The main goal of any business entity is to make a profit, which is the main financial result of its activities. In order to record income received and expenses incurred, as well as determine the result of activities, account 90 is used in accounting.
To generate income, business entities incur expenses that must be taken into account in accounting in accordance with the current standards of PBU. To account for income and expenses from main activities, account 90 is used.
Here, information is summarized separately for each type of income and expense in chronological order. The main income is considered to be the revenue that comes to the company from the sale of products, goods, works, and services.
This account should reflect information about expenses that have already generated income for the company. It also takes into account indirect taxes, which are included in the price of products, works, and services. For example, VAT, excise taxes, etc.
At the end of each month, by comparing account turnover, the financial result is determined. If the excess on this account goes to the loan, then the company has received a positive result in the form of profit.
Attention! If the debit is negative, there is a loss. At the end of the year, these indicators form the main financial result for the year. Since at the end of the reporting period the financial result is written off from this account, it should not have any balances.
Account 90 “Sales”- this is an active-passive account, used to reflect information related to the sale of goods, works and services in the main activities of the organization.
At the end of the period it closes without leaving a trace.
The financial result is reflected on the account monthly from sales from core activities. During the year, the account accumulates the financial result of the enterprise's main activities.
Subaccounts to account 90:
90.1 - “Revenue”. This subaccount reflects the amount of proceeds from sales. This is a passive subaccount;
90.2 - “Cost of sales” - active subaccount, reflects the cost of goods sold;
90.3 - “VAT on sales” - an active sub-account and, in correspondence with account 68, reflects the amount of VAT accrued to the budget;
90.4 - “Excise taxes” - excise taxes included in the amount of goods sold are reflected here;
90.5 - “Export duties”;
90.7.1 - “Sale expenses for activities with the main taxation system”;
90.7.2 - “Sale expenses for certain types of activities with a special taxation procedure”;
90.8.1 - “Administrative expenses for activities with the main taxation system”;
90.8.2 - “Administrative expenses for certain types of activities with a special taxation procedure”;
90.9 - “Profit (loss) from sales.” All other subaccounts are closed to this subaccount.
Postings:
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No. |
Debit |
Credit |
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Revenue from the sale of goods (works, services) is reflected |
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Cost of goods sold (selling expenses) written off |
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VAT charged on goods sold |
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Reflects the financial result from the sale (loss) |
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The financial result (profit) is reflected |
Closing account "90" and postings
At the end of the month the sales result is formed in subaccount 90.9.
The balance is calculated for each subaccount.
Then the total turnover is calculated For all subaccounts and from the debit turnover, the credit turnover is subtracted. A positive balance means a loss, a negative balance means a profit.
Profit is reflected by posting:
Dt 90.9 - Kt 99.1,
Loss - Dt 99.1, Ct 90.9.
At the end of the reporting period Each sub-account is closed at 90.9.
As a result, the account balance of 90 at the end of the year will be reset to zero. and this closing process is part of the balance sheet reform carried out at the end of each year.
Example 1
Kalina LLC received revenue of 2,360,000 rubles for the year, incl. VAT 360,000 rub.
The cost of production was 850,000 rubles. Selling expenses - 205,000 rubles.
Profit from sales is equal to: 2,360,000 - 360,000 - 850,000 - 205,000 = 945,000 rubles.
Postings:
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Amount, rub. |
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Reflection of revenue |
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VAT reflection |
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Write-off of cost |
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Write-off of sales expenses |
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Reflection of sales results (profit) |
Closing of the year:
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Operation description |
Amount, rub. |
Document |
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Closing a revenue subaccount |
Accounting information |
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Closing the cost subaccount (850,000 + 205,000) |
Accounting information |
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Closing a VAT subaccount |
Accounting information |
Example 2
Based on the results of December, Kalina LLC:
Products sold: 590,000 rubles,
VAT 90,000 rub.;
Cost of sales - 300,000 rubles.
