About preparing invoices when receiving advance payments

Invoice for the balance of the advance - at the end of the tax period?

The organization received an advance, then part of the goods was shipped against the received advance amount. In this case, the shipment was carried out after five calendar days, counting from the date of receipt of the advance amount. These transactions were carried out in one tax period. Does the organization have the right to issue an invoice for the remaining advance amount at the end of the tax period?

Clause 1 of Article 167 of the Tax Code of the Russian Federation determines that the moment of determining the VAT tax base for the seller is the earliest of the following dates (unless otherwise provided by the Tax Code of the Russian Federation):

— day of shipment (transfer) of goods (works, services), property rights;

- the day of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services), transfer of property rights.

Consequently, upon receipt of an advance payment (advance), the taxpayer is obliged to calculate VAT on this amount and, on the basis of paragraph 3 of Article 168 of the Tax Code of the Russian Federation, no later than five calendar days from the date of receipt, draw up the corresponding invoice. The amount of tax in this case is calculated in the manner established by paragraph 4 of Article 164 of the Tax Code of the Russian Federation (clause 1 of Article 168 of the Tax Code of the Russian Federation).

According to paragraph 14 of Article 167 of the Tax Code of the Russian Federation, if the moment of determining the tax base was the day of receipt of advance payment on account of upcoming deliveries of goods (performance of work, provision of services, transfer of property rights), then on the day of shipment of these goods (performance of work, provision of services, transfer of property rights) rights) against the previously received prepayment, the moment of determining the tax base also arises.

Invoices issued and (or) issued upon receipt of payment (partial payment) for upcoming deliveries of goods (work, services) or transfer of property rights are registered by the taxpayer in the sales book in accordance with paragraphs 3 and 17 of the Rules for maintaining the sales book used in calculations for value added tax, approved. Decree of the Government of the Russian Federation dated December 26, 2011 No. 1137.

Based on a literal reading of the norms of paragraph 14 of Article 167 of the Tax Code of the Russian Federation, there are no exceptions to the general rule for cases where prepayment and shipment take place in the same tax period.

This opinion is shared by the tax authorities, explaining that upon receipt of payment (partial payment) for the upcoming delivery of goods (work, services), an invoice for the amount of such advance payment must be issued without fail, even if the shipment of goods (work, services) made no more than within five days after making advances (letters of the Federal Tax Service of Russia dated March 10, 2011 No. KE-4-3/3790, dated February 15, 2011 No. KE-3-3/354).

However, according to the Ministry of Finance of Russia, if the shipment of goods (work, services) is carried out within five calendar days, counting from the day of receipt of the advance payment (partial payment), invoices for such advance payment are not required to be issued to customers (letters from the Ministry of Finance of Russia dated 12.10. 2011 No. 03-07-14/99, dated 03/06/2009 No. 03-07-15/39). When using these clarifications, it must be taken into account that such a conclusion does not follow from paragraph 3 of Article 168 of the Tax Code of the Russian Federation, but is based on the fact that upon shipment, the supplier will in any case issue an invoice, so issuing an advance invoice at the same time does not make sense , but only increases and complicates document flow. In addition, letters from the Ministry of Finance of Russia are advisory in nature, do not contain legal norms or general rules specifying regulatory requirements, and are not regulatory legal acts.

The opinion of the judiciary on this issue is fundamentally different from the position of the regulatory authorities.

Arbitration courts, in the case where prepayment and shipment occur in the same tax period, generally do not recognize such payments as advance payments for the purpose of calculating VAT, while they rely on the position of the Supreme Arbitration Court of the Russian Federation, which is that an advance payment cannot be recognized , received by the taxpayer in the same tax period in which the shipment took place (Resolutions of the Presidium of the Supreme Arbitration Court of the Russian Federation dated March 10, 2009 No. 10022/08, dated February 27, 2006 No. 10927/05, resolutions of the Federal Antimonopoly Service of the Volga District dated December 22, 2008 No. A55-3598/08 , FAS Moscow District dated January 23, 2013 No. F05-15410/12, dated April 23, 2010 No. KA-A40/3908-10, dated July 17, 2008 No. KA-A41/5427-08, FAS Far Eastern District dated November 28, 2008 No. F03 -4597/2008). If you follow this position, the seller must issue invoices for the received advance payment only if the shipment of the goods for which it was received will take place in the next tax period.

