How to write off receivables?

Overdue receivables are debt that, in accordance with the Civil Code of the Russian Federation, its article 196 has not been paid for three years. Before you write off your receivables, you must also take into account the day from which the limitation period begins to be calculated - they are considered the date when a person learned of a violation by the debtor of his right. The same provisions are guided when writing off not only receivables on legal entities, but also on individuals. Documents confirming the beginning of the limitation period are contracts, warning letters, which were sent by the organization to the debtor. The limitation period may be interrupted for two reasons:

  • Recognition by the debtor of his debt, that is, during the three-year period, the debtor paid some sums from his debt (Art. 203 of the Civil Code of the Russian Federation).
  • The filing of a claim in the prescribed manner in the judicial authorities.

After the termination of the statute of limitationsThe new term is calculated in a new way, that is, if after 2 years the company received some amount of funds from its debtor or the creditor company filed a lawsuit, the limitation period was interrupted, and the debtor needs to pay its debt over the next three years old. The only exception may be the bankruptcy of the debtor or creditor, that is, upon liquidation of the enterprise, if it has no successors, the debt is canceled.

Reflection in accounting

Writing off unrealistic and overdue debts are carried out in accordance with Accounting Regulations N 34n - the rule on whether it is possible to write off receivables, and how this is done in accounting, is regulated by paragraph 77 of this provision. Thus, receivables are written off on the basis of a preliminary inventory, order or internal order of the head of the organization. The amount of the write-off is charged to the account on which the reserve for doubtful debts is taken into account. Please note that not all commercial organizations create a reserve account to which contributions are made during the period of the company's activity, the amount of which does not exceed 10% of the company's monthly profit.Therefore, in the absence of such a reserve, the write-off is carried out on non-operating expenses, which, in accordance with the plan of accounts, are recorded on the “Other expenses” subaccount of account 91.

If the organization has found a way to write off overdue receivables, then this does not mean that the debtor is not obliged to pay them. On account 91 or on a reserve account, receivables are retained for five years in the form in which they were deducted. This provision is enshrined in Chapter 26 of the Civil Code. For five years, the organization has the opportunity to again claim from the debtor the amount of debt if the situation in the financial position of the debtor has changed for the better, as it became known to the creditor. For five years, the amount of overdue receivables must be taken into account in the balance sheet of the organization.

Tax Accounting

In addition to accounting, doubtful debts, as well as the amount of overdue receivables should be taken into account by the organization and in the framework of tax accounting. To know how to write off receivables,it is necessary to examine the letter of the Ministry of Finance of Russia N 03-03-06 / 1/3 dated January 13, 2009, which states that the main criterion for declaring a debt hopeless is the expiration of the limitation period. And, regardless of whether the organization took any measures to collect this debt or not. Thus, after the expiration of the limitation period, the amount of the debt is taken into account in the item of expenses when taxing the profit of the organization.

If the organization includes overdue receivables in non-operating expenses for taxation, then each amount of the debt is confirmed by the relevant documentation. Thus, when it is possible to write off receivables, an enterprise or other legal entity, together with reporting to the tax inspectorate with contracts, confirming payment dates, acts of reconciliation of debts formed between the debtor organization and the enterprise, invoices, completed works or other documents .

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