It is typical for any organization operating in a market economy that a certain part of its funds is financed through accounts payable. In general, it represents a certain legal category, meaning a part of the property that is considered the subject of financial relations between the enterprise and the creditor. In this article we will look at what is accounts payable? Do we owe it or do we? We will also determine how enterprises take it into account, why it is necessary to analyze it, and what consequences arise as a result of debt arrears.

Characteristic

The first step is to characterize accounts payable as a legal category for an organization. In fact, the share that was acquired using third-party funds is accounts payable. The definition of a debt is that it is issued for a specified period and is repayable. Accordingly, accounts payable will have to be covered after a certain time.

Dividend debt is a debt to the founders to pay them income when distributing profits. It is formed due to the fact that at the time of drawing up the balance sheet, the calculated dividends cannot be paid. This means that a certain amount falls into accounts payable.

As a result, we can derive a definition of accounts payable, meaning that the organization:

• owes a certain amount in favor of individuals or legal entities resulting from financial relationships;
• has debts in the form of invoices issued for supplies on credit or payment in installments.

Accounting for accounts payable

For accounting purposes, it is customary to separate three types of accounts payable. The basis for this classification is the terms for which accounts payable are issued. In this case, we owe other companies, employees and funds under certain conditions. If a deferred payment is agreed upon with the creditor, then the debt in question is characterized as nominal. If such a deferment reaches one year, then the debt is recorded in accounting as short-term. If time passes beyond this period, the debt develops into long-term debt. There is a nuance here. When long-term debt begins to exceed three years, and the creditor does not make a claim for its repayment, then it is written off in accounting.

The need for analysis

Accounts payable as a legal and accounting concept is of great importance for the effective operation of an organization. Once again we raise the question: “Accounts payable – is it owed to us or to us?” Let us define the basic essence of such a concept, which is obligation. This means that accounts payable can directly affect profit making, the functioning of the organization, and bankruptcy. Therefore, the analysis of its formation, repayment and management plays a big role in the entire process of the enterprise’s existence.

The consideration of debts to creditors is carried out on the basis of the final accounting figures, in particular the balance sheet and Form No. 5 attached to it. Based on the final figures in the accounting forms, certain coefficients are calculated showing what share of liabilities is accounts payable, how it affects liquidity and solvency organizations. Quality management is represented by indicators characterizing the timeliness of its repayment.

Overdue debts

When an enterprise does not pay the debt to the creditor within the period established by the contract, and also does not pay the invoice, the accounts payable becomes overdue. In this situation, the borrower, trying to protect his rights established by law, can seek help from the court. The creditor writes and attaches to him all the legitimate documents confirming the financial claims.

The citizen must remember that such a situation will spoil him and lower the commercial image of such organizations in the market. In addition, there will be additional costs in the form of court fines and sanctions.

Accounts payable for which the statute of limitations has expired

According to the division of the debts under consideration, which have been in existence for more than one year, there is no limitation on the duration of long-term debt. But it is believed that if the borrower does not make any demands for repayment after three years, then the amount in question is written off in the accounts.

Accounts payable for which the statute of limitations has expired are written off for each individual obligation. The amount is determined based on the inventory results.

Debts on taxes and fees, as well as fines and penalties on them, do not have a write-off period. Other creditors have the right to interrupt the duration of long-term debt and demand repayment of the entire amount.

As a conclusion, it remains to be noted that there is a simple answer to the question: “Accounts payable - is it owed to us or to us?” This is done based on the definition of a creditor - a person providing funds with the condition of return. Moreover, debt is not just money on credit. These can be material and economic assets necessary for the organization to carry out uninterrupted financial and economic activities.

The company's accounts payable must be reflected in accounting and reporting. Analysis of the structure of these amounts and the dynamics of their changes allows the company to build an effective policy for interaction with counterparties. An organization's accounts payable is a tool that allows business entities to increase production volumes in the absence of their own cash reserves in the current period.

The concept of accounts payable and its types

A “creditor” can arise at any stage of the development of a business project. Accounts payable – is it owed to us or to us? These are the funds that are payable by the enterprise in favor of its counterparties or third parties, i.e. "we have to". Let's explain what accounts payable is in simple words - for example:

• the enterprise has obligations to the supplier as a result of the fact that a consignment of goods was received, but in fact no payment was made for it;
• the concept of accounts payable is also relevant for situations where the employer accrued wages to staff, calculated taxes and contributions on them, but did not transfer funds in favor of the recipients;
• what does accounts payable mean in settlements with accountable persons - expenses incurred by an employee when carrying out an official assignment, when their payment is made from the employee’s own funds, and the employer is presented with an advance report with supporting documentation and reimbursement of expenses is expected.

