What does 60 account credit balance mean? Expanded balance

When preparing for a test or exam in accounting, you need to know that teachers often like to ask about different accounts and entries in accounting. For dummies, it will be useful to know what counting 60 means. We’ll talk about this in our article today.

Any enterprise is engaged in accounting for payments to contractors and suppliers. This includes not only the supply of goods, but also various types of work and provision of services.

Account 60: accounting for expenses with suppliers

Account 60 displays all relationships with suppliers. Therefore, this account is called “Settlements with suppliers and contractors”.

The debit column reflects payment to the supplier for the product/service/work, and the credit column reflects the organization’s debt to suppliers.

And in this table you can see the main entries for account 60, which will be useful to students:

Account 60: accounting for advances issued

If an organization transfers an advance to the supplier for the upcoming delivery of goods or services, it is necessary to make a note in the table “advance issued” (it is assigned subaccount number K50).

An example can be seen in the table:

Account 60: accounting of bills to pay off debt

A bill of exchange is issued to secure the debt. In this case, you need to open a “Bills Issued” subaccount in the table, as in the table:

There is quite a lot of information on accounting (score 60), and it is not always easy. We try to provide it as accessible and understandable as possible. Well, if this is not enough, and in addition to understanding the topic, you need to complete some super-difficult test/laboratory/coursework on this strange subject - contact us.

During the "Express check" of 1C Accounting 3.0 (latest update) it gives the error "Correspondence of debit and credit balances on accounting accounts at the end of the reporting period to the type of account (active/passive)." When you go to account card 60.01, at some stage negative balances appear there - I CAN’T UNDERSTAND WHERE THEY COME FROM.

This question was recently asked by one of our clients. And in general, this is a fairly common problem - negative balances where they shouldn’t be. Now let's look at the situation with the red numbers on the credit account 60.01. We also recommend reading the article about red numbers in monthly closing transactions.

What does an error with a negative account balance 60.01 look like?

Let's consider a situation in which red, that is, negative amounts appear on the credit of passive account 60.01 (settlements with counterparties). Since the account is passive and is intended to reflect debt to suppliers, its credit balance can never be negative! Red amounts are just an error and are caused by incorrect handling of receipt or payment documents.

The screenshot below shows a simple case.

If a negative loan balance appears on account 60.01, first of all you should find out which counterparty’s documents lead to such a situation.

It is for this reason that the shown report already has a filter by counterparty installed.

Note:

The balance sheet will not allow you to understand the cause of the error, especially since there may be not one, but several, and the red amounts shown in the report may consist of the results of several documents!

You can also see that a filter has already been installed for the account in the SALT. But first of all, you need to understand which transactions involving which counterparty are causing the error...

Step one. Find the document causing the error.

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The screenshot shows a very simple example. In a real case, everything can be much more complicated due to the large number of documents, but the principle of finding an error always remains the same.

Thus, we have identified the document causing the error. We also identified the counterparty and the contract, which is very important. Now you can easily set a filter (selection) for this supplier and contract in the invoice card, which will allow you to get rid of all unnecessary documents in the report and focus on finding the error.

It is also important not to be distracted by other subsequent red numbers. First, you need to eliminate the error in the documents associated with the very first negative account balance in the list and then, if necessary, repeat the operation for other groups of documents (filter by other counterparties and agreements with them).

There was an important part of the article, but without JavaScript it is not visible!

We return to OSV and open directly from it the document whose entry causes the error. The reasons that can lead to these types of errors are discussed in more detail. Here I would like to explain the basic principle of eliminating defects.

Let us remember that account 60.01 is passive and is intended to reflect debts to suppliers. And if so, then the balance on it is always only credit. At the same time, there cannot be a negative balance on the loan of a passive account. What does this tell us?

What does the debit of account 60 show?

The debit of account 60 shows how much our organization's counterparties owe, that is, debit turnover shows the amounts paid to suppliers. Account 60 can be supplemented with subaccounts if this is due to the accounting needs of the organization. For example, separate accounting is required for overdue debts, payments in foreign currency, and so on. The chart of accounts indicating all subaccounts used by the organization must be approved in the accounting policy.

Let's look at the subaccounts that are used most often:

• 01 “Settlements with suppliers and contractors.”
• 02 “Calculations for advances issued.”
• 03 “Settlements on bills issued”

The debit of subaccount 60.01 reflects advances against which supplies were made from suppliers, that is, the advance is offset.

The debit of subaccount 60.02 includes advances issued to suppliers for future deliveries.

An entry is made in the debit of subaccount 60.03 when repaying a previously issued bill.

What does account credit 60 show?

The credit of account 60 shows the debt of our organization to suppliers, that is, the amount of goods supplied goes there. If the supplier works on the general taxation system, that is, pays VAT, then the allocated amounts of this tax also go to account 60 - Settlements with suppliers and contractors. By credit they are reflected as part of the supply, by debit - as part of payment for goods or transfer of advance payment. Considering the subaccounts, we note that the credit of subaccount 60.01 includes deliveries of goods by suppliers, confirmed by primary documents: UPD, acts, invoices and others.

