Overdue payables at what point. Overdue payables: what is it, as reflected in the balance sheet, after how many months it is written off, types
Overdue debts represent outstanding financial liabilities. First of all, it occurs with a variety of violations in the settlement and payment discipline. Debt can also be used to calculate the financial prospects of the organization.
Debt can be either. The latter determines the amount of debt obligations for which payment deadlines have expired. This type of liability relates to so-called doubtful debts.
Dear readers! The article talks about typical ways to solve legal issues, but each case is individual. If you want to know how solve your problem - contact the consultant:
APPLICATIONS AND CALLS ARE ACCEPTED 24 HOURS AND WITHOUT DAYS OFF.
It is fast and IS FREE!
When assessing the financial performance of an enterprise, it is important to understand the difference between debt and arrears.
Timely repayment of overdue obligations is one of the most important conditions for the successful development of the organization. To do this, you need to familiarize yourself with the main reasons for the appearance of debts, as well as with actions if they exist.
Reasons for the appearance
Overdue debts may arise as a result of the financial insolvency of the company and a certain person or, for example, due to a banal confusion in the dates of the relevant payment. Also, debt can be formed as a result of the initial unwillingness of the debtor to answer for his obligations to creditors or suppliers.
In the first cases, individuals do not deny the fact of having debt and do not try to hide. However, at a particular point in time they cannot recover costs due to lack of funds. In the latter case, the situation automatically becomes much more complicated. This is due to the fact that the debtor may simply disappear or he may look for illegal ways to reduce the amount of payment.
The most effective way to get rid of overdue financial obligations is to check the counterparties before any transactions are made with them. For example, if the buyer or supplier refuses to provide the documentation for the relevant operation or he / she has a dubious reputation in certain circles, then it is not recommended to enter into working relations with such persons under contracts.
The concept of short-term and long-term debt can also be included in the formation of total debt. In the framework of domestic accounting practice, it is customary to talk about such debts as doubtful or bad debt types.
Collection methods
Currently there are several ways. These include the preparation and transfer of the relevant claims, which should be made exclusively in writing. Certain obligations under the working agreement may also be terminated, or rights to debt may be transferred to third parties.
It is worth noting that some borrowers are ready to provide debtors with a temporary deferment of payment, but most of them resort to attracting collection services. In the worst case scenario, the lender may apply to law enforcement agencies or to the highest courts.
A claim letter is one of the most popular methods of debt recovery. It must necessarily contain the actual details of the recipient and sender, including the name of the organization, the correct legal address, and the name of the person. The speaker on behalf of the organization, as well as the zip code.
The requirements of the letter indicate the principal amount of the debt, interest on it, fines and penalties imposed. It is important to indicate the basis for debt recovery based on current legislation. Claim can be sent with the participation of the postal service or transferred personally.
The most specific are situations related to the supply of goods or services. In this case, if the person or organization does not pay for the shipment of the goods, the seller has the full right to not provide a new batch until full payment of the previous batch.
Debtors with temporary financial problems, in most cases, turn to creditors with a request for deferred payment, in which case a special agreement is concluded between the parties, which indicates the current amount of debt obligations, and a new repayment schedule is drawn up
Actions in the presence of overdue payables
When debt arrears are formed, debtors are not advised to hide from contractors and financial organizations. This action can be regarded as a direct refusal to pay a debt. The easiest way is to request a deferred payment or a loan restructuring.
To do this, send a written request in the name of the lender. At the same time, it is important to be completely confident in your ability to fulfill past obligations in the future. If this option does not exist, then other repayment methods are required. For example, you can sell or lease movable or immovable property.
In those cases where the debtor fully understands the unenviable state of affairs and believes that he certainly will not be able to repay his obligations, then creditors will be forced to turn to higher courts to resolve this issue. Individuals and legal entities can also file an application with the court to declare them bankrupt. The data step, in the end, will be much more profitable than with litigation with creditors.
