Features of product accounting when using account 46

When to use account 46

According to the Chart of Accounts, account 46 is called “Completed stages of work in progress” (approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n). Therefore, score 46 is most in demand in construction.

Thus, accounting entries for account 46 are made to summarize information about stages of work completed in accordance with concluded contracts that have independent significance.

By virtue of the official instructions for account 46, it is, if necessary, used by organizations performing long-term work, the initial and final deadlines for which usually relate to different reporting periods.

For example, entries in accounting account 46 in construction can directly reflect construction, as well as scientific, design, geological, etc. work.

The accounting department maintains analytical accounting for account 46 by type of work.

KEEP IN MIND

Completed stages of work can be reflected on account 46 only if they are paid for by the customer.

The use of account 46 must be specified in the organization’s accounting policies.

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Accordingly, they will no longer be taken into account on line 1220 of the balance sheet.

Moreover, since such amounts will be included in other expenses, they will be reflected on line 2350 of the income statement. Lines 1230 and 1520 In general, accounts receivable (payable) are reflected in the balance sheet in full, that is, including VAT.

The situation is different with the listed (received) advances. Here the situation is as follows.

Repayment of the obligation of the party that received the advance (prepayment) consists of the delivery of goods (performance of work, provision of services, transfer of property rights). Based on the requirements of tax legislation regarding the payment and reimbursement of VAT, the amount of obligations to be repaid does not include the amount of tax.

Info IMPORTANT! The amounts of debts to the budget must be verified with the fiscal authorities.

It is strictly prohibited to arbitrarily calculate unsettled debts to the budget (clause

74 Attention of PBU on accounting and accounting in the Russian Federation, approved by order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n).

When forming line 1520 of the balance sheet, you should take into account a certain nuance with the reflection of advances received.

Important Here there is a situation similar to that of the advances listed.

The Russian Ministry of Finance also recommends that advances received be reflected in the balance sheet minus VAT (attachment to the letter of the Russian Ministry of Finance dated January 9, 2013 No. 07-02-18/01). So on line 1520 you should include:

1. accounts payable including VAT,
2. advances received minus VAT.

Read about the nuances of working with advances received in the material “What is the general procedure for accounting for VAT on advances received?”

Account 46 “Completed stages of work in progress” is used in cases of a long (more than a year) production cycle. That is, this account is used by organizations performing operations whose beginning and completion are in different reporting periods. For example, in the construction industry.

The account is active. Content

1. 2 Procedure for using the account
2. 1 Application of account 46
3. 4 Reflection in the balance sheet
4. 3 The need to use account 46

Application of invoice 46 The cost of the invoice reflects the cost of the stages of work completed and accepted by the customer according to the approved rules.

Upon completion of the work, amounts from account 46 are written off to account 62.

Analytics on the account is carried out by type of work. Account 46 is a calculation account, that is, used to calculate the cost of manufactured products (services) for the reporting period. The accountant of Etalon M LLC reflects these transactions: Month Dr Cr Description of transaction Amount July 51 62.2 Reflection of advance payment from the customer 80000000 August 20 10,70,69, etc.

e. Reflection of the contractor's costs for the work 48000000 September 20 10,70,69, etc. Reflection of the contractor's costs for the work.1 Delivery of the first stage of work 65000000 90.2 20 Reflection of the write-off of the cost of work 45000000 90.9 99 Reflection of the financial result from the delivery of the first stage 20000000 October 46 90.1 Completion of the second stage of work, 70.69, etc.

Account calculation procedure 46

The debit of account 46 takes into account the cost of stages of work completed by the organization, paid by the customer, accepted in the prescribed manner, in correspondence with account 90 “Sales”.

At the same time, the amount of costs for completed and accepted stages of work is written off from the credit of account 20 “Main production” to the debit of account 90 “Sales”. The amounts of funds received from customers in payment for completed and accepted stages are reflected in the debit of cash accounts in correspondence with account 62 “Settlements with buyers and customers”.

Also see "".

The procedure for closing account 46 is as follows: upon completion of all work as a whole, the cost of the stages paid by the customer, recorded on account 46, is written off as a debit to account 62.

If at the time of completion of all work the stages were fully paid, account 62 for a specific customer is also closed.

When, as a result of final settlements, the customer overpaid for the work, the difference is returned to the contractor by posting:

Dt 62 – Kt 51, 52

The cost of fully completed work, recorded on account 62, is repaid from previously received advances and amounts received from the customer in final settlement in correspondence with the debit of cash accounts.

In the bay. On balance sheet 46, the account is reflected in line 1210 “Inventories,” i.e., costs of work in progress.

Also see “Work in Process: Line on the Balance Sheet.”

Basic account transactions $46$

The debit of the account $46$ reflects the cost of the stages of work that were paid by customers and completed. The following works were also accepted:

• Dt $46$ – Ct $90$.
• Dt $90$ – Kt $20$ (simultaneously with the previous one) – for the amount of costs.
• Dt $50, 51$ – Kt $62$ – receipt of funds from the customer for accepted work, goods, services.

