Example

In the reporting year, Aktiv JSC sold goods in the amount of 1,200,000 rubles. The company is not a VAT payer. For shipped goods, buyers transferred only 800,000 rubles to Aktiv.

In the accounting of "Asset" the following entries are made:

DEBIT 62 CREDIT 90-1

- 1,200,000 rubles. - reflects the debt of buyers for shipped goods;

DEBIT 51 CREDIT 62

- 800,000 rubles. - partial payment received from buyers. In the statement of financial results for the reporting year on line 2110, the accountant must reflect the proceeds in the amount of 1,200 thousand rubles.

Please note: an exception to this procedure is provided for firms that keep accounting on a cash basis. They indicate in the report only the actually paid revenue. Starting with the annual financial statements for 2010, a similar rule applies to small businesses (clause 12 PBU 9/99). However, this norm has no practical significance, since the accounting methodology “on payment” has not yet been developed.

Revenue is recognized in the income statement if the following conditions are met:

the company has the right to receive this proceeds (this can be confirmed, for example, by a contract);

The amount of revenue and the costs associated with its receipt (for example, cost of goods sold) can be determined;

There is confidence that this or that business transaction will increase the economic benefits of the company;

The ownership of the products (goods) has passed to the buyer, the work has been accepted by the customer or the service has been rendered.

If these conditions are not met, then in the company's accounting records do not reflect revenue, but accounts payable. That is, show the funds received from the buyer as part of advances received or deferred income.

Revenue is reflected in the income statement based on the indicators of the total credit turnover of subaccount 90-1 "Revenue", reduced by the total debit turnover on subaccounts 90-3 "Value Added Tax" and 90-4 "Excises".

Example

In the reporting year, LLC Passiv received proceeds from ordinary activities under contracts with customers in the amount of 1,770,000 rubles. (including VAT - 270,000 rubles).

Last year, Liability's revenue from ordinary activities under contracts with customers amounted to 1,180,000 rubles. (including VAT - 180,000 rubles).

Thus, in the statement of financial results for the reporting year on line 2110, the accountant "Passiva" reflected:

revenue for the current year - 1,500,000 rubles. (1,770,000 - 270,000);

revenue for the previous year - 1,000,000 rubles. (1,180,000 - 180,000).

Determining the amount of revenue, first of all, you need to proceed from the contractual price of the sold products (works, services). If it is not specified, then to determine the amount of revenue, use the price of similar goods (works, services) that are sold under comparable conditions.

Example

In the reporting year, Passiv LLC renovated the warehouse premises. The cost of repairs in the contract is not defined, but they are described in detail in the specification. Similar in scope and list of work, "Passive" performed for other organizations for 250,000 rubles. (including VAT - 38,135 rubles).

Upon completion of work, the following entries were made in the account "Passive":

DEBIT 62 CREDIT 90-1

- 250,000 rubles. - reflected the proceeds from the implementation of repair work;

- 38,136 rubles. - VAT charged on revenue.

In the statement of financial results "Passive" for the reporting year, line 2110 reflects revenue in the amount of 212 thousand rubles. (250,000 - 38,136).

Revenue recognition methods

Revenue from sales in accounting can be reflected in two ways:

The accrual method

cash method.

Most firms use the accrual method. If you use this method, then reflect the sales proceeds in accounting and income statement after the transfer of ownership of the goods (after you have accepted the work, the services have been provided to you).

In this case, reflect the expenses of the company in the reporting period in which they actually were.

Whether expenses are paid or not, it doesn't matter.

Small businesses have the right to use the cash method of accounting for income and expenses. Its essence is that the proceeds from sales are reflected in accounting as payment for goods is received from buyers. That is, at the time of actual receipt of funds, property or offset of mutual claims.

Therefore, in line 2110 “Revenue” of the report for such firms, the revenue is indicated after the receipt of funds from buyers.

The costs associated with the production and sale of goods (works, services) in this situation are reflected in accounting only in part of the actually paid material assets (works, services), paid wages and other expenses.

Small businesses can choose one or another method of accounting for income and expenses. It must be fixed in the accounting policy of the company.

Please note: organizations that are not small can only keep accounting on an accrual basis.

How to account for revenue on an accrual basis

If you use this method, then reflect the proceeds from the sale of products (goods, works, services) in the month when the ownership of the goods passes from your company to the buyer, the results of the work performed will be transferred to the customer or services are provided to the customer.

Record the proceeds on account 90 "Sales". Open sub-accounts for it:

90-1 "Revenue";

90-2 "Cost of sales";

· 90-9 “Profit/loss from sales”.

To account for taxes, which are an integral part of the price, the following sub-accounts are intended:

· 90-3 "Value Added Tax";

· 90-4 "Excises".

They are opened if the organization is a VAT and excise payer.

The amount of revenue is reflected in the credit of subaccount 90-1, if it is received from the ordinary activities of the organization.

At the same time, an entry is made in the account:

DEBIT 62 CREDIT 90-1

- recognized revenue from the sale of goods (products), performance of work, provision of services.