Repayment of debt is not recommended by obtaining new loans, especially from individuals. This can significantly worsen the financial condition of the payer and become the main reason for the increase in arrears.
Accounts receivable
The accounting operation on the basis of accounting standards in the Russian Federation suggests that accounts receivable are the main element of working capital in the balance sheet of the enterprise.
In addition to this element, this section of the balance sheet includes varieties of material as well as production stocks of the company, planned expenses that will be incurred in the future, and so on.
In each case, receivables are included in the amount of working capital, which may be relevant for both individuals and legal entities.
In the vast majority of cases, the time period that is allotted for the collection of overdue debts, as well as the procedure for its repayment, are recorded in the contract, which was executed in writing between the parties to cooperation. In this case, one of the parties to the contract is a creditor, and the other is a payer.
It is worth noting that the specific duration of a certain period of time, which was specified in the relevant agreement, is determined depending on the nature of the negotiations between the parties at the conclusion of the document. In the final version, the contract should contain provisions that are completely satisfied by all parties.
An agreement may be recognized as unlawful only in cases where one of the parties to the agreement is not satisfied with the specified terms and conditions of repayment of possible debt obligations.
In cases where debt obligations are recognized as hopeless, the creditor will be obliged to write off the debt accumulated by the debtor in full. This provision is governed by the current tax and civil laws of the Russian Federation.
The terms of repayment of receivables can be very different. For example, based on certain circumstances that cause financial relations between the parties to the agreement, for example, between two commercial organizations, these terms depend solely on the provisions of the contract.
This may be a small payment for a certain amount of work performed. In this case, all parties are as interested as possible in the most rapid transfer of financial obligations and the closure of related documentation.
In those cases when the receivables are formed as a result of the relationship between two or more organizations and constitute a large amount of funds, the parties usually resort to the formation of a longer maturity of obligations based on mutual concessions. Usually this period is several months or years.
The current Tax Code of the Russian Federation defines another type of receivables. It is the most difficult to repay such a debt. It is about bad debt. The main features of such obligations are regulated by article 266 of the Tax Code.
For the organization, and the individual, any obligations specified in the contracts have a specific deadline. When the organization does not have time to pay or settle accounts with the counterparty, credit debt acquires the status of “overdue”.
Based on this, it is additionally formed, implying specific funds that did not arrive at the counterparty's account within the agreed period.
If the organization or enterprise continues to fail to fulfill contractual obligations, then additional costs are inevitable: penalties and interest.
Accounts payable
Accounts payable means the company's debt to an individual or legal entity in the form of cash. Debt should be reflected in the balance sheet, and specifically in several articles, which include short-term debt to:
- state budget;
- personal staff;
- the supplier;
- the contractor;
- funds;
- lessor;
- insurance companies.
In fact, accounts payable of an enterprise are certain liabilities to the above authorities. This is about:
- The amount of debts due to other legal entities or individuals. Debt is possible for business relationships.
- Accounts due to suppliers, creditors. Accounts are repaid in installments.
Varieties of accounts payable
Debt has varieties:
- Unjustified obligations.
Debts to the supplier, supply failure or past due debts are implied. This type of accounts payable may arise due to unpaid debt according to the settlement documentation within the agreed period.
In practice, this type of debt may arise when the organization in fact received the products or services, and the documentation for the calculation by the specialist was not provided on time. Or a third party in the form of a banking institution did not conduct the transaction on time. - Other debt . This item includes debts, claims and unclaimed amounts.
The accounts payable of the company apply to:
- Goods, services and work for which there was no calculation.
- Goods, services and work for which there was no payment on time.
- Promissory notes issued.
- Advances received.
- Budget calculations and extrabudgetary payments.
- Insurance.
- Salary.
- Other
We are talking about funds, expressed in a certain amount on paper, which were not returned on time, transferred or given to creditors. Overdue payables always entail sanctions in the form of interest, interest and others.
If the organization or enterprise does not systematically pay payables, then in the near future this may lead to a lack of solvency. After which the organization or enterprise goes into bankruptcy.
