Even those who have nothing to do with accounting, as well as financial accounting, quite often encounter such a concept as accounts receivable and accounts payable. The designations of these terms are quite different and “hide” a lot of information about the financial activities of the enterprise as a whole. Let's look at the concepts of debtor and creditor, what are they in simple words? Which accounts are displayed in accounting, what can they “tell” to a manager, potential investor, economist, financier, and other legal and physical entities of economic activity.

In simple words about creditor and debtor: the concept of debt

What are accounts payable and accounts receivable? Let’s try to explain it in accessible language, so that a person “not savvy” in economic terms will have an idea about these types of obligations.

Accounts receivable comes from the word "debet", which is translated from Latin as "he owes"

Accounts receivable – is it owed to us or are we in debt?

First, let's break everything down. Accounts receivable, or as it is correctly called in accounting – accounts receivable, comes from the word “debet”, which is translated from Latin as “he must”. Only knowing the translation it is not entirely clear whether it is owed to us or to us. To make it more clear, let us explain that In accounting, debtors are legal entities that owe us certain funds. From this follows the following concept: the totality of financial assets that are listed as obligations of legal entities and individuals to you is accounts receivable.

All accounts receivable are current assets, which do not have an accounting period (limitation period), since they can be repaid both in the short-term and over a longer period.

Receiving funds from a debtor to repay a receivable is called collection of receivables.

Notable examples of receivables include:

• the goods have been shipped, but payment has not yet occurred;
• an advance payment has been made, but material assets have not yet arrived or work has not been carried out;
• advances issued;
• overpayment to the budget.

Accounts payable, what is it?

There is no need to translate the word “kredit” from Latin, since even the most distant person from economics will say with confidence that this is our duty to someone. In simple words, this is the case when your enterprise has obligations in the form of a set of financial resources to a certain organization (firm, company). That is, we owe money to a supplier, employee, etc.

If everything is more or less clear with the concept of credit debt, then from the accounting side it is not entirely clear that the creditor is an asset or a liability? The answer is simple, once The creditor is the obligations of your company, then the debts are classified as liabilities.

Reflection of accounts payable and receivable in financial statements

Financial statements are set by the enterprise for each quarter and for the full operating year. It consists of statistical forms, and the main ones for analyzing activity are the first two:

• f.1 Balance. It consists of two parts: Active – Passive. Its completion is based on the principle of equality of the first part (asset) to the second (liability).
• f.2 Report on financial results. The company's income and the level of profitability at which the year ended are displayed here.

The creditor and debtor are displayed in the financial statements - form 1 Balance sheet

The display of creditors and debtors in financial statements is a key parameter for analyzing the financial stability of an enterprise.

Accounts receivable reflected in form 1 Balance sheet (the first part is assets). The entire second section is devoted to it, and the total amount of such obligations is indicated on line 1230. WITH The balance for the long-term debtor is displayed in line 1040. As for accounts payable, they can be found in liabilities. In balance it is line 1520 of the fifth section or the creditor may also be shown in the fourth section of the Balance Sheet.

Learn more about the types of receivables and payables

In accounting, both payables and receivables are divided by type, based on the source of their occurrence, the timing of repayment or non-repayment, and obligations assumed. Let's consider what a creditor and debtor can be.

How are accounts receivable classified in accounting?

Let’s delve into the “depths” of accounting and try to explain in accessible words what accounts receivable is. Conventionally, all receivables can be divided into two types:

1. Trade receivables- represents the amount of buyer obligations arising for the sale of goods and services produced as a result of the main activity.
2. Non-trade receivables appears as a consequence of other types of activities (advances issued to employees, dividends, budget obligations transferred in advance, etc.)

Based on the timing of receipt of obligations, we can distinguish:

• long-term accounts receivable enterprises with payment terms of more than a year;
• short-term, is repaid throughout the year.

Which receivable will “hang” is recorded in the accounting documents, and based on the fact of payments or delays in them, it can be divided into:

• normal;
• expired.

If everything is clear with the normal one, then with the expired one you should understand in more detail. The question logically arises: overdue accounts receivable is how many months of debt? With overdue obligations, it is not correct to talk about specific months, since the reasons for non-payment can be different and there are also subtypes of receivables for them.

