Adjustment entry (reversal). The “red reversal” rule: typical errors and examples of application in accounting (Grigoryeva E., Medvedeva M.) Is posting 91.2.51 reversal correct?

What to do if an erroneous entry is made in accounting? To do this, you can use special techniques for correcting such records.

If an error is found in the primary accounting document, then, depending on the type of document, this error can either be corrected (Clause 7, Article 9 of the Accounting Law), or a new document can be created if corrections are not allowed in it.

If an error is made in an accounting entry, in a posting, special correction methods are applied. Exactly how an erroneous entry will be corrected depends on the period when the error occurred and on the choice of correction method.

For example, an error may occur when the amount indicated in the transaction is less than required. For example, it turns out that in the current reporting period it was necessary to make an entry

D51 K50 2000 rub.

A recording has been made

D51 K50 200 rub.

To correct this situation, it is enough to add the so-called additional wiring in an amount sufficient for the required amount of 2,000 rubles to eventually be transferred to account 51 from account 50. Additional wiring looks like this:

D51 K50 1800 rub.

If the amount reflected in the accounting entry is more than necessary, as well as in cases where it is accidentally indicated incorrect invoice correspondence, the method is applied reversal entries, which is also called “red reversal”, “reversal record”.

The essence of the method is that the incorrect transaction is “destroyed” using a transaction that is either red (hence the name) or has the transaction amount enclosed in a rectangle or oval. The reversal amount is deducted from other similar amounts. That is, for example, in the current reporting period you need to make a posting

D51 K50 2000 rub.

And instead of it, wiring was made

D50 K51 20,000 rub.

Obviously, here, firstly, there is an incorrect correspondence of accounts (judging by this posting, the funds went from the bank account to the cash desk, and not vice versa), and secondly, the amount is incorrect. In order to cancel this accounting entry, we make reversal entry, which might look like this:

Please note that we highlighted the entry in red. In those days when accounting was kept on paper, such an entry could be made in red ink (Letter of the USSR Ministry of Finance dated March 8, 1960 N 63 “On instructions for the use of a unified journal-order form of accounting”).

Using this record, we destroy the incorrect record, after which we make the correct posting:

D51 K50 2000 rub.

It would be logical to assume that a reversal entry can be made by indicating a negative amount in it. In classical accounting, negative numbers are not used, but modern accounting programs use this method. Reversal entries are made for negative amounts. That is, the previous example of reversing an incorrect entry would look like this:

D50 K51 -20,000 rub.

It is technically possible to eliminate the consequences of incorrect wiring by performing the so-called reverse wiring ("reverse reversal" or " write back"). In particular, this method is usually used in accounting for credit institutions.

In accounting for commercial organizations, this method almost never used- these are the features of the existing system of legislative regulation of accounting and accounting practice. It does not, however, refer to prohibited or inapplicable methods. If the accountant finds it appropriate in certain situations, it can be applied. For example, a mention of the possibility of using reversal or reverse entries is in paragraph 9 of PBU 7/98, “Events after the reporting date.”

We are looking at fairly simple examples here, the purpose of which is to show the essence of the technique for correcting erroneous entries. If we consider more complex cases, for example, those related to the correction of similar errors identified after the reporting date, the choice of one method or another (reversal or reverse entry) is determined by an analysis of the impact of corrections on the financial statements.

If we talk about correcting errors identified after the reporting date, then we need to take into account that the problem the choice between reversal or reverse entries is relevant only in case that, if we are talking about correcting an error using postings to the same accounts, the entry for which caused an error. If entries from other accounts are used to correct the error, we are dealing with normal accounting entries. PBU 22/2010 “Correcting Errors in Accounting and Reporting” is devoted to the general methodology for correcting errors in accounting.

Let's compare the correction of the error described above using the method write back (reverse reversal) with its correction using the method reversal entry (red reversal).

Let us remind you that the essence of the problem is that instead of writing:

D51 K50 2000 rub.

Recorded:

D50 K51 20,000 rub.

