Advertising costs tax accounting. Standardized expenses. Standardized advertising costs

Advertising is any information that is addressed to an indefinite number of people and is aimed at attracting attention to the object of advertising, generating or maintaining interest in it and promoting it on the market (Clause 1, Article 3 of the Federal Law of March 13, 2006 No. 38-FZ). How are advertising expenses reflected in accounting?

Which account should I use to record advertising expenses?

Advertising costs are one of the costs of an organization. The chart of accounts and instructions for its application (Order of the Ministry of Finance dated October 31, 2000 No. 94n) account 44 “Sales expenses” is intended for accounting advertising expenses. In this account, advertising expenses can be taken into account by both manufacturing enterprises and trade organizations.

Account 44 can correspond with various accounts. The most typical case is when advertising services are provided by specialized advertising organizations or advertising divisions of other companies. In this case, an accounting entry is made for advertising expenses:

Debit of account 44 – Credit of account 60 “Settlements with suppliers and contractors”

A situation is possible when, for the purpose of advertising goods (works, services), an organization transfers materials, finished products or goods. We can talk, for example, about distributing advertising leaflets, product samples, or designing exhibition stands and display cases:

Debit account 44 – Credit accounts 10 “Materials”, 41 “Goods”, 43 “Finished products”

For advertising purposes, an organization can also purchase depreciable property. For example, a billboard or record a video. In this case, expenses in the form of depreciation of such property will be reflected as advertising expenses:

Debit of account 44 – Credit of accounts 02 “Depreciation of fixed assets”, 05 “Depreciation of intangible assets”

It is necessary to take into account that advertising costs can be taken into account not only in the composition, but also in the composition. For example, an organization is engaged in leasing property, and this type of activity is not the main one for the organization. Or the company incurred advertising expenses in connection with the sale of excess materials or an item of fixed assets.

Debit account 91 “Other income and expenses”, subaccount “Other expenses” - Credit accounts 10, 41, 60, etc.

The most important part of the accounting work of any organization engaged in production activities is undoubtedly the accounting of costs for the production of products (works, services) and the determination of its cost.

Let’s use the concept of “product cost” given in Glossary.ru: economic and financial dictionaries:

“Product cost is the totality of direct costs associated with the production of a product; all types of costs incurred in the production and sale of a certain type of product.”

The main objectives of production cost accounting are:

· timely and correct reflection of the actual costs of production of products (works, services) according to relevant items;

· providing information for operational control over the production of products (works, services);

· identifying reserves for cost reduction and preventing unproductive expenses and losses.

Organization of cost accounting for production of products (works, services) should be based on the following principles:

· constancy of accepted methods of accounting for production costs and calculating the cost of products (works, services) throughout the year;

· completeness of recording of all business transactions;

· correct attribution of income and expenses to reporting periods;

· differentiation in accounting for current and capital costs, and so on.

In order to determine the cost of products (works, services), business entities engaged in commercial activities use PBU 10/99 “Organization expenses”, approved by Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 33n (hereinafter referred to as PBU 10/99).

In accordance with the specified accounting standard, the expenses of the organization, depending on the nature of the expenses, conditions of implementation and areas of activity of the organization, are divided into:

· expenses for ordinary activities;

· other expenses, which in turn can be divided into operating, non-operating and emergency expenses.

From the point of view of formation of the cost of products (works, services), of course, it is the costs of ordinary activities that are of interest, since they are the ones who participate in the process of its formation.

All types of expenses can be classified according to various criteria: by composition, by economic content, by place of occurrence, and so on. The main of the listed features implemented by the organization of costs is their economic content. In this connection, paragraph 8 of PBU 10/99 requires, when forming expenses for ordinary activities, to ensure their grouping according to the following elements:

· material costs;

· labor costs;

· contributions for social needs;

· depreciation;

· other costs.

For management purposes, accounting organizes the accounting of expenses by cost items. The list of cost items is established by the organization independently in accordance with industry characteristics.

