In a number of industries, the tolling scheme is very often used. This article will allow us to determine the features of using the tolling scheme from an economic and legal point of view and will allow us to maintain accounting records according to the tolling scheme, taking into account the requirements of the legislation of the Russian Federation.
What is a tolling scheme?
According to the Order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n “On approval of the Guidelines for accounting of inventories” (with amendments and additions) “Customer materials are materials accepted by the organization from the customer for processing (processing), performing other work or production of products without payment for the cost of accepted materials and with the obligation to fully return processed (processed) materials, delivery of completed work and manufactured products.”
The essence of toll processing is as follows: the entrepreneur does not have production capacity, but at the same time he purchases raw materials and transfers them to a third party for processing in order to obtain finished products.
This type of cooperation is used mainly in:
- oil refining industry;
- grain processing industry;
- light industry;
- food industry, etc.
It is important to note that both raw materials, finished products, and waste resulting from processing raw materials are the property of the customer.
The contractor only provides a service for processing raw materials, for which he receives a reward from the customer.
Differences between tolling and purchasing of goods
Manufacturing products using a tolling scheme has a number of differences from purchasing finished goods from the manufacturer:
| Distinctive Features | Comment |
| Product | Thanks to the production of products according to the customer-delivery scheme, the customer has a number of advantages:
|
| Raw materials | Independent purchase of raw materials allows you to regulate the cost of manufactured products. |
| Taxes | The tax scheme is calculated based on the initial data not “resale of purchased goods”, but “sale of own products”. |
Accounting under tolling scheme
When using the tolling scheme in accounting, the customer and contractor have some features:
Order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n defines the rules for accounting for raw materials and components under the terms of a toll agreement:
| Customer | Executor |
| An organization that has transferred its materials to another organization for processing (processing, performing work, manufacturing products) as toll, does not write off the cost of such materials from the balance sheet, but continues to record them in the account for the corresponding materials (in a separate sub-account) (Article 157) At the same time, the fact of transfer of raw materials to the contractor is not reflected in tax accounting, and the cost of services for processing raw materials is included in material costs (in the case of OSNO - on the day the contractor signs the report, in the case of the simplified tax system - after payment for the contractor’s work). | Customer-supplied materials are accounted for in the off-balance sheet account “Materials Accepted for Processing” (Article 156). Finished products are also recorded in an off-balance sheet account. The fact of receipt of raw materials from the customer and finished products are not reflected in tax accounting. |
Accounting entries for tolling scheme
| Debit (Dt) | Credit (Kt) | Comment |
| 10.7 | 10.1 | Transfer of customer-supplied raw materials to the contractor |
| 10.1 | 10.7 | Receipt of processed materials |
| 10.1 | 60 | Cost of work on processing customer-supplied raw materials |
| 19 | 60 | Accounting for VAT on the cost of services for processing raw materials supplied by customers |
| 68 | 19 | VAT is accepted for deduction |
| 20 | 10.1 | Recycled materials are sent to production |
| 43 | 20 | Accounting for finished products made from customer-supplied raw materials |
| 60 | 51 | Payment for work on processing customer-supplied raw materials to the contractor |
| Receipt of products recognized as semi-finished products: | ||
| 21 (10.2) | 10.7 | Write-off of customer-supplied raw materials required for the production of semi-finished products |
| 21 (10.2) | 60 | Write-off of the cost of the contractor's work |
| 19 | 60 | Accounting for VAT on processing |
From the contractor’s side, the accounting entry looks like this:
| Debit (Dt) | Credit (Kt) | Comment |
| 003 | Acceptance of customer-supplied raw materials and transfer them for processing | |
| 20 | 02 (10, 23, 25, 26, 60, 69, 70) | Accounting for costs incurred by the contractor when processing customer-supplied raw materials |
| 003 | Finished products were handed over to the customer | |
| 62 | 90.1 | Revenue from work on processing customer-supplied raw materials |
| 90.3 | 68 | VAT accrual on the cost of work on processing customer-supplied raw materials |
| 90.2 | 20 | Write-off of the cost of processing customer-supplied raw materials |
| 51 | 62 | Payment from the customer |
How to properly draw up a contract with a tolling scheme?
