73 “Settlements with personnel for other operations”;
• 75 “Settlements with founders”;
• 76 “Settlements with various debtors and creditors.”

What accounting data is used?

To fill out table 5.1

“Availability and movement of accounts receivable”

When filling out table 5.1, data is used on balances at the beginning and end of the reporting year and on turnover on settlement accounts, as well as on balance and turnover on account 63 “Provisions for doubtful debts” (including analytical accounting data on these accounts).

Attention!

According to the clarifications of the Ministry of Finance of Russia, accrued revenue recognized in accounting in accordance with PBU 2/2008 and not presented for payment in the Balance Sheet is reflected in the composition of current assets as a separate indicator detailing the group of items “Receivables” (Appendix to the Letter of the Ministry of Finance of Russia dated January 29, 2014 N 07 -04-18/01). If in the organization’s balance sheet the indicators on line 1230 “Accounts receivable” are formed taking into account accrued revenue not presented for payment, then the presence and movement of this revenue should be disclosed in table 5.1, regardless of which account the organization accounts for this asset in accordance with your working chart of accounts.

1. Line 5501 “Long-term accounts receivable - total. For the reporting year"

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<*> In addition to interest-bearing loans reflected in account 73, subaccount 73-1 “Settlements on loans provided”, in respect of which the criteria for recognizing them as financial investments are met.

<**> In addition to turnover associated with the emergence and disposal of long-term receivables in one reporting period.

<***> This column is not present in Table 5.1, presented in the Example of the Explanations. However, organizations can add it themselves if they have the appropriate metrics.

2. Line 5521 “Long-term accounts receivable - total. For the previous year"

In general, data on the presence and movement of long-term receivables for the previous year is transferred from table 5.1 of the Explanations for this previous year.

Lines 5502, 5503, 5504…

For the indicated lines, a breakdown of the indicators of line 5501 “Long-term receivables - total” is provided. For the reporting year" by types of long-term receivables available to the organization. The indicators of these lines can be determined using formulas similar to those given above, using information on balances at the beginning and end of the reporting year and on turnover in those settlement accounts on which calculations of this type are reflected.

For information on the types of accounts receivable and the corresponding settlement accounts, see section. 3.1.2.3.1 “What is included in accounts receivable.”

Lines 5522, 5523, 5524…

For the indicated lines, a breakdown of the indicators of line 5521 “Long-term receivables - total” is provided. For the previous year” by type of long-term receivables that the organization had. In general, data on the availability and movement of long-term receivables by type for the previous year is transferred from Table 5.1 of the Explanations for this previous year.

For information on the types of accounts receivable and the corresponding settlement accounts, see section. 3.1.2.3.1 “What is included in accounts receivable.”

5. Line 5510 “Short-term accounts receivable - total. For the reporting year"

———————————

<*> In addition to interest-bearing loans reflected in account 73, subaccount 73-1 “Settlements on loans provided”, in respect of which the criteria for recognizing them as financial investments are met.

<**> In addition to turnover associated with the occurrence and disposal of short-term receivables in one reporting period.

<***> This column is not present in Table 5.1, presented in the Example of the Explanations. However, organizations can add it themselves if they have the appropriate metrics.

6. Line 5530 “Short-term accounts receivable - total. For the previous year"

In general, data on the presence and movement of short-term receivables for the previous year is transferred from table 5.1 of the Explanations for this previous year.

Lines 5511, 5512, 5513…

For the indicated lines, a breakdown of the indicators of line 5510 “Short-term accounts receivable - total” is provided. For the reporting year" by types of short-term receivables available to the organization. The indicators of these lines can be determined using formulas similar to those given above for line 5510, using information on balances at the beginning and end of the reporting year and on turnover on those settlement accounts on which calculations of this type are reflected.

For information on the types of accounts receivable and the corresponding settlement accounts, see section. 3.1.2.3.1 “What is included in accounts receivable.”

Lines 5531, 5532, 5533…

For the indicated lines, a breakdown of the indicators of line 5530 “Short-term accounts receivable - total” is provided. For the previous year” by type of short-term receivables that the organization had. In general, data on the availability and movement of short-term receivables by type for the previous year is transferred from table 5.1 of the Explanations for this previous year.