When showing revenue in accounting, you need to write off the cost of goods (products) sold, work performed, services rendered. Record this operation as:

DEBIT 90-2 CREDIT 41 (43, 45, 20, 26, 44)

- written off the cost of goods sold (products), work performed, services rendered.

On the debit of subaccount 90-2, show the cost of only those goods (products, works, services), the income from the sale of which is reflected in the credit of subaccount 90-1.

At the same time, make entries for the calculation of taxes included in the price of goods sold (value added tax, excises).

Sales revenue can be accounted for in one of two ways to calculate income tax.

· The first - at the time of shipment of goods (performance of work, provision of services) - accrual method.

Example

In the reporting year, Passiv LLC sold goods in the amount of 236,000 rubles. (including VAT - 36,000 rubles). The cost of goods sold amounted to 160,000 rubles. By the end of the year, the buyer partially paid for the goods by transferring 118,000 rubles.

In the account "Passive" entries are made:

DEBIT 62 CREDIT 90-1

- 236,000 rubles. - reflected the proceeds from the sale of goods;

DEBIT 90-3 CREDIT 68 SUB-ACCOUNT "VAT SETTLEMENTS"

- 36,000 rubles. - VAT is charged on revenue;

DEBIT 90-2 CREDIT 41

- 160,000 rubles. - written off the cost of goods sold;

DEBIT 51 CREDIT 62

- 118,000 rubles. - partial payment received from the buyer.

For tax purposes, Liability defines revenue on an accrual basis. Therefore, in the reporting year, for calculating income tax, it will be:

236,000 - 36,000 \u003d 200,000 rubles.

That is, both in the accounting and in the tax accounting of the company, the revenue will be the same.

· The second - at the moment of payment for shipped goods (work performed, services rendered) - cash method.

Example

Let's use the data from the previous example. Suppose that in tax accounting "Passive" determines revenue on a cash basis.

Then in accounting, the postings will be the same as in the previous example. That is, the revenue will be 200,000 rubles. And when calculating income tax, it will be equal to:

RUB 118,000 - 118,000 rubles. × 18%: 118% = 100,000 rubles.

Thus, for the purposes of accounting and tax accounting, you can simultaneously use different methods for determining revenue. Set the selected method in the accounting policy of the company.

Previously, when calculating VAT, firms could also choose when it would be better to do this - at the time of shipment of goods (works, services) or when paying for them.

However, since 2006, value added tax must always be charged only “on shipment”.

At this point, make an entry in the account:

DEBIT 90-3 CREDIT 68 SUB-ACCOUNT "VAT SETTLEMENTS"

- VAT is charged to be paid to the budget.

Therefore, if a firm determines tax revenues on a cash basis, then its revenue for calculating income tax and VAT will be different.

It should be remembered that an inspection during a desk audit of income tax and VAT declarations will certainly draw attention to the fact that the amounts of revenue reflected in them do not match.

To apply the cash method in tax accounting, the company's revenue (excluding VAT) for the previous four quarters should not exceed 1 million rubles. for each quarter (clause 1 of article 273 of the Tax Code of the Russian Federation). The average amount of revenue is determined quarterly: the revenue for the previous four consecutive quarters is summed up and the amount received is divided by four.

Regardless of how the organization determines revenue for tax purposes (“on payment” or “on shipment”), the excise payable to the budget must be accrued on the day the goods are transferred to the buyer.

Reflect the accrual of excise on the debit of subaccount 90-4 with the entry:

DEBIT 90-4 CREDIT 68 SUB-ACCOUNT "CALCULATIONS ON EXCISES"

- Excise tax payable to the budget is accrued.

At the end of each month, you need to determine the financial result (profit or loss) from sales.

They do it like this:

If the difference between revenue without taxes and cost of sales is positive, profit is shown in accounting.

Reflect it with the final turnovers of the month on the debit of sub-account 90-9 and the credit of account 99 “Profit and Loss”. To do this, make an entry in the account:

DEBIT 90-9 CREDIT 99

- reflects the profit from sales.

If the difference between revenue (net) and cost of sales is negative, it means that the organization received a loss in the reporting month. Reflect this amount in the final turnovers of the month on the credit of subaccount 90-9 and the debit of account 99 “Profit and Loss”. To do this, do the wiring:

DEBIT 99 CREDIT 90-9

- reflected the loss on sales.

Account 90 "Sales" at the end of each month should not have a balance.

Example

JSC "Active" in January of the reporting year sold goods in the amount of 118,000 rubles. (including VAT - 18,000 rubles). Their cost is 65,000 rubles. The cost of selling the goods amounted to 15,000 rubles.

In the accounting of "Asset" the accountant made the following entries:

DEBIT 62 CREDIT 90-1

- 118,000 rubles. - reflected the proceeds from the sale of goods;

DEBIT 90-3 CREDIT 68 SUB-ACCOUNT "VAT SETTLEMENTS"

- 18,000 rubles. - VAT charged;

DEBIT 90-2 CREDIT 41

- 65,000 rubles. - written off the cost of goods sold;

DEBIT 90-2 CREDIT 44

- 15,000 rubles. - disbursement costs are written off;

DEBIT 51 CREDIT 62

- 118,000 rubles. - money received from buyers for goods.