When transferring raw materials to the contractor, it is important to note that this transfer is not a sale, which must be reflected when preparing documents.
A contract for toll processing of raw materials is a type of contract. In this case, it is necessary to pay special attention to ensure that the agreement for toll processing of raw materials clearly separates it from the agreement for the supply of goods or the purchase and sale agreement, because The contract for toll processing must necessarily contain the conditions for the transfer of raw materials, components, and materials.
| Features of the agreement | Comment |
| Characteristics of finished products | It is necessary to indicate in detail the characteristics of the finished product |
| The contract for toll processing of raw materials must reflect the very essence of the process being performed. | One party (contractor) undertakes to perform certain work on the instructions of the other party (customer) and deliver its result to the customer, and the customer undertakes to accept the result of the work and pay for it (Article 702 of the Civil Code of the Russian Federation). |
| Recycling criteria | The contract should indicate the parameters for processing raw materials (referring to regulatory documents (TU, GOST, etc.): raw material consumption standards, waste standards. |
| Transfer of raw materials, components, goods | If the subject of the agreement is the transfer of goods (even those produced using the customer’s raw materials), such an agreement will be considered not as an agreement for toll processing of raw materials, but as a supply agreement or a purchase and sale agreement. |
| Volume of supplied raw materials | According to the UN Convention on Contracts for the International Sale of Goods (Vienna, April 11, 1980) Contracts for the supply of goods to be manufactured or produced are considered contracts of sale unless the party ordering the goods undertakes to supply a substantial portion of the materials necessary for the manufacture or production of such goods.* The delivery time for raw materials is indicated (especially if the order is quite large). |
| Volume of goods transferred | The timing and volumes of products produced are indicated. |
| Product storage conditions | If the cost of storing manufactured products is not specified in the contract, it is considered a service provided free of charge, which entails recognition of the object of VAT taxation and determination of the tax base (Article 40 of the Tax Code of the Russian Federation). For the supplier of raw materials, this service will be considered as non-operating income for profit tax purposes, assessed in accordance with Art. 40 of the Tax Code of the Russian Federation, but not lower than the costs of providing these services (Article 250 of the Tax Code of the Russian Federation). |
| Transfer of manufactured products | The agreement reflects the mechanism for exporting finished products. |
| Waste | By agreement of the parties, returnable waste can remain with the manufacturer or be transferred to the customer. Disposal of irretrievable waste is carried out by the manufacturer, but at the expense of the customer. |
| Processor reports | It is advisable to specify in the contract the frequency and content of reports from the raw material processor (frequency is usually once a month). The report states: · amount of raw materials consumed, remaining raw materials; · overconsumption of raw materials (indicating the reasons); · information about manufactured products; · information about shipped products; · information about the remaining products. |
| Payment procedure | Payment can be made as follows: · in cash; · transfer of a certain part of the finished product; · transfer of returnable waste. |
| Penalties and surcharges | The contract may provide for penalties or additional payments:
|
| Return of remaining raw materials | The contract must necessarily provide for the possibility of returning raw materials to the customer for a number of reasons:
|
* When transferring raw materials, it is important to understand the essence of the “substantial part of the materials”. If the production of goods requires basic raw materials and auxiliary materials, then the contract for toll processing of raw materials must indicate the transfer of the main raw materials.
When may an agreement not be a toll processing agreement (example)?
LLC "ABV" transfers sewing accessories to LLC "GDE" along with fabric for the production of clothing. In this case, this agreement can be considered an agreement for toll processing of raw materials, but on the condition that the quantity of accessories strictly corresponds to the ordered quantity of products.
If ABV LLC transfers sewing accessories without fabric to GDE LLC, the agreement cannot be considered as a toll agreement. Such a transaction will be recognized as a transaction based on a supply agreement or a purchase and sale agreement.
How to formalize transactions with the unused balance of the tolling scheme?
There are often cases when there are leftover raw materials or returnable waste, which also need to be reflected in accounting.