For information on the types of accounts receivable and the corresponding settlement accounts, see section. 3.1.2.3.1 “What is included in accounts receivable.”

9. Line 5500 “Total. For the reporting year"

This line provides information on the availability and movement of all accounts receivable for the reporting year. The indicators of this line can be determined using the following formulas:

———————————

<*> In addition to interest-bearing loans reflected in account 73, subaccount 73-1 “Settlements on loans provided”, in respect of which the criteria for recognizing them as financial investments are met.

<**> In addition to turnover associated with the occurrence and disposal of receivables in one reporting period.

<***> This column is not present in Table 5.1, presented in the Example of the Explanations. However, organizations can add it themselves if they have the appropriate metrics.

The indicators of line 5500, determined by the above formulas, must coincide with the sum of the indicators of lines 5501 “Long-term accounts receivable - total. For the reporting year" and 5510 "Short-term accounts receivable - total. For the reporting year" according to the relevant columns:

———————————

<*> This column is not present in Table 5.1, presented in the Example of the Explanations. However, organizations can add it themselves if they have the appropriate metrics.

10. Line 5520 “Total. For the previous year"

This line provides information on the availability and movement of all accounts receivable for the previous year.

In general, data on the availability and movement of accounts receivable for the previous year is transferred from table 5.1 of the Explanations for this previous year.

In addition, the indicators of this line can be determined by summing the indicators of the corresponding columns in lines 5521 “Long-term accounts receivable - total. For the previous year" and 5530 "Short-term accounts receivable - total. For the previous year."

An example of filling out lines 5501 and 5521 of table 5.1 “Availability and movement of receivables”

EXAMPLE 18.1

Indicators for accounts 60, 62 in terms of long-term receivables (the organization has no other long-term receivables):

rub.

In 2016:

1. Settlements with suppliers and contractors:

Suppliers' debts were transferred from long-term to short-term - RUB 800,000.

2. Settlements with buyers and customers:

Transferred customer debt from long-term to short-term—RUB 500,000.

Fragment of the Explanations to the Balance Sheet and the Statement of Financial Results for 2015:

Solution

A fragment of the Explanations to the Balance Sheet and the Financial Results Statement in Example 18.1 will look like this.

An example of filling out lines 5510 and 5530 of table 5.1 “Availability and movement of receivables”

EXAMPLE 18.2

Accounting data for settlement accounts regarding short-term receivables:

rub.

In 2016 <*>:

1. Settlements with suppliers and contractors:

Suppliers' debts were transferred from long-term to short-term - RUB 800,000.

The debt of suppliers and contractors was repaid - RUB 879,000.

2. Settlements with buyers and customers:

Transferred customer debt from long-term to short-term—RUB 500,000.

The debt of buyers and customers for shipped products, goods, works, services is reflected - RUB 3,706,000.

The debt of buyers and customers is reflected in the form of sanctions for violation of the terms of contracts - 250,000 rubles.

The debt of buyers and customers was repaid - 1,000,000 rubles.

The debt was written off using reserve funds - RUB 100,000.

The debt was written off for the financial result - 100,000 rubles.

A reserve for doubtful debts has been created - 250,000 rubles.

3. Settlements with employees of the organization (wages):

The amount of advances paid to employees is included in labor costs - RUB 35,000.

Advances were paid to employees - RUB 28,200.

4. Settlements with accountable persons:

Issued on account - 14,000 rubles.

Accepted advance reports from accountable persons - 10,000 rubles.

5. Settlements with employees of the organization for other operations (compensation for damage, interest-free loans, etc.):

The debt of employees for other operations is reflected - 101,000 rubles.

The employees repaid the debt on other transactions - 159,000 rubles.

6. Settlements with various debtors (counterparties under intermediary agreements, lease agreements, etc.):

The debt of debtors is reflected - 1,080,000 rubles.

The debt of debtors was repaid - RUB 3,540,000.

A reserve for doubtful debt has been created - 50,000 rubles.

7. Reflected in accounting in accordance with PBU 2/2008 accrued revenue not presented for payment - 3,900,000 rubles.

———————————

<*> Less receivables generated and repaid (written off) in one reporting period.

