How are accounts receivable collected?

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Accounts receivable . In the business activities of the company, it is necessary to expand the market to offer and sell its services and goods. It is necessary to enter into agreements under which payment for goods and their transfer are carried out at different times. Thus, accounts receivable are formed.

Origination and return of receivables

Return of accounts receivable is a relevant topic for all companies that enter into agreements for the supply of goods, provision of various services, agreements for the purchase and sale and rental of real estate and equipment, and other agreements related to the commercial activities of the organization.

In practice, payment is not always made within the agreed time frame, and agreements are not always observed on the part of suppliers or buyers. In addition, employees may become indebted to loans and, of course, no one is immune from theft. The time comes when the need arises to return receivables from partners.

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How to return accounts receivable (RA)?

Such debt may arise, for example, when making sales on credit. The date of payment of the agreed amount is indicated in the agreement drawn up between the company and the customer. If the day for depositing funds into the company’s account has passed, but the client has not transferred the required amount of money, a receivable arises.

Over time, such a loan goes from the status of “normal” to the status of “overdue”, which in turn can also become doubtful or hopeless.

In the latter case, the company incurs financial losses. Thus, the faster the client pays the receivable, the better for both parties to the transaction.

There are 2 ways to return your homework:

• pre-trial;
• judicial

Regardless of the method you choose, you first need to collect information about the debtor (his financial condition, legal address, reasons for non-payment of debt, etc.).

After this, it is important to prepare documents related to the contractual assignment (agreement on the supply of goods or performance of services, an agreement on installment payment and other papers, if they were drawn up).

What is meant by accounts receivable?

Accounts receivable refers to the total debt of an organization on the part of individuals or legal entities as a result of relationships with them in economic activities. Today, not a single organization can do its work without this. This is a kind of tool that attracts new customers and partners who supply products through advance payments, which is at the same time an additional source of funds.

The formation of receivables is possible due to non-payment of bills, shortages and thefts, receipt of low-quality products, etc.

How to Track Debt by Debt Age

You can track the debts of suppliers and buyers by timing. Since receivables are most often generated by a group of buyers, let’s look at the report using its example.

Note! Receivables may also appear for suppliers, for example, when they work on an advance payment basis. Then you can generate a report on them through “Settlements with suppliers”.

Output to report:

Menu “Manager” - subgroup “Settlements with customers” - report “Customers’ debt by debt terms”.

The report form that appears must be configured - click on the “Show settings” button and set:

• Intervals in which you need to generate a report (distribute debts), for example:
• debt period up to 7 days;
• debt period from 8 to 15 days and so on.

Important! You can set any values ​​by adding or deleting rows at intervals in the report settings tab.

• Grouping (similar to accounting reports).
• Selection (similar to accounting reports).

Important! Once the report parameters have been set, you can fix them so that the report can then be automatically built according to the specified principles. To do this, without leaving the settings menu, click the “Save settings” button.

After setting the settings, set the date on which the report should be generated and click “Generate”. In the resulting table, debt data will be divided into columns with designated debt intervals.

The report can be presented in the form of a summary chart for the designated intervals of debt occurrence. To do this, check the box in the report form in the lower left corner:

Read about how to set up accounting policies in 1C here.

If you have access to ConsultantPlus, find out how to analyze accounts receivable. If you don't have access, get a free trial of online legal access.

Types of Accounts Receivable

Based on the waiting time for payment, debts can be of two types:

1. short-term receivables - in this case, the expectation of payments is determined for a period of up to one year;
2. long-term accounts receivable - in this case, the expectation of payments is determined for a period of more than one year.

There are also types of receivables such as normal and overdue. The first category includes:

1. shipped products (or services provided), but without payment yet;
2. accountable funds issued;
3. advance to suppliers.

Budget institutions

It is possible to spend the received funds (return of receivables) if the sources were:

• income from paid activities;
• funds from a subsidy for the implementation of a state task;
• funds from targeted subsidies. A prerequisite is the decisions of the founder.