As reflected in the balance sheet
Accounts payable are obligations. In accounting and balance, these are the following calculations:
- Contractors and suppliers. Page 15201. The amount of debt to contractors or suppliers for materials, work performed, services rendered is paid.
- Buyers and customers. Page 15202. The amount of debt due to buyers and customers for goods already sold, other products, services rendered and work performed.
- Taxes and fees. Page 15203. The debt of the organization for all payments, which also includes the tax on personal income.
- Social insurance and security. Page 15204. We are talking about arrears of medical, pension, social contributions for employees of the organization. Also about the amount of debt on contributions to the insurance, and specifically on compulsory insurance against injuries and illnesses in the workplace or enterprise.
- Personnel and pay. Page 15205. Salaries not paid for labor activities on time.
- Accountable persons. Page 15206. The specific amount of debt to a narrow circle of employees. For example, unpaid travel allowance, per diem.
- Debts to participants (founders). Page 15207. We are talking about dividends, interest rates on stocks and bonds. This also includes loans and other payments.
- Debtors and creditors. Page 15208. Debts to debtors and creditors for advances already received.
Limit value
The maximum allowable value for the above debts is structured into the following points:
- Payables payables. Limit for a given period should not exceed two months.
- Tax payments, transfers to the state budget and extra-budgetary fund. Accounts payable for these groups no more than 3 months.
- For suppliers and contractors, payables are also must not exceed 3 months from the final payment.
How to determine the maximum permissible value?
It is possible to determine the maximum permissible value for accounts payable in several stages:
Stage 1
Identify overdue loan debt. Specific items and timelines for specific groups were previously listed. The fact is that at the federal level, the authorities support the maximum deadline for debts and the total credit debt of organizations.
It is interesting that the most frequent groups to which the maximum permissible value is allocated are budget debts and debts on obligations accepted.
Payables for wages and other payments to full-time employees begin to form only after the expiration of its maturity. The term is set by the internal acts of the institution, which should regulate labor obligations and relations under the laws of the Russian Federation. Therefore, the specific maturity of a debt or debt on obligations must be specified in the contract.
Stage 2
Calculation of the period and size of the debt. The federal authorities created orders that set specific deadlines for overdue payables: this is usually a period of 1 to 3 months.
Stage 3
Accurate calculation of accounts payable relative to the assets of the company. Assets mean the sum of all cash, but do not take into account valuable movable and immovable property, as well as property that is pledged.
Share in liabilities
According to the decree of the Government of the Russian Federation regarding the Rules for conducting financial analysis, the share of overdue payables in liabilities means:
Overdue credit debt, as well as indicators of specific gravity relative to the total liabilities of the organization or enterprise. It should be determined as a percentage, and specifically as the ratio of overdue payables and total liabilities.
Total
Any type of debt: both accounts receivable and payable are required to be paid. By legal means it is always possible to achieve the closing of a debt by an organization for specific obligations.
In cases where the organization cannot settle its debts, the procedure for writing off payables and receivables is initiated. The procedure requires documents confirming the hopelessness of the company. According to the laws, accounts payable recognized as bad are written off for obligations individually.
But, given the point of view of the Ministry of Finance of Russia, it is safer to follow his explanations. Otherwise, disagreements with the tax authorities and litigation cannot be avoided. However, the chances of winning such a dispute in court are great. It is safer to write off overdue debts on the last day of the reporting period in which the statute of limitations has expired. The basis for writing off receivables and payables that have expired the limitation period is the order of the organization’s director general (paragraphs 77 and 78 of the Accounting and accounting statements in the Russian Federation). In addition, it is advisable for the company to draw up an act of inventory of settlements with buyers and suppliers (Letters of the Ministry of Finance of Russia dated 12.09.2014 N 03-03-РЗ / 45767 and dated 01.28.2013 N 03-03-06 / 1/38, Federal Tax Service of Russia dated 08.12. 2014 N GD-4-3 / [email protected] and UFNS of Russia for the city of Moscow dated 06.20.2011 N 16-15 / [email protected]).