The closing entry of the month will be the posting:

DEBIT 90-9 CREDIT 99

- 20,000 rubles. (118,000 - 18,000 - 65,000 - 15,000) - January profit is reflected.

Thus, as of February 1 of the reporting year, Aktiv has the following balances on the sub-accounts of account 90 “Sales”:

on the loan of subaccount 90-1 - 118,000 rubles;

on the debit of sub-account 90-2 - 80,000 rubles. (65,000 + 15,000);

on the debit of subaccount 90-3 - 18,000 rubles;

on the debit of sub-account 90-9 - 20,000 rubles.

Each organization directs the process of carrying out its activities to make a profit. To calculate the profit, you must take into account the proceeds from the sale. As you know, revenue for tax purposes can be both on shipment and on payment. In this article, we will consider shipment revenue (on an accrual basis). What are its features? When to take into account revenue and calculate profit? After all, the profit can be calculated without receiving money from the buyer when the products are shipped. And what is shipping revenue anyway?

First, let's define what an implementation is. Realization is a paid transfer of goods or services to the population (individuals) or an organization.

Now let's deal with such a concept as a product. For tax and accounting, these concepts are somewhat different.

In accounting, goods are understood as own products, purchased goods for resale (in trade), work performed on one's own, or services rendered. The sale of these goods is income for accounting purposes. All other income received from the sale of other property (fixed assets, intangible assets, for example) are accounted for as other income.

For tax accounting, the concept of a product includes any type of product, service, work, from the sale of which the organization receives income (fixed assets, intangible assets, securities, etc.). All income for tax purposes is defined as sales proceeds.

Shipping revenue (accrual method).

Based on which method of recognition of income is used in the organization, the moment of reflection of revenue depends: on shipment (accrual method) or on payment ( cash method). The method of recording revenue must necessarily be reflected in the accounting policy of the organization. It is determined for the entire calendar year and does not change during the year.

Revenue from shipment (on an accrual basis) is recognized in tax accounting at the time of transfer of ownership of goods or services, i.e. when the product is sold to the customer. And it does not depend on whether it is paid or not.

When an entity uses the cash (cash) basis, revenue is recognized only after the customer has paid for the good or service. Payment can be made not only by receipt of money at the cash desk or to the buyer's current account. This also takes into account barter, assignment of debt, etc.

Consider an example of shipping revenue accounting.

Example 1

In February 2013, Mishka in the North LLC shipped Belochka LLC goods in the amount of 525,000 rubles. (there is a contract of sale between them). LLC "Belochka" settled with LLC "Mishka in the North" in April 2013 by transferring money to the current account. Mishka na Severe LLC uses the accrual method of accounting for income.

Therefore, LLC Mishka in the North will report the proceeds from the goods sold in February.

Revenue after shipment

Under the accrual method, title to a product passes from the seller to the buyer when the product is shipped. Sometimes there are situations when, under the terms of the contract, the right of ownership is transferred in a different order. For example, at the time of delivery of products to the required point or payment.

In this situation, shipping revenue is recognized when all the terms of the contract are met and ownership has passed from the seller to the buyer.

Example 2

In February 2013, Mishka in the North LLC shipped Belochka LLC goods in the amount of 525,000 rubles. (there is a contract of sale between them). According to the terms of the contract, the ownership of the goods is transferred only in case of payment for the goods. Up to this point, the products are considered the property of Mishka in the North LLC. LLC "Belochka" settled with LLC "Mishka in the North" in April 2013 by transferring money to the current account. Mishka na Severe LLC uses the accrual method of accounting for income.

According to the terms of the agreement, the ownership of the products passed to the buyer in April 2013 (i.e. after payment), so the proceeds from the sale are also reflected in tax accounting in April.

If, under the terms of the contract, the organization's income relates to several tax periods (as, for example, with subscription services), and not to one, then they must be distributed evenly.

Example 3

Kontur LLC provides accounting services. Service for legal entities and individual entrepreneurs is carried out on the basis of a subscription. Accounting services are provided on a monthly basis throughout the year.

In 2012, the revenue of Kontur LLC amounted to 480,000 rubles.

Since accounting services are provided on a monthly basis, the revenue is reflected throughout the year in equal shares in the following amounts.

RUB 480,000 / 12 months = 40,000 rubles. per month

In the event that an organization performs work or provides services for a long time (more than a calendar year), for example, during the construction of houses, the proceeds are distributed in proportion to the amount of actual costs incurred by the organization in each tax period, in their total amount according to the estimate.

Example 4

LLC "Stroykom" (contractor) and LLC "Avtotrek" (customer) entered into an agreement for the creation of design and estimate documentation. Works are transferred to the customer as they are completed. The cost of Stroykom LLC services is determined by the contract as 1,200,000 rubles. (without VAT).

The costs of Stroykom LLC related to the fulfillment of the terms of the contract amounted to 1,000,000 rubles:

In the 1st half of 2012 - 200,000 rubles;

In the 2nd half of 2012 - 300,000 rubles;

In the 1st half of 2013 - 400,000 rubles;

In the 2nd half of 2013 - 100,000 rubles.