Fragment of the Explanations to the Balance Sheet and the Statement of Financial Results for 2015:

Solution

A fragment of the Explanations to the Balance Sheet and the Financial Results Statement in Example 18.2 will look like this.

An example of filling out lines 5500 and 5520 of table 5.1 “Availability and movement of receivables”

EXAMPLE 18.3

We use the data from examples 18.1 and 18.2.

The indicators for rows 5501, 5521, 5510 and 5530 are as follows.

Solution

The indicators of the total lines 5500 and 5520 can be determined by summing the indicators of the corresponding columns for lines 5501 and 5510, as well as 5521 and 5530.

A fragment of the Explanations to the Balance Sheet and the Financial Results Statement in Example 18.3 will look like this.

Table 5.2

"Overdue accounts receivable"

This table in the Example of the design of Explanations to the Balance Sheet and the Statement of Financial Results looks as follows (taking into account the line codes given in Appendix No. 4 to Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n).

———————————

<*> The reporting date of the reporting period is indicated.

<**> The previous year is indicated.

<***> The year preceding the previous one is indicated.

Table 5.2 provides data on accounts receivable, the repayment period of which, established by the agreement, has expired. Information on overdue receivables is included in Table 5.2, regardless of whether the debt is secured. If overdue receivables are secured by the provision of a pledge, surety, bank guarantee, etc., then a reserve for doubtful debts is not created for such debt, and its book value is equal to the amount of debt accounted for under the terms of the agreement.

Short-term receivables - concept, types

Debt of legal entities and individuals (suppliers, customers, borrowers or employees) to an organization, the repayment of which must occur within 12 months, is short-term receivables .

The following types of receivables can be distinguished (hereinafter referred to as receivables):

• normal - when goods (work, services) have already been shipped to the counterparty, but have not yet been paid because the payment deadline has not yet arrived;
• overdue - when payment for previously shipped goods (work, services) has not been received within the agreed time frame.

An overdue loan can subsequently be considered doubtful or hopeless for collection, if it is also not secured by a pledge, surety, or a bank guarantee.

Short-term accounts receivable - line on the balance sheet

To correctly fill out line 1230 “Accounts receivable” of Form 1, you must consider the following:

1. Additional lines should be entered into the balance sheet form to divide the account balance into short-term and long-term.

2. The amounts of the listed advances are indicated separately from the amount of payment for the sale of goods (works, services) provided that it is significant (letter of the Ministry of Finance of Russia dated January 27, 2012 No. 07-02-18/01).

3. The amounts of listed advances for goods (work, services) are indicated minus VAT, subject to deduction (letter of the Ministry of Finance of Russia dated January 09, 2013 No. 07-02-18/01).

Receivables expressed in foreign currency and conventional units are recalculated into rubles at the official exchange rate of the Central Bank of the Russian Federation on the last day of the reporting period (with the exception of listed advances).

4. If settlement accounts (60, 62, 68, 69, 70, 71, 73, 75, 76.) have debit and credit balances, then offsetting between them is not allowed.

5. The amount of debt for which the reserve for doubtful debts was created is indicated minus this reserve.

Distribution of debt on the balance sheet

19 PBU 4/99 clearly states that the balance sheet must specifically differentiate liabilities and assets into short-term and long-term.

For this reason, if a receivable suddenly appears in column 1230, then it is necessary to provide a link to the explanation.

In interim reporting, indicate, for example, two additional lines to specify the type of debt:

• 1231 – short-term receivables;
• 1232 – long-term receivables.

Financial analysis and further planning depend on the correctness of filling out the balance sheet.

Therefore, it is recommended to separate these two types when entering into f-1. The distribution of debt on the balance sheet is not only based on time frames, but also based on the liquidity of assets.

Accounts receivable itself is a highly liquid asset, but in particular, payment arrears are more liquid than delivery arrears.

Find out more about how to prepare a balance sheet? What is accounts receivable?

And advances given for construction are, in principle, difficult to liquidate.

Therefore, it is recommended to include them in non-current assets in the line “Construction in progress”. In any case, the options for reflecting such advances in the balance sheet should be explained.