What debt is considered past due
In other words, the provision of an asset of the company to partners is not paid until the final date specified in the contract. Overdue receivables - this is the inability of the debtor to settle accounts with the creditor on time. The unprofessional approach to investments is the result of the appearance of debts that are not paid on time.
Moreover, this value is divided into the following two categories:
- Doubtful. In this case, the delay was caused by fluctuations in the market and a drop in the solvency of the counterparty.
For these reasons, the creditor has doubts about the full return of the asset by the partner. Moreover, loans that are not secured by bank capital, property collateral or guarantor are initially considered doubtful. - Hopeless.
It can be compiled in the form N INV-17 (approved by the Decree of the Goskomstat of Russia of 08/18/1998 N 88) or in a independently developed form. Departments consider that in order to write off receivables, an organization should also have documents confirming the occurrence of this debt (Letters of the Ministry of Finance of Russia dated 08.04.2013 N 03-03-06 / 1/11347 and Federal Tax Service of Russia dated 06.12.2010 N ShS-37-3 / 16955).
Attention
We are talking about primary documents for a business transaction, as a result of which a debt was formed - invoices, acts on the performance of work or the provision of services, payment documents, etc. The agreement and the reconciliation act do not apply to such documents (Letter of the Federal Tax Service of Russia dated 06.12.2010 N ШС-37-3 / 16955).
Overdue payables: concept, types and terms
What debts are considered to be overdue Any commercial transaction is accompanied by the conclusion of an agreement between the parties, which stipulates the terms of the transaction: terms of fulfillment of agreements and penalties for failure to fulfill obligations. Such transactions include:
- contract of sale,
- service agreement
- lease contract,
- credit and mortgage agreements.
Types of arrears:
- Accounts payable is the debt of an individual or legal entity to a creditor.
What is overdue receivables? Most outstanding debts are written off after a three-year period. As a general rule, the limitation period is three years from the moment the debt was to be repaid (paragraph
1 tbsp. 196 of the Civil Code of the Russian Federation).
What is overdue receivables?
Tax officials agree that the debt by which the parties executed the reconciliation acts can be written off after three years from the date of the last reconciliation (Letters of the Federal Tax Service of Russia dated 06.12.2010 N ШС-37-3 / 16955 and the Federal Tax Service of Russia for Moscow dated 04.17.2007 N 20-12 / 036354). The courts hold the same opinion (Decisions of the FAS Uralsky dated February 1, 2013 No. F09-150 / 13 and dated February 16, 2010 No. F09-6971 / 08-C2, and West-Siberian dated August 11, 2006 No. F04-4912 / 2006 (25117-A81 -14) districts).
The regular signing of reconciliation acts allows organizations to constantly postpone the moment when debts need to be written off. But the statute of limitations cannot be extended indefinitely.
Since November 2013, it was established that this period cannot exceed 10 years (Clause 2, Article 196 of the Civil Code of the Russian Federation). So, after 10 years from the day when the debt had to be repaid, it must be written off in tax and accounting.
How many months are overdue payables
Most outstanding debts are written off after a three-year period. As a general rule, the limitation period is three years from the moment when the debt should have been paid off (Clause 1, Article 196 of the Civil Code of the Russian Federation). If, after three years, the receivable has remained outstanding, in tax accounting its amount is included in non-operating expenses, and in accounting, in other expenses (subparagraph 2 of paragraph 2 of article 265 of the Tax Code of the Russian Federation and paragraph 11 of PBU 10/99). This is what organizations do that do not create a reserve for doubtful debts. If the company forms it, it deducts the amount of bad receivables from the reserve (para.
2 p. 5 Article 266 of the Tax Code of the Russian Federation and paragraph 77 of the Regulation on the conduct of accounting and financial reporting in the Russian Federation). Accounts payable that are not repaid within three years are reflected in tax accounting in non-operating income, in accounting - as part of other (p.
