In this material we will look at the provision of services - accounting entries. We will find out how services are reflected in accounting, how services are accounted for by the customer/performer, as well as what are the features of the provision of services by an agent. We will answer frequently asked questions and analyze common mistakes.
A service is a type of activity that cannot be expressed materially. Its results are provided to individuals and legal entities for a fee or are used in the course of business activities within the company.
Types of services
When providing any type of service, the parties to the transaction are:
- Service Seller,
- Consumer (customer).
Services are: (click to expand)
- Legal;
- Auditing;
- Informational;
- Transport;
- Educational;
- Storage services;
- Communication services (telephone, postal, Internet provider);
- For leasing premises, fixed assets, inventories, etc.;
- Medical services in various medical centers. institutions;
- Services in trade (work of consultants with clients, merchandisers for displaying goods, etc.);
- Other types of services.
The main document issued upon completion of the service is the Service Provision Certificate. Also, companies paying VAT draw up an invoice. Read also the article: → “Free accounting programs on the simplified tax system”
Provision of services - accounting entries: how services are reflected
In accounting, services provided are recognized as expenses based on primary accounting documents:
- Agreement between the contractor and the customer;
- Acts on the provision of services;
- Other documents proving the fact of acceptance of the results of the service.
The company's profits and expenses from the sale of services must be taken into account by the accountant when the orders are actually executed; Until the customer accepts the work and puts his signature on the supporting papers, cash receipts or expenses cannot be taken into account.
The Ministry of Finance has its own opinion regarding the execution of the act - it should be drawn up when:
- this is specified in the agreement;
- this is required by the Civil Code (namely, if a construction contract was concluded, the fulfillment of obligations under other construction contracts can be confirmed by other acceptance documents);
- For tax purposes, a firm using the accrual method is required to recognize material costs under a contract for production services.
Options for replacing the work completion certificate:
- a copy of the consignment note (transportation services),
- the same document and, in addition to it, a tear-off coupon for the waybill (transportation services with an hourly rate),
- commission agent's report (commission services),
- attorney's report (by agreement of assignment),
- agent's report (when concluding an agency agreement).
If we are not talking about a construction contract or other type of work for which the drawing up of an act is mandatory, it is possible to provide in the contract an additional condition, according to which the work will be recognized as completed in full in the absence of claims from the client. Then the paper proving the fulfillment of obligations can be:
- the contract itself,
- payment document,
- invoice for payment.
Accounting for third party services
Services of third-party organizations are a type of activity that does not have a material expression; the result of the service is sold and consumed immediately in the process of the organization’s economic activities (clause 5 of Article 38 of the Tax Code of the Russian Federation). If there is a material component, then this is work (clause 4 of Article 38 of the Tax Code of the Russian Federation):
In accounting, an organization can write off all direct expenses only for services (Letter of the Ministry of Finance of Russia dated February 22, 2007 N 03-03-06/1/114).
The primary accounting documents confirming the receipt of services from third-party organizations are:
- Service agreement;
- Certificate of services rendered, signed by the customer and the contractor;
- Invoice received.
Services provided by third parties may include:
- Communication services (discussed in example 1);
- Pre-sale preparation services (discussed in example 2);
- Cash register maintenance services (discussed in example 3);
- Housing and communal services;
- Storage services;
- Consulting services;
- Transport services;
- Training services;
- Auditing services;
- Legal services;
- Real estate services and so on.