We remind you that in accounting, costs for the production of products (works, services) are classified into direct and indirect. Direct costs are considered to be costs directly related to the production of products (works, services), therefore they are attributed directly to its (their) cost. Direct costs include materials and raw materials, labor costs for key production personnel, and the amount of accrued depreciation of production equipment used in production. These costs are reflected by organizations in accounts 20 “Main production”, 23 “Auxiliary production”, 29 “Service production and facilities”.

It is worth paying attention to the fact that in accounting the list of direct expenses is open, that is, this includes any expenses directly related to the production of products (works, services). The list of such expenses, the procedure for assessing work in progress (hereinafter referred to as WIP) and finished products, as a rule, are determined by the industry orientation of the organization.

Indirect expenses in accounting mainly mean those reflected in accounts 25 “General production expenses” and 26 “General expenses”. These expenses cannot be directly attributed to the cost of manufactured products (works, services). They are subject to indirect distribution, in proportion to any base: the basic wages of production workers, direct material costs, the amount of direct costs, revenue from the sale of finished products, etc. The organization establishes the principles of such distribution of indirect costs in the accounting policies of the organization. Depending on the procedure for writing off indirect costs, an organization can form a full or reduced cost of products (works, services).

Having examined the regulatory regulation of advertising activities, we determined that the provision of advertising services actually consists of two stages: the direct production of the advertising product and its placement. Each of these stages has its own accounting features.

In this section, we will only briefly remind the reader of how an advertising producer keeps records of finished advertising products. At the beginning of the book, we already drew your attention to the fact that the finished advertising product of an advertising manufacturer can be a billboard, advertising leaflets, video, audio clips, layouts for outdoor advertising, and the like.

In accordance with the norms of accounting legislation, finished products are part of inventories. This follows from paragraph 2 of the Accounting Regulations “Accounting for Inventories” PBU 5/01, approved by Order of the Ministry of Finance of the Russian Federation dated June 9, 2001 No. 44n (hereinafter referred to as PBU 5/01).

Clause 5 of the said accounting standard PBU 5/01 establishes that inventories are accepted for accounting at actual cost. If an organization independently produces inventories, then the actual cost is calculated based on all actual costs associated with their production (clause 7 of PBU 5/01). The organization carries out accounting and formation of production costs in the manner established for determining the cost of production.

Thus, the actual cost of finished products is a valuation of the natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, and so on used in the process of its production.

We draw your attention to the fact that, in accordance with paragraph 59 of the Regulations on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n:

“Finished products are reflected in the balance sheet at actual or standard (planned) production costs, including costs associated with the use of fixed assets, raw materials, materials, fuel, energy, labor resources, and other costs for production of products or direct items in the production process costs."

In addition, the procedure for reflecting finished products in accounting is established by the Instructions for the application of the Chart of Accounts for accounting of financial and economic activities of organizations, approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n (hereinafter referred to as the Chart of Accounts).

Since the norms of accounting legislation provide for several options for reflecting finished products in accounting, therefore, the organization is obliged to consolidate the method it uses in the accounting policy of the organization.

Note that the Chart of Accounts is intended to reflect information on the availability and movement of finished products in account 43 “Finished Products”.

Acceptance for accounting of finished advertising products manufactured for the customer is reflected in the debit of account 43 “Finished products” in correspondence with cost accounts.

In accordance with accounting standards, finished advertising products can be valued at actual or standard cost. Moreover, we note that both methods of assessment involve accounting either at full production cost or at reduced cost.

Example 1.

Let's assume that the organization Flagman LLC is engaged in the production of outdoor advertising layouts. The organization completed three orders within a month. The actual expenses of the organization for the production of mock-ups were:

Option 1.

The organization's accounting policy stipulates that finished advertising products are accounted for at actual production costs.

General expenses are distributed in proportion to the basic wages of production workers.

The percentage of distribution of general business expenses for each of the layouts was:

Layout No. 1 – 12,000/45,000 x 100% = 26.7%;

Layout No. 2 – 15,000/45,000 x 100% = 33.3%;

Layout No. 3 – 18,000/45,000 x 100% = 40%.

Thus, general business expenses will be distributed as follows:

Layout No. 1 - 30,000 x 26.7% = 8,010 rubles;

Layout No. 2 – 30,000 x 33.3% = 9,990 rubles;

Layout No. 3 – 30,000 x 40% = 12,000 rubles.