From the customer's side, the accounting entry looks like this:
| Debit (Dt) | Credit (Kt) |
Customer-supplied raw materials are our own inventories, which the customer (supplier) transfers to the processor to carry out finishing, processing or processing work. Then it receives modified materials or finished products from the processor for further sale. We will consider below how to reflect in transactions with raw materials supplied by the supplier (customer) and the processor.
The activity of an organization is considered production if it transfers customer-supplied raw materials for processing to another enterprise and then sells finished products:
Accounting for customer-supplied raw materials - postings to the customer
The customer who transfers customer-supplied raw materials for processing retains ownership of the raw materials, therefore, the raw materials are reflected in subaccount 10.07 “Materials transferred for processing to third parties” of account 10.
When transferring customer-supplied raw materials to a processor, only an Invoice is issued, since transfer for processing is not a sale and will not be subject to VAT.
Example
LLC "Customer" purchased construction materials in the amount of 295,000 rubles, incl. VAT 18% - 45,000 rubles, and transferred it to the furniture factory Pererabotchik LLC for the manufacture of tables. Under the terms of the contract, the manufactured tables were transferred to LLC “Customer”. The cost of work by Processor LLC is 41,300 rubles, incl. 18% - 6,300 rub.
The customer transfers customer-supplied raw materials to the processor and receives finished products from the processor, which he sells. In this case:
- The cost of raw materials (materials) is written off as production costs upon receipt of finished products from the processor;
- The cost of processing work is included in production costs and is taken into account in the cost of finished products.
The following entries are generated in the customer’s accounting:
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| Debit Account | Credit Account | Transaction amount, rub. | Wiring description | Base document |
| 10.01 | 60 | 250 000 | Construction materials accepted for accounting | Consignment note TORG-12, Acceptance certificate |
| 19 | 60 | 45 000 | VAT allocated on purchased building materials | Invoice - invoice received |
| 60 | 51 | 295 000 | Payment for purchased building materials | Bank statement |
| 68 | 19 | 45 000 | VAT is accepted for deduction | Shopping book |
| 10.07 | 10.01 | 250 000 | Transfer of building materials for recycling | Invoice for the release of materials to the M-15 side |
| 20 | 60 | 35 000 | Write-off of processing costs | Receipt from processing (Invoice for transfer of finished products to storage locations MX-18 |
| 19 | 60 | 6 300 | VAT allocated for processing | |
| 20 | 10.07 | 250 000 | The cost of building materials has been written off | |
| 43 | 20 | 285 000 | Finished products accepted for accounting | |
| 60 | 51 | 41 300 | Payment for processing work | Bank statement |
| 68 | 19 | 6 300 | VAT is accepted for deduction | Shopping book |
The cost of finished products is equal to the cost of materials plus all costs associated with processing (cost of work, transportation costs, travel expenses, etc.).
Accounting for customer-supplied raw materials - postings to the processor
Let's look at the same example now from the perspective of a processor:
The furniture factory Pererabotchik LLC received from Customer LLC raw materials in the amount of 250,000 rubles. for making tables. According to the terms of the contract, the cost of work is 41,300 rubles, incl. 18% - 6,300 rub.
Receipt of materials to the warehouse is formalized by receipt order M-4 with a note that the materials are capitalized on tolling terms.
For the processor, transactions with customer-supplied raw materials are reflected in off-balance sheet account 003 “Materials accepted for processing” without double entry.
The following entries are generated in the processor's accounting records:
| Debit Account | Credit Account | Transaction amount, rub. | Wiring description | Base document |
| 003.01 | 250 000 | The cost of building materials accepted for processing is reflected | Receipt invoice | |
| 003.02 | 003.01 | 250 000 | Transfer of building materials to production | Requirement-invoice (M-11) |
| 20 | 70 — 69 | 50 000 | Costs for processing building materials are taken into account | Sales of processing services (Service Provision Act) |
| 62 | 90.01 | 41 300 | The cost of processing work is taken into account according to the terms of the contract | |
| 90.02 | 68.02 | 6 300 | VAT on the cost of work performed | |
| 90.02 | 20 | 50 000 | Write-off of actual processing costs | |
| 003 | 250 000 | Write-off of the cost of building materials upon transfer of finished products | ||
| 51 | 62 | 41 300 | Payment for the cost of processing work performed | Bank statement |
If, under the terms of the processing agreement, the generated waste remains with the processor, then the following entries are generated:
- By crediting account 003 for the amount of the cost of customer-supplied raw materials with simultaneous acceptance for accounting into account 10.01;
- Record the amount of waste at market prices Dt 10.06 Kt 98.02.
