Accounting of advance payment of property management enterprises

(A) the accounting content of prepayments

Prepayment refers to the money paid in advance by the property management enterprise to the supplier according to the contract. Advance payment is the funds temporarily occupied by suppliers. After prepaying the payment, the enterprise has the right to require the other party to deliver the goods according to the contract. Advance payment must be based on the purchase and sale contract signed by the buyer and the seller, and be accounted for according to the prescribed procedures and methods.

From the liquidity of assets, prepayment is a special current asset. Because the money has been paid, except for some special circumstances (such as the enterprise that received the money in advance failed to provide the products according to the contract, canceled the prepayment policy in advance, etc.). ), it will not lead to future cash inflow, that is, it will not flow into the inventory when the creditor's rights are recovered, so the liquidity of the prepayment is poor.

(B) the accounting treatment of prepayments

When paying the seller in advance according to the purchase and sale contract, the account of "advance payment" shall be debited and the account of "bank deposit" shall be credited. When an enterprise receives purchased goods, it shall debit the subjects such as "raw materials" and credit the subjects such as "advance payment" according to the amount of relevant invoices and bills; When the payment in advance is less than the payment for goods purchased and the value-added tax, the insufficient part shall be paid, debited to the account of "payment in advance" and credited to the account of "bank deposit"; When the payment in advance is greater than the payment for the purchased goods and the value-added tax, the recovered balance shall be debited to the account of "bank deposit" and credited to the account of "payment in advance".

[Example] Anxin Property Management Company purchased 3000 kilograms of materials from Company A at a unit price of 150 yuan, with a total payment of 450,000 yuan. Pay 50% of the payment in advance to Company A according to the contract, and make up the balance after the goods are accepted. Relevant accounting treatment is as follows:

(1) 50% in advance

Debit: advance payment-Company A 225000

Loan: the bank deposit is 225,000 yuan.

(2) Received 3000 kilograms of materials from Company A, and the experience was correct. The payment recorded in relevant invoices is 450,000 yuan, and the value-added tax is 76,500 yuan. Based on this, bank deposits are used to make up for the insufficient amount.

Borrow: raw materials 526500

Loan: advance payment-Company A 526500

Debit: Prepaid Account-Company A 30 1500

Loan: bank deposit 30 1500.

Enterprises with a small amount of prepayments can be merged into accounts payable without setting up prepayments.