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Sum |
Document |
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Revenue from goods sold in December 2015 is taken into account |
Waybill, invoice |
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Cost of goods sold written off as expenses |
Costing |
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VAT charged on the sales amount |
Invoice |
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Crediting funds as payment for sold products |
To account for the sale of finished products, goods, services, account 90 “Sales” is used. Account 90 is complex, having several sub-accounts. In this article, we will look at how this account is structured and what postings to account 90 are made when selling products, goods and services.
It is similar in structure, which we will analyze in the near future.
Structure of account 90 “Sales”, subaccounts
Account 90 “Sales” consists of several subaccounts, the main subaccounts that are always used are:
- subaccount 1 - the credit of this subaccount reflects the proceeds from the sale.
- 2 - debit reflects goods, services, that is, what we sell.
- 3 - the debit reflects accrued on products sold.
- 9 - in this subaccount the total financial result for the month is calculated, the debit reflects the profit for the month, and the credit reflects losses.
second batch: cost 120,000 rubles, revenue 200,000 rubles, VAT 30,000 rubles.
| Sum | Debit | Credit | Operation name |
| 80000 | 90/2 | 43 | The first batch was sent for sale, the cost was written off |
| 100000 | 62 | 90/1 | Revenue from the sale of the first batch is reflected |
| 15000 | 90/3 | 68 | VAT charged on the first batch |
| 120000 | 90/2 | 43 | The cost of the second batch is written off |
| 200000 | 62 | 90/1 | Revenue from the sale of the second batch is reflected |
| 30000 | 90/3 | 68 | VAT charged on the second batch |
| 55000 | 90/9 | 99 | The financial result for this month is reflected |
Algorithm:
- Within a month, we record all sales and charge VAT.
- At the end of the month, we calculate the financial result. Financial result = debit turnover - credit turnover = (80,000 + 120,000) + (15,000 + 30,000) - (100,000 + 200,000) = – 55,000 rubles. made a profit. The profit received is reflected by posting D90/9 K99.
For clarity, let's imagine the count. 90 and counting 99 in the form of a table and reflect all sales transactions (the final balance is highlighted in red, current transactions are highlighted in black):
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November:
We are opening a new account in November. 90, we transfer the final balance for each subaccount from October; in November it will be the opening balance.
1st batch: cost 90,000, revenue 150,000, VAT 23,000.
2nd batch: cost 180,000, revenue 300,000, VAT 46,000.
Algorithm:
- The postings will be similar to the previous month, I will not repeat them.
- Financial result: (90,000 + 180,000) + (23,000 + 46,000) - (150,000 + 300,000) = – 111,000 - profit.
Account 90 and counting 99 at the end of the month will look like this (the beginning balance is marked in green, the ending balance in red, the current transactions in black):
December:
We transfer the ending balance for each subaccount from November, it will be the beginning balance for December.
1st batch: cost 75,000, revenue 100,000, VAT 15,000.
Algorithm:
- We carry out the necessary sales transactions and calculate VAT.
- Financial result for the month = 75,000 + 15,000 - 100,000 = - 10,000 - profit.
- We close account 90. Let me remind you that we close each subaccount to subaccount 9; in the figure, account closure is shown in blue. As a result of closing, the balance for all subaccounts is 0.
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I hope that now the issue of accounting for the sale of finished products, goods, and services does not cause difficulties. In the next article we will continue the topic of accounting for financial results, consider accounting for other income and expenses on the account. 91.
An organization may recognize in its accounting revenues from the performance of work, the provision of services, or the sale of products with a long manufacturing cycle as the work, services, or products are ready, or upon completion of the work, the provision of services, or the manufacture of products in general.
Revenue from performing specific work, providing a specific service, or selling a specific product is recognized in accounting as it is ready, if it is possible to determine the readiness of the work, service, or product.
In relation to work, provision of services, and manufacture of products that are different in nature and conditions, an organization may simultaneously apply different methods of revenue recognition in one reporting period.
If the amount of revenue from the sale of products, performance of work, provision of services cannot be determined, then it is accepted for accounting in the amount of expenses recognized in accounting for the manufacture of these products, performance of this work, provision of services, which will be reimbursed by the organization.
