Provision entries for doubtful debts

Companies must control accounts receivable. After all, banks pay attention to hung receivables and may refuse a loan. Look at the provisions for doubtful debts.

Accounting entries for allowance for doubtful debts

Bad debts are written off at the expense of a reserve that a company must create, even if it is a small business. It includes doubtful debts. These are debts to the organization that counterparties are highly likely not to repay (clause 70 of the Regulation on accounting, approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n, letter of the Ministry of Finance of Russia dated January 14, 2015 No. 07-01-06 /188).

The fact that the company most likely will not wait for payment from the debtor may be evidenced by the following:

• the debtor constantly violates the terms of payment under the contract;
• the company has information about the financial problems of the debtor.

The procedure for creating and using a reserve should be fixed in the accounting policy (clause 7 PBU 1/2008). The entire amount of doubtful receivables (including VAT) can be deducted to the reserve. And you can reserve each debt only in the part that, in the opinion of the organization, the counterparty will not repay.

It happens that the counterparty is both a supplier and a customer. Then, before you write off the receivables, you should find out if he has any accounts payable. In this case, you must first offset the debts. If after that an overdue receivable remains in accounting, the company has the right to include only this amount in non-operating expenses. Such explanations were given by the Ministry of Finance of Russia in a letter dated October 4, 2011 No. 03-03-06 / 1/620. When calculating the simplified tax, the written-off receivables are not taken into account in expenses. After all, the list of costs taken into account under the special regime does not provide for such an expense (clause 1, article 346.16 of the Tax Code of the Russian Federation).

Do not rush to write off the debt to travel agents. As a rule, they sell tourist products and individual services under intermediary agreements.

In this case, the customer's debt to pay for services cannot be taken into account in the costs of the travel agent. After all, it is a duty to the principal. And he, in turn, can write it off only after the agent transfers the right of claim to the customer to him.

In any case, in order to write off accounts receivable, the organization must have documents confirming the occurrence of the debt (letter of the Ministry of Finance of Russia dated April 8, 2013 No. 03-03-06 / 1 / 11347). We are talking about invoices, acts, payment documents. The agreement and the act of reconciliation of settlements do not apply to such documents - letter of the Federal Tax Service of Russia dated December 6, 2010 No. ShS-37-3 / 16955.

If a company previously applied a simplified system, and then switched to a general regime, it cannot take into account losses from writing off bad debts that arose during the period of application of the special regime as part of non-operating expenses (

The assets and liabilities of the entity should be adjusted for accounting estimates. In such an indicator is the reserve of doubtful debts - in the balance sheet, the amount of DZ is shown minus the created savings. This avoids overvaluation of assets. Since 2011, the formation of a reserve for doubtful debts has been the responsibility of the organization (according to clause 70 of PBU RF No. 34n). Although in the Tax Code of the Russian Federation this operation is registered as the right of companies. But given that this amount should be included in tax expenses, many enterprises enjoy the right to create reserves. You will learn how to do this correctly, what postings should be generated and how this operation is displayed in Accounting 1C, from this article.

Reserves in BU

"Accounting" and "tax" accumulated amounts for doubtful and bad debts are very different, therefore, they need to be formed separately for different purposes. In accounting records, the enterprise sets the calculation procedure independently. The PBU RF states that the amount of funds should be calculated using one of the following methods:

Separately, for each debt, the enterprise determines the amount of DZ that will not be returned and includes it in the reserve;

Based on information from previous periods: the share of the unpaid amount for several previous years is calculated;

For each amount in proportion to the period of delay. A similar method is used in NU.

Doubtful are:

• DZ for the obligations of suppliers who received an advance payment, as well as for underdelivered goods within the time specified in the contract.
• Debt for fines for non-compliance with the terms of the contract.
• Debt under loan agreements and claims.

Selection confirmation

The selected option must be approved in If management decides to use the peer review method, then the criteria for attributing debt to reserves should be clearly stated. In the proportional method, you need to set percentage values. When choosing the option of forming a reserve, it is important to consider the purpose of its creation. The higher this amount, the higher the net asset value. For "beautiful" reporting, it should be minimal. So the legal requirements will be met, and investors will not suffer. In BU, the creation of a reserve for doubtful debts is reflected in the account. 63, analytical data are prescribed separately for each debtor. Deductions to the reserve are displayed in "Other expenses" (account 91-2).