The credit of subaccount 60.02 reflects offset advances.

The credit of subaccount 60.03 takes into account own bills of exchange transferred to suppliers to ensure payment for goods.

Is count 60 active or passive?

Account 60 is included in section VI “Calculations” of the Chart of Accounts. It is a synthetic account. Analytical accounting for it is carried out for each counterparty and for each issued invoice or agreement.

Let's determine whether count 60 is active or passive. To answer the question, you need to understand that the accountant uses it to reflect all payments to suppliers. Therefore, a debt may arise both on the part of our organization (that is, the delivery was made but not paid) and on the part of the supplier (an advance was transferred). In accountant's language, this means that the account balance can be either a debit or a credit. Thus, the count of 60 is active-passive.

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Postings applicable for account 60

For account 60, postings are compiled in correspondence with accounts, a complete list of which is indicated in the order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n.

If the supplier works for OSNO, then VAT is included in the cost of goods (work, services). Often, the same counterparty can act as a supplier under one contract and as a buyer under another. In such cases, it is convenient to use netting when making calculations.

Let's give examples of some wiring.

Let us focus on transactions related to uninvoiced deliveries. Uninvoiced delivery is a supply of material assets that is not supported by documents from which one can draw a conclusion about their value. For such deliveries, the “Uninvoiced Delivery” subaccount of account 60 is used.

When documents arrive, the following entries are made.

Option 1

Option 2

Balance sheet for account 60

The balance sheet for account 60 (SALT) is a convenient accounting record when working with identifying debts from suppliers and contractors. As the name of the report suggests, it displays turnover and balances by counterparties for the selected period. OSV discloses information on each counterparty with whom transactions were made during the specified period or at the beginning of which there was an outstanding debt.

An example of filling out the WWS is shown in the figure.

Score card 60

Account card 60 can be generated for any period of time, for each sub-account separately or as a whole for account 60. You can select by counterparties and specific contracts.

A sample account card 60 is shown in the figure.

The account card in the sample was generated in one month for one counterparty and one agreement. Here you can see the operations of paying an advance to a supplier, providing services by a supplier and offsetting the advance.

The account card contains the following details:

• Selected period.
• The debit and credit balance at the beginning and end of the selected period, the balance after each transaction.
• Transaction dates.
• Name of the counterparty and agreement.
• The essence of the operation being carried out.
• Transaction amount.
• Corresponding accounts.

Account 60 is a synthetic accounting account. It refers to active-passive accounts. The account is intended to reflect all settlements with suppliers and contractors. The accountant conducts analytics for each account or contract. Subaccounts can be opened for account 60 based on the needs of the organization.

Accounting for payments to suppliers is one of the most significant sections of accounting. Regardless of the field in which the enterprise operates, its activities are impossible without attracting goods or services from outside organizations. Accounting for settlements with suppliers is carried out on account 60 “Settlements with suppliers and contractors”. In order to fully have information about the status of settlements with counterparties for a specific period of time, periodic analytical activities are required. In this case, the main source of information in accounting is the turnover in account 60.

Characteristics of 60 accounts

According to its structure, account 60 is active-passive, since the final balance can be formed either by debit of the account or by credit, respectively:

• A credit balance on an account arises when the company has already received goods or services from suppliers,
• A posting to the debit of account 60 in correspondence with the cash accounting accounts is formed as the company repays its financial obligations for the valuables supplied.

For this account, it is advisable to organize analytical accounting not only in the context of each counterparty, but also in the context of each agreement concluded with a partner.

The turnover on the account for settlements with suppliers can be formed not only for the account as a whole, but also in relation to each individual counterparty. Such a report in its essence can become the basis for regular reconciliation of mutual settlements, as well as for inventory of receivables and payables.

Structure and meaning of turnover 60 accounts

In order for the account turnover to be formed correctly, all primary documents must be taken into account.

The account balance sheet is a table consisting of the following columns:

1. Accounting account;
2. Counterparties. This column will indicate either a complete list of the organization’s counterparties that were recorded on account 60, or a specific supplier, if there is a need to analyze information on the counterparty.
3. Balance at the beginning of the period. This column is divided into two columns - debit and credit. Depending on whether the opening balance is debit or credit, the amount will be reflected in one of these columns.
4. Period transactions. This column is also divided into debit and credit and is intended to reflect both the receipt of goods or services from the supplier and the transfer of payment for delivered values. Credit turnover will be formed by accounting documents received from the supplier. These may include delivery notes, certificates of work performed, and invoices. The debit turnover in the balance sheet will reflect the organization's payments transferred to the counterparty.
5. The last column, divided into a debit column and a credit column, is used to disclose information about the closing balance formed on the last day of the period under review.

A significant advantage of this analytical report is that you can analyze absolutely any time period. Unlike financial statements, which, as is known, are a photograph of the state of accounting on a specific date, the use of a balance sheet allows, based on the needs of the company, to independently select the period requiring analysis.

Using card 60 account

In addition to the turnover, an account card is often used for analytical activities. How is the structure of an account card different from a balance sheet? An account card is a report that allows you to obtain information on the selected account down to each accounting entry. An accountant may need this report when, based on turnover data, the expected state of settlements with suppliers does not correspond to the actual state and doubts arise regarding the correctness of the formation of accounting records involving account 60.