Standard accounting entries for services received from third parties:
| Debit Account | Credit Account | Wiring Description | A document base |
| 26 | 60 (or 76.05) | Reflection of the cost of the service received (excluding VAT) | Certificate of services rendered, Invoice received |
| 19.04 | 60 (or 76.05) | The amount of VAT on the cost of the service received is reflected | |
| 68.02 | 19.04 | VAT amount accepted for deduction | |
| 60 (or 76.05) | 51 | Payment to the counterparty for services rendered | Bank statement |
| 90.02 | 26 | Write-off of the cost of services received to cost of sales |
Standard accounting entries when receiving services free of charge:
| Debit Account | Credit Account | Wiring Description | A document base |
| 91 | 60 (or 76.05) | The cost of the service received free of charge is reflected | Agreement for the provision of services free of charge |
| 60 (or 76.05) | 91 | Income from services received free of charge is reflected |
A sample contract for the provision of services free of charge can be downloaded here ˃˃˃
Accounting entries for the provision of services and performance of work
Accounting entries are represented by the following transactions:
| DEBIT | CREDIT | Reflection of the operation |
| Income from the provision of services is revenue: | ||
| 62 (76, 50) | 90-1 | Revenue from the sale of works/services is reflected |
| For companies requiring advance payment for work: | ||
| 51 (50) | 62 s/sch. “Calculations for advances received” | Received partial (full) prepayment for upcoming work/services |
| 62 s/sch. “Calculations for completed work (services)” | 90-1 | Revenue from the sale of works/services is reflected |
| 62 s/sch. “Calculations for advances received” | 62 s/sch. “Calculations for work/services performed” | Prepayment credited |
| Costs are the cost of work performed and implementation costs: | ||
| 90-2 | 20 | The cost of work/services sold is taken into account as expenses |
| 44 | 05 | Depreciation accrued on intangible assets |
| 44 | 02 | Depreciation has been calculated on fixed assets |
| 44 | 60 (76) | Received invoices for services (facility security, rent, utility bills...) |
| 44 | 10 | Materials written off |
| 44 | 70 | Salaries accrued to employees of the organization |
| 44 | 69 | Contributions have been accrued for compulsory pension (social, medical) insurance and insurance against accidents and occupational diseases; |
| 44 | 71 | Travel and entertainment expenses have been written off; |
| 44 | 97 | Costs that were previously included in deferred expenses have been written off. |
| At the end of the reporting period, the amounts accumulated on account 44 must be debited to subaccount 90-2 “Cost of sales”: | ||
| 90-2 | 44 | Expenses written off to cost of sales |
| Sometimes expenses are carried forward to future periods: | ||
| 97 | 60 (76) | Costs included in deferred expenses |
| 20 (25, 26) | 97 | Part of deferred expenses is taken into account as part of expenses for ordinary activities |
| If a company engaged in the sale of services and works is a VAT taxpayer: | ||
| 90-3 | 68 s/sch. “VAT calculations” | VAT is charged on the sale of work or services |
| 51 (50) | 62 s/sch. “Calculations for advances received” | Received partial (full) advance payment from the buyer for upcoming work/services |
| 76 s/sch. “Calculation of VAT on advances received” | 68 s/sch. “VAT calculations” | VAT is charged on the prepayment amount |
| If income and expenses are taken into account as work stages are completed: | ||
| 46 | 90-1 | The stage of work paid for by him was handed over to the customer |
| 90-2 | 20 | The cost of the completed and paid stage of work is taken into account in expenses |
| 90-3 | 68 s/sch. “VAT calculations” | VAT accrued on the completed stage of work |
| 62 | 46 | Reflects the cost of work paid by the customer (after completion of all work) |
Legislative regulation of postings for services and works
The legal relationship between the party ordering the services and the contractor is governed by an agreement. This document is drawn up taking into account the Civil Code of the Russian Federation. The provision of services to educational, security and some other organizations is additionally regulated by other regulations.
Organizations are allowed to provide services not only to legal entities, but also to individuals, so payment for work can be made in cash or by bank transfer. Expenses are recorded in the standard way, like any other. In accounting, services and work can be posted to different accounts depending on the type of company, division and other factors.
Reflection of the sale of services in accounting
All expenses related to the provision of work and services are usually classified as expenses for ordinary activities.
Distinguish between: (click to expand)
- depreciation expenses;
- social payments needs;
- employee salary expenses;
- material costs;
- and others.
Direct (main) costs are those that are directly related to the production process (salaries, insurance payments, etc.).
