How to issue a refund?
In stores quite often there are situations associated with the return of goods. This procedure requires proper documentation. On how to properly issue a refund, so that in the future, the tax inspectorate did not have any questions - this article.
Reasons for returning goods
The ownership of the goods, on the basis of the contract of sale, passes from the supplier to the recipient after the shipment of the goods, that is, from the moment of its transfer. Exceptions can make cases that are provided for by current legislation or the terms of the contract. For both parties to the contract of sale, compliance with the conditions for the transfer of goods, which are regulated by the Civil Code, are necessary and mandatory for the transaction. The order of transfer of goods is as follows:
- by delivery to the consumer;
- the goods must be delivered with a full package of documents;
- the quantity and range of goods must comply with those specified in the contract;
- in the case of delivery of a complete set, the set specified in the documents must be available;
- goods must be of high quality and comply with technical standards;
- the goods must have packaging corresponding to its physical properties;
- on the goods should not be entitled to third parties.
If all these conditions are met, the buyer should not have any claims to the seller upon receipt of the goods. This must be documented. Thus, from the moment of receipt, the goods belong to the recipient.
In accounting, this operation is reflected equally, and does not depend on the future fate of the goods. But not always the product can be realized. And, in order to avoid losses, the goods must be returned to the supplier. The grounds for the return of the goods may be different, and depending on this, the tax consequences will be opposite. Reasons for return:
- Return legally.
- Return by agreement of the parties.
Return in accordance with the law
In case of default of obligations under the contract, there is a return to the supplier. How to issue a refund in accordance with the law? Violation of the conditions and procedure for the transfer of goods listed above is a violation of the Civil Code and the terms of the contract of sale.This may be a violation of the configuration of the goods, its quantity, range, etc. The law in some cases does not allow the buyer to make a refund of a product that does not satisfy him at the same time and unilaterally.
For example, in order to transfer back an incomplete product, the buyer must first contact the supplier with the requirement to complete the package or reduce the price. There should also be a deadline for meeting this requirement.
If the return of the goods takes place for the reason specified in the law, the contract of sale will be considered violated, that is, not executed by one of the parties. In this case, the contract is terminated. This means that the original relationship between the parties to the contract was absent. Hence, there was no initial implementation, as low-quality products are definitely not something that is intended for sale. For taxation, it will not be recognized as a commodity.
In accounting both at the supplier and the recipient, reversal entries are made that eliminate the delivery operation itself. That is, the return of the goods to the tax office will not be considered a sale.
Return of goods by agreement of the parties
If the contract provides for special conditions, the return of the goods may be by agreement of the parties. For example, the buyer failed to sell the product due to seasonal factors, due to lack of demand, or due to obsolescence. How to issue a refund?
In this case, the initial implementation occurred, the ownership at the time of shipment of the goods passed from the supplier to the recipient legally. Claims to the goods did not arise. There are no violations of the law in this case, the contractual relations are respected. Consequently, the return of the goods by the buyer means the reverse transfer of ownership of the goods to the supplier. This operation is the implementation, as the law establishes the following implementation criteria:
- transfer of ownership of the goods by one person to another person;
- paid basis of the transaction.
In this case, the supplier and the buyer change roles and they have new obligations arising from the new contract of sale. In the buyer's accounting, now the seller, the return of goods will be reflected as a normal implementation. The supplier of this product comes as a buyer.
Documenting the return of goods
When a non-conformity of the goods with the terms of the contract is detected at the time of acceptance to the warehouse, the buyer draws up an act. This act will serve as a legal basis for arguing claims against the supplier. The act is a special commission. It is transferred to the accounting department, which writes a claim. The claim reflects the following information:
- the contract number and the number of documents issued to accompany the goods;
- defects in the goods;
- the number of the act and the list of persons composing it;
- customer requirements;
- in the case of an independent examination, expert opinion;
- claim for damages.
If at the time of receipt the goods were not paid, then no claims are made. From this article it becomes clear how to act in the case of a refund, how to arrange the return of the goods.