Reflecting income in tax accounting

In the 1st half of 2012

200,000 / 1,000,000 x 1,200,000 = 240,000 rubles;

In the 2nd half of 2012

300,000 / 1,000,000 x 1,200,000 = 360,000 rubles;

In the 1st half of 2013

400,000 / 1,000,000 x 1,200,000 = 480,000 rubles;

In the 2nd half of 2013

100,000 / 1000,000 x 1200,000 \u003d 120,000 rubles.

free book

Rather go on vacation!

In order to get a free book, enter the data in the form below and click the "Get the book" button.

One of the basic concepts used in economics and business is revenue. It is with this concept that the activities of most enterprises are associated. Depending on the proceeds received, an entrepreneur can assess the demand for a particular product or service, resolve issues related to the production and purchase of goods in his favor. It is believed that it is the size of the profit that determines the success of the enterprise.

Basic definition

It would seem that revenue is the amount received in the course of the sale of goods. But this is far from being the case, since it depends on a number of nuances and characteristics. Previously, revenue was attributed to one of, but now there are disputes around this issue. Today it is considered income from the main activities of the company, but at the same time, other areas can be profitable.

The basic definition says: revenue is the total amount of money received for a certain period of activity from the sale or provision of services. It can take both a positive value and be equal to zero, but it will never take a negative value.

Receipt of revenue is the final stage in the work of any commercial organization. It is the main overall indicator of the performance of a company or firm. This indicator is planned in the first place, and on its basis the price of the product and its circulation are set. On the basis of revenue, all subsequent types of profit and income are calculated, conclusions are drawn about the demand for a particular product.

In the absence of profit, the company inevitably suffers losses, which ultimately leads to its ruin and closure.

Calculation methods

There are two main methods for calculating revenue. At the same time, a different concept of revenue is invested in each of them:

• V cash basis this concept means the money received by the seller of the goods from their sale. In fact, this is the amount of payment that the seller received in cash or through a non-cash payment. If the goods are released with a delay, the proceeds are not fixed until the money arrives at the seller's or seller's settlement account. In this case, all advances received are equated to revenue.
• Revenue determination method by charge or shipment . In it, even those funds that were received in cash, and will also be paid through credit or deferred payment, are considered revenue. This method is often used in large companies.

Types of revenue

Revenue from the sale of products and services - funds received for the products or services shipped to customers. This type of income is divided into two types:

1. , which takes into account all the money received for a product or service. In the case of barter payment, the full value of the exchange agreement. This amount includes not only taxes, but also various fees and duties, which are then paid to the state. The second name of this type of revenue that can be found is net revenue.
2. Pure is the difference between gross revenue, taxes and excises. It is recorded in the profit and loss statements of the enterprise. Net revenue is also called gross revenue. It is she who forms the main income of the enterprise.

The difference between basic concepts and definitions in trade

In actions related to the sale of certain things and products, employees have to operate with such concepts as revenue, income and profit. But you should understand the difference between each of these terms.

Often, net revenue is correlated with the concept of income. But income is a broader concept. Thus, income is considered to be an increase in economic benefits from the receipt of various funds and, as a result, an increase in the capital of the organization. But income can have several sources, not only revenue, but also payment of fines, sanctions, interest from the bank. All this generates profit.

Money for the purchase of goods, taxes, payment of rent for premises, for sellers - expenses. If you subtract this amount from the income received from the sale of goods and services, you can make a profit.

Naturally, revenue significantly affects the income and profit of the enterprise and is one of its main components, but it is fundamentally wrong to equate revenue with these two concepts.

Revenue components

Revenue consists of two main components:

• purchase price , that is, the cost at which the goods were purchased for sale or the material for its manufacture;
• added value , that is, the amount that the seller adds to the purchase price in order to make a profit. Often this amount is a percentage of the purchase price of the product.

Thus, if the cost of goods is subtracted from the revenue, then you can get the amount of income received by the company in the course of its activities.

main sources

To date, revenue can be received from:

• core business – sale of products, performance of works or provision of services. So, for a store it will be the sale of goods, for a law firm - the provision of legal services;
• investment activity , which includes work with company shares, securities and even company assets that are not involved in the turnover. For example, a large corporation may sell part of its shares in order to obtain investment;
• financial activity of the enterprise . For example, the owner of an enterprise invests money in a particular project in order to make a profit, puts money on a deposit in a bank, and others.

If you add up the funds received in these three areas, then in the end you can get the total profit of the enterprise.

For example, profit from core activities is 920,789 rubles per month, investment activities - 34,000 rubles, financial activities - 265,000, therefore, the total profit for the month will be: 920,789 + 34,000 + 265,000 \u003d 1,219,789 rubles.

In accounting, under this concept, funds received from the main activities of the company are accepted, while the rest of the funds are usually called “other income” or “interest income”.

Main functions

The main function that revenue performs is the reimbursement of the funds spent by the firm on the purchase or production of goods. Its timely receipt on the company's accounts ensures not only the stability of its work, but also the continuity of trade and the company's activities.