Indirect (overhead) costs are those incurred in the course of managing and maintaining the company (depreciation, management salaries, utilities, rent, etc.).
Which costs will be recognized as direct and which as indirect, the enterprise decides, based on the specifics of the activity.
In relation to the provision of various services and the performance of work, the “Custom-made” cost calculation method is applicable, when all costs are calculated for a specific order or a set of similar orders. For each of them, a card is created indicating the order No., the work being carried out, and the timing of its completion. Expenses are recorded as obligations under the contract are fulfilled.
Accounting for services from the contractor: postings
Accounting for a service company depends on the type of activity and the chosen tax system. Revenue from the performance of work or provision of services represents income from ordinary activities.
| Income accounting | ||
| Debit | Credit | Operation |
| 62 | 90.1 | The implementation of work is reflected |
| 90.3 | 68 | VAT calculated |
| 90.2 | 20 (43, 26, 25, 23) | Write-off of the cost of work performed |
| 62.1 “Settlements with buyers and customers” | 90.1 “Revenue” | Revenue from sales of services/works |
| 51 “Current account” | 62.1 | Payment for services/work |
| Expense accounting | ||
| The company provides services, and no material investments are required. | ||
| 20 “Production costs” | Accumulation of expenses | |
| 90.2 | 20 | Write-off of costs in the cost of sales of services |
| The company performs work while producing material assets. | ||
| 20 “Production expenses”, 26 “General operating expenses”, 25 “General operating expenses” | Cost accounting | |
| 43 “Finished products” | Accounting for manufactured objects | |
Accounting in the service sector
The service sector is one of the most important areas of public life and has a significant impact on all aspects of our activities. In this regard, service activities play a certain role in the material life support of people; a variety of types of their spiritual activities are carried out here [1, p. 151].
Currently, it is becoming obvious that business activity in the service sector in Russia is growing at a rapid pace, forming a vast industry of paid services, which occupies a predominant position in the country's economy.
Despite the fact that the market offers consumers a fairly wide range of services, any services are distinguished by their heterogeneity and complexity. Accounting for the service sector, despite the absence of work in progress, is a difficult task, which is subordinated to the accounting and analysis of income and expenses, as one of the most important indicators of the economic activity of any organization [7, p.33].
Services are a type of activity that does not have a material expression, the results of which are sold and consumed in the process of economic activity of the enterprise (Clause 5 of Article 38 of the Tax Code of the Russian Federation) [6].
Services exist in a wide variety, in particular:
- informational;
- audit;
- transport;
- storage;
- consulting;
- real estate;
- communications;
- training, etc.
The main distinctive features of accounting for the service sector are that, firstly, the result of satisfying the client’s needs is, as a rule, intangible, and, therefore, there are difficulties in assessing the quality, as well as the usefulness of the service performed [2, p.376].
Secondly, unlike a physical product, which goes through various production stages before being consumed, the consumption of services provided occurs simultaneously with the production of the service itself. When choosing a service, the consumer first of all chooses the service provider, who is an integral component of the process of satisfying his requests. In this case, the choice of contractor may not be based on the quality of the service provided, but, for example, on the behavior of the staff.
Thirdly, the production of any service is closely related to the personality of the consumer himself. In other words, a comprehensive change in human personality determines the variability of the quality of services and does not allow them to be formalized and standardized.
Fourthly, in addition to the risks associated with the inability to timely identify and correct errors and inconsistencies during the simultaneous provision and consumption of services, there are risks based on the fragility of the services provided. In other words, if a physical product can be postponed and sold tomorrow, then the sale and consumption of many services cannot be postponed until the future. For example, transportation services, an empty seat on a plane means lost profits.
Service organizations must maintain accounting in compliance with the requirements of the Law of December 6, 2011 No. 402-FZ and a number of regulatory documents, such as accounting regulations, letters from the Ministry of Finance of Russia, instructions and regulations that the organization itself approved in order to streamline accounting and other documents in the field of accounting regulation[8].