The repayment period for accounts payable determines the type of debt - short-term (up to 12 months) or long-term (over 1 year). Let's consider what is included in accounts payable from an accounting point of view:

• credit balance on the accounting account 62, if we are talking about relationships with buyers and customers;
• credit balance on account 60 when reflecting debt to suppliers or contractors;
• debt to other counterparties on account credit 76;
• debt on taxes, insurance premiums and other payments to the budget - credit balance on accounts 68, 69;
• credit balances on accounts 70, 71, 73 when making settlements with personnel;
• debt to the founders is determined by the account balance 75.

Repayment of accounts payable is carried out by transferring money to pay outstanding invoices, claims, advance reports, and when making payments for wages and taxes. In accounting, these transactions are shown as debit turnovers on the specified accounts in correspondence with the cash accounts.

The repayment period for accounts payable is regulated by contractual documentation between the parties to the transaction, in relation to settlements with personnel - by labor legislation, and for taxes - by the Tax Code. In reporting, accounts payable are classified as liabilities on the balance sheet.

Assignment of accounts payable

Assignment involves a change in debtor. In fact, the debt is transferred to third legal entities or individuals. When concluding a transaction for the alienation of debt obligations, an assignment agreement is drawn up. The agreement must indicate the creditor's consent to the assignment. The procedure is regulated by civil law and can be paid or gratuitous.

Accounts payable factoring

Factoring can be carried out by a banking organization or a factoring company. The essence of this operation is the registration of credit resources for goods already received or services accepted under the act. The factoring structure pays the invoice instead of the payer under the transaction, the seller receives money on time, and the buyer receives goods. The benefit for the factoring organization is that it charges a fee for services provided as a percentage of the contract amount. The difference from a bank loan is that there are no requirements for collateral and guarantors.

Accounts payable valuation

Absolute values ​​of debt can be tracked using accounting registers and reporting. Relative indicators are reflected through:

• ratio of accounts payable and turnover to determine the speed of debt repayment;
• coefficient of dependence on borrowed resources;
• period of turnover of accounts payable;
• coefficient reflecting the level of financial independence.

To optimize financial policy, it is necessary to systematically calculate these indicators, supplementing them with research on the dynamics of changes and comparison with the volume of receivables. A decrease in accounts payable indicates a positive trend, but provided that the drop in the indicator is realized within reasonable limits. A sharp reduction in the amount of attracted resources is not always a positive trend for an enterprise. The complete absence of a “creditor” or its minimal volume may signal an overly cautious financial policy and an inability to quickly increase production volumes.

A decrease in accounts payable indicates an increase in the level of investment attractiveness of the company and an increase in its solvency. Reducing accounts payable can be achieved in several ways:

• offset of debts with the counterparty in the presence of counterclaims;
• selling part of the property or leasing assets for partial or full repayment of loans;
• restructuring of accounts payable;
• adjustment of the amount of debt in court.

Removal of the “creditor” from the balance sheet is possible when obligations are repaid or when they are written off after the expiration of the statute of limitations.

Growth of accounts payable

Attracted financial resources help the company quickly increase production capacity, implement large projects and acquire expensive assets. An increase in accounts payable indicates the emergence of additional obligations to creditors or an expansion of the list of creditors. Also, an increase in accounts payable indicates a deterioration in the financial situation within the company. It is considered normal for a phenomenon in which an increase in “creditors” is accompanied by an increase in “debtors” in a similar volume.

The greatest risk for an enterprise is the presence of debts to staff. In such a situation, an increase in accounts payable indicates a violation of labor laws and the impending imposition of penalties. When assessing the state of settlements with counterparties, the volume of receivables and payables is compared - if the “creditor” is 2 times higher than the obligations of debtors, then the situation of the enterprise is described as a crisis with a characteristic loss of liquidity.

Accounts payable- this is the monetary debt of an enterprise to legal entities and individuals. Reflected as a group of balance sheet items, including short-term debt of the enterprise to:

• suppliers and contractors,
• staff,
• state budget and extra-budgetary funds,
• landlords,
• insurers, etc.

This is a type of obligation that characterizes:

• the amount of debts due to be paid by the organization in favor of other legal entities and individuals as a result of economic relationships with them;
• invoices receivable in connection with supplies on credit or payment in installments.

Accounts payable analysis

Accounts payable analysis is carried out in the FinEkAnalysis program in blocks:

• Analysis of FCD to identify signs of deliberate bankruptcy,

Limitation period for accounts payable

After the expiration of the limitation period, accounts payable must be written off. The statutory limitation period is three years. For certain types of claims, the law may establish special limitation periods, shorter or longer than the general period.

The limitation period begins to be calculated at the end of the period for fulfillment of obligations, if defined, or from the moment when the creditor has the right to make a claim for the fulfillment of the obligation.

