How to return a product

Industrial and commercial enterprises sometimes encounter situations when it is necessary to return low-quality goods to the supplier or accept them from the retail buyer. How to reflect the return in accounting?

Instruction manual

1

If you are a supplier, but for any reason your wholesale buyer had to return the goods, you will have to make a reversal of the previously received value of the goods and the amount of revenue received from its sale.

2

If both the sale and return of the goods were made within one year, you need to do this as follows:

- Debit 62 Credit 90.1 (adjustment of the proceeds received by you by the amount of the goods returned to you);

- Debit 90.2 Credit 41 (adjustment of the purchase value of the returned goods);

- Debit 90.3 Credit 68 (subaccount for VAT) (adjustment of the amount of VAT per product sold.);

- Debit 62 Credit 50 (51) (posting payment of money for returned goods).

3

If the return of the goods was returned not in the year of sale, but in the next year, the reversal adjustments will be reflected in this way:

- Debit 91 Credit 62 (reflection of the amount of loss of the previous year identified in the reporting period);

- Debit 91 Credit 41 (reversal adjustment of the value of the goods);

- Debit 68 Credit 91 (VAT subaccount) (posting of the presentation for deduction of VAT on the returned goods).

4

If your company, on the contrary, returns the goods to the supplier, this should be done as follows:

- Debit 76 Credit 41 Credit 19 (posting the amount of returned goods);

- Debit 68 Credit 19 (VAT sub-account) (posting in the amount of VAT);

- Debit 51 Credit 76 (posting the amounts returned by the supplier).

5

If you are an accountant in a store where defective goods were returned, make the following entries:

- Debit 90.1 Credit 76 (debt to the retail buyer is reflected);

- Debit 90.2 Credit 41 (posting, according to which the cost of goods sold is adjusted by the amount of the return);

- Debit 90.3 Credit 68 (subaccount for VAT) (accrued VAT is adjusted);

- Debit 90.2 Credit 42 (the posting on which the existing trade margin on the goods is debited);

- Debit 76 Credit 50 (posting, according to which money is paid for the returned goods);

- Debit 76 Credit 41 Credit 19 (posting the amount of returned goods);

- Debit 68 Credit 19 (VAT sub-account) (VAT reversal adjustment);

- Debit 51 Credit 76 (posting money back to suppliers).

note

The use of this right allows dispensing with an account 76. And then the transfer of things under a commodity loan agreement will be accompanied by only one transaction: Debit 58-3 Credit 10 (41). The ratio of this value to the value specified in the contract will give the amount of interest on a commodity loan. The amount of recognized interest is recognized by the transaction: Debit 76 Credit 91-1. - accrued interest for the granted trade credit.

Useful advice

The transfer of insurance payments to insurance companies is reflected in the debit of account 76 “Settlements with various debtors and creditors” in correspondence with cash accounts. In the debit of account 76 “Settlements with various debtors and creditors”, losses due to insured events (destruction and damage to inventories, finished goods and other material values, etc.) are written off from the credit of accounts for accounting for inventories, fixed assets, etc.