Thus, in our opinion, the above position of the Federal Tax Service of Russia is the most consistent with the norms of Chapter 21 of the Tax Code of the Russian Federation, which do not make the obligation of taxpayers to charge VAT and issue invoices upon receipt of an advance payment dependent on the period (terms) of subsequent shipment of goods (works, services) ).

If an organization adopts a different procedure for issuing invoices for advances received, different from that recommended by the Federal Tax Service of Russia, namely, it issues an invoice for the remaining amount of the advance at the end of the tax period, then with a high probability this approach may cause a tax dispute. And in this case, there is a high probability that the organization will have to defend its position in court.

The texts of the documents mentioned in the experts’ response can be found in the GARANT legal reference system.

Features of prepayment recording

1. When issuing invoices, either the name itself or the general name of a group of goods is written in the column “name of the product...”, without requiring advance payment, contracts, or invoices.
2. In column No. 1, the name of the goods must correspond to the name confirmed in the agreement for the supply of goods. If such a name is general (for example, petroleum products, confectionery products). In addition to the name of the goods, the invoice must indicate the details of the agreement for the fulfillment of which an advance (partial payment) was received.
3. The “prepayment” entry in the advance invoice is created automatically.

If there is no data for advance invoices, then proceed differently . Individual entrepreneurs often have conditions that do not fall under a single procedure. Let us analyze special cases associated with the registration of a business transaction.

This will make it possible to understand how to deal with the account directly in the purchase book. To record actions and control them, these documents are recorded in a special journal specialized for account registration.

Invoice for advance payment

At the end of last year, a letter from the Ministry of Finance of the Russian Federation dated November 30, 2006 No. b/n was issued, which sets out the position of the financial department on this issue, taking into account the opinion of the tax authorities and established judicial practice. The position of the Ministry of Finance is as follows: In accordance with paragraph 1 of Art. 154 of the Tax Code of the Russian Federation, when a taxpayer receives payment, partial payment for upcoming deliveries of goods (performance of work, provision of services), the tax base is determined based on the amount of payment received, taking into account tax, with the exception of payment, partial payment received by the taxpayer applying the moment of determining the tax base in accordance with paragraph 13 of Art. 167 Tax Code of the Russian Federation. In accordance with paragraph 3 of Art. 168 of the Tax Code of the Russian Federation, when selling goods (work, services), transferring property rights, the corresponding invoices are issued no later than five days counting from the date of shipment of the goods (performance of work, provision of services) or from the date of transfer of property rights. The procedure for maintaining a log of received and issued invoices, a purchase book is established by Decree of the Government of the Russian Federation dated December 2, 2000 N 914 “On approval of the Rules for maintaining logs of received and issued invoices, purchase books and sales books when calculating value added tax” (hereinafter referred to as the Rules). Clause 18 of the Rules, when receiving funds in the form of advances and other payments on account of upcoming deliveries, provides for the preparation by the seller of an invoice, which is registered in the sales book. Clause 17 of the Rules obliges the seller to register “advance” invoices in the sales book in chronological order in the period when the advance payment was received, and clause 13 of the Rules - in the purchase book in the period in which the advance payment is “closed” by shipment. At the same time, the seller’s obligation to draw up an invoice upon receipt of advance payments by the said Rules is not related to the VAT tax period established by Art. 163 Tax Code of the Russian Federation. Neither the Tax Code of the Russian Federation nor the Rules stipulate a specific deadline for drawing up an “advance” invoice. According to Letter of the Ministry of Finance of Russia dated August 25, 2005 N 03-04-11/209, even if the prepayment and shipment of goods occurred within one month, that is, in one tax period, then an invoice for the advance received must still be issued, since there are no exceptions in The Rules do not provide for such cases. A similar point of view is expressed in the Letter of the Federal Tax Service of Russia for Moscow dated 02/11/2005 N 19-11/9796. At the same time, the position of the financial department and tax authorities on this issue is at odds with established arbitration practice. According to arbitration courts, payments for goods shipped in the same tax period cannot be considered advances, including if the funds were received before the goods were shipped. This means that such payments cannot increase the tax base in the manner provided for in Art. 162 of the Tax Code of the Russian Federation. At the same time, the judges proceed from the fact that in relation to VAT in accordance with Art. 163 of the Tax Code of the Russian Federation, the tax period is a month or a quarter, therefore, the tax base for this tax must be determined at the end of each calendar month or quarter. Consequently, for the purposes of calculating VAT, advance and other payments received on account of the upcoming supply of goods will be funds received by the taxpayer from buyers of goods in tax periods preceding the period in which the relevant goods are sold. This conclusion is contained, for example, in the Resolution of the FAS Moscow District dated 03/06/2006 N KA-A40/894-06 in case N A40-41215/05-107-318, the Resolution of the FAS Volga District dated 01/24/2006 N A72-6633/04 -7/498, Resolutions of the Federal Antimonopoly Service of the East Siberian District dated January 24, 2006 N A33-16072/05-F02-7021/05-S1, dated September 15, 2004 N A19-5169/04-30-F02-3783/04-S1 , Resolutions of the Federal Antimonopoly Service of the West Siberian District dated 02.13.2006 N F04-233/2006(19490-A03-31), dated 09.22.2004 N F04-6802/2004(A46-4924-31), Resolutions of the Federal Antimonopoly Service of the Ural District dated 03.02. 2004 N F09-50/04-AK. Thus, payment received earlier than the shipment of goods (performance of work, provision of services), but within the same tax period, is not an advance, therefore, the requirements of the said Rules do not apply to such payments and there is no need to prepare an invoice. If the shipment of goods (performance of work, provision of services) took place partially in the same tax period in which payment was received for the upcoming delivery of these goods (work, services), then an invoice can only be drawn up at the end of the tax period for the received payment only for the amount for which the shipment of goods (work, services) was not made before the end of the given tax period. However, taking into account the position of the financial department and tax authorities, the taxpayer may have to prove the legality of such a position in arbitration court. __________________ Olga Matteis, Director of the Audit Department of AKG “SV-Audit”