Then, in the accounting records of Flagman LLC, the accountant will reflect the following entries:

Option 2. The organization accounts for finished advertising products at reduced production costs.

Using the same initial data, the accountant will reflect the following in the accounting of Flagman LLC:

End of the example.

If accounting for finished products is carried out at standard (planned) production costs, then the organization sets accounting prices for products that remain constant for quite a long time and at which, within a month, products are accepted into the warehouse and written off from the warehouse when they are sold or otherwise disposed of. . At the end of the month, when all costs have been generated and the amount of work in progress has been determined, the difference between the planned and actual cost of advertising products is determined. There are two ways to keep records of these deviations - with and without the use of an account.

Using the specified balance sheet account allows you to keep track of deviations more clearly.

In this case, the debit of account 40 “Output of products (works, services)” takes into account the actual production cost of advertising products in correspondence with the production cost accounts; the credit of account 40 “Output of products (works, services)” reflects the planned cost of the finished advertising products, which are written off to the debit of account 43 “Finished products”. At the end of the month, when the actual cost of production is fully formed, by comparing the debit and credit turnover of account 40 “Output of products (works, services)” the amount of deviations of the actual cost from the planned one is determined. The instructions for using the Chart of Accounts provide for the following procedure for writing off deviation amounts:

a) If the credit turnover on account 40 “Output of products (works, services)” is greater than the debit turnover, that is, the actual cost is less than the planned cost and savings are identified, then an accounting entry is made for the amount of the deviation using the “red reversal” method:

b) If the debit turnover in account 40 “Output of products (works, services)” is greater than the credit one, that is, the actual cost exceeds the planned cost (overexpenditure), a regular accounting entry is made for the amount of the deviation:

A feature of advertising placement services is the lack of material results from the activity. Consequently, the organization that distributes advertising does not use account 43 “Finished products” - this is the main difference in accounting when providing advertising services.

Otherwise, the accounting procedure for advertising placement activities has much in common with the accounting of the advertising producer.

Organizations that provide advertising services, as well as organizations that produce products, can form a full or reduced cost of the service, select a base for the distribution of overhead costs, and account for services at the actual production cost or standard planned cost.

Organizations providing advertising services, expenses associated with the provision of services are recorded on account 20 “Main production”, which are expenses for ordinary activities (clause 5 of PBU 10/99). When providing advertising services to a customer, expenses collected on account 20 “Main production” are written off to the debit of account 90 “Sales” subaccount 90-2 “Cost of sales”.

Receipts (revenue) related to the provision of advertising services are income from ordinary activities. This is determined by paragraph 5 of PBU 9/99 “Income of the organization”, approved by Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 32n (hereinafter referred to as PBU 9/99). In this case, revenue is recognized in accounting if the conditions listed in paragraph 12 of PBU 9/99 are met:

“a) the organization has the right to receive this revenue arising from a specific agreement or confirmed in another appropriate manner;

b) the amount of revenue can be determined;

c) there is confidence that as a result of a particular transaction there will be an increase in the economic benefits of the organization. Confidence that as a result of a particular transaction there will be an increase in the economic benefits of the organization exists when the organization received an asset in payment or there is no uncertainty regarding the receipt of the asset;

d) the right of ownership (possession, use and disposal) of the product (goods) has passed from the organization to the buyer or the work has been accepted by the customer (service provided);

e) the expenses that have been incurred or will be incurred in connection with this operation can be determined.”

According to paragraph 6 of PBU 9/99, revenue is taken into account in an amount equal to the amount of cash and other property received and (or) the amount of accounts receivable, determined based on the price established by the agreement between the organization and the customer.

Accounting provides a special standard on the basis of which organizations classify expenses. We are talking about Order of the Ministry of Finance of the Russian Federation dated May 6, 1999 No. 33n “On approval of the Accounting Regulations “Organization Expenses” PBU 10/99” (hereinafter referred to as PBU 10/99). In accordance with paragraph 5 of PBU 10/99, advertising expenses relate to expenses for ordinary activities associated with the manufacture of products and the sale of products, the acquisition and sale of goods, the performance of work and the provision of services.