With the help of the received proceeds, the invoices of suppliers, both goods and materials, wages, taxes are paid. In addition, the proceeds received can be used to purchase a new product or material, expand the company's activities.

If the revenue arrives late, the company's activities incur losses, as its profit decreases, penalties may be imposed or contractual obligations associated with the production of goods, payment of certain bills may be violated.

Revenue calculation

For calculations, fairly simple formulas are used. It is enough to know the volume of products sold for a certain period of time and the unit cost, then multiply them. Further, the obtained values ​​for each group of goods are summarized. It should be noted that the funds received during the operation of the enterprise are not included in the revenue.

The formula looks like this

TR = P * Q, where

TR – revenue, rub.;

P – price, rub.;

Q - sales volume, unit/pc.

For example, let's calculate the revenue of the Vesna store from the following products:

• Tea - sold 23 packages, the cost of each - 105 rubles.
• Sugar - 3 kg, 40 rubles each.
• Lemon - 1 kg, cost - 200 rubles.
• The revenue for tea was - 23*105 = 2415;
• Revenue for sugar - 3 * 40 \u003d 120;
• Revenue per lemon - 1*200=200.

The total revenue of the store for this group of goods amounted to 2415 + 120 + 200 = 2735 rubles.

If the product was first sold at the same price, and then its value increased, then the revenue is calculated for each product depending on its value, and then added up.

For example, in early January, 120 packs of tea were brought to the Solnyshko store for 105 rubles each, and in February another 76, but with a cost of 110 rubles. At the same time, the store still has 20 packs of tea at the old cost.

During the month, the remaining 20 packs and 34 packs from the new batch were sold. Thus, the proceeds from the sale of tea in February will be: (20 * 105) + (34 * 110) \u003d 2,100 + 3,740 \u003d 5,840 rubles.

The data obtained in the course of calculations are considered information for internal use and are not included in the financial statements.

However, once a quarter or a year, these indicators are calculated by an accountant and recorded in the Profit and Loss Statement. In this case, the amount of revenue is indicated without indirect taxes and VAT (see also). Moreover , in some cases, the amount received during the sale may not be wholly owned by the company. For example, when selling commission items, the seller receives revenue from the buyer, the bulk of which belongs to the owner of the goods.

For example, the following items were accepted for sale at the Solnyshko thrift store with the proviso that the people who provided them or the consignors would receive the following amounts:

• Children's chair - 450 rubles.
• Arena - 890 rubles.
• Kangaroo - 500 rubles.

The sellers of the store also made a markup on the goods in the amount of 20%, that is, the total cost of things was: 540, 1068 and 600 rubles, respectively. After the sale of these things, the profit of the store "Solnyshko" amounted to:

(540 + 1068 + 600) - (450 + 890 + 500) \u003d 2 208 - 1840 \u003d 368 rubles. The remaining amount, according to the previously drawn up agreement, will be received by the committents.

The reports prepared by the accountant are submitted to the management of the company. On their basis, conclusions are drawn about which goods are in great demand, and which are less. Therefore, it helps to form the volume of purchases of a particular product.

Video: Revenue and profit

From the video lesson you will learn what revenue is and how to calculate its main types: total, average and marginal. In addition, the lesson talks about profit, the main factors of its formation and its impact on the development of the company.

Learning is the funds received in the course of the sale of goods or services. Thanks to the revenue, you can draw a conclusion about the work of the enterprise, adjust its activities. A delay in the receipt of revenue leads to losses for the enterprise, and its absence leads to its closure.

In the article we will talk about the recognition of revenue in accounting, consider postings to reflect revenue and recognition methods.

The concept of revenue in accounting

Based on PBU 9/99 "Income of the organization", revenue in accounting can be recognized only if:

• the enterprise has the right to receive this proceeds, that is, this right must be confirmed either by a concluded agreement or in another way;
• the amount of revenue can be determined;
• after receiving the proceeds, the organization will receive economic benefits;
• the goods have been transferred to the buyer, or the service has been provided (the work has been accepted);
• you can determine the costs that the organization has incurred to receive specific revenue. Read also the article: → "".

In order to be able to take into account the revenue in accounting, all these conditions must be met, otherwise all cash receipts must be reflected as accounts payable. However, there are exceptions for individual companies. For them, it is possible to take into account revenue if only the first 3 conditions are met. These types of activities include:

• services in which the company lends its assets for temporary use;
• services in which the company grants for temporary use the rights that arise from patents for inventions and other types of intellectual property;
• if the company participates in the authorized capital of another;

In the event that the production process has a long cycle, revenue can be recognized as the product is ready. The same is true for works (services). In other words, when the revenue will be recognized in accounting directly depends on the terms of the contract with the buyer. If the contract provides for the delivery of each completed stage of production (services, works), then revenue is recognized at the end of each stage.

If such a possibility is not specified in the contract, then revenue can be recognized only upon completion of the fulfilled obligation. As for the procedure for accounting for revenue in relation to various types of work, services or products, PBU 9/99 states that companies can simultaneously use different methods of revenue recognition within the same period.