An example of the formation of a reserve in accounting

LLC "X" shipped goods to LLC "U" for 120 thousand rubles. (VAT 18, 24 t RUB) 08/12/2013. The 10 calendar day grace period has been violated. The accounting policy of LLC "X" provides for the assignment of amounts to uncollectible in full. The management has decided to include 100% of the debt in the allowance for doubtful debts. The wiring in this case will look like this:

Adjustment. On October 15, 2013, the buyer decided to pay part of the debt in the amount of 50 thousand rubles. This operation should be reflected in the BU according to the account. 63 "Reserve for doubtful debts". Wiring:

At the end of the year, the DZ in the balance sheet must be reduced by the amount of doubtful debts: 120 - 50 \u003d 70 tons of rubles.

2. Suppose, in June 2014, U LLC was liquidated. Since earlier the amount of their debt was included in the fund, then it will be written off from the same account 63 "Reserve for doubtful debts." Wiring:

3. According to PBU RF No. 34, if by the end of the period following the creation of the reserve, its amount has not been fully spent, then the balance should be included in the financial results of the current period. In the framework of this example, if the balance is not written off before 12/31/14, then it should be attributed to other expenses (account 91-1). But according to the same provision, at the end of the year, a reserve for doubtful debts should be created again. The wiring is the same as above. Due to the ambiguity of the requirements, experts recommend not writing off the debt in full, but adjusting it in one direction or another.

Creation of a provision for doubtful debts at NU

This calculation procedure is clearly spelled out in Article 266 of the Tax Code of the Russian Federation. It states that the taxpayer can create / make deductions for any debt. The exception is interest on loans. The same article says that it is possible to create a reserve for doubtful debts only on the basis of the results of an inventory of remote sensing at the end of the reporting period. This transaction must be carried out no earlier than the obligation to pay taxes has arisen. The accounting policy must reflect the fact of creating or refusing to form a reserve. This must be done before the start of the year. You cannot make any changes in the current period.

The purpose of the inventory in this case is to determine the timing of the delay in paying the debt. Based on the calculations received, the enterprise determines the amount of the delay, and then classifies it as bad (if the debtor was liquidated) or doubtful. In the first case, the debt should be written off at the expense of the created reserve, and in the second - included in it. You can use the funds of the fund only to cover the costs of bad debts.

These deductions are related to non-operating expenses, reducing the basis for calculating the enterprise income tax (ITP), that is, only payers of the EIT can carry out such operations. The amount of deductions is determined for each debt:

• < 90 дней просрочки - 100%;
• 45-90 days - 50%;
• > 45 days - 0%.

At the same time, if the amount of debt is fully attributed to the reserve, then it should not exceed 10% of the current period's revenue.

Calculation example

LLC "X" established the formation of reserves in 2014. Payments for NPP are paid quarterly, respectively, the reserve is adjusted at the same time.

1. An inventory of the allowance for doubtful debts on March 31, 2014 showed that four debtors had overdue DZ. The company's revenue is 3 million rubles. The amount of the reserve is calculated as follows:

	Delay, days	Amount of debt, t. rub.	Amount of deductions, t. rub.
			200 (200 * 100%)

The total amount of the reserve: 200 + 50 + 150 = 400 thousand rubles.

Tax limits: 3000 * 0.1 = 300 thousand rubles.

The amount of the formed reserve: 300 thousand rubles.

2. Correction. In the second quarter, the third debtor settled with the supplier, and the first one was liquidated. No new doubtful amounts have appeared, so these transactions should be displayed on the balance sheet accounts.

In NU, the hopeless remote sensing is written off in full. If it exceeds the amount accumulated in the fund, it should be attributed to non-operating expenses. So, the calculation of the allowance for doubtful debts in the second quarter should look like this:

Total reserve: 100 + 400 = 500 thousand rubles.

Tax limits: 6000 * 0.1 = 600 thousand rubles.

Amount of deductions: 500 thousand rubles.

From the first quarter, 100 thousand rubles remained. unused reserve. Accordingly, it is adjusted upwards, and 400 thousand should be attributed to non-operating costs.

Debt carryover

According to Art. 266 of the Tax Code of the Russian Federation, the amount of doubtful debt not fully written off in the current period can be carried over to the next one. The newly created reserve must be adjusted for the amount of the balance: if it is less, then the difference relates to non-operating income; if more - to the costs.