After the expiration of the limitation period, accounts payable are written off to financial results and recorded in the following accounting entries:

Debit accounts 60.76 Credit accounts 91.

Write-off of accounts payable

Write-off of accounts payable is an operation to recognize income with the simultaneous exclusion from accounting of the currently outstanding (not paid to the creditor), reliably determined amount of accounts payable. Since we are talking about the recognition of income, the correct reflection of this operation both in the accounting and tax records of the enterprise can be ensured if the following conditions are met:

• the date of recognition of income is correctly determined;
• the amount of recognized income is correctly determined;
• Documentary evidence of the income recognition transaction has been provided. In accordance with paragraph 1 of Article 9 of Law No. 996, the basis for accounting of business transactions are primary documents.

To recognize accounts payable as income (i.e., to write them off in accounting), the strong-willed desire of the enterprise alone is not enough. Criteria for recognizing income: in accounting - the general norms of P(S)BU 15, in tax accounting - the general norms of the relevant sections of the Tax Code. To make a management decision on write-off, accounts payable acquire the status of uncollectible.

An exhaustive list of signs of bad debt is presented in clause 14.1.11 of the Tax Code. Let us quote it in the part relating to existing operational legal entities and accounts payable (without provisions relating exclusively to accounts receivable). This is important for tax and accounting of the enterprise. Bad debt is debt that meets one of the following criteria:

• debt on obligations for which the statute of limitations has passed;
• debt that remains outstanding due to insufficient funds received after the creditor foreclosed on the pledged property in accordance with the law and the contract, provided that other actions of the creditor regarding the forced collection of other property of the borrower, determined by regulations, did not lead to complete debt coverage;
• debt, the collection of which became impossible due to force majeure circumstances, a natural disaster (force majeure), confirmed in the manner prescribed by law."

Consequently, if we are not talking about pledged property or force majeure, then the basis of written off accounts payable are bad debts for which the statute of limitations has passed.

Repayment of accounts payable

Repayment of accounts payable and accrued liabilities is not considered a financial activity, but is considered as a current activity.

To repay accounts payable, advance and claim payments, pay debt on open accounts, and for settlements on non-trade and other transactions, bank transfers are used: orders from the payer - transferor to the bank to transfer funds in favor of another person through correspondent banks.

The repayment schedule for accounts payable is drawn up according to the terms of specific loan agreements, taking into account the established repayment periods.

The development of a schedule for the repayment of accounts payable (the schedule of upcoming payments of the enterprise), its analysis and constant monitoring of implementation are significant for the successful implementation of the financial recovery plan. A delay in current payments by an enterprise for a period exceeding 3 months increases the risks associated with creditors turning to an arbitration court and initiating an insolvency (bankruptcy) case for the enterprise.

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Synonyms

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Accounts payable- These are debts to be paid. Accounts payable arise when an advance is received from customers, but goods (work, services) have not yet been sold, or if goods (work, services) have been received from a supplier, but funds have not yet been paid for them.

On the one hand, accounts payable are funds raised to conduct business activities, and, as a rule, without paying interest. This is the positive side of accounts payable.

At the same time, overdue accounts payable can lead to the need to pay penalties, bring lawsuits, and in the worst case, declaring the enterprise bankrupt.

Evasion of repayment of accounts payable in the amount of more than 1.5 million rubles. is a criminal offense.

Accounts payable that cannot be collected due to the expiration of the statute of limitations are written off to increase the financial result.

Accounts payable analysis

Analysis of accounts payable is aimed at determining the company’s ability to repay it, i.e. its solvency is analyzed.

To do this, liquidity ratios are calculated, which are the ratio of current assets to short-term liabilities (liquidity ratios differ in the composition of assets in the numerator).

The value of the liquidity ratio is less than the accepted standard, indicating possible difficulties in repaying short-term accounts payable. The higher the value of liquidity ratios, the higher the solvency of the enterprise.

Information on accounts payable is reflected in the financial statements:

According to line 1520 of the balance sheet;

In sections 5.3 and 5.4 of the explanations to the balance sheet and profit and loss account (form recommended by Order of the Ministry of Finance dated July 2, 2010 No. 66n).

More detailed information is reflected in accounting:

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To systematize the types of accounts payable, it is necessary, first of all, to group them into similar entities, since, depending on the main characteristics of the debt, different forms of its restructuring are required.

The proposed division is based on the main characteristics of accounts payable, namely:

• - period of occurrence;
• - supporting documents;
• - reasons for occurrence;
• - relationship with the creditor.

Such a classification is necessary in order to expand the tools for financial recovery by studying individual groups of accounts payable.