To correct an error using the writeback method, let’s make an accounting entry that is the reverse of the erroneous one:

D51 K50 20,000 rub.

What is the economic meaning of records D50 K51 20,000 rub. And D51 K50 20,000 rub.? Having read these records, we can judge that first 20,000 rubles were received from the bank account at the cash desk, after which the same 20,000 rubles were transferred back to the bank. But we do not have any primary documents confirming that such operations actually occurred. All we have is an erroneous accounting entry. And although, after using reverse posting, the cash and bank account balances turn out to be correct, the consequences of such an operation are reflected in the account turnover.

Let's do the correct wiring:

D51 K50 2000 rub.

Let's see how an erroneous entry and its correction using the two methods described above looks like on account 50 “Cashier”.

In table 2.6 shows the account status when using the reversal entry method

Final balance:

As you can see, the error did not affect account balances and turnover.

Total receipts (debit turnover):

Total disposals (credit turnover):

Here, with the same final balance, we see debit and credit turnovers, which, in fact, did not exist.

• Results
• In this lesson we looked at the Chart of Accounts, the different types of accounting entries and their impact on the balance sheet. We also talked about correcting erroneous accounting entries.
• Business transactions are counted twice in accounting. Once on debit, another time on credit of one or more accounts. The amounts of debit and credit turnover are always equal.
• Accounting accounts, if we analyze their relationship to the balance sheet, are active, passive, contractual, counter-passive, complementary and balanceless. Accounts that do not appear on the balance sheet are called off-balance sheet accounts.
• The organization creates a working chart of accounts based on the standard chart of accounts.
• Correction of erroneous entries in the accounting accounts of commercial organizations is usually carried out using the method of additional or reversal entries.

Regulatory regulation

• Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n (as amended on November 8, 2010) “On approval of the chart of accounts for accounting of financial and economic activities of organizations and instructions for its application”
• PBU 1/2008 "Accounting policies of the organization" (as amended on December 18, 2012)
• PBU 22/2010 "Correcting errors in accounting and reporting" (as amended on April 27, 2012)
• PBU 7/98 "Events after the reporting date" (as amended on December 20, 2007)
• Letter of the USSR Ministry of Finance dated March 8, 1960 N 63 “On instructions for the use of a unified journal-order form of accounting”

There are several ways to reverse an erroneous amount.
With retro discounts, the reversal occurs for the seller, but not for the buyer.
Reverse postings distort account turnover.

Errors in accounting records can have tax consequences. To avoid this, it is important for the company to detect possible distortions in time and correct them.
One of the adjustment methods is the “red reversal”. This method of making corrections is used if incorrect correspondence of accounts is given in the accounting. The point is that the erroneous wiring is first repeated in red ink (or in red in a computer program). When calculating the totals in the registers, the amounts written in red ink are subtracted from the total. Thus, the incorrect entry is canceled. After this, a new entry is made with the correct account correspondence or the correct amount.

Reflecting reverse postings instead of reversing an inflated amount entails doubling the turnover on accounts

Often errors occur due to the accountant's carelessness or a glitch in the accounting program. For example, the organization received a certificate of completion of work in the amount of 30,000 rubles. And the accountant mistakenly wrote:
Debit 44 Credit 60 - 33,000 rub.
In this case, you can reverse the difference between the correct and incorrect amount:
Debit 44 Credit 60 - -3000 rub.
Or reverse the entire erroneous amount and reflect the correct entry:
Debit 44 Credit 60 - -33,000 rub.;
Debit 44 Credit 60 - 30,000 rub.
In both cases, there will be no accounting distortions. But if the accountant does not keep analytical records, it will be easier for him to remember the reason for the correction if the entire amount of transactions is reflected in the accounting, and not just the difference.
In addition, to make corrections, you can use reverse entries - the amount previously recorded on the debit side of the account is indicated on the credit side of this account and vice versa:
Debit 44 Credit 60
- 33,000 rub. - the incorrect transaction amount is reflected;
Debit 60 Credit 44
- 3000 rub. - the amount has been corrected.
The final account balances will be correct, but the turnover will double. Therefore, we do not recommend using this correction procedure.
Let us remind you that in any case, when making corrections, you must draw up an accounting certificate in which you indicate the error and justify its correction. The form of the certificate is not unified, but it makes sense to reflect all the mandatory details of the primary document, as well as the information necessary to determine the reasons for the correction: details of payment documents, contracts, settlements (Part 2 of Article 9 of Law No. 402-FZ).

