The procedure for writing off amounts from the account 42. Trade margin in retail trade accounting entries. Forming a markup on a product - an example

sch. 42 “Trade margin” is widely used by organizations operating in the retail trade to display information about trade margins on products sold, which are accounted for at the enterprise at sales prices.

Account 42 in accounting is a collective information about mark-ups set by enterprises on assets sold to consumers when accounting for available products at retail prices. Used by trading companies to control the difference between the estimated selling price and the purchase price set by suppliers, i.e. there is a generalization of information about the possible income of the organization from the implementation of retail trade.

Attention! The basis of retail is the transfer of assets exclusively to the final consumer.

Account 42 in accounting is one of the components of monitoring the activities of a company in the field of retail trade. Here is the basic information:

1. Amounts set by the company in excess of the purchase price of the goods in order to profit from the activities carried out.
2. Discounts provided by suppliers to sellers - for possible loss of products or reimbursement of transportation costs.

Attention! With each change in sales prices, information must also be displayed on account 42.

sch. 42 Trade margin is passive. The loan displays information on the amount of amounts established by the organization in excess of the purchase price for goods sold when posting purchased assets from suppliers. When products are sold or written off due to the occurrence of various situations (damage, marriage, natural loss), the amount of the displayed trade margin is reversed from the credit of the account. 42 in correspondence with the relevant accounts (for example, 90 "Sales").

The amount of the approved discount (markup) on the balance of the products of enterprises operating in the retail trade that were not sold in the period under review can be calculated on the basis of a percentage. The interest, in turn, is defined as the ratio of amounts in excess of the purchase price accrued on the balance of products at the beginning of the month (credit balance account 42) plus credit turnover account. 42, to the total amount of goods sold in the period (accounted for at selling prices) and the final balance of products in the warehouse at the end of the month (Dt account 41).

Analytical monitoring

The main purpose of the use of 42 - ensuring a separate display of the amounts of markups set by retail organizations for products sold.

Attention! Account 42 is used exclusively in organizations that record purchased goods on account 41 at sales prices.

Normative base

Use of account 42 to display information on the amounts accepted by companies in excess of the purchase price for the goods being sold in order to benefit from activities, is carried out in accordance with the current Chart of Accounts approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, PBU 5/01 “Accounting for inventories » and other legally approved documents.

The main entries in accounting for the use of account 42

1. Displaying the established margin by retailers when posting products received from suppliers in selling prices
2. Reversing Approved Markup Records

   Dt 44 Kr 42 - for goods used to cover the organization's own needs.

   Dt 90.02 Kr 42 - for sold products

   Dt 94 Kr 42 - for assets retired due to shortages identified during the inventory, or damage.

At catering establishments, this account takes into account the amounts of trade discounts and markups for food products and goods located in buffets, pantries, in the kitchen, as well as the amount of markups added in the prescribed amount to the cost of kitchen and buffet products at sales prices.

Account 42 "Trade margin" also takes into account discounts provided by suppliers to trading organizations for possible loss of goods, as well as for reimbursement of additional transportation costs.

Credit account 42 "Trade margin" when posting goods for the amount of trade and additional discounts (markups), and debit for the amount of trade and additional discounts (markups) for goods sold, released or written off due to natural loss, marriage, damage, shortage, etc. P.

The amounts of discounts (markups) in the part related to the goods sold are reversed on the credit of account 42 "Trade margin" and the debit of account 46 "Sales of products (works, services)". The amounts of discounts (markups) in the part related to goods sold and released from warehouses and depots are determined according to invoices issued and written off (reversed) in a similar manner. The amounts of discounts (markups) related to unsold goods are specified on the basis of inventory lists by determining the due discount (markup) for goods in accordance with the established sizes.

The amount of the discount (markup) on the balance of unsold goods at retail trade enterprises can be determined by the percentage calculated on the basis of the ratio of the amount of discounts (markups) on the balance of goods at the beginning of the month and the turnover on the credit of account 42 "Trade margin", reduced by the amount of turnover on to the debit of account 42 "Trade margin" (for other write-offs), to the amount of goods sold per month (at discount prices) and the balance of goods at the end of the month (at discount prices).