• for the development, publication and distribution of illustrated price lists, catalogues, brochures, albums, prospectuses, posters, advertising cards and so on;
• for the development, production and distribution of samples of original and branded bags, packaging, promotional souvenirs, samples of manufactured products;
• to advertisements in the press, broadcasts on radio and television, that is, through the media;
• for illuminated and outdoor advertising;
• for the acquisition, production, demonstration of advertising films, videos, filmstrips and the like;
• for the production of billboards and signs;
• to participate in exhibitions, expositions, fairs;
• for the design of shop windows, exhibitions - sales, sample rooms and showrooms;
• for markdowns of goods that have completely or partially lost their original qualities when displayed in showcases;
• for the acquisition (production) and distribution of prizes awarded to the winners of drawings during mass advertising campaigns;
• to carry out promotional events related to the activities of the organization;
• other advertising expenses.

• expenses are made in accordance with a specific agreement, in compliance with the requirements of laws and regulations;
• the amount of expenses must be determined;
• expenses are incurred as a result of a specific transaction that will reduce the economic benefits of the organization. There is certainty that a particular transaction will result in a reduction in the entity's economic benefits when the entity has transferred an asset or there is no uncertainty about the transfer of an asset.

Advertising expenses, based on paragraph 18 of PBU 10/99, are recognized in accounting in the reporting period in which they occurred, regardless of the time of actual payment of funds and other forms of implementation (assuming the temporary certainty of the facts of economic activity).

Note!

According to paragraph 7 of PBU 10/99 “Expenses of the organization,” expenses for ordinary activities form:

• expenses associated with the acquisition of raw materials, materials, goods and other inventories;
• expenses that arise in the process of processing, refining inventories for the purposes of production, performance of work and provision of services and their sale; as well as sales (resales) of goods (expenses for the maintenance and operation of fixed assets and other non-current assets, as well as for maintaining them in good condition, commercial expenses, administrative expenses and others).

The debit of this account accumulates the amounts of advertising expenses incurred, and the credit is used to write them off.

• contract for the provision of advertising services;
• protocol for agreeing prices for advertising services;
• certificate of the right to place outdoor advertising;
• advertising space passport;
• approved design project;
• acceptance certificate for work performed (services provided);
• invoices from an advertising services agency;
• documents confirming payment for advertising services;
• requirement-invoice and invoice for the release of materials to the third party;
• act on write-off of goods (finished products);
• act of markdown of goods.

In accounting, the amounts of advertising expenses accounted for in the debit of account 44 “Sales Expenses” are written off to the cost of products (goods) sold in full or in proportion to the volume of products (goods) sold, depending on the method of writing off commercial expenses specified in the accounting policy order organizations.

Note!

The legislation provides for two possible options for writing off these expenses; the organization must choose one of the options and fix it in its accounting policy.

If the organization decides that not all costs relate to the reporting period, then they are subject to distribution:

If advertising work (services) was actually carried out in the reporting period, then on the basis of a certificate of completion or an invoice from the advertising agency, this operation will be reflected in accounting as follows:

Organizations often participate in exhibitions in order to disseminate information about the products they produce, the services they provide, and the goods they sell, and quite often visitors to the exhibition are given samples of goods and products sold by the organization participating in the exhibition.

Accounting for advertising materials (calendars, pens, booklets, etc.), purchased or produced in-house or with the involvement of third-party individuals or legal entities, is kept in account 10 “Materials” subaccount “Advertising materials”.

Accounting for goods and finished products transferred as samples is kept in separate subaccounts to accounts 41 “Goods” and 43 “Finished Products”. The write-off of such goods, finished products, and materials for advertising purposes is documented in a write-off act. A unified form of the act is not provided; therefore, the organization has the right to develop such a document independently.

Since this act is the primary document on the basis of which the transaction is reflected in accounting, therefore, it must fulfill all the requirements for the “primary” document. According to Article 9 of the Federal Law of November 21, 1996 No. 129-FZ “On Accounting”, primary documents must be drawn up in the form contained in the albums of unified forms of primary accounting documentation. And documents whose forms are not provided in these albums must contain the following mandatory details:

• Title of the document;
• date of document preparation;
• name of the organization on behalf of which the document was drawn up;
• content of a business transaction;
• measuring business transactions in physical and monetary terms;
• the name of the officials who are responsible for the execution of the business transaction and the correctness of its execution;
• personal signatures of these persons.