In order to recognize revenue for services, it is sufficient that the work is accepted by the customer, and for products only if the ownership has changed.

Reflection of revenue in accounting

In order to reflect revenue in accounting, you need to be based on supporting documents. That is, on such documents that can confirm that the right to the goods has passed to the buyer, for example, an act or an invoice, as well as other primary documents. There are a number of requirements for these primary documents. They, for example, must be drawn up either according to standard forms of accounting documentation, or according to the form approved by the organization.

The procedure for determining revenue, according to RAS 9/99, for revenue is those amounts that are equal to the receipt of money and property in monetary terms, as well as receivables. At the same time, revenue is recognized in accounting, taking into account VAT, excise duties, but they are not revenue.

In cases where the buyer does not fully pay his debt to the company, the revenue in the accounting of the supplier organization should be recognized as the amount of the payment received, as well as receivables for this buyer.

Postings to reflect revenue in accounting

Accounting for revenue in accounting is carried out on subaccount 90-1 "Revenue" to account 90 "Sales". Read also the article: → "". Sales revenue is recognized on the date of its recognition, that is, either when the shipment occurs, or on the date the act is signed).

Posting D 62 K 90-1 reflects the proceeds from the sale of products. At the same time, the cost price is reflected in the debit of account 90. To the 90th account, sub-accounts can be opened:

• 90-1 "Revenue".
• 90-2 "Cost of sales".
• 90-3 "VAT".
• 90-4 "Excises".
• 90-9 "Profit (loss) from sales".

Consider the main postings in the table.

business transaction	Debit	Credit
Reflected revenue	62	90-1
Products written off at cost	90-2	43
Finished products accepted	43	40
Reflected cost	40	20
Written off labor costs	90-2	20

Revenue recognition methods in accounting

There are two methods for recording revenue in accounting:

• Accrual method - is a generally accepted method, revenue is taken into account as it is shipped;
• Cash method - revenue with this method is taken into account when payment is received.

The accrual method is used by all organizations to account for all revenue, with the exception of revenue under contracts with a special right to transfer ownership.

By the way, small businesses have the right to choose, they can use both the accrual method and the cash method. This possibility is provided for in clause 20 of the Standard Accounting Recommendations. But, applying the cash accrual method, the following requirement must be taken into account: expenses are recognized only after the repayment of the debt.

The chosen method of revenue recognition is mandatory recorded in the accounting policy of the organization. The cash method is more convenient to apply only to those small enterprises that do not have many business transactions. Since, under the cash method, the company recognizes expenses only after they are paid, with a large number of such expenses it is very difficult to track which of them are reflected in the accounting and which are not yet.

When the cash basis is applied, the costs that are related to the sale of products should be reflected in the 20 account "Main production". Read also the article: → "". In this case, the proceeds from the sale are reflected in the loan 90-1 of the sub-account at the time of receipt upon receipt.

Features that arise when determining revenue

• When the price is not set. The sale of products, the provision of services and other activities for which the company receives revenue, takes place on the basis of an agreement between the buyer and the customer. In this case, the contract, as a rule, provides for the establishment of a price. However, there are also such contracts where the price is not provided and is determined on the basis of the prices charged for goods of a similar type. Revenue in this case is also determined by the price of similar goods.
• Transfer of ownership after receipt of funds. Revenue under this type of contract is determined on the date of receipt of money.
• When providing a commercial loan. When providing the buyer with a deferred payment, the proceeds are accepted in the full amount of the debt. The term of the so-called loan does not matter.
• When calculated not in cash. The Civil Code of the Russian Federation allows the option of calculating a non-monetary form only with an exchange agreement. Revenue under such contracts is taken into account at the cost of the goods that the organization receives. In this case, the cost of goods is determined based on the cost of similar goods (works, services). When the cost of the goods received cannot be determined for any reason, the organization will determine the revenue based on the cost of the goods transferred in exchange. The cost of their goods should be similar to the cost of goods usually shipped.
• When changing the obligation under the contract, when providing a discount. There are situations when the price changes after the contract has been concluded. For example, the possibility of providing a discount is provided. If the goods are transferred to the buyer already taking into account the discount, then there will be no need to adjust the revenue in this case. And if the discount is provided already after the shipment took place and after the issuance of the relevant documents, then the seller company will need to adjust the revenue by generating the posting: D62 K90-1 - STORNO! Adjusted sales revenue by the amount of the discount.
• When returning a product. If a situation arises when the buyer returns the goods, then an adjustment must be made in the revenue accounting, otherwise it will reflect the wrong result at the end of the period. When the sale of goods and the return of goods occur in the same tax period, then it is necessary to adjust the 90 "Sales" account. But if the return occurs only next year, then the cost of this product will be reflected in non-operating expenses in the form of a loss of previous years and accounted for on account 91 “Other income and expenses”.
• When setting the price in c.u. There are also situations when the settlement under the contract takes place in rubles, but is equivalent to the amount in the currency of another country or in conventionally accepted units. In this case, the parties to the contract set the date for recalculating the price either from the foreign exchange rate at the time of payment, or on the day of shipment. A feature of such an agreement is that the final price is formed only after the calculation. That is, the final cost of goods in the currency of the Russian Federation is determined at the time of the final settlement and consists of a partial payment against future deliveries, as well as other amounts transferred for the goods. The moment of determining the revenue in this case will be an earlier date, or the date of shipment, or the moment of payment.
• When creating a reserve for doubtful debt. When creating a provision for debts, the amount of revenue should not change.