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Why control buyer advances?

Tatyana Anatolyevna Savchenko, financial director of Retail Service Group of Companies.

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Accounts payable from customers are perceived by most entrepreneurs as a free monetary resource, but they forget that this resource is given for a very short time and also costs money, because All advances will be subject to either VAT or a single tax. Meanwhile, the buyer's advance is rather an unreported profit of the division. Therefore, if at the end of the month we have advances, then on the balance sheet we have a loss in the amount of accrued (on the entire amount) VAT (for OSNO) or EN (for simplified tax system). But the buyer’s accounts payable may then not be used by the buyer to cover future sales, and therefore may not be profit at all.

In addition, if you do not control the timing of fulfillment of obligations, then overdue advances carry other commercial risks, which seem quite difficult to assess. After all, untimely closing of advances is accompanied by the risk of losing the client’s trust and developing a negative reputation in the market. On the other hand, untimely processing of the advance carries the risk of non-acceptance of the services provided by the buyer and the return of the advance for the services provided, which leads to a decrease in the financial result and an additional burden on the accounting department for accounting for claim transactions and filing updated tax returns.

And is it worth keeping such a liability on the balance sheet? Let's try to calculate the diversion of funds for tax expenses for the short-term period, in which we have unclosed advances from buyers:

Let's simulate the situation using the example of sales of goods worth 100,000 rubles. (including VAT) with a cost of RUB 59,300. (without VAT):

If the shipment is not completed, then you will have to pay VAT on the advance - 100,000 / 118 * 18 = 15,254 rubles, and we will not see income from this transaction in the profit and loss statement.

If an organization that has overdue an advance payment is taxed under the simplified tax system, then the budget will need to pay the same amount as when making a sale (6% of 100,000 rubles = 6,000 rubles), only the profit will also not be generated, and the risk of return of funds will be big enough.