For the purpose of forming the financial result of activities from ordinary activities, the cost of goods, products, works, services sold is determined, which is formed on the basis of expenses for ordinary activities recognized both in the reporting year and in previous reporting periods, and carryover expenses related to to receive income in subsequent reporting periods, taking into account adjustments depending on the specifics of production, performance of work and provision of services and their sale, as well as the sale (resale) of goods.
At the same time, commercial and administrative expenses may be recognized in the cost of products sold, goods, works, services in full in the reporting year of their recognition as expenses for ordinary activities.
Expenses for ordinary activities are expenses associated with the manufacture of products and the sale of products, the acquisition and sale of goods. Such expenses also include expenses the implementation of which is associated with the performance of work or provision of services.
In organizations whose subject of activity is the provision for a fee for temporary use (temporary possession and use) of their assets under a lease agreement, expenses for ordinary activities are considered expenses the implementation of which is associated with this activity.
In organizations whose subject of activity is the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property, expenses for ordinary activities are considered expenses the implementation of which is associated with this activity.
In organizations whose subject of activity is participation in the authorized capital of other organizations, expenses for ordinary activities are considered expenses the implementation of which is related to this activity.
Expenses, the implementation of which is associated with the provision for a fee for temporary use (temporary possession and use) of one’s assets, rights arising from patents for inventions, industrial designs and other types of intellectual property, and from participation in the authorized capital of other organizations, when this is not the subject of the organization's activities are classified as operating expenses.
Reimbursement of the cost of fixed assets, intangible assets and other depreciable assets, carried out in the form of depreciation charges, is also considered an expense for ordinary activities.
Expenses for ordinary activities are accepted for accounting in an amount calculated in monetary terms equal to the amount of payment in cash and other forms or the amount of accounts payable.
The option or method of recognizing revenue from the sale of products (works, services) is established by the organization when adopting the accounting policy for the reporting year, based on business conditions and contracts concluded or to be concluded with buyers and customers.
When recognized in accounting, the amount of revenue from the sale of goods, products, performance of work, provision of services, etc. is reflected in the credit of account 90 “Sales” and the debit of account 62 “Settlements with buyers and customers.” At the same time, the cost of goods sold, products, works, services, etc. is written off from the credit of account 43 “Finished products”, “Goods”, “Sales expenses”, “Main production”, etc. to the debit of account 90 “Sales”.
In organizations engaged in the production of agricultural products, the credit of account 90 “Sales” reflects the proceeds from the sale of products (in correspondence with account 62 “Settlements with buyers and customers”), and the debit shows its planned cost (during the year when the actual cost not identified) and the difference between the planned and actual cost of products sold (at the end of the year). The planned cost of products sold, as well as the amount of differences, are debited to account 90 “Sales” (or reversed) in correspondence with the accounts in which these products were recorded.
Agricultural organizations in this account, in addition, take into account transactions for the sale of products, livestock and poultry accepted from the population, raised both under contracts and without contracts, as well as for the transfer (sale) of individual residential houses with outbuildings to employees of the organization and in-kind distributions agricultural products to pay for labor.
In construction organizations, credit account 90 “Sales” reflects the cost of completed construction projects or work performed under construction contracts and subcontracts, determined by documents serving as the basis for settlements between customers and contractors or subcontractors (in correspondence with account 62 “Settlements with customers and customers"), and by debit - the actual cost of completed work (in correspondence with account 20 "Main production").
In design and survey organizations, credit account 90 “Sales” reflects the contractual (estimated) cost of design and estimate documentation for fully completed projects or types of work delivered to customers (in correspondence with account 62, account 20 “Main production”).
In research organizations, the credit of account 90 "Sales" reflects the contractual (estimated) cost of research and development work delivered to customers (in correspondence with account 62 "Settlements with buyers and customers"), and the debit - the actual cost of these works (in correspondence with account 20 “Main production”).