The concept of long-term accounts receivable

Accounts receivable is the total amount of debts to the organization. This includes the debt of buyers and suppliers, debts of the founders, employees of the enterprise and other counterparties.

To determine the amount of receivables, you need to collect the debit balances listed for all counterparties in the settlement accounts (60, 62, 68, etc.).

Accounts receivable are conventionally divided into current and long-term. Current includes debts of all counterparties, repayment of which is expected within a period not exceeding 12 months from the reporting date. Accordingly, a long-term receivable is a debt that is expected to be repaid within a period of more than a year.

The starting point for the specified 12-month period is determined by the date of the transaction for which the debt to the organization arose. The date of occurrence of the buyer's receivables is the date of shipment of goods or performance of work, unless otherwise provided by the terms of the contract.

Assessment of long-term receivables is an important stage in characterizing the solvency of an enterprise.

You can find out why this stage is needed, how the amount of receivables and the possible timing of their repayment affect the financial position of the company, and you can familiarize yourself with the stages and methods of conducting this kind of assessment in the article “Basic methods for valuing receivables.”

Long-term accounts receivable - line on the balance sheet

Clause 73 “Regulations on accounting and financial reporting in the Russian Federation” (Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n) requires that the company’s receivables be reflected in the statements in the amounts following from its accounting records, which are considered correct by default.

The forms of financial statements of organizations are approved by the order of the same name of the Ministry of Finance of the Russian Federation dated July 2, 2010 No. 66n. In the organization's balance sheet, line 1230 is allocated to reflect receivables. This line reflects all receivables, which are listed at the end of the reporting period in accounts 46, 60, 62, 68, 69, 70, 71, 73, 75 and 76, minus the credit balance on account 63. But there are nuances:

• organizations on OSN that have prepayments to suppliers or contractors as receivables for future deliveries of goods or performance of work, including VAT, show these amounts excluding VAT in line 1230. These are the recommendations of the Ministry of Finance (letter dated 01/09/2013 No. 07-02-18/01);
• line 1230 does not show prepayments to suppliers or contractors caused by the acquisition or construction of fixed assets - it should be shown in the section intended to reflect non-current assets.

This means that line 1230 of the balance sheet shows accounts receivable without breaking it down into current and long-term. But clause 19 of PBU 4/99 “Accounting statements of an organization” (Order of the Ministry of Finance of the Russian Federation dated July 6, 1999 No. 43n) requires the separation of information about the short- and long-term assets of the organization.

Order No. 66n in Appendix No. 3 contains examples of formatting explanations for the balance sheet. Section 5 of this application contains tables 5.1 and 5.2, intended to decipher information about existing receivables. Table 5.1, called “Availability and movement of receivables,” describes short-term debt separately and long-term debt separately. Table 5.2 reflects information about existing overdue receivables.

To more accurately reflect information, an organization can create additional lines to line 1230 to separately reflect debt for which repayment is expected within 12 months from the reporting date, and long-term debt.

Preparation of transactions

To make the meaning of the postings clear, you should study the accounts by heart. It is necessary to strictly follow the plan:

• What?
• For what?
• To whom?
• Where?
• For what?

For example, if the supplier has not fulfilled its payment obligations - accounts receivable, the question is: for what and from where? So this is wiring Dt60.02 Kt51.

If there is an error in 1C - there is a credit, but in fact there is a debit and there is a reconciliation report, then according to this document, an accounting certificate is generated in the program: 60.1/91.1, that is, dividing by the amount of the difference to calculate income tax.

In this case, there is no need to write off the debt according to the reconciliation report; you just need to make adjustments to the accounting data according to the error that occurred. When paying with interest-bearing or discount bills, accounting is carried out in accordance with the provisions of PBU 19/02 and in accounting and has the following formation:

Payment has been transferred to the supplier - debit 58.2 credit 76 or debit 76 credit 62.1;

The buyer's debt was paid with a third party's bill of exchange - debit 76 credit 62.1, while the bill of exchange must be interest-bearing in order to be accounted for as part of financial investments.

Nuances of reflecting accounts receivable

Since 2015, the basis for determining profit tax has been accounting information, which has led to increased attention to it from the tax authorities. Accounts receivable acts as its main part and everything seems to be simple here, but some nuances should be taken into account.