It is impossible to correct mistakes of past years through reversal, if last year's reporting has already been approved

If an accountant has identified an error that was made last year, then the possibility of using the “red reversal” method depends on whether the reporting for last year has been approved or not yet (clauses 5 - 14 of PBU 22/2010).
Corrections are not made to the approved reporting, therefore it is impossible to reverse the data in accounting for the previous year (clause 10 of PBU 22/2010). The accountant will correct the erroneously inflated amount of the transaction on the date of discovery of the error with the recognition of profits or losses of previous years or in the accounts of other income or expenses (clauses 9 and 14 of PBU 22/2010).

Note. Errors from previous years cannot be corrected using reversal entries.

Example 1. Let's use the data from the example discussed above.
November 25, 2013
Debit 44 Credit 60
- 33,000 rub. - an error was made in the amount of expenses;
August 15, 2014
Debit 60 Credit 91
- 3000 rub. - other income is reflected in the amount of expenses incorrectly taken into account last year (the error is assessed by the company as insignificant);
August 15, 2014
Debit 60 Credit 84
- 3000 rub. - retained earnings increased (the error was assessed by the company as significant).

Let us remind you that this procedure does not apply in tax accounting. An identified error from last year is corrected in the tax period in which it was made, regardless of the time it was discovered. If expenses were inflated, then an income tax arrears arose. Therefore, it is necessary to submit an updated declaration for this tax (clause 1 of Article 81 of the Tax Code of the Russian Federation).
If VAT was also deducted in a larger amount on the inflated amount of expenses, then an updated VAT return will also have to be submitted.

Note. "Red reversal" does not always mean correcting errors.

Reference. Methods for correcting data in accounting documents
Correction of accounting errors is regulated by Federal Law dated December 6, 2011 N 402-FZ “On Accounting” (hereinafter referred to as Law N 402-FZ) and the Accounting Regulations “Correcting Errors in Accounting and Reporting” (PBU 22/2010).
In order to correct errors, accountants, in addition to the “red reversal” method, have several other methods:
- proofreading method. Used to correct errors in primary documents and accounting registers. The incorrect word or amount is crossed out with a thin line so that the original version can be read, and the correct value is carefully written on top. The correction is certified by the signature of the person responsible for maintaining the register, the date and seal of the organization is affixed (Part 7, Article 9 and Part 8, Article 10 of Law N 402-FZ, Section 4 of the Regulations on Documents and Document Flow in Accounting, approved by the Ministry of Finance USSR 07/29/1983 N 105, and Letter of the Ministry of Finance of Russia dated 03/31/2009 N 03-07-14/38). Thus, corrections to the accounting registers are made before the totals are calculated. This method is used for “manual” accounting, without the use of computer programs;
- method of additional wiring. It is used when the transaction was not reflected in a timely manner or, with correct correspondence of accounts, the transaction amount turned out to be less than the real one. In this case, an additional accounting entry is made for the amount of the transaction or for the difference between the correct and reflected amounts. At the same time, an accounting certificate is drawn up, which explains the reasons for the correction. Thus, errors identified both in the current and in previous periods are corrected.

Providing retrospective discounts entails reversal of revenue for the seller, the buyer does not change the price of goods

Accountants have to reverse previously carried out transactions not only in case of mistakes, but also when providing discounts based on the results of shipments for the past period. That is, after the seller ships the goods and records the revenue, and the buyer accepts these goods for accounting. At the end of the period, the seller provides a discount on already shipped inventory items (for example, for large volumes of purchases).
According to the accounting rules, revenue is recognized based on all discounts and markups provided to customers (clauses 6 and 6.5 of PBU 9/99 “Organizational Income”, approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 32n).