Thus, it turns out that at the end of this reporting period, taxes will need to be paid to the budget by 5,585 rubles more under the TSNO, and 6,000 rubles more under the simplified tax system. you must pay before the transaction is completed. It may turn out that in the next quarter you will have to pay these taxes and return the funds to the buyer in full... and then, perhaps, wait for the return of these taxes from the budget. The period for which these funds are diverted is determined by the turnover period of the buyer's accounts payable (the deadline for fulfilling the obligation to supply the goods) plus the period before filing a declaration for this tax. In conditions of cash shortages, such operations are extremely undesirable for the organization.

Of course, receiving an advance is insurance for the transaction and, in this situation, it is within our power to fulfill obligations in a timely manner, avoiding delays and interruptions in supplies.

Such a calculation forces you to treat the advances you receive with more attention than to enjoy the “free” resource. To do this, you need to understand the reasons for the occurrence of overdue advances. The reasons may be the untimely fulfillment of obligations on the part of our company, and the erroneous transfer by clients of amounts in an increased amount, and the inattention of the accountant when closing sales in advance (if the company keeps records of obligations under the contract in the context of each document), and even untimely written implementation (especially if the organization provides monthly maintenance services, and under the terms of the contract, the client pays the subscription fee in advance).

To minimize the risks associated with the occurrence of overdue accounts payable, it is necessary to clearly identify the incoming payment at the time of payment and timely take steps to process advances. For this purpose, it is advisable to regulate this process. And since customer accounts payable are closely related to accounts receivable, it is better to regulate work with accounts payable together with the regulation of work with accounts receivable in one document.

To control advances from buyers, the regulations on control of accounts receivable were supplemented with provisions on working with advances from buyers and the form of the debt register was changed.

Excerpts from the regulations for working with receivables and payables

1. GENERAL PROVISIONS

1.1. These regulations are subject to execution in all divisions of the Retail Service Group of Companies.

1.2. Responsible for the implementation of these regulations are the heads of the main business areas, who appoint specific executors responsible for monitoring advances from among the employees subordinate to them.

1.3. The chief accountant is responsible for the timely implementation of offsets to close accounts receivable.

1.4. The financial director is responsible for agreeing and updating these regulations.

2. OBJECTIVES OF CONTROL OF ADVANCES RECEIVED FROM BUYERS:

2.1. Timely closure of customer accounts receivable;

2.2. Timely fulfillment of the company’s obligations to supply goods and provide services or return excess amounts transferred.

3. Rules for monitoring buyer advances

3.1. Advances received are accounts payable and are taken into account as liabilities on the balance sheet of a specific business area in the context of contracts at the time of their formation (receipt of payment from the buyer).

3.2. In the case of receipt of funds without reference to an order or sale, the funds are accounted for as an advance payment under the specified agreement and are subsequently subject to offset against payment for sales using the FIFO method.

3.3. If there is no sales document or Order for this counterparty, then such a document must be created by the manager within 4 days from the date of receipt of the advance, or a letter must be prepared regarding the offset of this amount under another agreement and agreed upon with the buyer, otherwise such advances are considered to have been transferred incorrectly and, after reconciliation, are subject to return to the sender of funds.

3.4. The accountant who records the relevant bank statement is responsible for determining the department that receives the funds.

3.5. If upon receipt of funds it is impossible to determine the department receiving the funds, then such advances received are accounted for in a separate subaccount to account 76. A reconciliation is made and signed with the sender of the funds by the accountant, possible debts with other organizations are identified for offset, otherwise the amount of overpayment is subject to returned to the counterparty by his letter, or independently after 1 month from the date of receipt. The chief accountant is responsible for the timely return of amounts received, erroneously transferred by counterparties.

3.6. Time limits for monitoring advances received. The critical closing date for advances received is:

3.6.1. If the advance payment was received according to the “Buyer’s Order” - the date specified in the “Shipment” field;

3.6.2. If the advance payment was received without a “Buyer’s Order”, or the date is not specified in the “Shipment” field, then the date of receipt of the advance payment plus 30 days is taken.

3.7. To monitor the timeliness of closing accounts receivable from customers, the report “Register of accounts receivable and payable by customers” is used.