1. It can be short-term - the normal cycle of debt repayment and long-term - when there is doubt about the return of money. Such debt must be reflected separately and in the period when it became known, with the exception of that part of it that will be repaid within the next 12 months.
2. The next important part is the amount of fines, penalties, and interest that are provided for in contracts for the supply of goods. Such accruals are reflected in unprovided assets in a separate sub-account, which provide for economic benefits.
3. You should be equally careful about the distribution of doubtful debts. Since accounts receivable is an asset, it is recorded in the balance sheet as net/realizable value. To calculate this, the amount of the reserve for doubtful debts should be determined on the reporting day.

Short-term and long-term debt

Important: since 2015, line 1230 is not divided into long-term and short-term, but now it is necessary to provide a more complete breakdown of the lines.

Short-term debt is such debts, the amounts for which are planned to be repaid within a year, they can be clearly calculated, they are a normal cycle of settlement relations. These debts are reflected in line 690.

Long-term receivables on the balance sheet are debts whose repayment is in doubt; they extend over a period of more than a year and are reflected in line 520.

An example of reflecting accounts receivable on the balance sheet.

Form 1 of the balance sheet for 2016 consists of two interconnected parts - assets and liabilities.

Form 1 of the balance sheet can be downloaded here.

Important: long-term debt should be partially indicated in short-term debt, the volume that is planned to be repaid over the next year. The transfer of long-term debt to short-term debt is reflected in account 67 as a debit with account 66 as a credit.

Writing off debts by debit when adjusting debt

Debts for which the 3-year limitation period has expired or the debtor, for example, has been declared bankrupt, are subject to write-off.

The operation is performed using the line “Adjustment of debts”, in the “Write off” field the type of operation opposite the debtor is indicated.

Since 2011, the account for writing off receivables in the debt adjustment is 63, this is when there are provisions for doubtful amounts, when there is no formation, account 91.02, but here you should select the type of other income and expenses.

After drawing up the document, a posting is generated: Debit 63 Credit 62.01. or Debit 91.02 Credit 62.01.

The advantages of accounts receivable - watch this video:

Important: accounts receivable over 5 years are indicated on account off balance sheet 007 “Writing off the debt of an insolvent debtor at a loss.”

Debt adjustment is also performed to fix the offset or when transferring the debt to a third party.

What is 1230 in accounts receivable

Accounts receivable 1230 is a line for recording debts that were not closed as of this reporting date; it indicates the debit balance for all of the above lines from 60 to 76, minus 63 - doubtful debts.

Today it is a single line item for all types of debt, but the law requires assets to be classified by type.

So, when indicating debts in Appendices 3 and 5.1, it is necessary to indicate information about the movement of receivables and in the “Explanation” column make a link to the necessary explanation, and to clarify it, create additional lines.

Important: offsetting between asset and liability items is not allowed.

Found an overdue debt: what to do?

To recognize an overdue debt as doubtful or hopeless, the following actions must be taken:

• carry out an inventory of payments,
• create a reserve for doubtful debts.

In accounting, the formation of a reserve is mandatory for all organizations. And in tax accounting, the organization independently decides on its creation.

IMPORTANT! From 01/01/2017 in Art. 266 of the Tax Code of the Russian Federation, which regulates the accounting of expenses for creating a reserve, changes have been made, namely:

• the costs of creating a reserve should not exceed the greater of the values ​​- 10% of the revenue of the reporting or previous period;
• if an organization has a counter-debt to a counterparty, then its debt can be considered doubtful only in an amount exceeding the accounts payable.

How to adjust accounts receivable?

The amount resulting from adding the debit balances of the above accounts must be adjusted before it is reflected on line 1230 of the balance sheet. How to do it?

Firstly, it is necessary to subtract from it the credit balance of account 63 “Provisions for doubtful debts”, because the balance is compiled in a net assessment (clause 35 of PBU 4/99).

Secondly, the amount received must be reduced by the debit balance of subaccount 73-1 in terms of interest-bearing loans. After all, such loans should be reflected as part of financial investments on the same lines 1170 (if long-term) or 1240 (if short-term). However, interest accrued on such loans on line 1230 must be taken into account.