In accounting, all services are included in costs based on primary accounting documents.
The main primary documents confirming the execution of services are[3]:
- Agreement.
- Certificate of completion of work or other document confirming acceptance of services.
The Ministry of Finance believes that if the agreement does not provide for a clause on drawing up an act, then it needs to be drawn up only in cases provided for by law (letter dated November 13, 2009 No. 03-03-06/1/750).
The procedure for concluding and terms of the contract for the provision of services are regulated by Ch. 37–41, 47–49, 51, 52 Civil Code of the Russian Federation[4]. The main actors in the contract are the contractor and the customer of the services. Let's look at the accounting procedures for each of them.
Let's consider the features of accounting for services from the contractor [5, p.147].
The contractor's accounting directly depends on the type of activity and taxation regime. Most often, companies providing services in order to reduce the tax burden choose special regimes: UTII or simplified tax system. Along with them, OSNO can also be used.
1.Accounting for income.
Revenue from services provided is income from ordinary activities. The procedure for its accounting is regulated by clause 5 of PBU 9/99.
Postings from the contractor when selling services will be as follows:
Dt 62 Kt 90.1 - reflects the sale of services.
Dt 90.3 Kt 68 - VAT charged.
Dt 90.2 Kt 20 (23, 25, 26, 43) - the cost of services provided is written off.
Dt 50 (51) Kt 62 - services paid for by the customer.
2. Cost accounting.
Cost accounting for companies engaged in the provision of services has its own specifics, since it depends on the specific type of activity. If a company is engaged in the provision of services that do not require material investments (for example, information, auditing or the like), then all costs are collected in the debit of account 20 “Production expenses” (clause 5 of PBU 10/99).
Consider, for example, training services. The main costs are salaries of employees, calculation of taxes and contributions, depreciation, etc. That is, to provide these services, the organization does not spend material assets on the production of any objects. At the end of the month, its costs are written off to the cost of sales by posting Dt 90.2 Kt 20.
If the company provides services and at the same time produces some material assets, then cost accounting is organized using accounts 20 “Production expenses”, 26 “General expenses” to account for management costs, and, if necessary, the 25th account “General production expenses” is used. expenses". Produced objects are accounted for on account 43 “Finished products”.
Example.
Atlant LLC provides outdoor advertising services. Assorted LLC ordered a banner for the store. The amount under the contract was 38,335 rubles. (including VAT RUB 5,847.71).
Postings in the accounting of Atlant LLC:
Dt 51 Kt 62 — 38,335 rub. — payment was received from Assorti LLC.
Dt 62 Kt 90.1 — 38,335 rub. — sales of services are reflected.
Dt 90.3 Kt 68 - 5,847.71 rub. — VAT is allocated.
Materials in the amount of 17,342 rubles were spent on the production of the banner. (excluding VAT). The remuneration of employees amounted to 8,500 rubles, contributions from the payroll - 2,805 rubles.
Postings:
Dt 20 Kt 10 - 17,432 rub. — materials for making the banner were written off;
Dt 20 Kt 70 - 8,500 rub. — wages accrued to employees;
Dt 20 Kt 69 - 2,805 rub. — contributions from the payroll are calculated.
According to the accounting policy, Atlant LLC keeps records of finished products at actual cost.
Dt 43 Kt 20 - 28,737 rub. (17,432 + 8,500 + 2,805) - the banner was made at the actual cost.
Dt 90.2 Kt 43 - 28,737 rub. — the cost of services is written off.
Accounting for services from the customer
Services are expenses of the customer enterprise and are most often included in expense accounts 20 (23, 25, 26, 44).
Let's continue with the example.
The accountant of Assorti LLC will make the following entries in the accounting:
Dt 60 Kt 51 - 38,335 rub. - paid for advertising.
Dt 44 Kt 60 — 32,487.29 rub. — advertising costs are taken into account.
Dt 19 Kt 60 — 5,847.71 rub. — input VAT is taken into account.
