In 2026, amounts issued on account are recorded separately for each employee or employee of the seconding party, while the deadlines for submitting an advance report and returning unused cash are established in the organization’s accounting policy. If a documented overspend has created an obligation of the organization to an employee, the rules on income from the write-off of obligations must be taken into account when it is subsequently written off (Article 242 of the Tax Code of the Republic of Kazakhstan).
What Is Included in Amounts Issued on Account
An amount issued on account is not an expense of the organization at the time the money is issued. Until the advance report is approved, a receivable is recorded for the employee: the employee must either provide documents confirming the use of the funds or return the balance.
The money may be intended for business, travel and other expenses incurred in the interests of the organization. It is advisable to specify the particular purposes for which funds may be issued, permitted payment methods and the list of supporting documents in internal rules.
Clause 59 of the Accounting Procedures provides for the issuance of accountable amounts to employees of the entity, as well as to employees of the seconding party. Analytical accounting is maintained separately for each such person. Therefore, the debts of several employees may not be combined into one total amount without a breakdown by person: the accountant must be able to see to whom, when and for what purpose the money was issued, what portion has been supported by documents and what balance must be returned.
Amounts Issued on Account: Documents and Deadlines
For cash, the deadlines are determined by the organization’s accounting policy. Depending on the purpose of the funds, it establishes:
- the deadline for submitting an advance report;
- the deadline for returning the remaining cash;
- the procedure for reviewing and approving expenses;
- the list of documents with which the employee substantiates the expenses;
- the accountant’s actions in the event of an overspend or outstanding debt.
The advance report is prepared using the form approved by Order No. 562. Under Clause 59 of the Accounting Procedures, it is signed by the entity’s management, after which the document is transferred to the accounting department. Management and the accounting department ensure the timely submission of the report and the return of money remaining with the accountable person.
It is important for the accountant to verify more than just the total amount. The purpose for which the funds were issued, actual expenses, attached documents, returned balance and analytical accounting data must be reconciled. An expense is recognized after its connection with the organization’s activities has been verified and it has been supported by documents. If the documents are insufficient, there are no grounds for recognizing the entire amount issued as an expense.
Amounts Issued on Account: Accounting Entries and Verification in 1C
The accounting process consists of several successive transactions. When money is issued, the accountable person’s debt to the organization is recognized. Once the advance report is approved, the documented amounts are allocated to the relevant assets, inventories, work, services or expenses, depending on the purpose of the purchase. The returned balance reduces the employee’s debt, while a documented overspend creates an obligation of the organization to the employee.
The specific accounts and corresponding entries depend on the working chart of accounts, the substance of the transaction and the accounting policy. Therefore, an accounting entry cannot be selected solely by the name of the document: the economic substance of the expense must first be determined and the source documents verified.
If, when preparing a cash disbursement voucher, 1C displays the message “The document amount does not match the amounts by type of the accountable person’s debt”, the amount of the document itself must be reconciled with the total in the tabular section for the issuance of funds on account. This message indicates a discrepancy between the document’s total amount and the amounts specified by type of the accountable person’s debt. The completion of the rows, the type of debt and the payment amount should be checked.
Payroll deductions require particular attention. An incorrect configuration of the method used to record a one-time deduction may result in the transaction being recorded incorrectly and a discrepancy in the payroll statement. Before making a correction, the settings of the deduction document and the register movements must be checked, followed by verification that the adjustment is consistent with the basis for the transaction and the organization’s internal documents.
How to Write Off Amounts Issued on Account
An accountable person’s debt cannot be written off merely because it has remained outstanding against the employee for a long time. The accountant must first determine the basis for extinguishing the debt: an approved advance report, the return of the money or another duly documented basis.
The practical verification procedure may be as follows:
- Reconcile settlements separately for each accountable person.
- Locate the document recording the issuance of funds and determine their purpose.
- Check the advance report and all attached supporting documents.
- Reconcile the approved expenses with the amounts actually issued and returned.
- Determine the outstanding debt and arrange further actions in accordance with the accounting policy and applicable regulations.
If the employee has not submitted documents or returned the balance, the accountant has no grounds simply to transfer the amount to expenses. The possibility of a payroll deduction is assessed separately, taking into account its basis, documentation and the requirements of labor legislation. A deduction made without proper documentation creates a risk that settlements with the employee will be accounted for incorrectly.
A documented overspend that the organization must reimburse to the employee is an obligation of the organization. If the creditor has waived the claim against the organization, the limitation period established by law has expired, or the creditor is not entitled to demand performance under a final and binding court judgment, the amount of the obligation excluding VAT is treated as income from the write-off of obligations. The income is recognized, respectively, on the date the claim is waived, the limitation period expires or the court judgment becomes final and binding (Article 242 of the Tax Code of the Republic of Kazakhstan).
To reduce the number of outstanding amounts, it is useful to regularly prepare breakdowns by employee, monitor the deadlines established by the organization and, before issuing new funds, check any previous debt if such a restriction is set out in the internal rules.
Frequently Asked Questions
Who may receive amounts on account in the Republic of Kazakhstan? — Clause 59 of the Accounting Procedures provides for issuance to employees of the entity, as well as to employees of the seconding party. Records are maintained separately for each recipient.
What is the deadline for submitting an advance report? — For cash issued, the organization establishes the specific deadline in its accounting policy depending on the purpose of the amount.
Can money issued be immediately written off as an expense? — No. The advance report and supporting documents must first be obtained and checked, along with the connection between the expenses and the organization’s activities.
What should be done with the unused balance? — The employee returns it within the period established by the accounting policy. The return is recorded as settlement of the accountable person’s debt.
When is a written-off obligation to an employee recognized as income? — In particular, when the employee, as creditor, has waived the claim, the limitation period established by law has expired, or a final and binding court judgment deprives the creditor of the right to demand performance. The amount of income is determined excluding VAT on the basis of source documents (Article 242 of the Tax Code of the Republic of Kazakhstan).
Why does 1C not post a cash disbursement voucher for the issuance of funds on account? — If the software reports that the amounts do not match, check whether the total by type of debt and payment amount equals the document’s total amount and whether all required details have been completed.