Contract for processing of raw materials supplied by customers
When providing services, the customer and the processor enter into an agreement for the processing of customer-supplied raw materials. When concluding a contract, the customer and processor are guided by the provisions of: Chapter 37 “Contracting” of the Civil Code of the Russian Federation, Articles 702, 703 of the Civil Code of the Russian Federation.
You can download a sample contract for the processing of customer-supplied raw materials for free
In accordance with Art. 148 of the Labor Code of the Russian Federation, remuneration for work in areas with special climatic conditions is made in the manner and amounts not lower than those established by labor legislation and other regulatory legal acts containing labor law norms.
Joint resolution of the USSR State Labor Committee, the Secretariat of the All-Union Central Council of Trade Unions dated July 2, 1987 No. 403/20-155 “On the size and procedure for applying regional coefficients to the wages of workers and employees for whom they are not established, in the Urals and in manufacturing sectors in the northern and eastern regions of the Kazakh SSR" approved the regional coefficient for the wages of workers and employees of enterprises, organizations and institutions located in the Republic of Bashkortostan in the amount of 1.15.
Article 2 of the Labor Code of the Russian Federation defines the basic principles of legal regulation of labor relations and other relations directly related to them, which, based on generally accepted principles and norms of international law and in accordance with the Constitution of the Russian Federation, include, among other things, ensuring the right of every employee to fair working conditions and ensuring the right of every employee to timely and full payment of fair wages that ensure a decent human existence for himself and his family, and not lower than the minimum wage established by federal law
According to Part 1 of Art. 129 of the Labor Code of the Russian Federation, wages include remuneration for labor depending on the qualifications of the employee, complexity, quantity, quality and conditions of the work performed, as well as compensation payments (additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal , work in special climatic conditions and in areas exposed to radioactive contamination, and other compensation payments) and incentive payments (additional payments and incentive allowances, bonuses and other incentive payments).
In accordance with Part 3 of Art. 133 of the Labor Code of the Russian Federation, the monthly salary of an employee who has fully worked the standard working hours during this period and fulfilled labor standards (job duties) cannot be lower than the minimum wage.
Due to the requirements of Art. 146 of the Labor Code of the Russian Federation, the labor of workers engaged in work in areas with special climatic conditions is paid at an increased rate.
Thus, within the meaning of the above provisions of the law, the additional payment to the salary in the form of a regional coefficient is not related to the volume and (or) quality of the work performed, but depends only on the natural conditions of the area where the work is performed, namely for work and living in unfavorable climatic conditions. Otherwise, the goal for achieving which additional payments to wages are established in the form of a regional coefficient for work in areas with unfavorable climatic conditions. It follows from this that when developing a remuneration system, the employer must establish reasonable differentiation of wages, including depending on conditions in which work activities are carried out.
From the analysis of the above legislation it follows that if an employee fulfills the labor standard within a month and works the standard time during this period, he is guaranteed payment of the minimum wage regardless of the climatic conditions in which he performs his labor functions, that is, even when the work is performed in normal climatic conditions, and therefore compliance with the requirements of Art. Art. 146, 148 of the Labor Code of the Russian Federation for employees working in special climatic conditions is possible only if compensation for work in such conditions is calculated according to the amount of the MRO, and is not included in it.
Decision No. 2-1654/2015 2-1654/2015~M-1546/2015 M-1546/2015 dated November 23, 2015 in case No. 2-1654/2015
Belebeevsky City Court of the Republic of Bashkortostan
The minimum wage is the minimum wage for an employee per month. In 2018, the minimum wage is 9,489 rubles, with a subsequent increase in the 3rd quarter. This value is used to regulate wages for employees, to assign benefits for temporary disability of the population, for pregnancy and childbirth, as well as to determine the amount of government fees, fines and other payments.