Example of revenue recognition

Continent LLC ships goods to the Counterparty on prepayment. On the date of transfer of the goods, the right of ownership also passes. Revenue is recognized accordingly on the date of shipment. We will reflect these operations in accounting with the corresponding entries:

• D51 K62 - Received prepayment for future shipment
• D62 K68 - VAT accrued (as of the date the tax base was determined)
• D62 K90-1 - Products shipped
• D90-3 K68 - VAT charged
• D68 K62 - VAT calculated at the time of shipment is accepted for deduction

Answers to common questions

Question number 1.“Is a contract enough to recognize revenue from the sale of goods, or are some other documents needed?”

In order to recognize revenue in accounting, one contract is not enough. Since we are dealing with the sale of goods, in addition to the contract, a TORG-12 invoice must be issued.

Question number 2.“The date of recognition of revenue and the date of recognition of the tax base are the same?”

No, the determination of the tax base can be on the day of shipment, and the recognition of revenue on the day of payment. These dates may or may not be the same. In any case, the moment of recognition of the tax base and the moment of recognition of revenue should be fixed in the accounting policy of the company.

Revenue is reflected in accounting on an accrual basis. This means that it is recognized after the shipment of goods to the buyer or acceptance of the results of the work (services) performed by the customer. Whether goods, works, services are paid for or not, it does not matter. Small businesses are allowed to report revenue on a cash basis, that is, after the actual receipt of funds from the buyer (customer). This is provided, in particular, by paragraph 20 of the Model Recommendations on the Organization of Accounting for Small Business Entities * (288). A similar rule is enshrined in paragraph 12 of the Regulations on accounting "Income of the organization" (PBU 9/99). General procedure for accounting for revenue Under the accrual method, the amount of revenue is equal to the amount of receipts from the buyer (customer) and its receivables. It should correspond to the contractual price of the goods, works or services sold * (289).

Accrual revenue: when "revenue" does not equal "cash"

The amount received is taxable and meets the following conditions:

• financial flows should be the result of implementation activities;
• revenue is considered received even if it is presented not in cash, but in kind.

However, there is also such income, which is considered to be non-operating and taken into account as a result of operating activities. It should include various kinds of shares, interest on deposits, exchange differences, received fines, penalties and others. Such receipts in favor of a business entity as leased property, loans, as well as contributions to the authorized capital of an enterprise are not subject to taxation.

Accrual Method vs. Cash Method: Key Differences

The tax authorities explain that income arises on the last day of the reporting (tax) period in which the limitation period has ended (letter of the Federal Tax Service of Russia dated 08.12.2014 No. GD-4-3/, letter of the Ministry of Finance of the Russian Federation dated 12.09.2014 No. 03-03-RZ /45767). But some arbitrators believe that this income must be taken into account in the period when the head signed an order to write off such debt (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation of July 15, 2008 No. 3596/08). On this issue, see the material “In what period are overdue accounts payable included in income?”.
When using the cash method, the amount of accounts payable (including VAT) is also included in non-operating income, while the income recognition period falls on the date of debt write-off (letter of the Ministry of Finance of Russia dated 07.08.2013 No. 03-11-06/2/31883).

Accrual method and cash basis

There is a list of institutions that are deprived of this method of accounting for the results of operating activities. So, according to the Tax Code of the Russian Federation, the cash method of recognition of income and expenses is excluded in its use for the following business representatives:

• financial institutions engaged in banking activities;
• those business entities that take part in the overall management of the economy in accordance with the concluded agreement on trust management of assets or on a simple partnership.

Accounting for income on a cash basis If a business entity has chosen this method of reflecting its own revenue in the financial results, then it is obliged to reflect this in the current accounting policy of the enterprise and follow it in the future.

How to account for revenue on an accrual basis

Attention

On this page:

• What is invested in the concept of cash method
• Who is eligible for the cash basis
• What is a revenue cap: an example
• Reflection of income under the cash method
• Write-off of expenses under the cash method
• Loss of the right to work on a cash basis

For enterprises and organizations, several methods have been developed and implemented for accounting for income and expenses in relation to the tax base. One of them is the cash method. Most often, it is resorted to by firms with a small turnover, and, accordingly, minimal revenue. Let's consider this method more carefully and in detail, and for clarity, we will give some examples.

Prednalog.ru

Tax Code of the Russian Federation).