18 tbsp. 250 of the Tax Code of the Russian Federation and Clause 7 of PBU 9/99).
How long does a receivable become past due?
Planning a schedule for paying off such debts is the task of managers and economists of the enterprise. Calculation of the value is carried out according to the formula: (360 * average annual amount of debt) / revenue, where the average annual amount is calculated by dividing the amount of debt by the number of working days. When the borrower does not fit into the prescribed time frame, management enterprises appropriate to take preventive measures. Such a policy will help prevent bad debts from becoming hopeless. Overdue accounts payable: concept, types and terms Caution Collection rules for violation of payment deadlines Determining the collection procedure and strategy plays an important role in situations where overdue receivables are recorded. Accountants add to the current documentation how many months the delay and balance of payments are and keep the primary securities on lending.
Overdue Accounts
In what cases apply special limitation periods. Why is it important to check whether there is a counter debt.
Info
What debts are written off only after 10 years from the moment of occurrence. The deadlines for submitting annual financial statements and income tax returns for 2014 are approaching.
Before compiling the organization, it is necessary to identify receivables and payables whose statute of limitations has expired this year. Such debts are considered hopeless to recover. They need to be written off in both tax and accounting (p.
18 tbsp. 250 and pp. 2 p. 2 Article 265
Tax Code, paragraphs 77 and 78 of the Regulation on the accounting and financial reporting in the Russian Federation, approved. By order of the Ministry of Finance of Russia dated 07.29.1998 N 34н). We will figure out how to do this correctly and what documents should be drawn up.
When accounts payable become past due
Therefore, he is not obliged to repeatedly reflect advances in non-operating income after the expiration of the limitation period. In accounting, overdue accounts payable are referred to as “simplists” to other income, and hopeless “receivables” to other expenses (paragraph 7 of PBU 9/99 and paragraph 11 of PBU 10/99). However, in calculating the “simplified” tax, an entity cannot include the written-off receivables in expenses. After all, the list of expenses recorded on the “simplified account” is closed and does not contain such type of expenses as losses from writing off overdue debts (Clause 1, Article 346.16 of the Tax Code of the Russian Federation). The Ministry of Finance of Russia adheres to a similar point of view (Letters of 03.23.2014 N 03-03-06 / 1/29799, of 07.22.2013 N 03-11-11 / 28614 and of 01.04.2009 N 03-11-06 / 2/57 )
The term may be interrupted if the debtor takes some steps to recognize the debt:
- Recognizes the lender’s claim in writing and signs a reconciliation statement of no payment.
- Concludes a restructuring agreement.
- Partially pays debts.
- Recognizes claims in part.
If one action from the list is present, then the statute of limitations is interrupted, and the countdown starts anew. Civil law provides not only an interruption, but also a suspension of the statute of limitations. How long does a receivable become past due? Untimely control of financial receipts and the growth of overdue receivables leads to bankruptcy of the company. Keep in mind that the state of such debts has been monitored for 5 years.
What debt is considered past due in accounting
If after this an overdue “receivable” remains in the accounting, only this amount the organization is entitled to include in non-operating expenses (Letter of 04.10.2011 No. 03-03-06 / 1/620). Read on e.rnk.ru. Even more useful materials. There is an opinion that the buyer's debt cannot be considered hopeless if he has relations with him under other agreements, under which he regularly fulfills his obligations.
Can an organization, after the limitation period, write off the debt of such a counterparty in tax accounting? Opinions are divided. Most visitors to the site www.rnk.ru (66%) believe that debt can be written off.
After all, the expiration of the limitation period is sufficient for that (subparagraph 2 paragraph 2 of article 265 and paragraph 2 of article 266 of the Tax Code). In addition, the Tax Code does not prohibit the inclusion of overdue receivables in expenses if there are other contractual relations with the counterparty.