If the accounting of products in pantries, in production and in buffets of catering establishments is carried out at selling prices (with a markup), then the realized trade discount (markup) is determined in the manner adopted at retail trade enterprises. If products in pantries are accounted for at sales or weighted average prices (without margins), and at production and in buffets - at sales prices (with a markup), then realized margins and realized trade discounts are calculated separately.

When writing off the cost of missing and stolen inventory items, the amounts of discounts (capes) related to these valuables are reflected in trade, supply and marketing enterprises with entries on the debit of account 42 "Trade margin" and the credit of account 83 "Deferred income" (subaccount 3 "The difference between the amount to be recovered from the perpetrators and the book value for shortages of valuables").

Account 42 is subdivided into sub-accounts:

42-1 "Trade margin (discount, cape)";

42-2 "Discount of suppliers for reimbursement of transportation costs."

Sub-account 42-1 takes into account the amount of discounts (markups) for operations related to the receipt and sale of goods. Upon receipt from the supplier of goods at a discount on the purchase price, account 41 is debited and accounts are credited: 60 - for the purchase price (paid amount) and 42-1 - for the amount of the discount.

The trade discount (cape) is distributed on a monthly basis on goods sold and goods remaining in the warehouse and in safekeeping.

In the absence of fixed prices for goods, the amount of the discount (markup) on the balance of unsold goods in supply organizations and retail trade enterprises may be determined on the basis of the average percentage.

Sub-account 42-2 takes into account the amount of discounts from the retail price of goods provided by suppliers to trading organizations and other enterprises to reimburse their expenses for the delivery and sale of goods. The indicated discounts, taken into account on the credit of account 42-2, are reversed from this subaccount to the debit of account 46. In particular, agricultural enterprises on this subaccount reflect the amounts of discounts provided to them by consumer societies from the retail price of fuels and lubricants to cover the costs of their delivery and sale from their oil depots to individual owners of transport for cash through the cash desk of the economy.

Analytical accounting on account 42 "Trade margin" should provide separate reflection of the amounts of discounts (markups) and price differences related to goods in warehouses and depots, at retail and public catering enterprises and to goods shipped.

Account 42 "Trade margin" corresponds with the accounts:

Features of using the account $42$ "Trading margin"

Definition 1

Trade margin- this is part of the price of the goods, they will be applied in wholesale and retail trade. This is the value added to the purchase price of the product. Its purpose is to reimburse the costs of selling, receiving a premium, and paying part of indirect taxes.

shopping discount- part of the retail price.

The use of the $42$ account becomes useful in automated retailing. The introduction of such an accounting system makes it possible to simplify and make transparent the balance of goods, their sale and determine profit. Also, such a system allows you to stop abuse. Automation will also allow the introduction of address storage, which will simplify the process of receiving goods, their layout, tracking the expiration dates of goods, and keeping records of certificates of conformity. Until the introduction of the automated system, accounting is kept at retail prices.

The main advantage of using the $42$ account- this is the storage and securing of goods for a materially responsible person. With such accounting, you can daily remove intermediate balances for goods, which is convenient if a trading enterprise has many departments and a wide range of goods.

With all the positive aspects, there are also disadvantages. Namely, with such a system, the accounting process becomes more complicated. Complicated accounting records. However, it is also important to note that retail prices may change frequently. Automation of the accounting process allows you to quickly change the price of the goods, the only thing left is the human factor - to change the price tags for the goods in time to avoid conflict situations with buyers.

Remark 1

Any business transaction is reflected in the primary document, the trade margin will be reflected in the register of retail prices. This document determines the selling price. The price register must be approved by the head of the enterprise; such a register does not have a single form. It should be compiled for each incoming invoice, daily.