In all these situations, funds from the return of receivables for previous years are credited to the personal accounts of the budgetary institution. The reflection procedure is approved by the financial authority, the Federal Treasury or the financial authority of a separate constituent entity of the Russian Federation, provided that the institution is serviced by it.

Transactions of receipt into the personal account of a budgetary institution, the indicated amounts of receivables in accounting are reflected according to the same analytical sections by which it was formed. The value is selected depending on which code the expense was reflected by. In this case, simultaneously with the increase in turnover in the debit of account 201 “Institutional funds”, it is necessary to make an entry on off-balance sheet accounts 17 “Cash receipts” or 18 “Cash outflows”.

Operations for the receipt of receivables from previous years from the return of a previously transferred advance to the supplier at the expense of a subsidy for the implementation of a state task are reflected by correspondence:

1. Dt 4 209.34 Kt 4 206.XX - a demand was made to return the advance.
2. Dt 4 201.11 Kt 4 209.34 – funds were received to the institution’s personal account. Dt 17.01

If the state task is not completed by the institution in full, then part of the subsidy received must be returned to the administrator. Operations to return unused amounts of subsidies from previous years to the budget account are reflected by correspondence:

1. Dt 4 205.82 Kt 4 303.05 – amounts were accrued to return the balance of the subsidy for the implementation of the state task to the budget account;
2. Dt 4 303.05 Kt 4 201.11 – the balance of the subsidy is transferred Kt 18.01

Consider the case of receiving and not fully spending subsidies for other purposes provided for in the Agreement between the institution and the founder. Such funds are subject to refund. Operations to return unused subsidies for other purposes are reflected in correspondence:

1. Dt 5 401.40 Kt 5 303.05 – accrual for return to the budget
2. Dt 5 303.05 Kt 5 201.11 – funds transferred to the founder

Overdue and uncollectible accounts receivable

The occurrence of overdue debt is considered to have occurred when the terms of the contract are not fulfilled - non-payment of funds at the agreed time. This kind of receivables is divided into two subtypes: doubtful and hopeless; more detailed information about them is given in Art. 266 Tax Code of the Russian Federation.

Doubtful accounts receivable means any debt to an enterprise that arises during the sale of products, performance of certain work or services in the event of failure to pay the existing debt within the time agreed upon by the agreement. There is no collateral, surety or bank guarantee.

The very name “bad receivables” contains the whole meaning of this concept: collection of such debt is impossible in principle. This occurs when the statute of limitations expires; when enforcement proceedings are stopped due to the impossibility of carrying them out or when the organization is liquidated.

Accounts receivable are considered uncollectible when:

1. impossibility of establishing the debtor's place of residence;
2. lack of property from the debtor;
3. liquidation or declaration of bankruptcy of the debtor;
4. expiration of the limitation period;
5. the presence of the debtor's funds in accounts in a bankrupt bank, when bank funds are not enough to cover all of his debts.

Is it possible to get information not only from the bank?

How to find out if there are debts on loans without contacting the bank. Every borrower must remember and be aware of their debts. He can find out about this not only from the bank itself, where the loan is issued, but also from some other organizations. Typically, information is provided when there are late payments, so debts arise that the bank tries to collect through various authorities. How to check for debts. You can use the following methods for this:

• Contact the Credit Bureau. It was created specifically for all organizations to provide information about various unscrupulous borrowers who do not pay loans on time and in the amount specified in the agreement. How to find out the amount of debt on loans using this Bureau. To do this, you need to come to the BKI office with your passport and ask for the necessary information. And also the data can be obtained on the official website of the Bureau, for which certain personal data of the borrower are entered only in the search bar. There are several similar organizations that are national or united, and you can also get the information you need from them.

