71 account. 71 account

At each enterprise, from time to time, there is a need to provide cash to employees for various purposes, such as:

• advance for travel expenses;

• advance payment for administrative and economic needs, purchase of inventory items, spare parts, postage and representation expenses, as well as all kinds of fees.

So, we'll figure out who is eligible to receive the funds for the report, what are the reasons for this, how to properly issue documents and accounting operations for the issue of money, and also make an up-to-date report on the costs incurred.

Accountable persons - who are they?

There are cases when an inexperienced or negligent accountant writes out a sum of money to the representatives of the supplier or the customer and assigns it to 71 accounting accounts. Basically, this is the sin of small businesses, believing that in this way they settled with the lender or paid the order. This is a gross violation of legally established regulations.

Accountable persons are necessarily employees of the enterprise. In addition, the issuance of money for the report precedes the conclusion with the employee of the contract on liability, which determines its measure and stipulates the rights and obligations of the parties.

As a rule, a circle of materially responsible and accountable persons is established by the head, issuing an appropriate order, annually updated. Accounting for calculations on accountable amounts reflects 71 accounts.

Travel expenses

Accountable cash amounts for travel expenses are issued from the cashier's office or transferred to the card of the employee on the basis of a written application with a resolution of the head. Of course, in this case, there is no need to conclude a contract on financial responsibility, after all, any employee of the company can go on a business trip, and the management order is the basis for the trip, and the account is reflected in the operations 71.

Basis for payment of funds under report

Such extradition is regulated by the current legislation, and the main rules of this operation are the following:

• it is forbidden to issue documents for the payment of money for a report, if the employee did not report for the amounts received earlier;

• money is given out on application, endorsed by the head with a note on the amount of the amount and the period for which it is issued;

• a report on the expenses incurred is drawn up and signed within 3 days after the end of the business trip or the expiry of the term set by the head.

Documenting

So, after the expenses are incurred, or upon arrival from the business trip, the employee must report within 3 days and submit to the accountant an advance report of the AO-1 form with the attached documents proving the consistency of the spent expenses.

In the advance report, the totals are counted, and the result is output:

• there is no balance of money, as all funds have been spent;

• there is a balance, since the expenditure is less than planned;

• Overruns of issued funds, as they are expended in a larger amount.

The balance is returned to the firm's cashier by PKO, and the amount of overspending is issued in the hands of the RKO. All accounting operations for reporting amounts reflect 71 accounting records.

In case of non-observance of the rules established by the legislation, the amount of reporting assets is withheld from the salary or is reflected as a deficit and subsequently recovered by a court decision.

How the account works

The account under consideration summarizes the information on settlements with employees on funds issued under the report. These amounts are included in the debit of account 71, corresponding to cash accounts, for example, 50 - "Cashier". Documented amounts of expenses are debited from the credit of account 71 to the debit of expense accounts, for example 10 - "Materials", etc.

The amounts returned by the employees are debited from the credit of account 71 to the debit of account 94 - "Inadequacies". Subsequently, these amounts are deducted from the loan 94 to the debit account 70. If the deduction from wages for some reason is impossible, then the account 73 is debited and the question arises of reimbursing the enterprise for the damage.

It should be noted that analytical accounting is conducted separately for each employee with mandatory deduction of monthly totals. Mechanized accounting using the "1C" program allows you to compile the necessary document in terms of issued or written off amounts, set a time range or specify a list of accountable persons, all data are united by an account card 71. The accountant must report for each amount issued, drawing up an advance report within the allotted time . Analytics is combined into a journal-warrant for account 71, which is compiled at the end of the reporting period.

Accounts

Each advance report is processed by the accountant from the posting of data to account 71. Postings reflecting operations for accounting of reporting amounts:

• Дтт 71 - К-т 50 - the reporting sum is given out from cash department.

• Дтт 71 - К-т 51 - the sum is transferred from the current account to the card of the employee.

• Д-т 41 - К-т 71 - purchase of goods from the accountable amount.