Seller Control Scheme

1. receipt of goods by quantity, acceptance of goods is noted in the incoming invoice, certified by the signature of the materially responsible person.
2. when prices change, the seller is issued a register of retail prices and price tags for the goods;
3. waybills are attached to the commodity report, checked;
4. the correctness of the reflection of sales is carried out by reconciliation of the sums of the $Z$-report and the sum of the loaded $Z$-report into the automated system. Such an operation can be carried out automatically (a sales receipt is drawn up in an automated system and a cash receipt is automatically printed when the document is posted);
5. an inventory is carried out.

Also, the advantage of accounting using the $42 account is tax accounting, which is maintained in purchase prices.

To switch to this system, you must:

1. change the accounting policy - perhaps once a year, accounting starts from the new year.
2. if an enterprise works with several stores, it is necessary to reflect in the accounting policy which particular divisions will apply such a system.

Accounting methods and correspondence accounts

Goods may come from suppliers, consignors, sponsors, etc. for the receipt of goods from suppliers, it is necessary to make records:

• Dt $41$ – Cr $60$ – acceptance of goods at purchase price
• Dt $19$ - Kt $60$ - reflected VAT on goods received
• Dt $42$ – Kt $41$ – trade margin is reflected

Account $42$ "Trading margin"

Remark 2

This account is used to summarize information about the trade margin (discounts). The account will be credited with $42$ when goods are accepted for accounting in the amount of the trade margin (discount).

The amounts of the trade margin of goods that were sold, released or written off due to marriage, damage, shortages are recorded as a reversal entry:

• Dt $90$ – Ct $42$.

The specifics of the $42$ account is that it is not debited.

Reflection of the $42$ account in the balance sheet

Account $42$, shown on the balance sheet in line $214$ "Finished Goods and Goods for Resale". This line summarizes the account balances $43, 41, 15, 16$, minus $42$ and $41$.

Organization of work with a $42$ account in the $1$C program

A special document is intended to reflect sales transactions. "Retail Sales Report". By default, the program offers the type of KKM operation, it is also necessary to specify the warehouse and cash flow item. The name of the product and its quantity must be indicated. The document automatically generates postings:

• Dt $90.02.1$ – Ct $41.02$
• Dt $50.01$ – Ct $90.01.1$
• Dt $90.03$ – Ct $68.02$

Remark 3

Although according to the document, a posting is formed for the receipt of funds at the cash desk, an entry in the cash book is not made out, since it should be formed on the basis of "Incoming cash orders". To form the necessary entry, you need to generate a document, it will no longer generate a transaction, but the funds will fall into the cash book.

Also, in order to organize accounting for this system, the program must reflect the necessary changes in the accounting policy and in the working chart of accounts.

Account 42 "Trade margin" is intended to summarize information on trade margins (discounts, markups) for goods in organizations engaged in retail trade, if they are recorded at sales prices.

Account 42 "Trade margin" also takes into account discounts provided by suppliers to organizations engaged in retail trade for possible loss of goods, as well as for reimbursement of additional transportation costs.

Account 42 "Trade margin" is credited when goods are accepted for accounting for the amount of the trade margin (discounts, capes).

The amounts of the trade margin (discounts, markups) for goods sold, released or written off due to natural loss, marriage, damage, shortage, etc., are reversed on the credit of account 42 "Trade margin" in correspondence with the debit bills 90"Sales" and other relevant accounts. The amounts of discounts (markups) related to unsold goods are specified on the basis of inventory lists by determining the due discount (markup) for goods in accordance with the established sizes.

The amount of the discount (markup) on the balance of unsold goods in organizations engaged in retail trade can be determined by the percentage calculated on the basis of the ratio of the amount of discounts (markups) on the balance of goods at the beginning of the month and the turnover on the credit of account 42 "Trade margin" (excluding reversed amounts) to the sum of goods sold during the month (at sales prices) and the balance of goods at the end of the month (at sales prices).

Analytical accounting on account 42 "Trade margin" should provide separate reflection of the amounts of discounts (markups) and price differences related to goods in organizations engaged in retail trade and goods shipped.

Account 42 "Trade margin"
corresponds with accounts

Chart of accounts application: account 42

• How should the markup (as a percentage) be reflected in retail sales in accounting?