At the end of the year, the adjustment is as follows. If a decision is made to form a reserve for the next year, then the amount is transferred. If not, then the remainder must be included in

Typical accounting entries

		business transaction
sub-account "Other expenses"		Creation of a reserve.
		Debts previously recognized as doubtful were written off (at the end of the limitation period, by a court decision, after liquidation, bankruptcy of the debtor). The amount indicated in this posting must be duplicated on the off-balance account. 007 and stay there for the next 5 years. If the financial situation of the debtor improves, it may be possible to write off the debt.
		VAT is shown on the written-off DZ.
		The unused amounts of reserves are combined to the profit of the current period, which follows the period of creation.
		Full repayment of debt.
		Attribution of the amount of the excess balance to income. If the reserve was not created, then bad and other debts should be included in the expenses of the organization.
		The debtor repays the debt in full or in part. The same amount must be displayed for loan 007.

Difference between NU and BU

As mentioned above, taxpayers who decide to create reserves of TC and BU will inevitably face differences in data. This is due to the following reasons:

1. The allowance for doubtful debts in accounting records includes only the amount for the unpaid sold GP. Debt for sold fixed assets and other property is not included.

2. On the BU accounts, the amount of doubtful debt is displayed at the decision of the management. In the Tax Code, in case of a delay of more than 90 days, the amount in the reserve is taken into account in full.

3. In accounting, the unused balance should be attributed to the financial results of the organization. In Tax Code, it can be carried over to the next period (year).

The enterprise must create a register-calculation and keep records of reserves for doubtful debts in it. The results of the inventory of the reporting period must be confirmed in the relevant act (No. INV-17) with the added chapters:

Date of occurrence of the debt (3 groups from the Tax Code);

Percentage of deductions (0 or 100).

The accountant must track the transition of doubtful debts to bad debts, and transfer the balance of the amount or include it in financial results.

Displaying operations in "Accounting 1C"

Standard configuration settings allow you to track the amount of overdue debt separately for each client. But for this you need to set checkboxes. In the "Settings of accounting parameters" window on the "Settlements with counterparties" tab, specify the period after which the countdown of the delay period will begin. But this rule will be valid if the checkbox "Create reserves in NU and / or BU" is set in the accounting policy on the "Settlements with counterparties" tab. If both checkboxes are activated, then there will inevitably be a difference in numbers. The reasons for its appearance have already been indicated above.

If the debt term is more than 45 days, then during the closing of the month a reserve in the amount of 50% of the total amount for DT 62 and DT 76.06 will be accrued. If the term is more than 90 days, then - 100%. For delay in foreign currency, the amount of the reserve will have to be formed manually. You can check the correctness of the calculations in the database in the help of the same name.

• If the client used the old configuration, in which analytics was not conducted for each shipment document, then after updating the configuration, you need to create a new accounting policy, distribute the total amount of the reserve among the shipment documents using "Operation (BU and NU)".
• Dt 91.02 Ct 63 - posting is created automatically on the last day of the month.
• The reserve is formed for each client. The program analyzes the balance for DT 62 and 76.06. If the client has an advance payment under one contract, and in another way the debt is more than 45 days, then the reserve will still be accrued. And if this amount differs from NU, then the difference will be automatically taken into account.
• Dt 63 Kt 91.01 - reserve recovery posting, which is generated automatically at the end of the month. The amount is reduced if the customer has paid for the item.
• Dt 63 Kt 91.01; - transfer of debt.
• Dt 63 Kt 62 (76.06) - write-off of remote sensing. This posting is formed by the “Debt adjustment” document with the “Write-off” type. You should indicate the "Reserve for doubtful debts" account 63 and indicate the subconto.

If the enterprise keeps records in NU and BU, then it is necessary to change the amounts separately. To do this, in the “Debt adjustment” document, you need to activate the “Manual adjustment” checkbox. Then, in the posting Dt 63 Kt 62.01, indicate the amount of the reserve, and attribute the balance to permanent and temporary differences. The program correctly calculates the NPP if the following condition is met: BU = NU + PR + VR.

The balance of the debt not covered by the reserve in NU should be attributed to the account. 91.02 “Write-off of DZ (KZ)". That is, a negative permanent and temporary difference arises for debit and credit.

The amount of the written-off debt, for which more than three years have passed, should be listed on the off-balance sheet account 007 for another 5 years. But if during this time the client returned at least part of the money, then this operation is reflected in the following entry: Dt 50 (51) Kt 91.02. If the money has not been returned, then the account is closed by the "Operation BU (NU)" for the entire amount.

Summary

At the end of the reporting period, the enterprise must create reserves for doubtful debts, that is, for those amounts whose return is unlikely. Methods for calculating such amounts in NU and BU are different. If management decides to display the amounts not only in reporting documents, but also in accounting policies, then adjustments will have to be made manually in the database. It is important to understand the purpose for which this reserve is formed. The higher the amount of doubtful debts, the higher the net assets. For "beautiful" reporting, which is submitted to the bank, this is not always good.