Example 2. The seller shipped the first batch of goods to the buyer in the amount of 11,800 rubles, including VAT - 1,800 rubles.
Then, within a month, the second batch for 23,600 rubles, including VAT - 3,600 rubles.
At the end of the month, the seller provided a 10% discount on shipped goods:
11,800 rub. + 23,600 rub. = 35,400 rub.;
RUB 35,400 x 10% = 3540 rubles, including VAT - 540 rubles.
The seller makes the following accounting entries:
July 15, 2014
Debit 62 Credit 90
- 11,800 rub. - revenue from sales is reflected;
Debit 90 Credit 68
- 1800 rub. - VAT is charged on sales proceeds;
July 25, 2014
Debit 62 Credit 90
- 23,600 rub. - revenue from sales is reflected;
Debit 90 Credit 68
- 3600 rub. - VAT is charged on sales proceeds.

Debit 62 Credit 90
- -3540 rub. - previously recorded revenue was reversed by the amount of the discount;
Debit 90 Credit 68
- -540 rub. - VAT on revenue has been reduced after issuing an adjustment invoice.
When receiving a retrospective discount, the buyer cannot adjust the cost of capitalized goods (clause 12 of PBU 5/01 “Accounting for inventories, approved by Order of the Ministry of Finance of Russia dated 06/09/2001 N 44n). Therefore, he will reflect the discount as other income, even if it received in the same year as the goods were registered:
July 15, 2014
Debit 41 Credit 60
- 10,000 rub. - purchased goods are reflected;
Debit 19 Credit 60
- 1800 rub. - VAT is reflected on the cost of goods;
Debit 68 Credit 19
- 1800 rub. - subject to deduction of VAT from the cost of goods;
July 25, 2014
Debit 41 Credit 60
- 20,000 rub. - purchased goods are reflected;
Debit 19 Credit 60
- 3600 rub. - VAT is reflected on the cost of goods;
Debit 68 Credit 19
- 3600 rub. - subject to deduction of VAT from the cost of goods.
On August 4, the buyer was given a 10% discount on shipped goods (RUB 3,540):
Debit 60 Credit 91
- 3000 rub. - other income is reflected in the amount of the discount received from the seller.
After receiving a document from the seller about granting a discount or receiving an adjustment invoice, the buyer needs to restore VAT from the cost of goods accepted for deduction:
Debit 19 Credit 60
- 540 rub. - VAT is reflected on the discount amount.

At the same time, the seller reflects the provision of discounts on goods shipped last year in accounting without using reversal entries, but posts them to account 91 “Other income and expenses” (Chart of accounts and Instructions for its use, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n).

Reversal entries are reflected when returning goods in the same year as the sale

Proceeds from the sale of goods are reflected in the seller’s accounting at the moment of transfer of ownership to the buyer (clause 12 of PBU 9/99). The buyer's right of ownership arises from the moment the goods are transferred to him by the seller - delivery of the goods to the buyer or the carrier (Articles 223 and 224 of the Civil Code of the Russian Federation).
If the buyer returns part of the goods to the seller, this means that ownership has not transferred. Therefore, the seller has no reason to take into account the proceeds from the sale of these goods - he makes adjustments to the accounting.

Note. When the buyer returns goods or provides a retro discount, the seller reverses the proceeds.

In the event of a detected defect, the buyer draws up a report on the established discrepancy in quantity and quality upon acceptance of inventory items, which is the legal basis for filing a claim with the seller. And based on the claim made by the buyer, the seller’s records appear in red ink.