The minimum wage is valid throughout the Russian Federation; Regions, on their own legislative initiative, have the right to establish a higher minimum wage in their territory.
The relationship between regional payments and the minimum wage
Is there a regional coefficient for the minimum wage? Article 129 of the Labor Code of the Russian Federation establishes that the salary of an enterprise employee for work depends on the level of complexity of his work, quantity, and quality. The composition of wages includes compensation payments: allowances and additional payments. Is the regional coefficient calculated for the minimum wage? To understand this, it is necessary to understand the concept of “regional coefficient”. This is an indicator that is used to determine the amount of wages based on work in difficult climatic conditions. Article 148 of the Labor Code of the Russian Federation states that work is paid in a special manner for citizens who work in regions with an unfavorable climate. This order means increased earnings. If an employer, for example, is located in the Far North and has divisions and branches there, he must pay wages taking into account the regional coefficient. His obligation is enshrined in Article 316 of the Labor Code of the Russian Federation.
Wage supplements are awarded for the duration of work in the Far North (experience). This is how the regional coefficient is taken into account when determining the minimum wage. It is incorrect to state that the regional coefficient is included in the minimum wage. If an accountant includes a regional coefficient in the minimum wage, he is acting incorrectly, violating the rights of an employee working in unfavorable conditions. It is necessary to calculate the regional coefficient for the minimum wage, but not include it in the indicator itself. Otherwise, it turns out that workers in the Far North are no different in wages from other citizens working in normal climatic conditions. There is also no need to increase the regional coefficient for the minimum wage, since the accountant must act within the law.
How is the regional minimum wage coefficient calculated?
The Ministry of Labor sets the minimum wage and regional coefficient for work in the Far North. The wages of workers who work in an unfavorable climate should not be less than the minimum wage. After its determination, bonuses for length of service and the regional coefficient are added to the salary. This provision follows from the definition of the RF Armed Forces of 2012 No. 7212-b, as well as from other documents issued by the RF Armed Forces.
Example:
An employee of the company receives a salary. Its size is 20,000 rubles. The amount of bonuses and incentives fixed in the employment agreement is 5,000 rubles. The coefficient that applies in the area where he works is 20%. If the employee has worked a calendar month in full, the calculation is as follows: salary 20,000 + bonuses 5,000. Amount 25,000 X coefficient 20%, it turns out 500. This is the amount that in monetary terms is the size of the coefficient for working conditions in unfavorable conditions. terrain. The salary and bonuses are added to the amount, resulting in 30,000 rubles. From 30,000 we subtract 13% income tax and advance payment. Thus, it turns out that it is not the minimum wage that increases by the regional coefficient, but the employee’s salary.
In the Resolution of the Constitutional Court of the Russian Federation dated December 7, 2017 No. 38-P, the issue of including the regional coefficient and percentage bonus accrued in connection with work in areas with special climatic conditions, in particular in the regions of the Far North and equivalent areas, was considered as part of the minimum the amount of remuneration (hereinafter referred to as the minimum wage).
Labor Law Provisions
In accordance with Part 2 of Art. 146 and art. 148 of the Labor Code of the Russian Federation, the labor of workers engaged in work in areas with special climatic conditions is paid at an increased rate; remuneration for work in such areas is made in the manner and in amounts not lower than those established by laws and other regulatory legal acts.
According to Art. 315 of the Labor Code of the Russian Federation, wages in the regions of the Far North and equivalent areas are carried out using regional coefficients and percentage increases in wages. At the same time, the size of the regional coefficient and percentage bonus, the procedure for their application for calculating the wages of employees of organizations located in the regions of the Far North and equivalent areas are established by the Government of the Russian Federation (Articles 316 - 317 of the Labor Code of the Russian Federation). In addition, state authorities of the constituent entities of the Russian Federation and local self-government bodies have the right, at the expense of funds from the budgets of the constituent entities of the Russian Federation and the budgets of municipalities, respectively, to establish higher regional coefficients for state bodies of the constituent entities of the Russian Federation, state institutions of the constituent entities of the Russian Federation, local government bodies, and municipal institutions. A regulatory legal act of a constituent entity of the Russian Federation may determine the maximum amount of increase in the regional coefficient established by the municipalities included in the constituent entity of the Russian Federation.