In tax accounting, a doubtful debt is any debt to an organization that has arisen in connection with:

• sale of goods;
• performance of work;
• provision of services, if this debt is not repaid within the terms established by the agreement, and is not secured by a pledge, surety, bank guarantee.

Accounting

In accounting, accounts receivable are doubtful if they are not repaid or, with a high degree of probability, will not be repaid within the period established by the contract and are not secured by appropriate guarantees.

If the receivables are recognized as doubtful, then the organization is obliged to create a reserve for doubtful debts (clause 70 of the Regulation on accounting and financial reporting in the Russian Federation, approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n, clause 3 PBU 21/2008 “Changes estimated values”, approved by order of the Ministry of Finance of Russia No. 106n dated 06.10.2008, hereinafter referred to as PBU 21/2008).

The amount of the reserve is an estimated value and is determined separately for each doubtful debt, depending on:

• financial condition (solvency) of the debtor;
• estimates of the probability of debt repayment in full or in part.

EXAMPLE. CREATION OF A PROVISION FOR DOUBT DEBTS

The counterparty overdue payment for the goods shipped to him by Vector LLC, worth 500,000 rubles. In turn, Vector LLC must pay the counterparty for the services rendered in the amount of 100,000 rubles (the payment deadline has not yet come). There was no set-off of counterclaims.

Vector LLC became aware of the commencement of bankruptcy proceedings against the counterparty. As a result of the quarter, Vector conducted an inventory of receivables and payables and created reserves for doubtful debts in accounting and tax accounting. As of the inventory date, the counterparty was 60 days past due.

1. Let's determine the amount of the allowance for doubtful debts in tax accounting.

Since Vector has accounts payable to a counterparty that is 45 to 90 days overdue, the amount of the reserve is 200,000 rubles ((500,000 rubles - 100,000 rubles) × 50%).

2. Let's determine the amount of the reserve for doubtful debts in accounting.

Since bankruptcy proceedings have been initiated against the counterparty, the probability of payment for the goods, even in any part, is recognized as insignificant. It is assumed that Vector will pay for the rendered services. Then the amount of the reserve is equal to the total amount of receivables - 500,000 rubles.

The accountant will make the following accounting entries (as of the date the provision is created):

DEBIT 91-2   CREDIT 63
- 500,000 rubles. - created a reserve for doubtful debts in accounting;

DEBIT 09   CREDIT 68 sub-account “Calculations for income tax”
- 60,000 rubles. ((500,000 rubles - 200,000 rubles) × 20%) - reflects a deferred tax asset that arose due to the fact that the amount of the provision for doubtful debts in accounting exceeds the amount of the provision in tax accounting.

Unfortunately, in practice, organizations often face overdue receivables from their buyers (customers), and possibly other debtors. The allowance for doubtful debts is created so that in the financial statements of the organization the data on its accounts receivable are reliable. Therefore, in the presence of doubtful debt, it is necessary to create a reserve, even if the organization is a small business entity.

In order for the financial statements to be reliable, the assets and liabilities of the organization are subject to adjustment taking into account estimated values. In relation to receivables, the estimated value is the reserve for doubtful debts, that is, the amount of receivables is reflected in the balance sheet minus the created reserve.

Note! The reserve is included in tax expenses, therefore, it is beneficial for organizations to use this right and form a reserve for doubtful debts for tax accounting purposes.

The main regulatory documents on the formation of reserves for doubtful debts:

1. Tax Code of the Russian Federation (part two) dated 05.08.2000 N 117-FZ (as amended on 12/29/2014) (as amended and supplemented, effective from 03/01/2015).
2. Regulation on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of the Russian Federation of July 29, 1998 No. 34n
3. Accounting Regulations "approved by Order of the Ministry of Finance of Russia dated 06.07.1999 No. 43n
4. Order of the Ministry of Finance of the Russian Federation of June 13, 1995 N 49 (as amended on November 8, 2010) "On approval of the Guidelines for the inventory of property and financial obligations"
5. Regulation on accounting, approved. by order of the Ministry of Finance of Russia dated 06.10.2008 No. 106n.

Let's define concepts

Doubtful debt - accounts receivable of an organization that has not been repaid or with a high degree of probability will not be repaid within the terms established by the agreement, and is not secured by appropriate guarantees (pledge, retention of the debtor's property, surety, bank guarantee, deposit).

Overdue debt - accounts receivable not repaid within the terms established by agreements and (or) judicial acts or other documents establishing or changing the debt repayment period.

