Accounting for Settlement Transactions: Theoretical and Analytical Aspects

Abstract

Accounting for settlement operations is one of the most important areas of the accounting process of any enterprise, since the results of its economic activity, financial condition indicators and opportunities for further development depend on the timeliness and completeness of such calculations. The purpose of the study is to highlight the theoretical aspects of accounting for settlement operations and analytical assessment of accounting information for making management decisions. The paper systematizes approaches to defining the concept of «settlement operation». The process of accumulating accounting information about settlement operations is described in terms of stages: the emergence of the need to conduct a settlement operation; documenting the conditions for meeting the needs of the enterprise; meeting the needs and drawing up primary documents; settlements with participants in settlement operations. The theoretical justification of accounting for settlement operations is decisive in establishing analytical and synthetic accounting for settlement operations, which is carried out through the systematization of various participants in settlement operations by economically homogeneous groups in the system of accounts and subaccounts of accounting. Analytical accounting of settlement operations is the basis for the analysis of each settlement operation and the adoption of management decisions by the management of the enterprise. A methodology for analysing settlements with buyers for goods, works, and services is proposed in order to identify unreliable and dishonest participants in settlement operations. According to the data obtained in the process of the proposed analytical procedures, the management personnel of the enterprise will be able to make informed management decisions. A similar analysis can be carried out in the context of other settlement operations of the enterprise. The set of analytical procedures for settlement operations of an operating enterprise will make it possible to separate those settlement operations that will not bring economic benefits to the enterprise, or repayment of obligations for which is not expected by the other party to the settlement operation. These conclusions will be the basis for adjusting the residual amounts on analytical and synthetic accounting accounts in order to ensure the reliability of the indicators of the enterprise's financial reporting.