Example 3. On April 25, 2014, LLC "Company 1" shipped LLC "Company 2" freezers in the amount of 3 pieces at a price of 24,780 rubles. per piece (including VAT - 3,780 rubles).
The cost of one camera is 17,000 rubles.
On May 6, 2014, Company 2 LLC sends Company 1 LLC a claim that one of the supplied cameras was defective and returns it.
On the same day, the seller transfers funds for the returned products.
In accounting, the seller makes the following entries:
April 25, 2014
Debit 62 Credit 90
- 74,340 rub. - revenue for sold products is reflected;
Debit 90 Credit 68
- 11,340 rub. - VAT is calculated based on the invoice;
Debit 90 Credit 43
- 51,000 rub. - the cost of products sold is written off;
May 6, 2014
Debit 62 Credit 90
- -24,780 rub. - previously recognized revenue was reversed;
Debit 90 Credit 43
- -17,000 rub. - the previously written-off cost of sold defective products was adjusted;
Debit 90 Credit 99
206
- -4000 rub. - previously reflected profit from the sale of defective products was adjusted;
Debit 90 Credit 68
- -3780 rub. - claimed VAT deduction on returned products;
Debit 43, 28 Credit 43
- 17,000 rub. - acceptance of products returned by the buyer to the warehouse on the basis of an act;
Debit 62 Credit 51
- 24,780 rub. - money returned for defective products.

Note. When is the red reversal method still used?
Organizations prescribe in their accounting policies how they keep track of finished products - according to the actual cost in account 43 “Finished Products” or according to the standard cost, when along with account 43 account 40 “Output of Finished Products” is used. Count 40 is used in small industries and with a small range of products.
At the end of each month, the organization compares the balance of account 40 by debit and credit. The deviation shows the difference between the actual cost and the planned cost. The excess of the standard cost over the actual cost (savings) is reversed to the credit of account 40 and the debit of account 90 “Sales”. Overexpenditure - the excess of actual cost over standard cost - is written off from the credit of account 40 to the debit of account 90 “Sales” by an additional entry.
In addition, “red reversal” entries are constantly found in the accounting of retail trade organizations that keep records at sales prices. Such organizations form the selling price of goods based on the price at which they purchased goods from suppliers and the trade margin.
The amounts of trade margins (discounts, markups) on goods sold, released or written off due to natural loss, defects, damage, shortages are reversed by the seller to the credit of account 42 “Trade margin” in correspondence with the debit of account 90 “Sales”.

Read on e.rnk.ru. The procedure for tax accounting of buyer discounts and other measures to increase sales
What is the position of departments and courts on the issue of accounting for the costs of displaying goods on the sales floor, sending advertising SMS messages, holding promotions and distributing product samples? Is the provision of goods in exchange for accumulated points considered a gratuitous transfer for income tax purposes?
Read the answers to these questions, as well as about other complex aspects of taxation of discounts on the website e.rnk.ru in the articles “Nuances of accounting for costs of stimulating potential and existing customers” // RNA, 2014, No. 7 and “Retrospective discounts have become safer in compared with the payment of premiums and bonuses to customers" // RNA, 2012, No. 9.

If the goods are returned in the year following the sale, then the seller does not need to reverse the proceeds. In this case, as part of other expenses, it will reflect the loss of previous years identified in the current year (clause 11 of PBU 10/99 “Expenses of the organization,” approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 33n).

Adjustment (adjustment) entry- this is an entry that is used to bring income and expenses into line at the reporting date.

It reflects economic activity that has already been carried out, but not taken into account in the necessary way.

Methods for making corrections to

The mechanism for making corrections is not regulated by accounting legislation.

Currently, there are two main ways to make corrections.

Errors in accounting records can be corrected using the additional or adjusting entry method and the red reversal method.

The additional entry (posting) method is used if the correct correspondence of accounts was used when recording in accounting, but the amount of the business transaction was erroneously underestimated.

If the amount is overestimated or incorrect invoice correspondence is used for correction, the “red reversal” method is used.

The organization must independently approve the chosen method.

When choosing one method or another, you need to take into account that, regardless of the method of making corrections, the balance on the corresponding accounting account will be the same, but the turnover on the account will be different.