  Accounting uses account 42 "Trade margin". Account 42 reflects information on trade margins (discounts, capes ...). Like any other operation, the margin ... "Goods" and the credit of account 42 "Trade margin" for the difference between the cost ... the sale value of goods on the credit of account 42 "Trade margin" is reversed to debit ... 600,000 rubles, and the trade margin (the balance on the credit of account 42) is 100,000 rubles ...

• Formation of the initial (purchase) cost of goods in a retail organization

  To reflect the trade margin (discount), account 42 "Trade margin". The Instructions to account 42 “Trade margin”, approved by the Order ... indicate that: “Account 42 “Trade margin” is intended to summarize information on trade margins (discounts, discounts ... additional transportation costs. Account 42 “Trade margin” is credited "When accepting to ... components of the trade margin in the following order: account 42 "Trade margin" subaccount 42-1 "Trade margin"; account 42 "Trade margin" subaccount 42-2 ...

• Retail sale of glass, porcelain, faience
• Retail

  Trade margin (discount) account 42 "Trade margin". In the Instructions to account 42 “Trade margin”, the Chart of Accounts states that: “Account 42 “Trade margin ...” is intended to summarize information on trade margins ... at sales prices. Account 42 "Trade margin" also takes into account discounts, ... transportation costs. Account 42 “Trade margin” is credited when accepting ...

• Calculating Gross Margin in a Retail Organization Using Sales Prices

  Reverse the amount of the trade margin reflected in account 42 “Trade margin”. This ... account 42 "Trade margin" for the month); H in - trade margin on retired goods (debit turnover on account 42 “Trade margin ... account 42 “Trade margin”); H in - trade margin on retired goods (debit turnover on account 42 "Trade margin"); H k - trade margin ... on the balance of goods at the end of the reporting period (account balance 42 “Trade margin ...

• Taking into account the trade margin, naturally, account 41 “Goods” arose in correspondence with account 42 “Trade margin”. In addition ... in relation to account 42 “Trade margin”, it was said: “Account 42 “Trade margin” is intended to summarize information on trade margins (discounts ... to sub-accounts, namely: 42.1 “Trade margin”; 42.2 “VAT ". Correspondence of accounts Amount, rubles Content ... operations Debit Credit 41 "Goods" 42.1 "Trade margin ...

• Execution of documents and determination of the financial result from the provision of catering services

  The structure of the trade margin in the organization "Diana" LLC on account 42 "Trade margin" opened the following sub-accounts: 42.1 "Trade margin"; 42 ... balance and credit turnover on account 42 "Trade margin" (amount A). 2. The final ones are summarized ... maintains analytical records for account 42 "Trade margin" (42.1 "Trade margin" and 42.2 "VAT"), then a similar ... "sub-account "Cost of sales" 42.1 "Trade margin" 2048 Trade margin reversed attributable to sold products ...

• Product markdown. Consider the nuances

  The amount of the trade margin, then the accountant makes a reversal entry on the debit of account 41 ... in correspondence with the credit of account 42 "Trade margin". EXAMPLE 2 ... 2 pcs.) - the realized trade margin has been reversed; DEBIT 90 subaccount "VAT" ... . If the markdown amount exceeds the trade margin (that is, the sales value ... the entire amount of the trade margin: DEBIT 41 CREDIT 42 - the trade margin is reversed for discounted ... - the markdown of goods in excess of the trade margin is reflected. If you approach the situation formally ...

• Accounting for the retail sale of glass, porcelain, faience

  That is, reverse the amount of the trade margin reflected in account 42 “Trade margin”. According to the Instructions to the Plan ... of the month and turnover on the credit of account 42 "Trade margin" (excluding reversed amounts) to ... period (account 42 balance "Trade margin" at the beginning of the reporting period); TN p - trade margin on goods ...; ТН в - trade margin on retired goods (turnover on the debit of account 42 “Trade margin”); T - turnover ... in the amount of 80,000 rubles; On account 42 "Trade margin" - 15,514 rubles; Per...