In organizations engaged in retail trade and keeping records of goods at sales prices, the credit of account 90 “Sales” reflects the selling value of goods sold (in correspondence with cash and settlement accounts), and the debit - their accounting value (in correspondence with account 41 "Goods") with simultaneous reversal of the amounts of discounts (markups) related to the goods sold (in correspondence with account 42 "Trade margin").
The indicated organizations on account 90 “Sales” also reflect transactions for the sale of goods in transit with participation in payments for these goods: the debit of account 90 reflects the cost of goods according to the payment documents of suppliers (in correspondence with account 60 “Settlements with suppliers and contractors”), and for a loan - the sales value of these goods (in correspondence with account 62 “Settlements with buyers and customers”). On the credit of account 90 “Sales” also reflect gross income from the sale of goods in transit; turnover on the sale of goods in transit without participation in payments for these goods is taken into account outside the system.
In transport and communications organizations, on credit, account 90 “Sales” reflects the amounts accrued for services provided (in correspondence with account 62 “Settlements with buyers and customers” or “Settlements with various debtors and creditors”), and on debit - actual expenses for operation of transport and communications, as well as expenses for forwarding and loading and unloading operations (in correspondence with account 20 “Main production”).
Analytical accounting for account 90 “Sales” is maintained for each type of goods sold, products, work performed, services provided, etc. In addition, analytical accounting for this account can be maintained for sales regions and other areas necessary for managing the organization.
In analytical accounting under account 90 “Sales” of the organization, along with the cost of products and proceeds, they reflect their quantity and quality.
Agricultural organizations for products sold to the state also show credit weight for account 90.
Sales of services and works to third parties, as well as paid services to the population and other works (transportation of goods, processing of imported grain for the production of feed and other products and raw materials), as well as expenses for the sale of products to the state, reimbursed in the prescribed manner by procurement organizations, are taken into account on separate types of analytical accounts by type of work and services. Accounting for expenses reimbursed by procurement organizations is carried out by type of products sold to the state and reflected as other sales of services. The debit of account 90 writes off the actual (planned) cost of products (or its cost at wholesale and other prices of the organization), as well as the amount of deviations of the actual cost from the planned one (or the difference between the actual cost and the cost at purchase and other prices of the organization).
In case of inter-farm cooperation and in the case of relationships under a simple partnership agreement, the organization on account 90 sold products (works, services) received from this activity, are taken into account separately from the sale of products (works, services) of its own production (activity) on opened analytical accounts to account 90 " Sales".
Sanatoriums, boarding houses, holiday homes and other non-productive organizations on the debit of account 90 reflect the actual cost of services, on the credit - income from the sale of vouchers and other receipts of funds to reimburse expenses.
Analytical accounts for sales (sales) can be grouped into subaccounts constructed in two options (the option is chosen by the organization independently in its accounting policies).
With the first, standard (general) option for grouping analytical accounts, subaccounts can be opened for account 90 “Sales”:
90-1 "Revenue";
90-2 “Cost of sales”;
90-3 "Value added tax";
In production associations, account 90 (depending on the degree of centralization of the sales service) can be maintained either only in the accounting department of the parent organization, or in the accounting departments of production units allocated to a separate balance sheet and shipping products externally. In this case, duplication of the same records in the specified accounting departments should be avoided. If there are settlement or special loan subaccounts, shipment and sales records are kept in the accounting departments of production units.
ACCOUNT 90 "SALES" CORRESPONDES WITH THE ACCOUNTS:
N p/p | Corresponding account |
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By debit of the account | ||
Account 90 in accountinghas several functions, and most importantly, it serves to generate profit or loss for the organization. Read about the features of its use in this article.
Revenue and cost accounting
Account 90 “Sales” is included in the “Financial Results” section of the chart of accounts, approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n. It serves to collect data on income and expenses for the main activities of the organization.
According to clause 5 of PBU 9/99, approved by order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 32n, revenue is considered to be proceeds from the sale of goods, works, services (GWS).
- provision of property for rent;
- provision of intellectual property for use;
- participation in the authorized capital of other legal entities -
provided that the organization positions these activities as the subject of its activities. For organizations that do not classify these types of businesses as their main ones, they bring in other income.