Based on Order of the Ministry of Finance of the Russian Federation dated June 9, 2001 No. 44n “On approval of the accounting regulations “Accounting for inventories” PBU 5/01”, write-off of the cost of goods used for advertising purposes is carried out by organizations engaged in trading activities as follows: way:

To organize analytical accounting, you can use the following subaccounts:

41-1 “Goods in warehouses”;

Organizations engaged in the production of products write off the cost of manufactured products used for advertising purposes as follows:

Using the following subaccounts:

43-1 “Finished products in warehouse”;

Let's look at the above in more detail using an example (all amounts used in the example are indicated without VAT).

Example.

An organization that produces lamps is taking part in the exhibition. Samples of lamps were used to decorate the exhibition stand; the total cost of the samples was 650,000 rubles. The costs of delivery and registration were carried out on our own, the amount of costs amounted to 5,000 rubles. During the exhibition, some of the products were distributed among potential consumers of the products, the other part became unusable (broken). That is, all samples were considered fully used during the exhibition. The organization issued an act on the write-off of finished products for advertising purposes.

Accounting entries:

Trying to protect themselves from the risk of non-payment, organizations providing advertising services require the transfer of advance amounts.

expenses for participation in exhibitions, fairs, expositions, for the design of shop windows, sales exhibitions, sample rooms and showrooms, production of advertising brochures and catalogs containing information about the work and services performed and provided by the organization, and (or) about the organization itself, for the discounting of goods that have completely or partially lost their original qualities during exhibition.

The taxpayer's expenses for the acquisition (production) of prizes awarded to the winners of drawings of such prizes during mass advertising campaigns, as well as expenses for other types of advertising not specified in paragraphs two to four of this paragraph, carried out by him during the reporting (tax) period, for for tax purposes are recognized in an amount not exceeding 1 percent of the proceeds from sales, determined in accordance with Article 249 of this Code.”

As we see from paragraph 4 of Article 264 of the Tax Code of the Russian Federation, tax legislation considers two types of advertising expenses: standardized and non-standardized.

Moreover, the list of non-standardized advertising expenses is closed (paragraphs 2-4 of paragraph 4 of Article 264 of the Tax Code of the Russian Federation). These expenses are accepted for tax purposes in full. The remaining advertising expenses are normalized, their list remains open, and for tax purposes they are accepted in an amount not exceeding 1 percent of sales revenue, determined in accordance with Article 249 of the Tax Code of the Russian Federation.

Sales proceeds are determined based on all receipts associated with payments for goods (work, services) sold or property rights expressed in cash and (or) in kind.

Note!

Sales revenue is determined depending on the method chosen by the organization for recognizing income and expenses.

Let us recall that Chapter 25 of the Tax Code of the Russian Federation provides for two possible methods for recognizing income and expenses:

• accrual method (taxpayers using this method determine income and expenses in accordance with Articles 271.272 of the Tax Code of the Russian Federation);
• cash method (regulated in accordance with the provisions of Article 273 of the Tax Code of the Russian Federation).

In addition, we will touch upon the issue of determining the moment of provision of advertising services (accordingly, recognizing the date of expenditure on advertising), since in practice disputes very often arise between the advertiser, the advertising producer (advertising distributor) and the tax authorities.

According to Article 272 of the Tax Code of the Russian Federation, for organizations using the accrual method, the date of incurring expenses in the form of expenses for payment to third-party organizations for the work they performed on the production of advertising media is recognized as one of the following dates:

• settlement date in accordance with the terms of concluded agreements;
• the date of presentation to the taxpayer of documents serving as the basis for making calculations;
• the last day of the reporting (tax) period.

Organizations can use the cash method if, on average over the previous four quarters, the amount of revenue from the sale of goods (work, services) excluding VAT did not exceed 1 million rubles for each quarter.

For such organizations, the date of receipt of income is recognized as the day of receipt of funds into bank accounts and (or) the cash desk, receipt of other property (work, services) and (or) property rights, as well as repayment of debt to the taxpayer in another way.