3.8. Accounts receivable managers are responsible for the timely use of the buyer's advance to close its receivables.

3.9. The report “Register of accounts receivable and payable by customers” with comments on overdue debts is provided by e-mail (Excel format) to the financial director weekly, on Thursdays until 14-00.

The developed register of receivables and payables of customers allows you to simultaneously group both receivables and payables of customers in the context of different divisions and legal entities of the company:

Moreover, if the advance payment is overdue, then the closing date of the advance payment is highlighted in red.

The report grouped in this way allowed us to see in one place the picture of mutual settlements for all buyer contracts. Working with this report made it easier to find information about unclosed sales documents and immediately eliminated questions about the timeliness of incoming payments for them. Since the report allows you to see information in the context of all legal entities of the company, it has become much easier to prepare documents for offset of counter obligations.

Regulations for the control of advances allowed the company's accountants to more accurately and unambiguously classify the incoming payment: now the accounting department accounts for excessively transferred funds in a separate subaccount to account 76 and does not charge VAT payable on them, which allows us not to divert funds to pay VAT or the single tax ( under the simplified tax system) according to them. And this is especially true in conditions of a shortage of free funds.

As a result of the implementation of this regulation, the measures taken to inventory accounts payable and return excessively transferred amounts previously taken into account in advances on account 62, made it possible to simultaneously reduce VAT payments to the budget by almost 70 thousand rubles.

Altai Financial Consulting Center

Advance and tax accrual

According to the law, if the seller has received an advance from the buyer, he must remember to charge VAT on it.

So, on the basis of paragraph 2 of Art. 153 of the Tax Code of the Russian Federation, when determining the tax base for VAT, revenue from sales (sales) is determined based on all income of the payer associated with settlements for payment for goods (work, services) received by him in cash or in kind.

Moreover, as a general rule, the law considers the earliest of the following dates to be the moment of determining the tax base (clause 1 of Article 167 of the Tax Code of the Russian Federation):

• day of shipment or transfer of goods/works/services;
• the day of payment or partial payment for upcoming deliveries of goods/performance of work/provision of services.

Simply put, having received an advance payment for the supply of goods, performance of work or provision of services, the seller must charge VAT for payment to the budget. The calculated rate will be 20/120 or 10/110 (clause 4 of article 164 of the Tax Code of the Russian Federation).

The choice of tax rate (0%, 10% or 20%) depends on the rate at which the law (Article 164 of the Tax Code of the Russian Federation) applies to the sale of specific goods, performance of work or provision of services for which the seller (supplier) received an advance .

Rules for filling out the document: step-by-step instructions

First, let's fill in the rows , they are located in front of the tabular part:

• Line No. 1 – serial number (taken from the list of documents), date.
• Line 2, 2a, 2b – location and details of the seller.
• Line 4 – write the location of the final recipient, if the final addressee is also a consumer of the product, then put a dash.
• Line 5 – here we write the number and date of the document. When issuing an invoice based on several payments at once, all payments without exception are indicated. If the advance payment for the goods was not made in cash, only then a dash is added in column 5. Thus, an invoice can be issued only upon receipt of payment.
• Line 6, 6a, 6b – location and details of the buyer.
• Line 7 is the code of the monetary unit, if it is the ruble, then 643.
• Line 8 – suppliers under a government contract show the code of such an agreement.

Now let's start filling out the tabular part of the form. In this part of the form, only sections 1, 7, 8 and 9 are filled out, and dashes are added in the others.

1. Column 1 must indicate:
   • Product Name;

   presentation of work performed, services provided, property rights.

Will it be possible to write the phrase “Advance payment” instead of the product name? In another column, it is possible to write the phrase “Advance payment under the agreement...” without providing the name of the goods (works, services). Such wording in an “advance” invoice is quite possible. In such a case, in column 1 we advise you to write the phrase “Advance payment for... (name of product required) under the contract...”.

If the seller clearly understands for which goods (works, services) payment was received from the consumer, it is possible to indicate their direct names in column 1 of the invoice. In this case, it is necessary to make an integral note that the amount of tax is calculated directly from the amount of the purchased prepayment.