Method of additional recording (posting)

If the cost indicators of a transaction need to be increased due to an identified distortion, and the amount of the initial entry is erroneously indicated, and not the accounting entry itself, the method of additional entries is used.

The correction is made by making an additional entry with the same account correspondence for the amount of the difference between the correct transaction amount and the amount reflected in the previous entry.

In other words, to correct the error, the same posting is made, but only for the missing amount.

Example

The organization discovered that the cost of services for routine car repairs is reflected in the accounting records in the amount of 5,000 rubles. instead of 6000 rub. (excluding VAT).

That is, the amount of the business transaction was erroneously underestimated by 1000 rubles.

To correct an error in accounting, the following entry was made:

To correct the error, an additional entry is made for the amount of the difference between the correct and incorrect entries - 18,000 rubles. (20,000 - 2000):

But at the same time, by mistake, the accounts in the accounting registers indicated the wrong amount - 55,000 rubles.

In this case, it is necessary to make a correction, namely, reduce the amount reflected in the accounts.

The incorrect entry is repeated in red ink:

At the same time, the correct amount in the amount of 2000 rubles is indicated on the accounts in the registers.

In this situation, it is also necessary to correct it, but now 2000 rubles should be removed. from the account register and enter them into the account register.

To do this, we will use the “red reversal” method:

First, the incorrect entry for the amount of 2000 rubles is repeated in red ink.

And then the correct entry is made for the amount of 2000 rubles.

When counting revolutions, the amount written in red ink is subtracted.

As a result, the correct amount and correspondence are obtained - Account DT 71 “Settlements with accountable persons” Account CT 50 “Cash” - for the correct amount of 2000 rubles, and the incorrect entry in account 70 “Settlements with personnel for wages” is canceled.

Accounting information

To correct an error, you need to draw up a primary document, which in most cases is an accounting certificate.

On its basis, adjustment entries are made both in the accounting and in the .

In this case, the certificate must contain all the mandatory details of the primary accounting document listed in clause 2 of Art. 9 of the Federal Law of December 6, 2011 N 402-FZ.

Still have questions about accounting and taxes? Ask them on the accounting forum.

Adjustment entry (reversal): details for the accountant

• Correcting errors in accounting for financial assets

  An accounting entry prepared using the “red reversal” method and an additional accounting entry Error..., as well as corrections using the “red reversal” method are documented by an accounting certificate (f. 0504833... or an accounting entry using the “red reversal” method using the specified accounts. Let's bring... into fixed assets) using the "red reversal" method 4,101 12,000 4 ... book value of the building) using the "red reversal" method 4,106 11,000 4 ... operation (depreciation) using the "red reversal" method 4,401 28 225 4 ...

• About accounting standards "Accounting policies" and "Events after the reporting date"

  Or an entry made using the “red reversal” method and an additional accounting entry. A record is formed, reflected in the “red reversal” method, and an additional accounting record. A record is drawn up... or a record prepared using the “red reversal” method, and an additional accounting record. A record is formed... or a record issued using the “red reversal” method, and an additional accounting record. In... or an entry issued in the “red reversal” method and an additional accounting entry. Produced...

• Standard "Accounting Policies"

  Or an entry made in the “red reversal” method and an additional accounting entry on... or an entry made in the “red reversal” method and an additional accounting entry on... or an entry made in the “red reversal” method and an additional accounting entry on... or an entry made in the “red reversal” method and an additional accounting entry in... or an entry made in the “red reversal” method and an additional accounting entry in...

• What has changed in the accounting of targeted subsidies for autonomous entities?

  In the form of a targeted subsidy (using the “red reversal” method) 5,507 x0 152 (162 ... target subsidy account (using the “red reversing” method) 5,508 10,152 (162 ... receipts of the targeted subsidy (using the “red reversing” method) 5,507 10,152 5 ... targeted subsidy account (using the “red reversal” method) 5,508 10,152 5 ...