Finished works on a similar topic

• Course work Features of product accounting when using an account 46,450 rubles.
• Abstract Features of product accounting when using the account 46,220 rubles.
• Test work Features of product accounting when using the account 46,200 rubles.

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Upon completion of all work, the entire cost of the stages paid by the customer, which was collected on the account $46$, is written off as a debit to the account $62$.

• Dt $62$ – Ct $46$

The cost of fully completed work, which was invoiced at $62, is offset by previously received advances and the amount received in final payment from the customer.

Analytical accounting is carried out by type of work.

The account is used to calculate intermediate stages of work performed. According to the accounting regulations, the contractor can use two methods for determining income from the delivery of construction work :

• Income based on the cost of the construction project
• Income based on the cost of work as it is completed.

In the first case, the financial result is determined after the complete completion of construction of the facility. Production costs are reflected in the debit of the account $20$, from the beginning of construction to its completion.

In the second case, the financial result is determined upon completion of individual works, according to the design stages provided for by the project, and the costs associated with them. The use of this method is used if the work performed and costs can be estimated. The costs of the work are taken into account by the contractor on an accrual basis. Same as work in progress.

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Account 46 in accounting

Copyright: Lori's photo bank In the economic sense, account 46 in accounting describes the progress of the production process, shows the implementation of work allocated under the contract into independent areas.

Conditions for reflecting transactions - the agreement is concluded for a long term and provides for phased execution of acts, preliminary step-by-step payment.

A long period is characterized by activity in the scientific, cartographic, and construction industries.

By long-term is meant a contract under which the completion of work occurs in a reporting period different from the beginning.

The financial nature of the register is ambiguous. It refers to active, inventory accounts, that is, taking into account information about the organization’s property. But the company ceases to own the property after signing the acceptance certificate. It turns out that the account collects information about fulfilled obligations, and not about material objects.

A similar dispute is caused by the reflection in the balance sheet.

Standard accounting programs generate line 520 “Other long-term liabilities” for the advance received. And the cost of work performed is included in line 213 “”. There is no separate column provided.

According to PBU 4/99, financial statements must be reliable (clause 6), indicators are expressed in a net estimate (clause 35). Consequently, the advance received from the customer must be reduced after partial delivery.

The conclusion is also confirmed by the fact that account 46 in accounting contains information about the cost of paid work (Chart of Accounts), that is, about revenue. Work in progress is formed from the expenses of the enterprise - this results in unreliable information.

Based on the above arguments, it would be more correct to show the balance minus the completed stages. Debit account assignments are compiled on the basis of acceptance certificates for work sites. Upon completion of the entire volume specified in the contract, credit transactions are formed.

Analytical accounting is built for each contract. Example The contract dated April 1 stipulates the construction of a woodworking shop on the site of a former dry cleaner.

The due date is September 15. The hotel points highlight the stages - demolition of the building, installation of a heating system.

The price of the agreement was 750 thousand rubles. An advance payment of 480 thousand rubles was transferred. Debit Credit Amount, thousand.

rub. Name 51 62 480 Advance payment received 76. AB 68 73, 22 Value added tax charged on advance 68 51 73, 22 VAT transferred 46 90 80 Old building dismantled in May 90 20 50 Dismantling costs written off 68 12, 20 VAT according to the act 99 17.80 Financial result for May 68 76 reflected.

AB 12, 20 Part of the VAT calculated from the advance was credited Balance as of June 01: Account Amount, debit Amount, credit Explanation 76.AB 61.02 Balance of VAT from the advance 62,400 Less the indicator for 46 In July, the workshop was built, the construction of the building according to was estimated at 600 thousand.

Postings to account 46

Account 46 “Completed stages of work in progress” is used in cases of a long (more than a year) production cycle. That is, this account is used by organizations performing operations whose beginning and completion are in different reporting periods. For example, in the construction industry.

The account is active.

Application of count 46

The cost of the work stages completed and accepted by the customer according to the approved rules is reflected in the invoice.

Upon completion of the work, amounts from account 46 are written off to account 62. Analytics on the account is carried out by type of work.

Account 46 is a calculation account, that is, used to calculate the cost of manufactured products (services) for the reporting period.

To determine the financial result of intermediate types of work, two methods are used:

• for the construction project;
• according to the type of work performed.

In the first case, the financial result is determined only after the completion of construction of the facility. In the second case - after completion of certain types of work; This is only possible if the work performed can be reliably assessed.

Procedure for using the account

Etalon M LLC is a construction contractor. According to the contract, two stages of work must be completed.

The customer, Orbita LLC, signed an acceptance certificate for the work performed for the first stage in the amount of 65 million rubles on September 9, for the second stage - in the amount of 90 million rubles on October 21.