Any commodity-money relations between individuals, an individual and an organization or two legal entities are regulated by the contract. It outlines all conditions for the provision of services or the provision of goods and necessarily determines the timing of payment of funds for services rendered, work performed or products provided. If payment is not made within the agreed period, payables are due.
If after a certain time the funds do not arrive at the counterparty’s account, the debtors are subject to additional penalties: payment of fines and penalties, increase in interest for these services and so on.
So, accounts payable is primarily a financial debt to an individual or legal entity. It is very important for any company or organization that accounts payable should be reflected in accounting documents.
Thus, accounts payable are understood as financial liabilities of the organization to individuals and legal entities. This refers to the production debts of the enterprise and invoices issued by creditors, which are paid in installments.
Types of debt
Accounts payable can have several varieties:
- unfulfilled obligations - this is the debt of the organization to suppliers or contractors when services were provided or goods were received and funds were not received due to not prepared payment documents on time or delayed payment by the bank;
- other debt- These are various claims, unclaimed amounts and debts.
At an enterprise, accounts payable may extend:
- in advance
- salary;
- goods and services not paid on time;
- delivered goods and performed services, the payment of which has not yet been made;
- insurance payments;
- calculations on budget payments.
In accounting, such types of accounts payable:
- on remuneration to employees of the enterprise;
- on taxes and other state payments;
- to contractors;
- to insurance companies;
- various funds;
- service providers and goods;
- to lessors.
In addition to this classification, a classification of accounts payable by maturity and, if possible, debt repayment is also adopted.
By timing Debt is divided into short-term - up to 1 year, and long-term - payments on such debt are expected for more than 12 months.
By execution debt can distinguish the following types:
- current debt - a type of debt for which all payments are planned and carried out exactly in accordance with the agreement;
- overdue.
What is overdue payables
If financial funds are not paid within the period established by the contract, then arrears are due. It becomes overdue the next day after the date indicated in the contract by the deadline for payment. After that, the lender can recover fines and penalties from the debtor and increase interest for the provision of services.
In addition, he can go to court to recover money from the debtor.
Consequences of Accounts Payable
Sooner or later, almost every company comes across this concept. The reason for this may be several factors. However, each head of the company should take into account some of the nuances that are associated with accounts payable.
- The reputation of the debtor badly affects the solvency of the organization, its financial stability. Accordingly, it is more difficult for such an enterprise to conclude work contracts and receive loans. Constant evasion of paying debts can lead to criminal liability.
- Some large companies are very principled in fulfilling contractual obligations.
- The head and accounting of the enterprise should take into account that you can also benefit from overdue debt. Therefore, you need to carefully monitor not only the receivables, but also conduct an inventory of all your accounts on time.
How to identify accounts payable
The amount of debt is usually found during the inventory of all accounts of the enterprise. It must be carried out every three months, but this rule is not always respected, and some companies take an inventory no more than once a year. As a result of the annual audit, all data must be entered in a special act. However, at the same time, there is just a chance of missing the debt payment date. Therefore, it is very important not only to identify, but also to monitor the timing of payment of all debts. To do this, take an inventory as often as possible.
To calculate the debt, make special calculations. The formula is taken as the basis, based on such calculations: the amount of debt is multiplied by its period. The resulting number must be divided by the cost of profit from the sale of goods or services rendered.
Overdue Limit
For these types of debt, the law defines the maximum permissible values, which are indicated by such terms:
- for wage arrears - not more than two months;
- taxes, transfers to the budget and extra-budgetary funds - not more than 3 months;
- debts to contractors and suppliers - no more than 3 months from the date of the last payment.
Definition of the maximum permissible value
The maximum allowable value for debt is determined in several stages.
First step
Payables payables are formed after the maturity date. This period must be specified in the employment contract or other internal documents of the company governing labor relations and obligations of the parties.
Second phase
At this stage, calculate the period and size of the debt. The law establishes special terms from 1 to 3 months.
Third stage
The debt is calculated in relation to the assets of the company, that is, to all its cash.