Bad debt - receivables for which the established limitation period has expired, as well as those debts for which, in accordance with civil law, the obligation has been terminated due to the impossibility of its execution on the basis of an act of a state body or the liquidation of an organization.

Restructured debt - debt for which the debtor has been granted an installment plan or deferral of debt repayment, including under an agreement on debt restructuring, a settlement agreement approved by the court and entered into force.

Accounting and tax accounting. There are differences!

When forming a reserve for doubtful debts, it is important to take into account that the rules for its creation in accounting and tax accounting differ, in particular:

• By right of creation. In accounting, the creation of a reserve for doubtful debts is an obligation (paragraph 1, clause 70 of the Regulations on Accounting and Reporting). In tax accounting, the creation of such a reserve is a right, given that the organization uses the accrual method (clause 3, article 266 of the Tax Code of the Russian Federation);
• On the subject of debt. In accounting, reserves are created for any receivables recognized by the organization as doubtful (clause 70 of the Regulations on Accounting and Reporting). In tax accounting, reserves are created only for debts of buyers and customers for products, goods, works and services (paragraph 1, clause 1, article 266 of the Tax Code of the Russian Federation);
• By the age of the debt. In accounting, not only debts that have come due, but also debts that have not yet come due can be recognized as doubtful (paragraph 2, clause 70 of the Regulations on Accounting and Reporting). In tax accounting, doubtful debts include debts that have not been repaid within the time limits stipulated by the agreement (clause 1, article 266 of the Tax Code of the Russian Federation).

Consider the rules for the formation of a reserve for accounting and tax accounting.

Rules for Accounting Purposes	Rules for tax accounting purposes
A reserve is required if there is a doubtful receivable	The accountant himself decides whether to create a reserve or not
Deductions to the reserve are other expenses (clause 11 PBU 10/99). They are reflected in the debit of account 91 and the credit of account 63	The company takes into account the amount of deductions to the reserve as part of non-operating expenses
Any receivable that is not repaid within the terms established by the agreement (or will be overdue with a high probability) is considered doubtful, and at the same time is not secured by guarantees	It is possible to form a reserve only for debts that are associated with the sale of goods (works, services). There are other prerequisites
The amount of the reserve for each debt is determined by the accountant independently based on the financial position of the counterparty and the risk of non-payment	The percentage of deductions to the reserve is established by the Tax Code of the Russian Federation
The total amount of the reserve is not limited	The total amount of the reserve cannot exceed 10% of the proceeds

Accounting

The amount of reserves is determined separately for each doubtful debt, depending on the financial condition (solvency) of the debtor and the assessment of the probability of repaying the debt in full or in part (paragraph 4, clause 70 of the Regulations). This value is an estimated value (clause 3 PBU 21/2008 "Changes in estimated values", approved by order of the Ministry of Finance of Russia dated 06.10.2008 No. 106n), the change of which is recognized as an adjustment to the value of an asset (liability) or a value reflecting the repayment of the value of an asset, due to the emergence of new information, which is based on an assessment of the current state of affairs in the organization, expected future benefits and obligations and is not a correction of an error in the financial statements (paragraph 2 of PBU 21/2008).

Methods for calculating the allowance for doubtful debts:

The chosen method and methodology for calculating the reserve for doubtful debts must be fixed in the accounting policy for accounting purposes. For example, if a method of expert assessment of each doubtful debt is chosen, then specific criteria (for example, indicators of the solvency and financial condition of the debtor) on which such an assessment is based must be prescribed in the accounting policy. If the method of calculating the reserve is chosen depending on the period of delay of each doubtful debt, then in the accounting policy it is necessary to set the appropriate percentage values ​​​​of deductions to the reserve (they may or may not coincide with those used in tax accounting).

When creating a reserve for doubtful debts, the following conditions must be met:

1. The reserve is created by settlements with other organizations and citizens for products, goods, works and services. The reserve does not include amounts of advances transferred to suppliers (Letter of the Ministry of Finance of the Russian Federation dated October 15, 2003 N 16-00-14 / 316 “On the Organization's Doubtful Debt”). Thus, the reserve is created only for the debt of buyers (customers).
2. The reserve is created on the basis of the results of the inventory of the organization's receivables.
3. The amount of the reserve is determined separately for each doubtful debt, depending on the financial condition (solvency) of the debtor and the assessment of the probability of repaying the debt in full or in part.

After creating a reserve, the organization must constantly monitor the movement of those debts for which a reserve was created, since accounting entries are made in the context of analytical accounting for each debtor.