On July 14, Orbita transferred an advance towards the contract in the amount of 80 million rubles. The remaining amount was transferred to the contractor on October 24.

The accountant of Etalon M LLC reflects these transactions:

The financial result must be determined every month. But the profit reflected as a result of these operations is not taken into account when calculating the amount of tax to the budget.

The remaining amount in account 62.1 is closed with the advance received earlier:

The need to use account 46

As can be seen from the example, this account reflects exclusively the contractual cost of the construction project. Since amounts are reflected in this account only after payment by the customer, maintaining it allows you to clearly see the cost of the contract. At the same time, these operations increase the complexity of accounting.

The use of Bill 46 has supporters and opponents. The feasibility and necessity of its use for construction organizations has not been approved by any legislative act. Existing regulatory documents are in the nature of recommendations.

Reflection in the balance

During the phased delivery of the object, there is no transfer of ownership. Consequently, the organization cannot recognize these transactions as sales.

The full amount of the contract reflected in Dt 46 of the account essentially represents revenue, but not presented to the customer. Therefore, these accruals in Form 1 fall into other assets, that is, in line 1260.

Source: https://saldovka.com/provodki/drugoe/provodki-po-46-schetu.html

Procedure for using account 46 accounting

Accounting involves the use of a large number of accounts. One of the areas is completed stages of unfinished activities - score 46.

What is it used for?

The invoice is intended to provide information about work completed in accordance with the agreements drawn up, which have independent significance. If necessary, it is used by firms carrying out long-term work, the beginning and completion of which usually relates to different reporting time intervals. That is, more often we are talking about the field of construction, science, geology.

The debit of this direction records the cost of stages of work paid by the customer. This is done in the manner prescribed by law, in correspondence with account 90 “Sales”.

At the same time, the amount of costly areas for completed and accepted stages of work is written off from account 20 “Main production”. Amounts of money received from customers are reflected in the debit of the direction in question in correspondence with account 62 “Settlements with customers”.

When the work process comes to an end, the price paid by the customer for the stages, appearing on invoice 46, is written off to 62. The cost of measures that have been completed in full is subject to repayment through advances and other amounts that were previously received from the customer. As a result, the final calculation is obtained, correspondence with the debit of the accounting accounts is observed.

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Analytical accounting activities are carried out in accordance with the types of work. Based on the description given, we can conclude that the 46 account is often used with the following accounts:

• 90 – when reflecting the cost indicator of the stages of work that were paid by the customer;
• 62 – write-off of the cost of work stages after their completion in general;
• 20 – upon completion and acceptance of work that has been fully completed.

In addition, the direction is of a calculation nature and is used to calculate the cost of products, goods, works, services that were produced during the reporting time period. In order to calculate the financial result for intermediate types of work, two key directions are used:

1. For construction projects, the determination is made strictly after the completion of construction of the facility.
2. Based on the type of work that was completed - based on the completion of individual areas of work, when they can be objectively and fully assessed.

Thus, the account has many features and accounting subtleties taken into account.

Postings and business transactions

Business transactions on an account can be main and intermediate. The main elements include the account in question 46, while the intermediate ones are used solely for the purpose of detailing the information provided.

Here is an approximate list of transactions that are directly related to account 46.

1. Dt 51 Kt 62 – receipt of advance payment from the customer.
2. Dt 20 Kt 10 (69, 70) - a reflection of the contractor’s costly directions for the implementation of activities.
3. Dt 46 Kt 90 – implementation of delivery based on the results of the first stage of work.
4. Dt 90 Kt 20 – the fact of reflecting a write-off at the cost of the activities carried out.
5. Dt 90 Kt 99 – reflection of the financial result based on the completion of the first stage.
6. Dt 46 Kt 90 – delivery of the next stage of completed processes.
7. Dt 20 Kt 10 (69, 70) – display of costly areas for fulfilling the conditions within the framework of the drawn up agreement.
8. Dt 90 Kt 20 - when the write-off of the cost of work activities occurred within the second stage.
9. Dt 90 Kt 99 – obtaining results of the financial result from the completion of the second stage of work.
10. Dt 62 Kt 46 – the cost of measures taken by the customer was written off.
11. Dt 51 Kt 62 - the fact of receipt of final payment for the work from the customer.

Determination of financial results must be carried out strictly monthly. But the profit parameter reflected during these operations is not used in the process of settlement actions for taxes, contributions, and fees. The remaining debt is closed using the advance received earlier.

If we consider without intermediate operations, the following activities can be distinguished:

• Dt 46 Kt 90 – the fact of acceptance of the work performed by the customer;
• Dt 90 Kt 20 - write-off of costs that went into performing production processes;
• Dt 51 Kt 62 – receipt of money from the customer, involving settlement activities;
• Dt 62 Kt 46 - a situation where the project has been completed and transferred to the customer with acceptance and payment.