For any enterprise, it is extremely important to reduce the indicator of accounts payable. Thanks to this, you can have a certain amount of unpaid debts, which must be taken into account, controlled and able to negotiate with creditors.
If it is impossible to settle debts, a process of writing off debts is organized. For this, all documents are prepared confirming the hopelessness of debt collection. Write-off of this type of debt is always reviewed and occurs on an individual basis.
Despite the rapid development of various institutions designed to simplify and secure business activities, modern economic reality in Russia and the world is still largely based on the relationship between specific people representing a particular company. One example of such a situation is the common practice of having receivables and payables between partners, which occurs during their commercial interaction.
From an accounting point of view, normal or overdue receivables represent a certain amount of financial resources that a particular company “A” should receive from its supplier, partner, client or other counterparty as payment for goods or services already provided. For example, company “A” is a printing house, which, by the order of its long-time partner in the person of advertising agency “B”, printed a circulation of leaflets for conducting a promotion campaign in the amount of 10 thousand copies. Advertising agency “B” has already received the entire printed run, having taken it through a courier’s visit to the printing house’s office, but has not yet posted the funds foreseen as payment for the printed run in accordance with the terms of the agreement between the agency and “A” printing house.
It should be borne in mind that the composition of receivables within the framework of the accounting practice established in the Russian Federation includes a wide variety of types of property rights. For example, the terms of the contract concluded between the printing house “A” and the advertising agency “B” suggested the latter transfer a certain number of bundles of paper, that is, pay in kind. Therefore, the value of the property to be transferred must be included in receivables. At the same time, both citizens, that is, individuals, and organizations, that is, legal entities, can act as subjects of such debt, that is, persons who have outstanding debt to the company in question.
Accounts receivable
The accounting procedure in accordance with the standards of modern accounting in Russia involves the inclusion of receivables in the number of working capital components of the balance sheet of a commercial organization. In addition to this component, this section of the balance sheet includes inventories, planned costs that are expected to be implemented in the future, funds invested in the production of goods or services that are not yet completed, and some other components. Moreover, in the composition of working capital, it is necessary to calculate the receivables generated by both legal entities and individuals.
As a rule, the period during which such debt must be repaid and the procedure for its repayment are clearly fixed in a written agreement concluded between the parties, one of which acts as a creditor in this situation and the other as a debtor. In this case, the specific duration of the specified period, as a rule, is considered depending on the conditions achieved during the negotiations between the parties to the agreement. As a result, the terms and conditions of repayment of the existing debt are fixed in the contract. which suit both the creditor and the debtor.
Account receivable maturity
Depending on the specific circumstances surrounding the occurrence of financial relationships between the parties, for example, between two commercial companies, these terms can be very different. So, if we are talking about a small payment for a limited amount of work, both parties will be interested in its speedy transfer and closure of all necessary documents. If the amount of receivables generated between the companies corresponds to a large amount of cash, the parties can agree on the formation of a long maturity period, which can reach several months or even several years.
In addition, it should be borne in mind that the specific maturity of debt arising as a result of commercial relationships between companies can largely depend on the level of trust between partners.
So, for example, if they have mutually beneficial commercial relations for several years, the organization acting as a creditor may agree to provide the debtor with a sufficiently long period to fulfill their financial obligations. If we are talking about the first or second delivery of goods or services, and the business image of the partner has not yet been formed in the eyes of the supplier, it is highly likely that he will insist on the early repayment of the existing debt.
As a result of the agreements reached, the time period chosen by the parties to repay the financial obligations undertaken by the debtor may be different. Moreover, in the framework of established accounting practices in modern Russia, it is customary to divide receivables into short-term and long-term ones. Moreover, the category of short-term receivables includes payments that the creditor expects to receive within twelve months from the reporting date, and long-term payments that the creditor expects to receive after the expiration of the specified period.
Thus, if the period allotted for the repayment of the current debt to an entity that has a receivable before the company in question has not yet expired, the lender has no reason to worry and make a claim.
In this case, in the framework of the established accounting practice in Russia, such a debt is usually called normal.