• Дт т 10 - К-т 71 - purchase of materials.

• Д-т 26 - К-т 71 - general business expenses are written off , for example postal services are paid.

• Дт т 20 - К-т 71 - Travel expenses are written off.

• Дт т 50 - К-т 71 - the rest of the accountable amount was contributed by the employee to the cashier.

• Дт 70 - К-т 71 - the rest of the accountable amount is withheld from the employee's salary.

• Дт т 94 - К-т 71 - the employee did not report about the spent expenses in the established term.

• Дт т 73.2 - К-т 71 - deduction of shortage from the employee.

• Дтт 91.2 - К-т 71 - referring the amount of shortage to other expenses, if the recovery is impossible.

Features of account №71

The account is active-passive. Above we have considered the traditional accounting entries on account 71, when it appears as active, that is, it is debited when receiving money and is credited when write-off costs. As a passive account is used less often, but such cases happen.

For example, there is no money at the checkout of the company, and it is necessary to go on a business trip, and the employee agrees to use personal finances with the condition that upon returning the travel expenses will be paid. In this case, the wiring of the D-t 20-K-t station 71 is compiled.

In this case there were expenses before their payment, and the enterprise undertakes to reimburse them. In this example, the account 71 is passive.

If the firm is a VAT payer

If the company is a VAT payer and accumulates the amount of tax paid for goods or services on account 19 - "VAT", then when purchasing materials or paying for services out of reporting amounts, it is necessary to reflect the amount of VAT by posting D-t 19 - K -t 71 - on Amount of tax paid.

Reason for write-off of expenses

Accepting an advance report, the accountant checks the supporting documents. This can be invoices, invoices and invoices for the acquisition of property, cash and commodity checks, confirming the payment for all kinds of services, i.e., primary documents, which are the fundamental basis for assigning costs to 71 accounts.

The main requirement for conducting business transactions in accounting is a written confirmation of the transaction. In other words, all expenses specified in the advance report must be justified and confirmed by primary accounting documents, correctly issued, with filled in requisites, necessary signatures, seals and stamps. Expenses not confirmed by documents or confirmed by undocumented securities can not be accepted and reflected in the accounting, and this is fraught with unpleasant consequences. An employee from his pocket will pay such costs.

Therefore, the accountable person should seriously approach the issue of issuing an advance report, in a timely manner, demand correctly filled out documents for the expenses incurred.

Accountant's actions

The accountant who accepts the advance report checks the arithmetic calculations, the availability and execution of the supporting documents, in the special section makes notes on the reflection of expenses, verifies the 71 accounts, confirming the posting by his painting. Then he writes out the incoming or outgoing cash order for the amount of discrepancies between the amount issued and spent, hands it to the cashier and closes the advance report.

What you need to remember when tax audits

The period for which the accountable person receives funds for business is not established by law. It can be determined by the head of the organization. However, the law does not interpret this as a duty of the director. When determining the term, the employee must report on the expenses within 3 days after the expiry. And if the deadline has not been set, then, even for a long time not reporting on the accountable amount, it can not be violated. Therefore, if a similar period is not determined in the company, then the tax authorities' claims regarding the long-term presence of the accountable amount on their hands will necessarily be presented, although they can not be considered justified.

Identifying such cases, the tax authorities qualify them as receiving an interest-free loan, demanding to determine the amount of material benefits that the employee incurred, include it in his income and to withhold personal income tax.

This requirement of the tax authorities is illegal, since the notion of material benefit established by Art. 212 of the Tax Code, does not include the situation described above. In accordance with the Tax Code, the material benefit is income received:

• from savings on interest for using the funds of credit institutions;

• from the acquisition of property or services under a civil law contract;

• from the acquisition of shares or other securities.

Tax authorities' arguments in this case are illegal, since loans in credit institutions are formalized by the contract, and the issuance of the accountable amount is carried out upon application. But in the interests of the company's management, it is correct to draw up documents for the issuance of funds under report in order to avoid claims of inspection bodies.