• How to find out the debt if you have taken out a loan from Sberbank or another bank. To do this, you can go to the bailiffs website, where you can get extensive information about all the debts of a particular person. True, information appears there only if enforcement proceedings are already underway against the borrower. This proven electronic resource is easy to use. Further, the recognizable debt will be repaid after paying the necessary funds.
• How to find out the balance of debt. You can determine the debt balance on a loan from Sberbank or another organization with the help of special companies operating on the Internet. However, such a service costs money.

How to ensure the return of receivables?

There are certain ways to facilitate the recovery of receivables . One of them may be to increase pressure on the debtor. In this case, telephone conversations may be carried out; messages can be sent to the debtor's email and fax; you can resort to sending an official letter, or filing a claim demanding payment of the debt; it is possible to conduct personal meetings and negotiations; You can turn to the services of collection agencies or to an arbitration court.

The receivables collection procedure can be carried out in various ways. For example, he can be offered cooperation or assistance, as a result of which the debtor will be able to pay off his debt. You can also resort to suspension or termination of business relationships, which is possible in relation to counterparties who are in a certain dependence on your company. But still, increasing pressure shows the greatest effectiveness.

At the first stage, it is necessary to carry out an analysis of this debtor: if you have a debt to him, then offsets should be made. This way you can cover part of the debt or even cover the entire debt.

In accordance with current legislation, it is mandatory for all enterprises, including small ones, to create reserve funds for doubtful debts. Based on these funds, only bad debts can be written off. The statute of limitations for debt write-off is three years. Such reserve funds can be created by an enterprise based on the results of an inventory for a separate reporting period - monthly or quarterly. The inventory is scheduled for the last day of the month or quarter.

When creating a reserve fund, you need to decide on the amount that can be included in it. This is done based on the timing of the appearance of receivables ; The rules can be found in Art. 266 Tax Code of the Russian Federation. The entire amount is entered into the reserve fund if it is due for more than three months. If the period of receivables lies within one and a half to three months, then 50% of the amount is included. The debt amount is not included in the reserve fund if the debt period is less than one and a half months. Please note: the reserve amount cannot be more than 10% of income for the same period of time.

Involvement of collection agencies

They resort to the help of collection agencies in cases where they cannot repay the debt on their own.

In this case, professionals who have certain abilities and have professional skills in these matters work with debtors. This method of debt recovery is an alternative to going to court. Using the services of collection agencies, creditors can receive professional support in solving the above problems in a fairly short time. Specialists from such agencies help carry out all necessary activities and develop the required documentation to improve the level of work with debtors.

From all that has been said, we can conclude: any of the methods requires professionalism in the collection of receivables and specific knowledge in this area. It is necessary to pay special attention to compliance with the legislative side of the issue, so as not to harm the creditor himself. The final result depends on the level of specialist working on the collection of accounts receivable!

Recovering receivables through the courts

The state of finances and the conscientious attitude of the counterparty to its obligations, the use of pre-trial measures to collect the debt may provide a positive solution to the issue, but may not have any impact on the process. In this case, the management of the enterprise submits a statement of claim to the arbitration court. A certain evidence base should be provided: an agreement, invoices for payment, invoices, a copy of the letter of claim (it should be sent before going to court), a receipt for sending a registered letter, etc.

When drawing up a claim, it is necessary to indicate the exact amount of the debt and interest for the overdue time in accordance with the terms of the contract. If the contract does not provide for a fine, then you should refer to Art. 395 of the Civil Code of the Russian Federation, which determines the degree of liability for non-compliance with monetary obligations.

When the arbitration case is over, you or the bailiffs are given a writ of execution. You have the opportunity to contact the bank where the debtor has an account. Bailiffs are engaged in identifying sources for paying the debt, or seizing the debtor’s property.

Peaceful resolution of the conflict

When collecting debt, it is necessary to adhere to a certain procedure so as not to violate the norms of Russian legislation and the rights of the parties to the transaction.

Pre-trial methods of dispute resolution include:

• conducting personal negotiations with the counterparty;
• sending notifications to the debtor by mail and e-mail;
• calling debtors.