Formation of overdue receivables
However, the situation looks completely different if the period allotted for the transfer or transfer of funds as payment for the delivered goods or services under an agreement between the parties has already expired, and the creditor has not received money from the debtor. In this case, such receivables are transferred to the category of overdue.
In particular, this applies to both short-term and long-term debts, since in fact the very fact of missing the deadline for making the payment specified in the agreement signed by the parties plays a role here. Moreover, in the framework of overdue debts in modern accounting practice, it is customary to distinguish two of its main types - doubtful and uncollectible types of debts.
The main types of overdue debts
The content of these two types of debts and the procedure for classifying one or another category are established by applicable law. Thus, the concept of doubtful debt appears in paragraph 1 of Article 266 of the Tax Code of the Russian Federation, registered in the list of regulatory acts of the country under the number 117-ФЗ dated August 5, 2000. In particular, the specified section of this regulatory legal act establishes that the category of doubtful debts includes all debt obligations for which transactions were not made within the time period established by the agreement between the parties.
At the same time, the amount of overdue debt is not critical, however, to be classified as bad debt, one more condition is required. We are talking about the fact that such a debt obligation is not accompanied by the presence of any security, for example, by providing a bank guarantee, transferring a pledge or issuing a guarantee.
Thus, it can be noted that virtually any overdue debt can be recognized as doubtful debt, which can be written off if the terms of the agreement between the parties did not imply that the debtor provided any security in relation to the financial obligations assumed. However, such indebtedness is considered to be receivable, which means that the procedure for its cancellation should be postponed until all circumstances are clarified.
In addition, it should be borne in mind that for certain categories of creditors, paragraph 1 of Article 266 of the Tax Code of the Russian Federation establishes special rules for classifying receivables as bad debts. In particular, they include such categories of legal entities as banking institutions, insurance organizations, credit consumer cooperatives, and microfinance organizations.
The Tax Code of the Russian Federation also identifies another type of overdue debt, which is even more difficult to obtain than doubtful debt. In particular, we are talking about the so-called bad debts. the main characteristics of which are recorded in paragraph 2 of Article 266 of the Tax Code of the Russian Federation. At the same time, to refer to the category of bad debts, which often have to be written off, this regulatory legal act provides for several key reasons:
- debt obligations, in respect of which the statute of limitations has been missed, as provided by applicable law. Clause 1 of Article 196 of the Civil Code of the Russian Federation establishes that the total limitation period is three years;
- debt obligations, the subject of execution of which is a liquidated or bankrupt organization;
- debt obligations in respect of which enforcement proceedings have already been instituted, however, having completed all the actions prescribed by law, the bailiff responsible for its conduct has decided to terminate the proceedings due to the impossibility of collecting such a debt. Moreover, such a decision may be made by the bailiff because of the inability to find out where the debtor is, or because of the lack of property and funds that can be used to pay off the debt.
If the debt is classified as bad, the creditor will have to write off the overdue debt.
Write-off of overdue debts in accounting and tax accounting
Molchanov Valery,
Monaco Olga
Service experts
Legal advice GARANT
The article is considered as a municipal unitary enterprise, having overdue (statute of limitations) receivables and payables, while there are no primary documents confirming the occurrence of debts, it can be written off in accounting and tax accounting.
In accounting, accounts payable (receivable) for which the statute of limitations has expired, is accounted for as non-operating income (expense) based on inventory calculations, written justification and an order (order) of the head of the organization.
In tax accounting, the amount of overdue payables should be included in non-operating income. Accounts receivable for which the limitation period has expired, in the absence of primary documents confirming the occurrence of arrears, cannot be included in non-operating expenses for profit taxation.
In its explanations on the timeliness of cancellation of receivables and payables, the Ministry of Finance of Russia recommends to be guided by the provisions of the Civil Code of the Russian Federation (Letter of the Ministry of Finance of Russia dated 01.29.2008 No. 07-05-06 / 18).