1. Doubtful accounts receivable- these are obligations to the enterprise, the repayment of which is uncertain due to the unsatisfactory solvency of the debtor.
2. Unclaimed liabilities. This group includes debts that were unclaimed due to an error on the part of an accountant or other financially responsible person.
3. Moratorium receivables is a hanging liability that arises during a period when a business goes through bankruptcy proceedings and your company is unable to make financial claims.
4. Uncollectible accounts receivable– these are “dead” debts, the payment of which is reduced to zero. These are the obligations of a debtor declared bankrupt.

Of course, obligations to the enterprise cannot hang forever, therefore, after 3 years it is written off, according to paragraph 77 of the Order of the Ministry of Finance of July 29, 1998 No. 34n on the financial results of the organization as a loss.

After 3 years, accounts receivable are written off, increasing the company's loss

Other receivables of the organization should be noted. This concept includes various settlement items of both a commodity and non-commodity nature.

Recently, it has become increasingly common to reduce enterprise risks through accounts receivable insurance. This is a reliable tool for minimizing the possibility of a debtor becoming uncollectible.

Accounts payable: concepts and types

Now let’s understand the concept of a creditor, when it arises and what it is. The following types of creditor obligations are distinguished:

• to employees;
• to suppliers, contractors;
• before the budget, on taxes, fees.

Like receivables, payables can be:

• current– period up to three months;
• short-term– calculations are made for a period of up to one year;
• long-term– compensation is expected for more than a year;
• liquid– from 3 years (subject to write-off).

The presence of accounts payable significantly reduces investment attractiveness, since it significantly reduces the solvency of the enterprise and its liquidity.

Accounting of debts by creditor and debtor

We’ve sorted out the concepts, now let’s try to explain what a creditor and debtor “look like” in accounting (financial) accounting. First, let's look at accounts payable and receivable in the balance sheet - what are these accounts?

The receivable “settled” on accounts of 1st and 3rd classes:

1. Current debts are reflected in accounting on such accounts 37, 36, 34.
2. long term duties placed on count 18. Depending on the type, the corresponding subaccounts are used.

The calculation of accounts receivable for a certain number is as follows:

Receivable = Dt60 + Dt62 + Dt68 + Dt69 + Dt70 + Dt71 + Dt73 + Dt75 + Dt76 - Kt63

Why do you need to monitor accounts receivable? Often, business newcomers are perplexed and ask the question: why do we need control of accounts receivable for expenses, what kind of indicator is this? If the answer is accessible, then this is the amount of debts to your company. In other words, these are assets that can be used to grow the business. Lack of control in this area can lead to:

• loss of debt amounts with one-time debtors;
• financial instability;
• ineffective preparation of the expenditure side of the balance sheet;
• decline in competitiveness.

For creditor accounting the following are intended counts: 60, 62, 68, 69, 70, 71, 73, 75, 76.

The creditor is calculated as the sum of the balances of all the above accounts.

Analysis of accounts payable and receivable makes it possible to assess the capabilities of the enterprise

Why do you need an analysis of accounts payable and receivable?

Working with bilateral obligations (we owe - we owe) makes it possible to objectively assess the financial, accounting, and economic capabilities of an enterprise (firm, organization). An integrated tracking approach helps to see the big picture, and the debtor to creditor ratio can “tell” about the state of affairs at the enterprise. Thus, an economically healthy organization should celebrate accounts receivable are an order of magnitude higher than accounts payable.

The debtor's balance has increased - this indicates the possibility of repaying one's debts using obligations reimbursed in the future.

An important indicator of the analysis is the turnover of receivables. It shows how many revolutions are made by funds over a certain period (year).

It is quite possible to turn receivables into financial resources, if necessary. How can this be “cranked out”? Sale of accounts receivable– this is the transfer of someone else’s obligations that have arisen before you to another person for money. The amount of liabilities itself is reduced by the discount amount.

Debtors and creditors are an integral component, without which an enterprise cannot function. Accounting for transactions on these business entities with subsequent analysis allows you to adequately assess the capabilities of the enterprise, its liquidity, solvency, and development opportunities. Therefore, every businessman should distinguish and understand what accounts payable and receivable are.

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 refers to the obligations of an organization.