• Formation of reserves for vacation pay

  Unused vacation) is reflected using the “red reversal” method. Example 2. Let’s use the example data... actually worked time (using the “red reversal” method) 2 109 60 211 2 ... for vacation pay (using the “red reversal” method) 2 506 90 211 2 ... in relation to the specified reserve (using the "red reversal") In accounting policies for the purposes...

• We issue a return of defective goods from the buyer

  90, subaccount "Revenue" (reversal) - revenue from sales in... ;Cost of sales", Credit 43 (reversal) - the actual cost of the rejected batch was reversed... "VAT calculations" (reversal) - previously calculated from sales...; Debit 90-9, Credit 99 (reversal) - the financial result from the sale is reversed...

• Transition to the new provisions of the GHS “Rent”

  Property for rent (by the Red reversal method) - 826.0 (14 months x... rights to use property (by the Red reversal method) 236 826 Agreement on termination... current year 2018 (by the Red reversal method) - 413 Agreement on termination of the contract ... the next year 2019 (using the Red Reversal method) - 413 Agreement on termination of the contract...

• Application of the GHS “Rent” in an educational institution

  Rights of use, reflected by the “red reversal” method 0 104 40 451 0 ... the remaining amount of payments by the “red reversal” method 0 205 21 560 0 ... under the agreement, reflected by the “red reversal” method 0 104 40 451 0 ... calculated amount of payments using the “red reversal” method 0 210 05 560 0 ...

• Overpayment of wages and vacation pay. How to fix?

  Payments are reflected by the “red reversal” method using the following account correspondence: Debit... insurance premiums are reflected by the “red reversal” method. Claims for compensation for damage ... are subject to correction using the “red reversal” method or an additional accounting entry... as well as corrections using the “red reversal” method are documented in an accounting certificate (form... erroneous accruals using the “red reversal” method and reflected in accounting ... Fixed a counting error using the “red reversal” method when calculating insurance premiums...

• Important changes to Instruction No. 157n

  An accounting entry prepared using the “red reversal” method and an additional accounting entry; error... an accounting entry prepared using the “red reversal” method and (or) an additional accounting entry... an accounting entry prepared using the “red reversal” method and (or) an additional accounting entry..., as well as corrections using the “red reversal” method red reversal" are drawn up with a primary accounting document - an accounting...

• Withholding the amount of overpaid vacation pay upon dismissal of an employee

  His salaries are reflected by the “red reversal” method with the following correspondence of accounts: The debit of the account... insurance premiums are reflected by the “red reversal” method. Requirements for compensation for damage caused by... amounts of wages using the “red reversal” method (5,600 - 728) rub. 4 ... 206 11 660 using the “red reversal” method. In this case, must be fulfilled...

• Accounting for transactions authorizing expenses

  The specified reserve is reflected by the “red reversal” method 0 506 90 000 0 ... for the current year, reflected by the “red reversal” method 0 508 00 000 0 ..., planned appointments are reflected by the “red reversal” method (clauses 196, 200 of Instruction No. 183n... income received (reflected using the “red reversal” method) 5,508 10,180 5 ...

A reversal transaction record is generated with a negative parameter value. For example, the wiring was initially made:

Debit 20 Main production Credit 10 Materials in the amount of 120,854.45 rubles. at the planned cost of inventories. To get the actual price of 115,145.17 rubles, you will need the red reversal method:

Dt 20 Kt 10 – 5,709.28 rub. REVERSE

This method is used in the following cases:

• when it is necessary to make corrections to current accounting;
• to write off already realized trade margins;
• if the company's estimated reserves are to be adjusted;
• it is necessary to bring the accounting price of uninvoiced supplies to the actual one.

Red reversal method. Example

Suppose the company "Giant" created a reserve for doubtful debts with the following accounting entry:

Debit 91.02 “Other expenses” Credit 63 “Provisions for doubtful debts” in the amount of 1200 thousand rubles.

At the end of the reporting period, part of the reserve was written off as follows:

Dt 63 Kt 62 95 thousand rubles, and part of it is built - Dt 91.02 Kt 63 - 15 thousand rubles.