Taxpayer expenses under the cash method are recognized as expenses after they are actually paid. Consequently, the taxpayer's advertising expenses using the cash method will be taken into account after payment.

In accordance with paragraph 3 of Article 318 of the Tax Code of the Russian Federation, revenue for the purpose of calculating standardized advertising expenses is determined on an accrual basis from the beginning of the tax period.

If the actual advertising expenses of an organization exceed the above-established norms provided for in paragraph 5 of clause 4 of Article 264 of the Tax Code of the Russian Federation, then for profit tax purposes in terms of exceeding the established norms, they are not recognized as other expenses or expenses associated with the production and sale of products (work, services). Such expenses are expenses that are not taken into account for income tax purposes.

It is advisable for the taxpayer to keep separate records of regulated and non-standardized advertising expenses. At the end of the reporting (tax) period, he must compare the amount calculated as 1% of revenue with the amount of non-standardized advertising expenses.

In order for advertising expenses incurred by an organization to be recognized in tax accounting, they must meet the criteria of Article 252 of the Tax Code of the Russian Federation, that is, they must be justified and documented. In this case, justified costs are understood as economically justified costs, the assessment of which is expressed in monetary form. Costs must be confirmed by documents drawn up in accordance with the legislation of the Russian Federation. Any expenses are recognized as expenses, provided that they are incurred to carry out activities aimed at generating income.

Tax legislation divides expenses incurred by the taxpayer into direct and indirect (Article 318 of the Tax Code of the Russian Federation). Advertising expenses are recognized as indirect and are fully included in the expenses of the current reporting (tax) period.

Tax accounting is a system for summarizing information to determine the tax base for income tax based on data from primary documents (Article 313 of the Tax Code of the Russian Federation). These can be accounting documents if they contain enough information to determine the tax base for income tax.

And this is only if in tax accounting the types of property, obligations or expenses coincide with the accounting data, then no additional documents are required. If there is a discrepancy between accounting data and tax accounting, it is necessary to use tax accounting registers.

There are no unified forms of tax registers, and if the registers offered by the tax authorities do not suit the taxpayer, then he has the right to independently develop their form, enshrining this in the accounting policy of the organization.

Forms of analytical tax accounting registers must contain the following details:

• register name:
• period (date) of compilation;
• operation meters;
• name of business transactions;
• signature of the person responsible for compiling these registers, its transcript.

For example, let’s consider accounting for the costs of markdowns on goods that were used in window dressing. In tax accounting, expenses incurred by an organization for window dressing are taken into account in full. It should be borne in mind that among advertising expenses one can take into account the costs of discounting goods that were used in window dressing and, as a result, completely or partially lost their consumer qualities.

Example.

Sigma LLC sells fabrics. When redecorating the display case, it was found that the fabric used to decorate the display window had lost its consumer qualities. It has been marked down. The initial cost of the fabric is 960 rubles (including VAT - 146.44 rubles), the cost after markdown is 480 rubles (including VAT - 73.22 rubles).

For profit tax purposes, advertising expenses in the amount of 406.78 rubles are taken into account among other expenses.

In this case, “input” VAT is taken into account in the cost of such products.

• If the price of a product unit is more than 100 rubles, VAT must be calculated from its cost. Input VAT on the purchase of such advertising products is deductible.

Expenses on other types of advertising (standardized) Since the list of regulated expenses on advertising established by the Tax Code of the Russian Federation is open, they may include any advertising expenses not directly named in the Code. The key point here: expenses must correspond to all the characteristics of advertising, one of which is addressing an indefinite number of people. For example, expenses for tasting a product, making product samples, providing free services to attract customers, etc. can be classified as advertising only if the recipients are not known in advance.

Accounting for an advertising service provider

But even for small companies providing advertising services, it is often much more profitable to outsource accounting and tax optimization: both in terms of money spent and in terms of efficiency and quality. In general, accounting for advertising agencies is practically no different from accounting for any other production company.

But still there are certain nuances:

1. Although in Moscow the unified tax on imputed income (UTII) has been abolished since 2012, this regime is still applied in other regions.