Thirdly, it is advisable to exclude the debit balance of account 60 in terms of advances and prepayments for work and services related to the construction of fixed assets from line 1230 and show it in line 1190 “Other non-current assets” of Section I of the balance sheet.

So, for example, when transferring an advance payment to the supplier, the following entry was made:

VAT on the transferred advance will be reflected, for example, like this:

Fifthly, line 1230 does not show VAT accrued for payment on advances received from buyers and reflected in the debit of accounts 62 or 76.

So, for example, when receiving an advance from the buyer, the following entry was made:

VAT accrued on the advance payment was reflected as follows:

Despite the fact that VAT on the advance was shown in the debit of account 62, it will not be reflected in line 1230.

Line 1230 of the simplified balance sheet explanation

Thus, all debt to the company is included in reporting Form No. 1.

Liquidity of debts as an asset

Accounts receivable is a financial current asset with which a company can quickly pay off its obligations to others.

The speed with which an asset can be used to pay bills indicates liquidity. The faster an asset can be converted into cash, the higher its liquidity.

But in practice, the presence of a large share of debtors, especially with reserves on account 63, indicates the company’s problems. Debts are unpaid bills issued to customers and clients. They used the products or services, but did not pay any money.

Or, on the contrary, the advance was paid to the contractor, but the work was not completed. The company must constantly monitor the level of such arrears, as there is a high risk of fraud and financial losses.

Arrears arise for the following reasons:

1. Imprudence in choosing clients when concluding a transaction.
2. Insolvency of buyers.
3. Difficulties in selling products.
4. Lack of daily work with debtors.
5. Rapid growth in sales volume.

The optimal indicator of the level of receivables is when the balance of the accounts included in line 1230 of the balance sheet and the company’s funds coincide with obligations to creditors. To track fluctuations in existing debts, you can conduct financial analysis using a special ratio.

Measuring Accounts Receivable

Accounts receivable on the balance sheet tend to increase or decrease, which can be either positive or negative. To measure the proper level of the indicator, the turnover ratio is used in finance.

It is advisable, for convenience in accounting, to open analytical accounting on account 76 on subaccounts.

All these account balances are added up, then the balance on the passive account is subtracted from them. 63 “Provisions for doubtful debts”.

Just remember that the balance on all accounts must be expanded.

Line 1230 of the simplified balance sheet explanation

Typical transactions taking into account movements on account 63:

• debit 91.2 - Credit 63 - doubtful debts are reflected in expenses as a percentage depending on the time of delay;
• debit 63 – Credit 62 (60, 76) – bad debt written off against the reserve;
• debit 63 – Credit 91.1 – the reserve for doubtful debts was restored when the debtor fulfilled its obligations.

Since the amounts for account 62 in Form No. 1 do not coincide with the balance sheets of the accounting department, the breakdown of receivables, taking into account the formed reserves, is given in Table 5.1 of the Explanations to the balance sheet, approved by Order of the Ministry of Finance No. 66n.

The table should reflect the movement and structure of arrears at the beginning and end of the reporting and previous years. At the same time, the table format allows you to see the whole picture of debt formation and repayment.

Example of display in line 1230 of the balance

Requirements for drawing up a balance sheet can be found in PBU 4/99.

For example, Solovushka LLC has account balances that are reflected in the balance sheet.

According to the requirements of Order No. 66 n, amounts in the balance sheet must be in thousands or millions of rubles according to OKEI codes, which means line 1230 will look like:

Line 1230 of the balance = 60 account + 62 account – 63 account + 76 account = 20+30-10+5 = 45 thousand.

After this period has expired, the debt is written off.

Accounts receivable control goes through several stages:

1. The terms for the transfer of funds are established in the agreement.
2. Control of overdue payments with a delay period of up to 7 days, accompanied by clarification of the motives for what happened, development of debt repayment schedules and freezing of cooperation.
3. If the period of delay in payment is from 7 to 30 working days, then it is necessary to charge a fine to the counterparty, remind him of his obligations, and meet with management.
4. If there is a delay of 1 to 2 months, a written claim must be submitted.
5. Longer delays are a reason to go to court.