2. Columns 2, 3, 4 (unit of measurement, number, price per piece of measurement) do not need to be filled out. In addition, the data in columns 10 and 11 (country of origin of the goods, customs declaration number) is not indicated. They need to have dashes. When calculating VAT specifically on the prepayment amount, the estimated tax amount is used.
3. Section 7 – the estimated tax rate is indicated . It is possible to make a note in the act, say, accepted from such and such.

The completed form must be signed by the head of the company and its chief accountant , or in the absence of the latter, the responsible person.

You will find a detailed procedure for filling out the ASF here.

Deadline for issuing an advance invoice

But when is the invoice issued for the advance payment due? According to the law, when selling goods, performing work or providing services, an invoice is issued no later than 5 calendar days, counting the day of shipment of goods (performance of work, provision of services).

Accordingly, an “advance” invoice must also be issued within 5 calendar days from the date of receipt of the advance payment. This is stated in paragraph 3 of Art. 168 Tax Code of the Russian Federation.

When the last day of the period for issuing an advance invoice falls on a weekend or a non-working holiday, it must be issued no later than 1 working day following such a day (clause 7, article 6.1 of the Tax Code of the Russian Federation).

Example:

Issue an advance invoice no later than five calendar days from the date of receipt of the advance payment (clause 3 of Article 168 of the Tax Code of the Russian Federation). For example, the advance payment was received on January 29, 2021. You can issue an invoice on any of the following days: January 29, January 30, January 31, February 1 or 2, 2020.

What is it needed for?

A document on the basis of which the buyer of goods will be able to withhold VAT. When a retailer receives advance payment for its own goods, what should it do with it? She must issue an invoice to the consumer company. It makes no sense whether the seller shipped the goods or not. This will be considered an advance invoice.

If for any reason the seller returns the advance payment or after shipment there is a balance of the advance payment, then in both cases the buyer does not need to issue an invoice.

The peculiarities of filling out the document are associated with the fact that it will need to reflect the circumstance of receiving an advance payment. For this purpose, on the basis of which the advance was paid are recorded in the invoice

Read more about why an advance invoice is needed here.

When it is not necessary to issue an invoice for an advance payment

An invoice for an advance payment for a transaction is not issued if the advance is received against future supplies of goods (performance of work, provision of services) that satisfy one of the following conditions (paragraph 3 of clause 17 of the Rules, approved by Decree of the Government of the Russian Federation dated December 26. 2011 No. 1137):

• have a production and manufacturing cycle duration of more than six months;
• are taxed at a VAT rate of 0%;
• are not subject to taxation (exempt from VAT).

According to the Russian Ministry of Finance, it is also not necessary to issue an invoice for prepayment if the shipment occurred within 5 calendar days from the date of receipt of the advance payment for this shipment (letter dated November 10, 2016 No. 03-07-14/65759).

Thus, the deadlines for issuing advance invoices have not changed recently.

If you find an error, please select a piece of text and press Ctrl+Enter.

Features

An advance invoice differs from an ordinary invoice in the reason for which it is issued, the period of formation and certain design elements. So it is set:

• upon receipt of funds from the consumer as a result of deliveries;
• regardless of the shipment of goods;
• without specifying individual details.

Please note that the amount of VAT must be included in it .

Reference! An advance invoice, as a rule, contains the same power as a shipping invoice, for this reason it should not be neglected.

If there was an error in the main invoice, you will need to issue a corrected invoice; if the terms of the transaction have changed, you will need to issue an adjustment invoice. As a rule, the corrected invoice has the same appearance as the original one. Even the immediate date and number in lines 1 of the original and corrected invoices are the same. And the difference between an invoice and a corrected one:

1. the required details are indicated very correctly;
2. line 1a is filled in, where the number and date of the correction are given.

Actions after receiving ASF from the supplier

An invoice for an advance payment received by the buyer must be registered in the prescribed manner (for details about what an advance invoice is and what it is needed for, read, and from this article you will learn in what cases it is issued and what is the time frame for issuing this document) . To do this, you must register it in the purchase book, where you should note the appropriate information about the account.

If you work with documents in electronic form, you can register an account using the appropriate programs. This can be done either manually or automatically.