However, some services may increase the cost of purchased goods or fixed assets (clause 6 of PBU 5/01, clause 8 of PBU /01), for example, transport or information services. In this case, they are reflected as follows:
Dt 08 (10, 41) Kt 60 - the cost of fixed assets (inventory, goods and materials) has been increased by the amount of transport or other services to be included in the price.
So, the study made it possible to establish that accounting services are based on accounting standards. The accounting methodology is specific and depends on the specific type of activity of the performing company. Revenue from the provision of services is included in income from ordinary activities. Expenses are recorded as costs from normal activities in cost accounts. When producing material assets necessary to perform services, finished product release account 43 is used. For the customer, the cost of services is recognized as an expense and is charged either to cost accounts or to an increase in the purchase price of assets for which these services are related.
Accounting for services at the customer: postings
In order to correctly determine the account on which the customer’s expenses will be reflected, you need to take into account what the services provided by a third-party organization were aimed at:
- If for work in auxiliary production - invoice. 23 or count. 25;
- if for the production of goods - account. 20;
- if to ensure the functioning of the administrative apparatus - account. 26.
| DEBIT | CREDIT | Operation |
| 60 | 51 | Settlements with the contractor are reflected |
| 44, 20, 23, 25, 26 | 60 | Services received are included in expenses |
| 19 | 60 | Input VAT highlighted |
The debit account is determined based on the specifics of the service provided.
Provision of services by an agent
An agency agreement is an agreement concluded between the customer company (principal) and a third party (agent) for the provision by an agent of intermediary services for the sale or purchase of goods or services for a certain fee.
The main difference between such an agreement and a standard service agreement is that the agent is paid in the form of a percentage of the amount of contracts concluded by him due to the fact that the essence of the agency agreement is to represent the interests of the enterprise.
The document confirming the provision of the service is the agent’s report , drawn up in any form. It is usually compiled every month. Among other things, the report indicates the cost of the agent’s work, which includes his expenses in the course of fulfilling his obligations under the contract. Read also the article: → “Accounting and tax accounting of employee bonuses. Postings and examples”
The agent has the right to restrict the employer from hiring other performers of the same task that is assigned to him and from taking any actions (until the goal is achieved) in relation to the work specified in the agreement between them. The employer may require the agent not to enter into contracts with his competitors.
There are several types of agency agreements:
- For transport services (accompaniment of goods at each stage of transportation);
- for the provision of accounting services (customers usually assume payment for the customer’s services through an agent);
- for the provision of legal services (search for a legal defender, ensuring work with documentation);
- customer search services.
Agent's accounting entries:
- Money received by an agent for work is recognized as income from ordinary activities and is reflected in the account. 90 sec. “Revenue.”
- The agent's expenses in the course of fulfilling obligations under the contract are reflected in the account. 26 “General business expenses”, the amount will be written off to the account. 90 sec. “Cost of sales.”
Principal's accounting entries:
- Revenue is indicated on the account. 90.
- Payment for the agent’s work based on the report he provides will be reflected in the account. 26.
- Expenses for agent services will be written off to the account. 90.
- Income received as a result of the provision of services by the agent is included in the account. 51.
- The customer will also reflect the VAT amount.