It should be noted that the accounting legislation does not provide for restrictions either on the amount of the created reserve or on the period of occurrence of doubtful debt. At the same time, the current accounting legislation does not prevent the use of the method of recognizing receivables as uncollectible, established by Art. 266 of the Tax Code of the Russian Federation, and for accounting purposes.

Therefore, if the procedure for the formation of reserves in tax and accounting differs, then:

• for discrepancies arising from different definitions of the timing for the reservation, (i.e. in accounting, the amount of the reserve is created, for example, in the amount of 100% on outstanding debt after 45 days), deductible temporary differences will arise in accounting, which lead to the formation of a deferred tax asset (clauses 8, 11, 14 PBU 18/02, approved by Order of the Ministry of Finance of the Russian Federation dated November 19, 2002 No. 114n).
• for discrepancies that have arisen when the estimated amount of deductions to the reserve in accounting exceeds 10% of the amount of sales proceeds, the organization has permanent differences (clauses 4, 7 PBU 18/02, approved by Order of the Ministry of Finance of the Russian Federation dated November 19, 2002 No. 114n).

Allocations to the reserve for doubtful debts are a change in the estimated value (clause 4 of PBU 21/2008). Changes in estimated values ​​are reflected in accounting as expenses of the reporting period in which these changes occurred. Thus, deductions to the reserve must be reflected in accounting with the frequency with which the organization generates financial statements (Article 15 of the Law of December 6, 2011 No. 402-FZ).

The amounts of created reserves for doubtful debts are included in financial results and are reflected in the debit of account 91 "Other income and expenses" and the credit of account 63 "Reserves for doubtful debts".

The write-off of a bad debt previously recognized as doubtful in accounting, for which a reserve was formed, is reflected in the accounting entry in the debit of account 63 “Reserves for doubtful debts” in correspondence with account 62 “Settlements with buyers and customers” or account 76 “Settlements with different debtors and creditors."

Bad debt in the amount exceeding the reserve created for this debt is written off to the debit of account 91 “Other income and expenses”.

The debt written off after the expiration of the limitation period is reflected on the off-balance account 007 “Debt of insolvent debtors written off at a loss” within 5 years from the date of write-off to monitor the possibility of its collection in the event of a change in the property status of the debtor.

In the event of receipt of payment for receivables for which reserves were previously formed (or changes in the counterparty's reliability data in a positive direction), the amounts of reserves are subject to recovery. In accounting, the amounts of restored reserves are reflected in the debit of account 63 “Reserves for doubtful debts” in correspondence with account 91 “Other income and expenses”.

Doubtful debt reserve inventory

The main requirements for the inventory of the reserve for doubtful debts in accounting are defined in paragraph 3.54 of the Guidelines for the inventory of property and financial liabilities.

Monitoring of receivables for each debt in order to create or use a provision for doubtful debts must be carried out constantly. It is carried out necessarily on the date of preparation of financial statements.

Within five years after the write-off of uncollectible receivables, it is necessary to monitor the possibility of its collection in case of a change in the property status of the debtor.

Reflection of the reserve in the financial statements

In the financial statements, show receivables minus the formed reserve. Disclose information about the created reserve in the notes to the Balance Sheet and the Statement of Financial Results. This procedure is established by PBU 4/99 p. 35.

In the future, the created reserve can be:

• restored upon repayment of the debt (in this case, the amount of the restored reserve is included in other income, reflected on account 91 “Other income and expenses”);
• restored due to the lack of payment by the buyer at the end of the year following the year the reserve was created (paragraph 4, clause 70 of the Regulations on Accounting and Reporting), while the amount of the restored reserve is included in other income on account 91 “Other income and expenses";
• used, that is, uncollectible receivables will be written off at the expense of the reserve (clause 77 of the Regulations on Accounting and Reporting).

Carryover to next year

In accordance with the Regulation on accounting and reporting in the Russian Federation No. 34n p. 70, if by the end of the year following the year the reserve was created, its amount is not fully spent, then the balance of the reserve is to be included in the financial results of the reporting year. It follows from this that if the debt remains doubtful at the end of 2015, then the unused balance of the reserve should be charged to account 91 of the sub-account "Other income". The requirements of PBU No. 34n determine that the amount of doubtful debts must be taken into account again before the preparation of annual reports when forming a reserve at the end of 2015.

We propose to make only adjustments to the reserve at the end of the year, i.e. increase or decrease the amount of the reserve, rather than write off the entire amount of the unused reserve and then recover it. Such a scheme will allow avoiding additional entries on account 91 and not overstating the indicators that are also reflected in the income statement.