Accounting for advertising expenses

Info

• If the price of a unit of advertising products does not exceed 100 rubles, VAT may not be charged on its cost.

Accounting and legal services

From the article you will learn: 1. What expenses are recognized as advertising expenses. 2. How to reflect advertising expenses in tax and accounting.

3. What are the features of accounting for certain types of advertising expenses? Unfortunately, producing high-quality, competitive products (goods, works, services) for successful business is not enough: you also need to sell them.

And in order to sell a product, potential buyers, at a minimum, must know about it and be interested in purchasing it. The key to solving this problem is advertising. Now everyone is advertised in a variety of ways, by placing advertising materials in magazines, on television, on the Internet, on transport, holding competitions with prizes, distributing leaflets, catalogues, etc.

Advertising services: accounting and taxation

Experienced accountants advise accounting for advertising expenses in a special tax register, because they do not always coincide in accounting and tax accounting. An organization can independently develop a register form and prescribe it in its accounting policies.

Professional assistance in accounting for advertising expenses Today, almost every organization has advertising expenses. This means that the need for accountants who can correctly reflect and confirm these expenses is very high.
This is especially true for accounting of a relatively new direction in the promotion of goods and services - advertising on the Internet and social networks. If your main activity is the provision of advertising placement services, then you need an experienced specialist to conduct accounting like air.
Accounting for advertising expenses quite often leads to disputes with the tax office.

Advertising costs: recognize and take into account

Advertising expenses are reflected in account 44 “Sales expenses” or 26 “General business expenses”, depending on the specifics of the organization’s activities (trade, services). Accounting entries for recording advertising expenses may be different, depending on the specific type of advertising.
Debit Credit Contents of transaction 44 “Sales expenses” (26 “General business expenses”) 60 “Settlements with suppliers and contractors” (76 “Settlements with various debtors and creditors”) Reflects the services of an advertising agency, services for advertising in the media, on the Internet and other services (work) of an advertising nature 10 “Materials” Advertising products (catalogues, brochures, pens, notepads, etc.), billboards, banners and other advertising structures that are not fixed assets are written off as expenses.

Accounting for advertising companies

• expenses for the acquisition (production) of prizes awarded to the winners of drawings of such prizes during mass advertising campaigns;
• expenses for other types of advertising.

Standardized advertising expenses are taken into account for tax purposes in an amount not exceeding 1% of sales revenue (excluding VAT) for the reporting period. Under the simplified tax system, revenue paid by buyers and customers is taken.
If the amount of revenue grows during the year, the standard for accounting for standardized expenses also increases accordingly. That is, advertising expenses not recognized in one reporting period can be transferred to another reporting period.
However, normalized advertising expenses not taken into account at the end of the year are not carried over to the next year.

Master class on accounting for advertising costs

If in the agency’s accounting it is quite difficult to divide costs into direct and indirect, all costs can be taken into account in account 26. And write off the costs in 90 as the cost of production.

If the Agent, in the course of fulfilling the instructions of the Principal (client), shifts part of his responsibilities for fulfilling the Principal’s instructions to other organizations, then in this case a Subagent Agreement is concluded. In this case, the Agent himself becomes the Principal in relation to the Subagent. To reflect the Agent's settlements with Subagents, you can use account 60 (which is more clear), or open additional analytical accounts on account 76.

How to conduct accounting for an LLC yourself: step-by-step instructions 2018

However, the Ministry of Finance, in its explanations, also includes in this category the costs of producing booklets, leaflets, leaflets and flyers containing advertising information (Letters of the Ministry of Finance of the Russian Federation dated October 12, 2012 No. 03-03-06/1/544, dated November 2, 2011 No. 03- 03-06/3/11, dated 10/20/2011 No. 03-03-06/2/157). Thus, taxpayers have every right to include all of the listed types of printed materials in non-standardized advertising expenses.
From the cost of transferred advertising catalogues, brochures, booklets, etc. There is no need to charge VAT. In this case, input VAT upon purchase is taken into account in their cost. This conclusion is contained in Letters of the Ministry of Finance of Russia dated October 23, 2014 No. 03-07-11/53626, dated September 19, 2014 No. 03-07-11/46938.

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