Probably every economic entity in its operations encountered such a problem, as the write-off of receivables.Any action the organization should be displayed in the balance sheet and have a good reason for this, documented.
The first is to determine what is a receivable.She could be called the exact amount of debt that must return the economic entity of our organization, that is, it is the obligation of one legal entity to another.If it is not carried out timely fulfillment of these commitments, the lender is taking concrete measures.As a rule, simply file a claim in court.
A special group should include the write-off of uncollectible receivables.Under the bad debts are those obligations that can not be covered by the reserve fund of the enterprise, and whose return is considered to be impossible due to the complete failure of the borrower.
Write-off of receivables should be made only after a certain time, called the limitation period, which is set by the courts.In most cases, the Court refers to a period of three years from the day following the date specified in the agreement between the parties.According to the rules, the lender to the borrower applies for the return of the debt.Then the obligation is to be repaid after a maximum of seven working days.
Write-off of receivables: posting
Financial statements Specialist carries uncollectible debts to the article non-operating expenses of the enterprise.It is worth remembering that the correct cancellation is carried out only in the period when the limitation period has expired.If the accounting unit of the enterprise display this wiring in the report of the next period, it shall be deemed invalid.When an error is detected by state authorities test the company will have to prove his own innocence in the court.In this situation, the economic subject is sufficient to provide the tax office a revised declaration on the basis of which will be amended accordingly.In turn, the employee is entitled to the tax inspectorate to carry out a desk audit, ie clarification of the veracity of the documents submitted.If you find errors or inconsistencies, the company is notified within three days.Errors must be corrected within five working days.
So bad debt recognized in the financial statements in the form of double entry in the accounts of "Other income and expenses" (debit) and "Settlements with buyers and customers" (loan).A separate wiring is carried out expression of loss due to default on the account 007, called "Write-off of losses in the debt of insolvent lenders."
Write-off of receivables related to non-operating expenses, subject to availability of the reserve fund.But the isolated situation when the organization considers it inappropriate to create such a fund.In this case, the debts directly affect the financial results.If the amount of the debt exceeds the value of the trust fund, intended to cover unforeseen expenses, the uncovered part is also reflected in the financial result on the balance sheet date.
In some situations, an accountant is entitled to write off the debts of the debtor before the end of the period set by the court.Often, it happens in the liquidation of the debtor company on the basis of a judicial finding.Moreover, the lender shall within five years stored in his archive documents are the basis for debt relief and confirming the recognition of its uncollectible.This need is due to the fact that the tax authority may proceed to verify the veracity of these operations, as reflected in the balance sheet.
In addition, immediately prior to write-off the lender is obliged to make an inventory of the debt, as it exactly appears in the documents.To do this, head of the company signed the corresponding order and forms a commission.Only after these actions may be displayed in the balance of bad debts.