According to Part 1 of Art. 133 of the Labor Code of the Russian Federation, the minimum wage is established simultaneously throughout the entire territory of the Russian Federation by federal law and cannot be lower than the subsistence level of the working population. The monthly salary of a person who has fully worked the standard working hours during this period and fulfilled the labor standards (labor duties) cannot be lower than the minimum wage.
At the same time Art. 133.1 of the Labor Code of the Russian Federation provides that in a constituent entity of the Russian Federation, a regional agreement may establish the minimum wage for employees of the region, with the exception of employees of organizations financed from the federal budget.
Note: Employees of the Ministry of Health and Social Development in their Letter dated 07/09/2010 No. 22-1-2194 noted that wages, including incentive and compensation payments, cannot be lower than the minimum wage. In this case, it is allowed to establish a tariff rate and salary (official salary) below this amount.
Arbitrators' position
In the commentary ruling, the arbitrators noted that increased wages in connection with work in special climatic conditions should be made after determining the amount of wages, taking into account the requirement to ensure the minimum wage. This means that the regional coefficient (coefficient) and the percentage bonus accrued in connection with work in areas with special climatic conditions, in particular in the Far North and equivalent areas, cannot be included in the minimum wage. If we assume the opposite, then the monthly salary of workers who have worked their full working hours in areas with special climatic conditions would not differ from the wages of persons working in regions with a favorable climate. Thus, the guarantee of increased wages in connection with work in special climatic conditions would lose its real content.
Consequently, the regional coefficient and percentage premium must be calculated above the minimum wage for persons employed in work in areas with special climatic conditions.
Please note that this is not the only resolution. Previously, the arbitrators were of the opinion that the inclusion of a regional coefficient and percentage bonus in the minimum wage depends on the area in which the employee works:
– if he works in the regions of the Far North and equivalent areas, then the salary must be set at an amount not less than the minimum wage, after which a regional coefficient and a percentage bonus for work experience in these areas and areas must be added (Review of the Armed Forces of the Russian Federation dated 26.02 .2014, determinations of the Supreme Court of the Russian Federation dated July 29, 2011 No. 56-B11-10, dated June 24, 2011 No. 3-B11-16). This is due to the fact that Art. 315 of the Labor Code of the Russian Federation establishes that wages in the regions of the Far North and equivalent areas are carried out using regional coefficients and percentage increases in wages;
- if he works in areas with special climatic conditions, not related to the regions of the Far North and equivalent areas, in this case the right to increased wages established by Art. 146 Labor Code of the Russian Federation. By virtue of Art. 133 of the Labor Code of the Russian Federation, a prerequisite for calculating a monthly salary for an employee who has worked the full working hours during this period and fulfilled labor standards (labor duties) is to establish its amount not lower than the minimum wage. For these employees, the salary, including the regional coefficient and percentage bonus, exceeds the minimum wage. This means that the rights of such workers are not violated. These clarifications were presented in the Ruling of the RF Armed Forces dated 08.08.2016 No. 72-KG16-4.
In conclusion, we note that the commented resolution is a resolution of the Constitutional Court of the Russian Federation, which put an end to the current dispute. He pointed out that the minimum wage is a general guarantee provided to workers regardless of the location in which labor activity is carried out (Part 3 of Article 37 of the Constitution of the Russian Federation). According to Part 1 of Art. 133 of the Labor Code of the Russian Federation, the minimum wage is established simultaneously throughout the entire territory of the Russian Federation, that is, without taking into account the natural and climatic conditions of various regions of the country. Accordingly, the regional coefficient and percentage bonus accrued in connection with work in areas with special climatic conditions, in particular in the Far North and equivalent areas, are not included in the minimum wage. In addition, for setting wages in a smaller amount than determined by labor legislation, an administrative fine is provided for in Part 6 of Art. 5.27 Code of Administrative Offenses of the Russian Federation: for officials - in the amount of 10,000 to 20,000 rubles; for legal entities – from 30,000 to 50,000 rubles.