90.1 “Revenue”;
90.2 “Cost of sales”;
90.3 “Value added tax”;
90.4 “Excise duties”;
90.5 “Export duties”;
90.9 “Profit/loss from sales”.
In addition, it is advisable to introduce a special sub-account for writing off sales expenses to it. And organizations that monthly attribute general business expenses to the 90th account are also recommended to introduce a special subaccount for this type of expense. This will facilitate the preparation of the income statement within the framework of filling out the lines “Commercial expenses” and “Administrative expenses”.
When recognizing revenue, the following is recorded in accounting:
Dt 62 Kt 90.1.
Revenue is recognized subject to the conditions specified in clause 12 of PBU 9/99:
- the company has a legally certified right to receive it;
- it can be calculated in total terms;
- the company has received or will receive payment;
- ownership has been transferred;
- expenses incurred to obtain revenue can be calculated in total terms.
If at least one condition is not met, then the payment received by the organization should be reflected as accounts payable, and not repay accounts receivable.
At the moment when revenue is shown in accounting, the corresponding cost of sold industrial and industrial components must also be written off:
Dt 90.2 Kt 40, 41, 43, 45.
It is also necessary to charge VAT on the sale:
Accounting for goods at sales prices
Organizations working with retail can keep records of goods at sales prices (clause 13 of PBU 5/01 “Accounting for inventories”, approved by order of the Ministry of Finance of the Russian Federation dated 06/09/2001 No. 44n). With this method there are some features of reflecting cost. Let's look at them with an example.
Example
The store purchased 50 kg of one type of sweets at a price of 472 rubles. per kg, including VAT 18%. Goods are accounted for at sales prices. The selling price of sweets is 500 rubles. per kg. Let's assume that there were no leftovers of such candies at the beginning of the month.
Dt 41.1 Kt 60 20,000 rub. — sweets have arrived at purchase prices;
Dt 19 Kt 60 RUR 3,600 — reflected incoming VAT;
Dt 41.2 Kt 41.1 20,000 rub. — candies sold at retail;
Dt 41.2 Kt 42 5,000 rub. (500 × 50 - 20,000) - reflects the trade margin.
Within a month, all the candies were sold:
Dt 50 Kt 90.1 25,000 rub. — revenue is reflected;
Dt 90.3 Kt 68 RUR 3,814 — VAT is charged on the sale;
Dt 90.2 Kt 41.2 25,000 rub. — the cost of sweets is written off at sales prices;
Reversal Dt 90.2 Kt 42 5,000 rub. — the trade margin has been written off.
Determination of financial results for core activities
Postings to subaccounts of the 90th account are made throughout the year, accumulating the amounts of income and expenses. This approach makes it easy to generate the appropriate lines in the income statement. To obtain information about the organization's performance for the month, the accountant calculates expenses (turnover on the debit of the 90th account) and income (turnover on the credit of the 90th account). The difference between these values is profit or loss for the month; this value is reflected by posting Dt 90.9 Kt 99 when making a profit or Dt 99 Kt 90.9 when receiving a loss.
As a result, by the end of the year, a final balance will be formed on all subaccounts used by the organization, which must be reset to zero. For subaccounts with a debit balance, an entry for its full amount is made on the credit of this subaccount and the debit of subaccount 90.9, for subaccounts with a credit balance - vice versa:
Dt 90.1 Kt 90.9
Dt 90.9 Kt 90.2
Dt 90.9 Kt 90.3, etc.
Sales analysis is one of the main aspects that must be taken into account when developing an organization's marketing policy. Therefore, it is important to set up the correct analytics for account 90. Most often, sales analysis is carried out by type of product, by geographic location, by counterparty, by structural division of the organization, etc. Analytical accounting is organized depending on the needs of users for accounting information.
Results
Account 90 is necessary to collect data on income and expenses for activities that the company considers normal for itself. Income is recorded on the credit side of the account, and expenses are recorded on the debit side. The company can independently enter subaccounts to the 90th account - depending on business conditions and the accounting data used.