Legislative acts on the topic
Legislative acts are represented by the following documents:
| clause 5 art. 38 Tax Code of the Russian Federation | Service concept |
| Letter of the Ministry of Finance of the Russian Federation dated November 13, 2009 No. 03-03-06/1/750 | The opinion of the Ministry of Finance on the need to draw up a certificate of completion of work |
| Art. 720 Civil Code of the Russian Federation | On drawing up a certificate of completion of work only in the case of a construction contract |
| subp. “g” clause 12 and clause 13 PBU 9/99, clause 18 PBU 10/99 | On accounting for income and expenses from the sale of services upon completion of work and provision of services |
| Part 1 Art. 9 of the Law of December 6, 2011 No. 402-FZ, paragraph 1 of Art. 252 Tax Code of the Russian Federation | On the obligation to document the completion of work and provision of services |
| subp. clause 6 clause 1 art. 254, paragraph 2 of Art. 272 of the Tax Code of the Russian Federation, Letter of the Federal Tax Service of the Russian Federation dated December 29, 2009 No. 3-2-09/279 | On the need for an act of service provision to recognize expenses under an agreement for the provision of services to companies using the accrual method |
| Art. 999 Civil Code of the Russian Federation | On proof of provision of services under a commission agreement using a commission agent’s report |
| Art. 1008 Civil Code of the Russian Federation | On proof of provision of services under an agency agreement by presenting an agent’s report |
| para. 5 tbsp. 974 Civil Code of the Russian Federation | On the possibility of proving services under an agency agreement by presenting an attorney’s report |
| Letters of the Ministry of Finance of the Russian Federation dated May 4, 2012 No. 03-03-06/1/226, dated November 17, 2006 No. 03-03-04/1/778 | On specifying in the contract for the provision of services additional conditions under which the service is considered provided if the customer has not made any claims |
| clause 3 art. 168 Tax Code of the Russian Federation | On issuing an invoice to the buyer by a company paying VAT |
| Instructions for the chart of accounts (accounts 51, 50, 62, 90) | On the reflection of income from the provision of services and performance of work |
| Instructions for the chart of accounts, sub. “g” clause 12 PBU 9/99 | On the reflection of expenses for the provision of services or performance of work |
| subp. 1 clause 3 art. 315 Tax Code of the Russian Federation | The fact that costs associated with the implementation of works and services reduce sales revenue (for enterprises on OSNO) |
| clause 9 art. 274, paragraph 7, art. 346.26 Tax Code of the Russian Federation | On the recognition of expenses by the company for OSNO + UTII |
| clause 1 art. 346.29 Tax Code of the Russian Federation | On the impossibility of recognizing expenses when calculating tax by a company on UTII |
| clause 2 art. 346.18 Tax Code of the Russian Federation | On reducing sales revenue when calculating tax by a company using the simplified tax system “Income minus expenses” |
| clause 1 art. 346.18 Tax Code of the Russian Federation | On the impossibility of recognizing any expenses by the company under the simplified tax system “Income” |
| clause 1 art. 252 Tax Code of the Russian Federation | On the need for the expenses taken into account to be economically justified and documented |
| clause 1 art. 272 Tax Code of the Russian Federation | On the recognition of expenses when calculating income tax by a company on OSNO using the accrual method |
| clause 3 art. 273 Tax Code of the Russian Federation | On the recognition of expenses when calculating income tax by a company using OSNO using the cash method |
| Art. 708 Civil Code of the Russian Federation, clause 13 PBU 9/99 | On approval in the contract of phased delivery of long-term works |
Common mistakes
Error No. 1: An attempt to establish a phased scheme for the delivery of work in the contract for construction work.
Comment : A similar procedure for the delivery of work is provided for services not related to construction, in order to reflect them in accounting in different reporting periods. Work related to construction is regulated by PBU 2/2008.
Error No. 2: Reflecting in accounting in a special way the provision of services to a subsidiary.
Comment : Profits and costs from providing services to a subsidiary should be recognized on a general basis once the service has been provided.
Accounting for transportation and procurement costs
Transportation and procurement costs
(TZR) are the costs of an organization directly related to the process of procurement and delivery of inventories (MPI), including finished products and goods, to the organization (clause 70 of the Guidelines for accounting of inventories, approved . by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n, hereinafter referred to as “Methodological guidelines for MPZ”).
TZR, for example, may include:
- payment for transport services of third-party organizations for the transportation of goods (payment for transportation, for supplying wagons, weighing goods, etc.);
- payment for the services of organizations for loading goods into and unloading vehicles, fees for forwarding operations and other similar services;
- the cost of materials spent on vehicle equipment;
- fee for temporary storage of goods;
- other expenses.