Then, at the end of the current period in which the document was drawn up, it must certainly be submitted to the local inspectorate for its registration and the possibility of exercising the rights to the necessary deductions. No other actions are required with issued advance invoices.

When a seller receives money from a client, he must do the following:

1. Subtract VAT from the received amount and make an entry for accrual for payment (examples of entries below).
2. Prepare an invoice in 5 days (you can find out how to fill out the ASF correctly and within what time frame, and we talked about how to use indexes and prefixes to number various types of invoices).
3. Record this account in the sales ledger in the quarter in which the money is received.
4. On the day of actual shipment, issue the s/f again on account of the advance payment accepted earlier.
5. Send the previously accrued VAT for the shipment for payment.
6. And the VAT calculated upon receipt of the prepayment amount is sent for deduction.
7. Record the advance invoice in the appropriate purchase ledger.

The buyer needs:

• accept for deduction the VAT noted in the advance invoice received from the supplier;
• allocate VAT on accepted goods and materials invoiced before the payment was made and send it for deduction;
• restore advance tax.

In what cases is it required?

It is known that an invoice is issued for a specific advance payment . Many accountants issue an invoice for the prepayment made directly in the accounting program. However, it is printed only at the request of the consumer. They feel much calmer this way. Then they strictly comply with all the requirements of the Tax Code.

Read about in what cases and when an advance invoice is issued here.

If there is an agreement

At the time of receipt of goods directly subject to VAT at various rates (10% or 18%) on account of the completed shipment, the procedure for filling out column No. 1 of the invoice depends on the terms of the existing agreement. And if the data contained in the contract makes it possible to divide the volumes, as well as the cost of goods directly subject to VAT, they will need to be separated into separate items in the invoice.

If such a distribution is unrealistic, indicate in the invoice the direct name of the goods , and also the VAT rate of 18/118. At the time of issuing an invoice for prepayment (incomplete payment) under contracts that take into account various delivery times for goods, the funds for the advance payment (incomplete payment) are not required to be divided.

If there is no contract

An invoice must be issued for prepayment, even if an agreement with the consumer has not been concluded or if the agreement does not require the transfer of an advance payment. Whenever funds are received related to further supplies of goods, the seller is obliged to generate an invoice and present it to the buyer.

Otherwise, the seller may be held liable for taxation for severe non-compliance with the laws of accounting for profits and objects of taxation, which led to a direct understatement of the tax base. The direct buyer, if there is no provision in the contract for the direct transfer of the advance payment, the seller will need to prove in court his right to tax deduction of VAT from the advance invoice.

In what reporting documents is it recorded?

After the prepayment for the transaction has been made and the ASFs have been created, they need to be registered.

For this purpose, as already mentioned, purchase/sales books held by the buyer and supplier are used.

Also, instead of using books, it is possible to register accounts using electronic programs (for example, 1C). How to reflect the receipt of these documents will be described below.

At the same time, regardless of the method used to prepare invoices, the period for their registration should not exceed five days from the date of receipt (in some cases determined by law - within a month).

Registration options

When registering an account in the 1C program, there are several ways to register it.

1. Always register when receiving an advance. If you select this option, all advance invoices received will be recorded automatically for each accrued amount, with the exception of advances that were offset on the day of receipt.
2. Do not register credits within 5 days. In this case, invoices will be created only for those amounts that were not credited within five days from the date of receipt. This method helps to implement the requirement in the Tax Code to register accounts within 5 days (Article 168).
3. Amounts credited before the end of the month are not recorded. This registration option is not suitable for all cases (otherwise you may receive a fine for late registration).
   You need to choose it only in situations where the supply of goods or services occurs continuously in relation to the same person.

   It is suitable for advance payment for Internet access, communication, electricity services, as well as in other similar situations.

   The fact that such a practice is not a violation was clarified in a letter from the Ministry of Finance dated March 6, 2009. In this case, invoices of this kind must be issued no later than the 5th day of the month following the month of transfer of the advance.

   For example, the services of an Internet provider were paid in advance for July. In such a situation, the advance invoice will need to be issued no later than July 5 of the same year.