You can also create a score card of 60 for any time period. This is quite convenient if the approximate period of the error is known, as a result of which there is no need to view large amounts of unnecessary information.

The structure of this report is similar to the turnover for account 60 and reflects the following information:

• Account balances at the beginning of the period under review,
• Period transactions;
• The ending balance of the account for settlements with suppliers and contractors.

Account card 60 is generated separately for each document of mutual settlements with the counterparty.

Account analysis 60 accounts

Another equally important report provided to help an accountant is account analysis. It allows you to obtain information about all accounting accounts that were in correspondence with the accounts payable account during a certain period of time. Carrying out analytical activities in the “Account Analysis” report for settlements with suppliers will allow you to quickly check the accounting entries made by the responsible person involving 60 accounts during the analyzed period.

The structure of the report is presented as follows:

1. Accounting account;
2. Counterparty;
3. Accounting account corresponding to account 60;
4. Debit;
5. Credit.

Depending on whether the correspondent account is used as a debit or a credit in the transaction involving account 60, the entry with the amount will be reflected either in the “Debit” or in the “Credit” column.

It is advisable to use the “Account Analysis” report not only in relation to settlements with the company’s suppliers and contractors, but also with its buyers and consumers of services. In this case, an analysis of account 62 must be generated.

Any enterprise needs materials and various services to carry out its activities. The most difficult thing to track in accounting is services, because they are not always signed with an agreement. And even without it, actions are legal.

In what cases is a contract not signed when purchasing goods? For example, if a product is purchased on an advance payment basis from a supplier who has been known for a long time. Here you just need to issue an invoice to pay for the delivery. It often only indicates how long it will take to pay the amount. But it is increasingly safer to enter into a contract, especially when it comes to services. They regulate any relationship between the parties to the transaction.

In order to better control all relationships with suppliers, there is an account 60, where the movement of funds is controlled by debit and credit. He belongs to the active-passive type. It reflects the following information on debit and credit:

1. Works and services performed, including provided electricity, gas and other important resources.
2. Surplus goods and other valuables.
3. Transportation, logistics and communications services.
4. Advance funds for shipment or work performed.

Account 60, which is controlled by credit and debit, reflects the total flow of funds between the company and its suppliers. The basis on which the payment was made does not play a big role here, although the debt should always be reflected in the documents.

How is the calculation carried out?

Account 60 is valued by many accountants due to its simplicity and ease of balance. Here, if a company receives some kind of product or service, then the operation is classified as a debit, and if it gives away, then it is classified as a credit. In this regard, account 60 requires clear filling; each operation must correspond to either a credit or a debit. But other issues can also be addressed:

• whether the activity leads to credit debt;
• what to do if services or goods are provided, but payment has not gone through;
• what to do if you do not have enough documents for payment.

Account 60, which every accountant should own, helps solve all these questions.

How to create an account 60

Like any document, invoice 60 has a clear structure and design rules. In general, we can say that the rules here are very similar to the general unified form. The act of acceptance and delivery, by the way, is not unified. But you need to remember the following details:

• number, delivery date;
• identification of suppliers and receiving company;
• the act of the concluded contract, if any;
• Bank data.

When receiving primary documents, they are indicated in the report. Account 60 is often used for settlements with suppliers, and the general taxation system is applied. Here you need to make the following entries:

• amount of goods accepted;
• VAT per batch;
• total payment to the supplier company.

The other side of reporting is settlements with intermediaries. Account 60 here consists of the following entries:

• service cost;
• VAT crediting;
• VAT deduction, if any;
• transportation and delivery costs.

All transactions are calculated in a similar way, for example, for communication services, electrical wiring, and so on. Individual items may be added. So, if you buy equipment for a company, then you also need to take into account the cost of setup, connection, and maintenance services.

Analytics in score 60

Analytics in this area is carried out on all documents, parties to the transaction and contracts. Ultimately, situations may arise when the goods have been received, but have not yet had time to pay. It gets worse if debt arises. If any errors are identified in calculations or contracts, the document is marked as a “claim.”

It is also very important that systematic data reconciliation is carried out between counterparties. After all, in one company the numbers may differ due to incorrect calculations, resulting in claims from one of the parties to the transaction. They reconcile documents on the main accounts: payment, debt repayment, advance payment.

An advance payment may also be included in the calculation. It represents payment for a service or product before receiving it, in part or in full. Here, even before receiving the goods, a receivable already exists; it is repaid only after receiving the value. From an accounting point of view, debits come first, and then credits.

Analytical accounting data is important; it provides information about the company's reserves. For example, in analytics you can find the following information:

• about documents and invoices whose payment deadline is coming to an end;
• about documents if the payment term has expired and there is a debt;
• about bills issued;
• on the loan received.

If a situation occurs when the goods have arrived, but the company does not want to pay for it and even wants to return it, then the product should be marked as “Debit 002”. If for some reason the goods cannot yet be returned, then they will be received. To correctly determine the price, analytics of similar prices for similar products are taken.