Inventories are accepted for accounting at actual cost (clause 5 of the Accounting Regulations “Accounting for inventories” PBU 5/01, approved by order of the Ministry of Finance of Russia dated 06/09/2001 No. 44n, hereinafter referred to as PBU 5/01) .
The actual cost also includes the actual costs incurred by the organization for the delivery of materials and equipment and bringing them into a condition suitable for use (clause 11 of PBU 5/01).
According to paragraph 83 of the Methodological Guidelines for Inventory and Equipment, the organization independently selects and establishes in its accounting policies the following methods of distributing material and equipment:
- in the cost of inventories (clause “c” of clause 83 of the Guidelines for inventories);
- on separate accounts (clauses “a”, “b”, paragraph 83 of the Methodological Instructions for Inventory). At the end of the month, inventories are written off as costs (expenses) in proportion to the cost of inventories released into production (sold) during the month.
An organization that conducts trading activities can fully include costs for the procurement and delivery of goods to central warehouses (bases), incurred until they are transferred for sale, as part of sales costs (clause 13 of PBU 5/01).
In tax accounting, as a general rule, the cost of goods and equipment is included in the cost of inventories (Clause 2 of Article 254 of the Tax Code of the Russian Federation). For trade organizations, distribution costs, including TZR, are formed taking into account the features set out in Article 320 of the Tax Code of the Russian Federation.
According to paragraph 3 of Article 320 of the Tax Code of the Russian Federation, expenses of the current month are divided into direct and indirect. Direct expenses include the cost of purchasing goods sold in a given reporting (tax) period, and the amount of costs for delivery (transportation costs) of purchased goods to the warehouse of the taxpayer-buyer of goods if these costs are not included in the purchase price of these goods. All other expenses, except for non-operating expenses (Article 265 of the Tax Code of the Russian Federation), incurred in the current month, are recognized as indirect expenses and reduce income from sales of the current month.
In order to determine the amount of transportation costs related to the balance of unsold goods, the following indicators are calculated:
1. The amount of direct expenses attributable to the balance of unsold goods at the beginning of the month and incurred in the current month.
2. The cost of purchasing goods sold in the current month and the cost of purchasing the balance of unsold goods at the end of the month.
3. Average percentage as the ratio of the amount of direct expenses (clause 1 of Article 320 of the Tax Code of the Russian Federation) to the cost of goods (clause 2 of Article 320 of the Tax Code of the Russian Federation).
4. The amount of direct expenses related to the balance of unsold goods, as the product of the average percentage and the cost of the balance of goods at the end of the month.
When calculating the amount of direct expenses related to the balance of goods in the warehouse, in accordance with the requirements of Article 320 of the Tax Code of the Russian Federation, the indicator “goods in warehouse” must include all goods, the ownership of which is with the taxpayer, including goods in transit, ownership of which was transferred to the taxpayer, as well as goods shipped by the taxpayer before the transfer of ownership to buyers (letter of the Ministry of Finance of Russia dated 06/03/2008 No. 03-03-09/70).
Moreover, if an organization sells several types of goods, then the amount of transportation costs that relates to unsold goods is determined by the total balance of goods. Article 320 of the Tax Code of the Russian Federation does not provide for the distribution of transport costs by type of goods (letter of the Ministry of Finance of Russia dated November 12, 2009 No. 03-03-06/4/98).
Thus, the taxpayer has the right to choose one of two options for accounting for transportation costs and fix it in the accounting policy for profit tax purposes:
- include transportation costs associated with the purchase of goods in the cost of these goods (clause 2 of Article 254 of the Tax Code of the Russian Federation). With this accounting option, transportation costs are written off along with the goods sold;
- consider transport costs separately. In this case, transportation costs are still considered direct and are subject to distribution in proportion between goods sold and goods in stock (paragraph 3 of Article 320 of the Tax Code of the Russian Federation).
According to Article 320 of the Tax Code of the Russian Federation, the procedure for determining the cost of purchasing goods is applied for at least two tax periods.