• Retail sale of books
• Retail trade in furniture

  Retail trade organizations reflect the trade margin on the credit of account 42 "Trade margin" in correspondence with the debit ... of account 41 "Goods". Proceeds from the sale ..., that is, reverse the amount of the trade margin reflected in account 42 “Trade margin”. This difference representing gross... . All products have a 40% markup. Correspondence of accounts Amount, rubles Content of the operation...

• Peculiarities of retail trade in air conditioners, ventilation equipment

  Retail trade organizations reflect the trade margin on the credit of account 42 "Trade margin" in correspondence with the debit ... of account 41 "Goods". Proceeds from the sale ..., that is, reverse the amount of the trade margin reflected in account 42 “Trade margin”. This difference representing gross... . All products have a 40% markup. Correspondence of accounts Amount, rubles Content of the operation...

• Accounting price of products (raw materials) in public catering

  Trade margin. And since the possibility of accounting for raw materials was allowed, taking into account the trade margin, naturally, an account arose ... 41 "Goods" in correspondence with account 42 "Trade margin". Entry ... or account 41 "Goods", or at the selling price with the addition of a trade margin and ..., respectively, with reflection on account 41 "Goods ... with the addition of a trade margin. Suppose that in Bogatyr LLC the value of the trade margin is ...

• Accounting for the sale of finished products and determining the financial result of a public catering organization

  Then, on the credit of account 42 “Trade margin”, the amounts of trade discounts and surcharges on ... prices are taken into account as accounting, the trade margin is a source of income. ... "42 "Trade margin" - reversal Trade discount (margin) related to sold products and goods written off Trade margin, ... in practice, there are several ways to determine the trade margin, however, the most common is ... (account 41.2) Using the average percentage, you can determine which trade margin applies ...

• Your organization buys goods and materials at a discount

  The application of the Chart of Accounts does not provide for debit transactions on account 42 "Trade margin". If ... the resulting discount is written off to the debit of account 90 ... account 60 and at the same time the trade margin is adjusted in correspondence with the credit of account 42, then the amount of the trade margin ... will decrease. But on account...

Account 42 of accounting is a passive account "Trade margin", summarizes information on discounts / markups on goods of retailers, while reflecting the movement of goods at a selling price. This account also reflects discounts from retail suppliers, expenses for possible loss of goods or reimbursement of additional transportation costs.

A trade margin is the value added to the purchase price of a product that is applied by an organization to cover the costs of selling the product, paying indirect taxes, and ultimately making a profit.

Account 42 “Trade margin” is passive and is credited when goods are taken into account for the amount of the discount (markup) or trade margin.

The main sub-accounts 42 accounts are shown in the figure:

The purpose of analytical accounting for account 42 is to ensure separate accounting for the amounts of discounts (markups) and price differences:

• goods for retail trade;
• goods shipped.

The amount of the discount (markup) of the balance of unsold goods can be determined by%, based on the ratio of the amount of the discount/markup on the balance of goods at the beginning of the month and the turnover according to Kt 42 of the invoice, excluding the reversed amounts to the amount of goods sold and their balance at the end of the month:

Postings on account 42 "Trade margin"

The main transactions for account 42 are shown in the table:

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Examples of transactions and postings on account 42

Example 1. Calculation and write-off of the trade margin

Let's say the Procter store purchased 8 multicookers at a price of 2,360 rubles, incl. VAT - 360 rubles. The markup on goods without VAT is 35%.

The calculation of the trade margin in the Procter store is reflected in the following transactions:

In the future, the Procter LLC store sold all 8 multicookers at a price of 3,186 rubles, incl. VAT.

The sale of goods and the write-off of the trade margin in Procter LLC is reflected in the following entries:

Example 2. Accounting for a trade margin when writing off goods for own needs

Suppose LunaM LLC sells materials for construction at retail. For the repair of the store premises, own building materials were used in the amount of 31,000 rubles. The trading margin is 30%.

Accounting for the trade margin when writing off goods for the own needs of LunaM LLC is reflected in the postings.