• The date of settlement in accordance with the contract or the end of the reporting period - under agreements concluded within the framework of lease relations (clause 4.3 of article 271 of the Tax Code of the Russian Federation).
• Date of payment - in relation to dividends, gratuitous funds received (clause 4.2 of article 271 of the Tax Code of the Russian Federation)

A complete list of situations indicating the moment of recognition of non-operating income for them is given in paragraph 4 of Art. 271 of the Tax Code of the Russian Federation. Note that for incomes of different periods, when the relationship between income and expenses is not revealed, it will be necessary to distribute the income received using the principle of uniformity. The same way should be done when receiving income from production with a long cycle and in the absence of a phased delivery of work.
However, subject to the requirements of Art. 316 of the Tax Code of the Russian Federation, the procedure for distributing income, according to this principle, should be fixed in the accounting policy. Cm.

Methods of reflection of proceeds from sales

LLC "Belochka" settled with LLC "Mishka in the North" in April 2013 by transferring money to the current account. Mishka na Severe LLC uses the accrual method of accounting for income. Therefore, LLC Mishka in the North will report the proceeds from the goods sold in February.

Info

Post-delivery revenue Under the accrual basis, title to a product passes from the seller to the buyer when the product is shipped. Sometimes there are situations when, under the terms of the contract, the right of ownership is transferred in a different order. For example, at the time of delivery of products to the required point or payment.

In this situation, shipping revenue is recognized when all the terms of the contract are met and ownership has passed from the seller to the buyer. Example 2. In February 2013, Mishka in the North LLC shipped Belochka LLC goods in the amount of 525,000 rubles. (there is a contract of sale between them).

Cash method of accounting for income and expenses. examples

Methods of reflection of revenue Revenue from sales in accounting can be reflected in two ways: · accrual method; cash method. Most firms use the accrual method. If you use this method, then reflect the sales proceeds in accounting and income statement after the transfer of ownership of the goods (after you have accepted the work, the services have been provided to you). In this case, reflect the expenses of the company in the reporting period in which they actually were.

Whether expenses are paid or not, it doesn't matter. Small businesses have the right to use the cash method of accounting for income and expenses. Its essence is that the proceeds from sales are reflected in accounting as payment for goods is received from buyers. That is, at the time of actual receipt of funds, property or offset of mutual claims.

Income tax: how the accrual method differs from the cash method

Simultaneously with these entries, on the basis of the invoice, the cost of goods, works, services sold is written off: Debit 90-2 - Credit 20, 26, 43, 41 - the cost of goods, finished products, work performed, services rendered is written off by the cost. Debit 90-2 - Credit 44 - sales expenses are written off for the amount of these expenses. As you know, the moment of recognition of revenue is determined by the moment of transfer of ownership, established in the relevant agreement.
If the contract stipulates the moment of transfer of ownership of the goods from the seller to the buyer at the time of its shipment, then the proceeds are taken into account at the time of shipment. In this case, the buyer assumes all risks associated with the possibility of loss of the goods during its transportation. Above, the option was considered when the proceeds are taken into account at the time of shipment.
The expenses of Stroykom LLC related to the fulfillment of the terms of the contract amounted to 1,000,000 rubles: - in the 1st half of 2012 - 200,000 rubles; - in the 2nd half of 2012 - 300,000 rubles; - in the 1st half of 2013 - 400,000 rubles; - in the 2nd half of 2013 - 100,000 rubles. We reflect the revenue in tax accounting - in the 1st half of 2012 200,000 / 1,000,000 x 1,200,000 = 240,000 rubles; - in the 2nd half of 2012 300,000 / 1,000,000 x 1,200,000 = 360,000 rubles; - in the 1st half of 2013 400,000 / 1,000,000 x 1,200,000 = 480,000 rubles; - in the 2nd half of 2013 100,000 / 1000,000 x 1200,000 = 120,000 rubles. You can read about payroll revenue here. How to calculate vacation pay correctly and have time to relax.

Rather go on vacation! In order to get a free book, enter the data in the form below and click the "Get the book" button.

Accrual method and revenue recognition

It should be understood that these can be even if the enterprise has no profit. Therefore, according to the decree of the Ministry of Finance of the Russian Federation, they should not be distributed relative to the revenue side (since they do not always fall on it), but in accordance with their own classification. There are only two varieties, and they are easy to remember:

1. Those costs that are subject to taxation (they are non-operating and involved in the production process).
2. Non-taxable costs, in other words, other.

Expenditure as an object of taxation In order to determine the amount of revenue, you can use the cash method of determining income, but if the latter are absent in the balance sheet as such, then all attention should be paid to expenses when summarizing financial results.

At the end of the reporting period, line 2110 "Revenue" of the new unified form of the Report will reflect revenue equal to the sale value of finished products without VAT, in the amount of 500,000 rubles. If the price of goods, works or services sold is not established by the contract and cannot be determined from its terms, then the amount of revenue is calculated based on the prices at which the company determines revenues in relation to similar goods, works or services in similar circumstances (that is, taking into account the quantity of goods sold, terms of delivery, terms of performance of work or provision of services, etc.) * (290). Example A company provides services. Their value in the contract is not defined and cannot be established on the basis of its terms. Usually, the company provides similar services under the same conditions for 118,000 rubles. (including VAT - 18,000 rubles). The cost of providing the service amounted to 34,000 rubles.