Today, in order to avoid financial instability and protect themselves from the risk of non-payment by buyers, many companies choose factoring. All operations and calculations performed in cooperation with the factoring firm must be reflected in the balance sheet. Since at the moment there is no single document governing the accounting of factoring, we suggest you use our recommendations. There are several important points to keep in mind. In accordance with the law, the right to claim is part of the company’s property. Factoring settlements, which represent payment for the services of the factoring company, are operational. The sale of the assignment of the claim is accounted for as a disposal of other assets. If assets other than cash are received from the sale, they are included in other income.
| Contents of operation | Debit account | Credit account | Amount, rub. | A document base |
|---|---|---|---|---|
| Products for 100 rubles were shipped to the buyer. | 62.01 | 90.01 | 100,00 | Consignment note (act, UPD (universal transfer document)) |
| VAT charged on the cost of goods | 90.03 | 68.02 | 15.25 | Invoice (UPD (Universal Transfer Document)), sales ledger |
| The cost of goods shipped has been written off | 90.02 | 41.01 | 60,00 | Consignment note (act, UPD (universal transfer document)) |
| Provided to the Factor to secure financing for the assigned monetary claim against the buyer for 100 rubles. (as of the date the monetary claim arises) | 009 | – | 100,00 | Register of assigned rights, accounting statement |
| Financing (first payment) received from Factor in the amount of 90 rubles. on assignment of a monetary claim | 51 | 76.06.01 | 90.00 | Payment order, bank statement |
| Remuneration for services accrued by the Factor in the amount of 2 rubles. (excluding VAT) | 91.02 | 76.06.01 | 2.00 | UPD (universal transfer document) from Factor |
| Reflected VAT charged by the Remuneration Factor in the amount of RUB 0.36. | 19.04 | 76.06.01 | 0.36 | UPD (universal transfer document) from Factor |
| VAT charged by the Factor was accepted for deduction in the amount of 0.36 rubles. | 68.02 | 19.04 | 0.36 | UPD (universal transfer document) from Factor |
| Received from Factor a report on payment by the buyer of 100 rubles. on a monetary claim assigned to the Factor. | 76.06.02 | 62.01 | 100,00 | Accounting reference, report from Internet factoring (report on accrued and repaid commissions from Life Factor) |
| Credited to the reduction of the Factor’s debt for the transfer of the buyer’s payment, the amount of the financing previously transferred by the Factor | 76.06.01 | 76.06.02 | 90.00 | Accounting information |
| The amount of the Factor’s remuneration was credited to the reduction of the Factor’s debt on transferring the buyer’s payment | 76.06.01 | 76.06.02 | 2.36 | Accounting information |
| Writing off the collateral provided to the Factor | – | 009 | 100,00 | Accounting information |
| Received from the factor a second payment on a monetary claim in the amount of 7.64 rubles. | 51 | 76.06.02 | 7.64 | Payment order, bank statement |
Contents of operation
Products for 100 rubles were shipped to the buyer.
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)
This section presents the key accounting entries for factoring and describes how non-recourse factoring is reflected in accounting. The Client assigns to the Factor the right of claim against the buyer of the goods after shipment. The cost of shipped goods is 100 rubles, including VAT. The cost of the purchased goods is 60 rubles, excluding VAT. The amount of the Factor’s remuneration is 2.36 rubles (including VAT) The remuneration is withheld from the amount to be transferred to the client. On the day of entry into force of the contract, the Factor transfers 90% of the total debt. The remaining amount of 7.64 rubles. after the final settlement with the debtor.
| Contents of operation | Debit account | Credit account | Amount, rub. | A document base |
|---|---|---|---|---|
| Products for 100 rubles were shipped to the buyer. | 62.01 | 90.01 | 100,00 | Consignment note (act, UPD (universal transfer document)) |
| VAT charged on the cost of goods | 90.03 | 68.02 | 15.25 | Invoice (UPD (Universal Transfer Document)), sales ledger |
| The cost of goods shipped has been written off | 90.02 | 41.01 | 60,00 | Consignment note (act, UPD (universal transfer document)) |
| Assigned to the Factor monetary claim against the buyer | 76.06.02 | 62.01 | 100,00 | Register of assigned rights, accounting statement |
| Financing (first payment) received from Factor in the amount of 90 rubles. on assignment of a monetary claim | 51 | 76.06.02 | 90.00 | Payment order, bank statement |
| Remuneration for services accrued by the Factor in the amount of 2 rubles. (excluding VAT) | 91.02 | 76.06.02 | 2.00 | UPD (universal transfer document) from Factor |
| Reflected VAT charged by the Remuneration Factor in the amount of RUB 0.36. | 19.04 | 76.06.02 | 0.36 | UPD (universal transfer document) from Factor |
| VAT charged by the Factor was accepted for deduction in the amount of 0.36 rubles. | 68.02 | 19.04 | 0.36 | UPD (universal transfer document) from Factor, purchase book |
| Received from the factor a second payment on a monetary claim in the amount of 7.64 rubles. | 51 | 76.06.02 | 7.64 | Payment order, bank statement |
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)
This section presents the key accounting entries for factoring and describes how purchasing factoring is reflected from a customer in accounting. The Client assigns to the Factor the right of claim against the buyer of the goods after shipment. The cost of shipped goods is 100 rubles, including VAT. The cost of the purchased goods is 60 rubles, excluding VAT.