Example

The organization Doubtful LLC entered into a supply agreement No. 451 dated 06/16/2014 with LLC Phantom for a total amount of 525,750 rubles. (including VAT 18% - 80199 rubles). The buyer violated the terms of the contract by missing the payment deadline. At the time of payment, Doubtful LLC paid the amount of 229,800 rubles. (including VAT 18% - 35054 rubles).

Fantom LLC recognized doubtful receivables for the remaining part of the debt (after paying part of the accounts payable (525750 - 229,800 = 295950 rubles)) and accrues a provision for doubtful debts: as of August 31, 2014 in the amount of 50% of the debt ( occurrence period from 45 to 90 calendar days). The amount of the reserve amounted to 147,975 rubles.

Upon receipt of partial payment from the buyer on account of the debt in the amount of 200,000.00 rubles. (including 18% VAT - 30,508.47 rubles) the reserve for the paid part of the debt is restored.

Sold goods LLC "Doubtful"

Debit 62.01 Credit 90.01 - 525750

VAT charged on sales

Debit 90.03 Credit 68.02 - 80199

Reflected the cost of goods sold

Debit 90.02 Credit 41.01 - 375000

Part of the debt was paid by the buyer LLC "Doubtful"

Debit 51 Credit 62.01 - 229800

A provision has been accrued for the recognized debt of Doubtful LLC (the period of occurrence is from 45 to 90 days)

Debit 91.02 Credit 63 - 147975

Payment received from the buyer LLC "Doubtful"

Debit 51 Credit 62.01 - 200000

Recovery of the provision for the paid part of the debt

Debit 63 Credit 91.01 - 200000

Help-calculation of reserves for doubtful debts

			Doubtful debt			reserves			It remains to accrue
Counterparty contract	Payment term, number of days of debt	Sum		Accrued earlier	Accrued. If (2) is greater than or equal to 45 days (3)/2, 2 is greater than 90 days (3)*(4)		Recovery (4) more than (3) then (4)-(3)	Attached to income (expenses)		Sum (4)*(5)-(6)	It remains to accrue (3) - (8)
LLC "Doubtful" contract dated 16.06.2014	21.06.2014	525750		-	147975		-	-		147975	147975
August	71	525750		-	147975		-	-		147975	147975

Consider another example that characterizes the write-off of bad receivables (at the expense of the provision).

Bars LLC completed and handed over the design work to Beznadnazhniy LLC, which did not pay under the contract. Bars LLC, based on the results of the inventory of settlements, recognized doubtful receivables that were not repaid on time. According to the accounting policy, Bars LLC applies the accrual method and creates a provision for doubtful debts in accounting and tax accounting. After the expiration of the limitation period, the identified debt was rightfully recognized as uncollectible (unrealistic to collect) and written off.

A year after the debt is written off, Beznadnazhny LLC repays its debt.

December 31, 2014 Bad debt written off at the expense of the created provision for doubtful debts

Debit 63 Credit 62.01 - 1250407 rubles.

Written-off bad debt of OOO Beznadnazhniy is accounted for off the balance sheet.

Debit 007 - 1250407 rubles.

OOO "Beznadnazhnyy" paid the debt

Debit 51 Credit 62.01 - 1250407 rubles.

Previously written off debt is included in other income

Debit 62.01 Credit 91.01 - 1250407 rubles.

The amount of repaid debt is written off from the off-balance account

Credit 007

tax accounting

Doubtful debt for the formation of reserves in tax accounting is the debt to the taxpayer in connection with the sale of goods, performance of work, provision of services if this debt is not repaid within the terms established by the agreement and is not secured by a pledge, surety, bank guarantee.

The amounts of reserves for doubtful debts are determined based on the results of an inventory of accounts receivable conducted as of the last day of the reporting (tax) period. Taxpayers paying advance payments based on actual profits calculate reserves at the end of each month, other taxpayers - at the end of the 1st, 2nd, 3rd quarter and at the end of the year. The amounts of deductions to reserves are included in non-operating expenses

The amount of deductions to the reserve is determined for each doubtful debt, depending on the period of delay:

Attention! It should be remembered that in tax accounting there is a limit on the maximum amount of the reserve - it should not exceed 10% of the revenue of the period for which the reserve is created. At the same time, the organization, at its discretion, may set a lower limit on the amount of deductions to the reserve (for example, 5% of revenue).

When writing off debt due to the expiration of the limitation period, the write-off for tax accounting purposes should be made in the reporting period when the specified period expired, and not when the organization conducted an inventory and issued an order (Letter of the Ministry of Finance of Russia dated 01.28.2013 No. 03-03- 06/1/38).

