How do I issue a refund?

In the shops quite often there are situations,connected with the return of goods. This procedure requires proper documentation. On how to properly issue a refund, so that later the tax inspection did not have any questions - this article.

Reasons for return of goods

The ownership of the goods, based onthe contract of sale and purchase, passes from the supplier to the recipient after the shipment of the goods, that is, from the moment of its transfer. Exceptions can be made by cases that are provided by the 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 transferred with a full package of documents;
• the quantity and assortment of the goods must correspond to those specified in the contract;
• In case of delivery of a complete set, there should be a set, specified in the documents;
• the goods must be of high quality and comply with technical standards;
• the goods must have a package corresponding to its physical properties;
• the goods shall not be entitled to third parties.

If all these conditions are met, the buyer does not havethere should be 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, anddoes not depend on the further fate of the goods. But not always the goods manage to be realized. And, in order to avoid losses, the goods must be returned to the supplier. The grounds for the return transfer of goods may be different, and depending on this the tax consequences will be opposite. Reasons for refund:

1. Return on legal grounds.
2. Return by agreement of the parties.

Return in accordance with law

In the event of non-fulfillment of obligations under the contract,there is a return to the supplier. How do I issue a refund in accordance with the law? Violation of the terms and conditions of 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 assembly of goods, its quantity, assortment, etc. The law in some cases does not allow the buyer to make a return of a product that does not suit him at a time and unilaterally.

For example, in order to reversetransfer of incomplete goods, the buyer must first contact the supplier with the requirement to complete the goods or reduce the price. The deadline for fulfilling this requirement must also be specified.

If the return of goods occurs for a reason,specified in the legislation, then the contract of sale will be considered violated, that is not executed by one of the parties. In this case, the contract is considered to be terminated. This means that the original relationship between the parties to the contract was absent. Hence, there was no initial implementation, since 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 at the receiverthere are made reversal postings that eliminate the delivery operation itself. That is, the return transfer of goods for the tax inspection will not be considered an implementation.

Return of goods by agreement of the parties

If in the contract specialconditions, the return of goods can be carried out by agreement of the parties. For example, the buyer failed to sell the goods due to seasonal factors, due to lack of demand, or due to obsolescence. How do I issue a refund?

In this case, the initial implementationoccurred, ownership at the time of shipment of goods passed from the supplier to the recipient legally. Claims for the goods did not arise. There are no violations of the law in this case, contractual relations are observed. Consequently, the return of the goods by the buyer means a reverse transfer of ownership of the goods to the supplier. This operation is an implementation, as the law sets the following implementation criteria:

• transfer by one person to another person of the ownership of the goods;
• onerous basis of the transaction.

In this case, the supplier and the buyer changeroles and they have new obligations arising from the new contract of sale. In accounting for the buyer, now the seller, the return operation will be reflected as a normal sale. The supplier of this product is coming, as a buyer.

Documentation of return of goods

If it is found at the time of delivery to the warehouse,conformity of the goods to the terms of the contract, the buyer draws up an act. This act will serve as a legal basis for arguing the claims against the supplier. The act is made by a special commission. He is transferred to the accounting department, which writes the claim. The claim shall reflect the following information:

• number of the contract and the number of documents that were issued for escorting the goods;
• the revealed defects of the goods;
• number of the act and list of persons who made it up;
• customer requirements;
• in the case of an independent expert examination, an expert opinion;
• claim for damages.

If at the time of receipt of the goods was not paid, the claims are not exposed. From this article it becomes clear how to proceed in the case of a return, how to return the goods.