Please note that all reversals in accounting must be accompanied by the document “Accounting certificate”.

What is red reversal in accounting?

If we look at the legislative acts, we can see that the mechanism for adjustments in accounting is not strictly regulated, so accountants use both a reversal entry with a minus and a system of reverse entries. A red reversal in accounting implies the action of canceling a previous incorrect entry, because the amounts recorded in red are deducted from the total account turnover.

An entry with a minus is universal, since it allows you to correct synthetic data as soon as an error is detected, and does not distort the turnover of accounts for the period, since the incorrect amount is actually destroyed, both in debit and credit. For clarity, you can consider several options for adjusting amounts using specific examples:

As a result, the turnover in accounts 20 “Main production” and 10 “Materials” will be only 7890-50 rubles, the turnover will not double. A reversal entry is just an opportunity to comply with all accounting rules by correcting incorrect entries immediately after an error is discovered.

Why is the posting with a minus called a red reversal?

The reversal entry is made with a minus sign; in addition, it is written on paper in red ink, and is highlighted in red in the automated accounting program. Therefore, the usual wiring is usually called “black”, and the reversal wiring with a minus is called “red”.

Why can't you do regular “black” wiring instead of “red”?

Sometimes, by mistake in accounting, instead of posting a reversal, the accountant makes a reverse entry. For example, you need to reverse an erroneous posting:

Debit 26 Credit 60 in the amount of 150,000 rubles. due to an error by the accounting service - in fact there should not be a write-off.

The specialist does not make the correction by writing:

Dt 26 Kt 60 – 150,000 REVERSE, and by recording Dt 60 Kt 26,150,000

The final account balances will be identical for both accounting entry options, but with reverse entries, the accountant artificially increases the turnover of debit and credit accounts, which distorts the data and requires additional analytics during analysis.

When is it necessary to do without STORNO?

Inaccuracies in accounting are possible both due to a technical error, a malfunction of the software product, and due to fatigue of the accounting specialist. Local errors, when only the date is distorted, are easier to correct than transit errors, which involve several registers at once.

Errors in numbers are the most common. To make adjustments, the accountant uses:

• proofreading method;
• red STORNO;
• additional entry.

Additional posting cannot be avoided if the amount is underestimated; for example, it was necessary to make an entry:

Debit 26 – Credit 70 for 120,850 rubles. - the director’s salary has been accrued, but only 120,050 rubles are listed in the accounting records, and after issuing the correct amount, 800 rubles are stuck, they will need to be additionally accrued in the same way in Dt 26 from Kta 70 by 800 rubles.

Reversal entries are used when the amount of the transaction is overstated, for example, instead of RUB 120,850. 120,855 rubles would have been charged. (5 rubles will “freeze” if you do not make an adjustment in red).

The red reversal rule is enshrined in PBU 22/2010 on the procedure for correcting errors in accounting. It was approved on April 19, 2010 and is applied from reporting for 2011. You can use STORNO for the entire amount of the incorrect entry, adding an accounting entry with the correct amount, or only for the difference. For example, the following entry was made in accounting:

Debit 62 – Credit 90 – sale of the machine for 925,125 rubles.

In fact, 920,125 rubles were received for the machine. By posting to Debit 51 and Credit 62, the amount of 5,000 rubles was stuck in the account for settlements with customers under this agreement. Having raised the contract, the accountant was convinced that the sales amounted to 925,125 rubles. was carried out incorrectly, the sales accounts should have had the amount of 920,125 rubles. The following fixes are possible:

1 way

Dt 62 Kt 90 – 925 125 rub. REVERSE for the entire amount

Dt 62 Kt 90 920 125 rub. – posting to the correct sales value

2 way

Dt 62 Kt 90 – 5,000 rub. REVERSE the difference

3 way

Dt 90 Kt 62 5,000 rub. – reverse posting for the difference.

Mathematically, all 3 options will be correct, but from an accounting point of view, only the first method of adjusting the overstated amount will be the most informative.