Thus, the timely inventory of debt (at least on the last day of each reporting period for income tax) is in the interests of the organization itself, so as not to make adjustments to the submitted tax returns, as well as to ensure that the data on debt write-off in tax and accounting matched.

As you remember, you form the reserve based on the amount of the debt that the Tax Code of the Russian Federation allows you to classify as doubtful.

Therefore, you need to identify debts that simultaneously meet the following conditions:

• associated with the sale of goods, works, services;
• not repaid within the period specified in the contract;
• are not secured by collateral, surety or bank guarantee.

Further, the amount of the reserve created in the next reporting (tax) period is determined (subject to a limit of 10 percent of the amount of revenue). Please note that the revenue figure is determined without VAT.

Then it is necessary to determine the maximum amount of deductions to the reserve (PSO).

Let's use the formula: PSO \u003d B x 10%,

where B is the amount of proceeds from the sale of goods (works, services, property rights) received at the end of the reporting (tax) period.

You can create a reserve in a smaller amount than 10% of the revenue of the reporting (tax) period. The Tax Code of the Russian Federation does not prohibit this, but the courts confirm (see Decree of the Federal Antimonopoly Service of the North Caucasus District of October 25, 2004 N F08-5008 / 2004-1902A). Such a decision may be appropriate in situations where deductions to the reserve at a general rate of 10% will lead to a loss or a zero financial result (for example, with high revenue, but little profit). Your standard should be indicated in the accounting policy for tax purposes.

Finally, the reserve should be adjusted for the balance for the previous period

Results:

PSO > or = PSO, the amount of deductions corresponding to PSO is included in the reserve.

RSO< ПСО, в резерв включается сумма отчислений, соответствующая РСО.

The amount of deductions determined in this way is included in non-operating expenses for the last day of the reporting (tax) period (clause 3 of article 266, clause 7 of clause 1 of article 265, clause 2 of clause 7 of article 272 of the Tax Code of the Russian Federation).

Example

Breeze LLC recorded in its accounting policy for 2014 the creation of a reserve for doubtful debts for tax purposes. At the beginning of the fourth quarter, the balance of the reserve amounted to 36,500 rubles. The amount of revenue for 2014 is 12,567 thousand rubles.

As of December 31, the accountant determined the overdue receivables for payment of goods delivered to counterparties

counterparty	The amount of debt according to the agreement, including VAT (rubles)	The amount that can be recognized as doubtful debt for the purposes of creating a reserve, including VAT (RUB)	Overdue period	The amount of deductions to the reserve (rub.)
Sigma LLC	98000	98000	98 days	98000
OOO "Toro"	216 380	216380	59 days	108190 (216380×50%)
OOO "Transsbyt"	97600	97600	11 days	-
LLC "Melchior"	287400	230400 (287400 - 57000)	75 days	115200 (230400 × 50%)
Total				321390

In addition, Breeze LLC has an account payable to Melchior LLC for payment of advertising services in the amount of 57,000 rubles.

Then the accountant determined the amount of deductions to the reserve - he brought them in the table. The reserve limit is 1,256,700 rubles. (12,567,000 rubles × × 10%).

The calculated deductions to the reserve for doubtful debts (321,390 rubles) do not exceed its limit. Therefore, the amount of the reserve will be 321,390 rubles.

In non-operating expenses as of December 31, 2014, the accountant took into account deductions to the reserve in the amount of 321,390 rubles. Bad debts that can be written off at the expense of the reserve, the accountant did not identify. Therefore, the next year, LLC transfers the unused balance of the reserve in the amount of 321,390 rubles.

If a reserve for doubtful debts is not created in tax accounting for the next year, then the amount of the unused balance of the reserve at the end of the year must be included in non-operating income.

Outcome!

Users of financial statements see the actual value of receivables, taking into account the calculated reserve, and can correctly assess the financial condition of the organization.

The procedure for creating a reserve for doubtful debts in accounting is not legally fixed. Therefore, the organization develops a way to create a reserve on its own. For example, in the way proposed in tax accounting. Let's take a closer look.

What debt of the organization is doubtful?

Doubtful accounts receivable of an organization is a debt that has not been repaid or with a high degree of probability will not be repaid within the terms established by the agreement, and is not secured by appropriate guarantees (clause 70 of the Accounting Regulations, approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n ).

Since accounting (financial) statements must be reliable, the purpose of creating a provision for doubtful debts is to reflect reliable receivables in the balance sheet.

Doubtful debt is identified through the inventory of calculations. Inventory is subject not only to the debt for goods sold, works, services, but also the debt of suppliers for advances issued to them.