Accounts receivable accounting

In accounting, receivables are accumulated not on one, but on several active-passive accounts. The occurrence of debt is indicated by the appearance of a debit balance for a group of settlement accounts. In which account are accounts receivable reflected in accordance with the coding of the Chart of Accounts (Order No. 94n dated October 31, 2000):

• 60 or 62 for settlements with suppliers or customers;
• 68 and 69 – for cases of overpayment of taxes, fees and insurance premiums;
• 70, 71, 73 – for transactions with employees;
• 75 for debts of the founders;
• 76 for settlements with different types of debtors.

If accounts receivable are repaid, account 62 will participate in the following correspondence:

The debt is written off to 91 accounts - for example, when a loan is forgiven for an employee, an entry D91 - K73 is made.

The write-off of doubtful debts, which was included in the reserve, occurs by posting D63 - K62 (60).

Analysis and valuation of receivables

Valuation of receivables means establishing its market value as of the current date.

Accounts receivable as an element of the balance sheet

Settlements with creditors and debtors are reflected in the balance sheet in amounts that arise from accounting records and are recognized as correct. The amounts reflected in the financial statements for settlements with banks must be agreed with the relevant organizations and be identical with the information of these organizations. It is not allowed to leave unsettled amounts for settlements with debtors in the balance lines.

Those amounts of receivables for which the statute of limitations has already expired, as well as those debts that can no longer be collected, are written off based on the inventory carried out for each obligation. The write-off is carried out with the obligatory accompaniment of a written justification in the form of an order or instruction from the head of the enterprise.

Such debts are credited to the reserves for doubtful debts, or to the financial results of a commercial enterprise (if these amounts were not reserved in the prescribed manner during the previous reporting period).

What affects the composition

In the process of indicating all the necessary information in this line, data on the balance of “receivables” for accounts 46, 62, 68,69, 71, 73, 75, 76 is used, with the exception of the loan balance on account 69 (the formed reserve for debt obligations).

According to the available clarifications of the Ministry of Finance of the Russian Federation, in a situation where the transfer of funds takes place as payment in full or in part towards future deliveries of goods or is subject to display in the balance sheet, taking into account the minus amount of VAT .

In addition, it is necessary to pay attention to the fact that the amount of the advance payment and other advance payment for work or services provided is displayed in the first section “Non-current assets” of the balance sheet, and, for example, the amount of the advance payment due to the purchase of inventories for production needs is displayed exclusively in the second section “Current assets” .

The analysis showed that the main source of growth in receivables is Company 3. If receivables were not insured under an agreement with this buyer, then the risk of financial damage increases. At the next stage, settlements with the problematic counterparty and other companies are detailed, taking into account the deferments granted to them:

Company 3 remains problematic. Only this company did not meet the debt repayment deadlines, even taking into account their extension. Further work consists of establishing a dialogue with this counterparty; if there is no response, you can go to court.

What are accounts receivable on the balance sheet?

Clause 27 of PBU 4/99 states that accounts receivable on the balance sheet is an important indicator that must be explained in the explanations to the report.

If settlement is delayed, the amount goes into the category of doubtful debts.

What is accounts receivable in simple words?

This type of debt may include accountable amounts, overpayments in settlements with employees, loans provided and obligations of third parties to repay damage and material damage. Accounts receivable are funds payable by counterparties in favor of our company, but on deferred payment terms with the consent of both parties.

Accounts receivable management

In relation to accounts receivable, it is necessary to systematically monitor outstanding balances, correlate them with the expected timing of receipt of payments, identify illiquid debts and find out the reasons for this phenomenon. Working with accounts receivable involves collecting the most detailed information about the current state of payments and finding ways to reduce doubtful debts.

Debts of counterparties can be divided into groups:

1. According to the criterion of repayment periods - short-term (period up to 1 year, line 1230 in the balance sheet) and long-term (more than a year).
2. When assessing the effectiveness of collection methods - current (for which the deadlines for payment have not been met), doubtful (with missed deadlines, but with no doubt about the receipt of money in the near future), hopeless.

Overdue accounts receivable are cases when money did not arrive in the bank account on the appointed deadline for goods already shipped or goods were not received within the agreed period subject to full prepayment. The second option for moving into the category of overdue debts is that the statute of limitations has expired.