Types of debt depending on the timing of occurrence:

1. Current accounts payable - up to 90 days

Such debt may be of a technical nature (deferred execution) or, if it arises at a time in a large volume, it may be an indicator of a deterioration in the situation in the company and the emergence of a risk of bankruptcy.

2. Short-term accounts payable - up to 1 year.

The presence of this debt, if it is not related to the normal activities of the organization, is a prerequisite for active actions aimed at forced collection by creditors.

3. Long-term accounts payable - from 1 to 3 years.

Typically occurs when a company's financial condition deteriorates and may indicate a high risk of bankruptcy.

4. Accounts payable to be written off - more than 3 years.

The existence of such debt is due to accounting errors in the company itself, errors in creditor companies, liquidation of creditors, lack of a documentary basis for collection and other factors.

Based on this classification, in order to achieve financial recovery, companies should service current liabilities, repay short-term accounts payable and restructure long-term debt.

Types of debt depending on documentary evidence:

• 1. Balance sheet debt. Displayed in the organization’s balance sheet, but there is no history of occurrence or documentary base
• 2. Debt according to the reconciliation report. There is a history of occurrence that is not confirmed by primary documents. The lender may have primary documents
• 3. Debt confirmed by primary documents
• 4. Bill, bond, other debt obligations. In this case, the debt is not only confirmed, but also formalized in the form of an indisputable obligation. This is usually how relations with investors are formalized.
• 5. Court decision on the collection of funds. The appearance of a court decision determines the possibility of enforcement of obligations.

Accounts payable based on their origin:

• 1. Wages arrears. In difficult times for an enterprise, it arises and grows very rapidly. Non-payment of wages may attract the attention of law enforcement agencies to the activities of the enterprise
• 2. Accrued and unpaid taxes and fees. May also attract the interest of law enforcement agencies. In addition, it is one of the most active lenders, using both civil and administrative methods
• 3. Obligations from loan and leasing agreements. In addition, this group includes all other types secured by the assets of the enterprise. Financial recovery that does not provide for the repayment of these obligations is not possible, since the main risk when it arises, in addition to the possibility of bankruptcy of the organization as a whole, is the risk of loss of assets directly involved in the company’s activities and, accordingly, creating its value. In addition, its presence reduces the possibility of subsequent debt financing of the company
• 4. Debt to strategic partners. Continuation or financial recovery during its existence is difficult, including due to the loss of confidence in the company itself on the part of suppliers, contractors and main clients
• 5. Unquestionable obligations. Debt to pay holders of bonds, bills, other debt instruments, as well as other debt, the collection of which is possible in an indisputable manner, poses a danger due to the short period between its occurrence and forced execution
• 6. Other debt. This group includes debt that represents the least danger and, therefore, is repaid last.

Depending on the relationship between the lender and the organization, there are:

1. Accounts payable to affiliates. Affiliated persons mean individuals and legal entities (often inspectors)

Those who have the right and ability to influence the activities of a business entity - another individual or legal entity (firm, company), since they own a share of its capital or are members of the organization’s management bodies. (member of the board of directors or supervisory board, member of the collegial executive body, executive director, etc.) Affiliated persons also include those who can manage 9or influence such persons) more than 20% of the company’s capital.

Most often, the concept of “affiliates” today is used with a negative connotation, since it refers to participants in a company who have effective sources of control (pressure) on a legal entity, but at the same time hide their presence in its economic activities. It is usually controlled by the enterprise itself or its owners , and, accordingly, poses a minimal threat to the company. In addition, during financial recovery, it gives the right to vote to owners at a meeting of creditors

• 2. Debt to dependent creditors (suppliers, contractors). Considering the interest of creditors in further cooperation, this debt does not pose a particular danger to the organization
• 3. Obligations to loyal creditors. May be a source of short-term financing for the organization. It is necessary to take into account the capabilities and needs of such creditors, since if urgent repayment is necessary, conflicts are possible. If the enterprise undergoes financial recovery, such creditors participate constructively in it
• 4. Neutral debt. It is necessary to service such obligations in strict accordance with contractual terms
• 5. Debt to creditors interested in its speedy repayment and taking actions in this direction. If there are available funds, the debt must be repaid
• 6. Debt to aggressive creditors. Carries with it the risk of loss of company assets. Increased risk. The debt must be repaid as soon as possible using any means of the organization. With the tough position of such creditors, the financial recovery of the organization is difficult
• 7. Debt to specialized organizations in the field of collection and acquisitions. The company should prevent such debt from appearing, and if it does, immediately take measures to protect assets and, in parallel, repay the debt, including by raising borrowed funds.

The presented classification is not complete and does not take into account other features of accounts payable, but it is of an applied nature. Its use will simplify the restructuring of accounts payable, without which the financial recovery of the company is often impossible.