As an accounting object, accounts payable is a monetary assessment of the amount of debt of an organization (debtor) to other persons (creditors).

Accounts payable are recorded on active-passive settlement accounts: 60, 62 (advances received), 68, 69, 70, 71, 73, 75, 76. Debt obligations are reflected on passive settlement accounts for loans and credits 66, 67.

The following rules have been established for reflecting accounts payable in the financial statements:

1. Offsetting between items of assets and liabilities is not allowed (clause 34 of PBU 4/99). For example, on the reporting date, the collapsed balance on account 68 “Calculations for taxes and fees” is 1,500 thousand rubles, including the debit balance on subaccount 68-“Calculations with the budget for VAT” - 2,000 thousand rubles. and the credit balance for other taxes – 3,500 thousand rubles. In the balance sheet as of the reporting date, the balance of account 68 should be presented in detail: as part of accounts receivable (line 1230) - 2,000 thousand rubles, as part of accounts payable (line 1520) - 3,500 thousand rubles.

2. In the balance sheet, accounts payable are presented as short-term (Section V of the balance sheet), if their repayment period is no more than 12 months after the reporting date or the duration of the operating cycle, if it exceeds 12 months. In other cases, accounts payable are presented as long-term and, accordingly, are reflected in section IV of the balance sheet (clause 19 of PBU 4/99).

For example, in 2013, the organization received a loan for the construction of a workshop in the amount of 100 million rubles. for a period of 5 years. At the same time, under the terms of the loan agreement, the organization must pay interest on the loan on a monthly basis. Accordingly, in the balance sheet as of December 31, 2013, the amount of the principal debt on the loan is reflected as part of long-term liabilities on line 1410, and the amount of interest accrued and outstanding as of the reporting date is reflected as part of short-term liabilities on line 1510.

3. Accounts payable expressed in foreign currency (including those payable in rubles), for reflection in the financial statements, are recalculated into rubles at the rate in effect on the reporting date (clauses 1, 5, 7, 8 PBU 3/2006 ). The exception is accounts payable arising in connection with the receipt of an advance payment, prepayment or deposit. In addition, the balances of target financing received in foreign currency are not recalculated. Such accounts payable (liabilities) are reflected in the financial statements at the exchange rate as of the date of receipt of funds (acceptance for accounting) (clauses 7, 9, 10 of PBU 3/2006).

4. When an organization receives payment (partial payment) for upcoming deliveries of goods (performance of work, provision of services, transfer of property rights), accounts payable are reflected in the balance sheet as assessed minus the amount of VAT payable (paid) to the budget in accordance with the tax legislation (see appendix to the letter of the Ministry of Finance of the Russian Federation dated 01/09/2013 No. 07-02-18/01).

For example, an organization received an advance from a buyer in the amount of 118,000 rubles. (Debit 51 Credit 62) and calculated the amount of VAT payable from the advance received (Debit 76, subaccount “VAT on advances received” Credit 68, subaccount “Calculations with the budget for VAT”). As of the reporting date, no shipment was made against the advance received. In the balance sheet, the organization's accounts payable to the buyer are reflected on line 1520 in the amount of 100 thousand rubles. (118,000 – 18,000).

5. In the balance sheet, data on accounts payable for purchased goods (work, services) are reflected, if they are significant, separately from the amounts received by the organization in accordance with advance payment agreements (see letter of the Ministry of Finance of the Russian Federation dated January 27, 2012 No. 07-02 -18/01).

6. For loans and credits received, the debt is shown taking into account the interest due at the end of the reporting period (clause 73 of PVBU No. 34n).

7. The amounts reflected in the financial statements for settlements with the budget must be reconciled with the tax authority and are identical. Leaving unresolved amounts for these calculations on the balance sheet is not allowed (clause 74 of PVBU No. 34n).

8. Fines, penalties and penalties recognized by the organization or for which court decisions on their collection have been received are included in other expenses and, before they are paid, are reflected in the balance sheet as accounts payable (clause 76 PVBU 34n).

9. Amounts of accounts payable and depositors for which the statute of limitations has expired are written off as other expenses for each obligation on the basis of (clause 78 PVBU 34n):

Inventory data;

Written justification;

- (and) order (instructions) of the head of the organization.