Overdue accounts receivable – how many months or years? A debt is classified as overdue on the day after the payment deadline.

The Civil Code of the Russian Federation makes it possible to resolve the issue of returning money within 3 years (Article 196).

What we reflect in line 1230 of the balance sheet: accounts receivable

• Purpose of the article: reflection of information on accounts receivable
• Line number in the balance sheet: 1230
• Account number according to the chart of accounts: Debit balance 60, 62, 68, 69, 70, 71, 73, 75, 76 – credit balance 63

Accounts receivable in the balance sheet are the amounts generated in the accounting accounts at the end of the reporting period. They show what debts suppliers, customers, employees and tax authorities have to the company.

Accounts receivable may include:

• advances paid to suppliers for work, supplies, services;
• debts of buyers, contractors for services received but not paid for (goods, work);
• debt of accountable persons, that is, employees of the enterprise;
• overpayment of taxes, fees, insurance contributions to funds;
• wage debts of employees;
• debt of participants (founders) on contributions to the authorized capital;
• other types of arrears.

How are account balances reflected?

All of the listed types of receivables correspond to their numbers, which are approved by a special Chart of Accounts, on the basis of which business transactions are recorded.

At the end of the year, each organization must draw up a financial report, which is called a balance sheet or Form No. 1. Debts of other persons to the company are included in the balance sheet as the sum of the expanded debit balance of a number of accounts minus the credit balance of 63 accounts.

This means that you cannot take the difference between the debit and credit balances for calculation. The balance sheet must include account balances that are simultaneously formed as debits and credits. Such accounts are called actively passive.

Moreover, there are no guarantees of return.

It is worth recalling that the formation of a reserve is considered solely as an adjustment to estimated indicators in accordance with PBU 21/2008.

What you should pay attention to

The reserve for doubtful debts can be formed for any type of receivables; it is enough just to recognize them.

In addition, not only a debt obligation with a closing period has come into question, but also one whose term has not yet arrived, but which has a high probability of non-payment in full or in part.

In parallel with this, if in relation to the overdue receivables at the date of the reporting period there is confidence in the closure of debt obligations, then there is no need to create a reserve.

How is it formed

Accounts receivable can be generated as a result of various typical events. What are these events?

• Creating a deferred payment for goods or services provided (post-facto payment).
• Failure to comply with the agreement regarding payment by one of the counterparties.
• An enterprise makes an advance payment to a supplier for goods that have not yet been shipped (services that have not yet been provided).
• Registration of an annual subscription to periodicals (magazines, newspapers, etc.).
• Overpayment of taxes, fees or insurance premiums.

In addition to standard situations in which accounts receivable are inevitably formed, it can also arise in conditions of overpayments for settlements with staff, the emergence of accountable amounts (advance reports), the provision of loans to third parties to repay possible material damage or damage, etc.

String structure

The balance sheet is filled out as of the reporting date.

Information is entered into it based on the balances shown in the accounting cards. When calculating the balance of accounts receivable, which should be shown on the balance sheet, you need to focus on the debit balances of the set of accounts.

As a result, this is what line 1230 of the balance sheet consists of:

• in the final amount of debt, it is necessary to take into account the size of completed tasks for unfinished work reflected in account 46;
• balance of settlements with suppliers on account 60;
• the status of the debt of debtors, whose roles are buyers or customers of works/services - account 62;
• the final total for the debit of account 68, if there are overpayments of taxes and fees;
• to designate the receivable for insurance premiums, take account balance 69;
• also, line 1230 may contain information about overpaid funds to personnel (salaries overpayments are reflected in account 70, accountable funds to be returned are recorded in account 71, other transactions - account 73);
• if the debtor of the company is the founder, it is necessary to sum up the debit balance of account 75;
• The calculation must take into account the balance of account 76, which accumulates information on all groups of debtors not included in the previous categories.

Remaining debts to legal entities

As mentioned above, all these types of debt are distributed across different accounts of the balance sheet.

In cases where we are talking about debt balances to legal entities, we mean funds that are reflected in two accounts No. 60 and 62.