Particular attention should be paid to written notification to the counterparty of the need to repay the loan. This must also be done if you are going to go to court. A copy of the letter sent to the debtor and his written response will need to be attached to the claim.

It is recommended that notification be sent the next day after the delay occurs. The text must indicate the details of the contract, methods of contacting the company, sanctions that will be applied to the defaulter in case of evasion of debt repayment (charge of penalties, etc.).

If necessary, you can agree with the counterparty on an installment plan or deferred payment.

Contacting collection agencies

To recover debt from debtors who evade their obligations, when the deadline for debt repayment has expired, it is possible to contact companies specializing in debt collection - collection companies. They collect the overdue debt from the debtors for an agreed fee. Typically, this is a percentage of the debt amount.

Collectors, in addition to collecting debts, can also act as creditors. This involves paying the debt to the company (a percentage of the entire amount is taken away), and they collect the debt from the debtor in full.

How to manage accounts receivable

The management of the organization must create a system that controls and analyzes receivables . It must be managed by experienced, competent workers with appropriate training. The financial well-being of the entire enterprise depends on the implementation of these events, so in no case should this moment in the work be overlooked.

To effectively manage accounts receivable, you should:

1. periodically (preferably monthly) take inventory: early identification of debt provides more opportunities for its repayment;
2. analyze accounts receivable , setting the turnover ratio;
3. forecast debt receipts;
4. determine the conditions for providing deferment to clients;
5. establish whether it is possible to use bills of exchange and under what conditions;
6. It is not possible to identify debtors from whom debt collection other than through arbitration is not possible.

When a debt is written off due to a statute of limitations, or in accordance with a decree on the completion of enforcement proceedings, this is reflected in the accounting documents on an off-balance sheet account for five years.

Before entering into an agreement with anyone, company managers must carefully study the potential counterparty. An analysis of its solvency, reputation in the business community, and financial stability should be carried out in order to avoid the occurrence of “delays” in the future.

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State institutions

For government institutions, upon receipt of receivables, the amount in full is subject to reimbursement to the revenue of the corresponding budget. Returns must be made within 5 business days of receipt. The reflection of transactions in accounting depends on whether the institution is vested with the powers of a revenue administrator or not.

The formation of correspondence in the budget is determined by the requirements of the Instructions approved by orders of the Ministry of Finance of the Russian Federation dated December 1, 2010 No. 157n and dated December 6, 2010 No. 162n (hereinafter referred to as Instructions No. 157n and Instructions No. 162n, respectively).

According to Instruction No. 157n, to record the reflection of the amounts of settlements for advance payments that were not returned by the counterparty, for the amounts of debt of accountable persons that were not returned in a timely manner, account 209 30 “Calculations for compensation of costs” is used. Please note that cases of its application are listed in the regulatory act, including:

• termination of a contract or other agreements, including by a court decision;
• carrying out claims against the counterparty;
• presenting a claim for the return of receivables to another person.

A government institution also uses account 209 00 in cases where it is vested with the powers of a cash receipts administrator. Administrators attribute income from the return of receivables to Article 130 “Income from the provision of paid services (work)” as compensation for state expenses.

When a counterparty decides independently and voluntarily to repay a debt to an institution, the accounts in which this debt was reflected are used to reflect it:

• 206 00 “Settlements for advances issued”;
• 208 00 “Settlements with accountable persons”;
• 303 00 “Calculations for payments to the budget.”

But Instruction No. 162n regulates the composition of correspondence to reflect transactions of receipt of funds for the restoration of previously made expenses (advance payments) to repay receivables.

If a government agency is not a revenue administrator, the transfer of amounts of receivables to budget revenue is reflected in accordance with clause 104 of Instruction No. 162n. When accessing it, you can see that the institution takes into account settlements with the budget revenue administrator, who exercises certain powers to administer cash receipts, using account 304.01 “Internal revenue settlements.”

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