4. Do not register accounts offset until the end of the tax period. The use of this clause is quite controversial and may cause disagreements with the tax authorities. It should be used only by those companies that are ready to defend their position.
   The ability to choose this option is due to the following: there is an opinion that the name “advance payment” should not apply to payments accrued in the same period in which the shipment occurs, since then they do not correspond to the very concept of “advance payment”.

   And if so, then there is no need to prepare advance accounts for the current period. However, it should be said once again that if you choose this option, disputes with the tax service will be ensured.

5. Do not register incoming payments as advance payments at all. It is suitable only for organizations designated in the Tax Code in Article 167. These include companies with a long production cycle of final products exceeding 6 months.

In manual mode

There are two main ways to register ASF in the 1C program. The first one is the manual method. It is suitable when you have to register a small number of accounts. Instructions:

1. In order to draw up a document in this way, you need to select the button in the documents for advance payment section: create based on. From the options that appear, select “invoice issued.”
2. Once this item is selected, a separate account window will appear.
3. After this, you only need to check that all the data is filled out correctly and click on the “conduct” icon, after which the document will be completed.

Purchase ledger, sales ledger, invoice ledger

The purchase book, sales book, and invoice journal are implemented in the program in the form of reports.
We will create a purchase book according to Resolution No. 1137, for the 3rd quarter of 2012 (the “Purchase” tab or the menu: “Purchase - Maintaining a purchase book”). It contains 4 entries, 2 of which are for advance payment.

Now let’s create a sales book according to Resolution No. 1137, for the 3rd quarter of 2012 (the “Sales” tab or menu: “Sale – Maintaining a sales book”). It contains 3 entries, 2 of which are for advance payment.

We will create a log of received and issued invoices in accordance with Resolution No. 1137 (it is available both through the “Purchase” and “Sale” tabs, and through the menu: “Purchase – Maintaining a purchase book” and “Sale – Maintaining a sales book”). All invoices are reflected, including advance payments.

Automatically

In a situation where there are a lot of incoming invoices, registering them manually becomes inconvenient and time-consuming. In this case, it is better to set automatic registration. Instructions:

1. To do this, you need to go to the “banks and cash desks” subsection, where you can find “advance accounts.” After selecting this item, a window will appear in which you should select the period for which documents will be generated.
2. Then you need to click the “fill in” button and select all unregistered accounts. At the same time, the list can be easily adjusted and, if necessary, delete unnecessary ones or add new documents.
3. When all the necessary advance invoices from the supplier have been selected, all that remains is to click on the “execute” button, after which they will be processed - this way all the rules of ASF offset will be observed. The list of all completed documents can be opened at any time by clicking on the link: “ open a list of advance accounts."

Which transactions correspond to the issued document?

When an advance payment is received, a transaction is generated that records the funds received in the account of the service provider (seller). Then, after the advance invoice is prepared by the seller and received by the buyer, the completed invoices are posted when they are registered.

This can be done either on an individual account basis or in a generally automated manner (as explained earlier).

The seller's wiring will be something like this:

• debit 51 Credit 62ав – advance money received from the buyer;
• debit 62av. Credit 68 – the accrual of added tax, which is allocated from the advance payment, is noted;
• debit 62 Credit 90.1 – income from the sale of inventory and materials is noted in the advance account;
• debit 90.3 Credit 68 – VAT is charged on the sales transaction;
• debit 68 Credit 62av. – advance VAT is accepted for deduction;
• debit 62av. Credit 62 rub. – prepaid money is counted.

And in accounting:

• Deb. 60 av. Credit. 51 – receiving an advance.
• Deb. 68 Cred. 60 Av – tax on prepayment is deductible.
• Deb. 19 Cred. 60 rubles – tax is allocated according to the goods and materials received.
• Deb. 68 Cred. 19 – income tax is accepted as a deduction.
• Deb. 60 av Cred. 68 – advance VAT restored.
• Deb. 60 RUR Credit. 60 Av – advance payment is counted.

As can be seen from the content of this article, the use of electronic programs for registering various accounts (including advance accounts) is preferable. It allows you to store all the necessary information in one place, and due to the interconnectedness of documents, the possibility of making errors in them is minimal.

In addition, mass automatic filling of documents allows you to significantly save working time.