On the day the contract comes into force, the Factor transfers 100% of the total debt.
| Contents of operation | Debit account | Credit account | Amount, rub. | A document base |
|---|---|---|---|---|
| Products shipped to the buyer (reflection of proceeds for goods sold) | 62.01 | 90.01 | 100,00 | Consignment note (act, UPD (universal transfer document)) |
| VAT charged on the cost of goods | 90.03 | 68.02 | 15.25 | Invoice (UPD (Universal Transfer Document)), sales ledger |
| The cost of goods shipped has been written off | 90.02 | 41.01 | 60,00 | Consignment note (act, UPD (universal transfer document)) |
| Assigned to the Factor monetary claim against the buyer | 76.06.02 | 62.01 | 100,00 | Register of assigned rights, accounting statement |
| Financing (first payment) received from Factor in the amount of 100 rubles. on assignment of a monetary claim | 51 | 76.06.02 | 100,00 | Payment order, bank statement |
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)
This section presents the key accounting entries for factoring and describes how recourse factoring is reflected in accounting when recourse occurs. The Client assigns to the Factor the right of claim against the buyer of the goods after shipment. The cost of shipped goods is 100 rubles, including VAT. The cost of the purchased goods is 60 rubles, excluding VAT. The amount of the Factor’s remuneration is 2.36 rubles (including VAT) The remuneration is withheld from the amount to be transferred to the client. On the day of entry into force of the contract, the Factor transfers 90% of the total debt. The remaining amount of 7.64 rubles. after the final settlement with the debtor. In case of recourse, the client paid 92.36 rubles.
| Contents of operation | Debit account | Credit account | Amount, rub. | A document base |
|---|---|---|---|---|
| Products for 100 rubles were shipped to the buyer. | 62.01 | 90.01 | 100,00 | Consignment note (act, UPD (universal transfer document)) |
| VAT charged on the cost of goods | 90.03 | 68.02 | 15.25 | Invoice (UPD (Universal Transfer Document)), sales ledger |
| The cost of goods shipped has been written off | 90.02 | 41.01 | 60,00 | Consignment note (act, UPD (universal transfer document)) |
| Provided to the Factor to secure financing for the assigned monetary claim against the buyer for 100 rubles. (as of the date the monetary claim arises) | 009 | – | 100,00 | Register of assigned rights, accounting statement |
| Financing (first payment) received from Factor in the amount of 90 rubles. on assignment of a monetary claim | 51 | 76.06.01 | 90.00 | Payment order, bank statement |
| Remuneration for services accrued by the Factor in the amount of 2 rubles. (excluding VAT) | 91.02 | 76.06.01 | 2.00 | UPD (universal transfer document) from Factor |
| Reflected VAT charged by the Remuneration Factor in the amount of RUB 0.36. | 19.04 | 76.06.01 | 0.36 | UPD (universal transfer document) from Factor |
| VAT charged by the Factor was accepted for deduction in the amount of 0.36 rubles. | 68.02 | 19.04 | 0.36 | UPD (universal transfer document) from Factor |
| Writing off the collateral provided to the Factor | – | 009 | 100,00 | Accounting information |
| Paid to the Factor recourse claim for a refund | 76.06.01 | 51 | 92.36 | Payment order, bank statement |
Contents of operation
Products for 100 rubles were shipped to the buyer.
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Contents of operation
Calculation of VAT payable to the budget from the turnover of sales of products (only for enterprises that have approved in the accounting policy for tax purposes the moment of determining the tax base as shipment and presentation of settlement documents to the buyer)
Debit account
76 / “Settlements with a financial agent”
Contents of operation
Write-off of the right to claim at par (for the entire amount of products sold)