Reporting on agency agreement for provision of services
Posted: Mon Jan 20, 2025 10:53 am
As a rule, the contract establishes the agent's obligation to inform the principal about his legal and actual activities. This is done through reports.
The parties may independently regulate the content and timing of the formation of such papers in the text of the agreement.
It is better to set the deadlines for submitting reports in the contract. If they are not specified in the document, the agent may submit the results as they fulfill their obligations or upon expiration of the contract.
Calendars
Source: shutterstock.com
The report should be supplemented with documents confirming the amounts of expenses that were incurred at the expense of the principal. This is necessary so that the customer can compensate the agent for the losses incurred in the process of fulfilling obligations.
It is also advisable to specify in the agreement the period during which the principal must express his objections to the agent's report. If such a clause is not specified in the agreement, the customer is given 30 days from the date of receipt of the report. When the period expires, the document will be considered accepted by the principal.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned how to use the rcs database for direct marketing about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
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Accounting for agency agreements
An agency agreement for the provision of services is a document that obliges the agent to perform the work assigned to him by the customer. However, this must be recorded in the document.
On behalf of the guarantor
The agent must find the client. The documentation for the client is prepared by the actual seller, through whom all financial transactions are carried out:
The implementation is demonstrated: Dt 62 Kt 90.
VAT is accrued on income and registered through Dt 90 and Kt 68.
The agent’s services and expenses reimbursed to him are recorded as Dt 20 (26, 44) and Kt 76.
VAT paid for the agent’s services and expenses reimbursed to him is allocated and accepted for deduction through Dt 19 and Kt 76, as well as through Dt 68 and Kt 19.
Settlements are made with the agent: Dt 76 and Kt 51.
The total amount of expenses, including the guarantor’s own expenses, reduces the income from sales: Dt 90 Kt 20 (23, 25, 26, 41, 43, 44).
The agent's accounting operations will be as follows:
Income from services rendered: Dt 76 Kt 90.
VAT: Dt 90 Kt 68.
Reimbursable expenses for the provision of services: Dt 76 Kt 60.
Money from the guarantor for services and reimbursement of expenses: Dt 51 Kt 76.
If the agent operates on his own behalf, he independently prepares documents for the client, but the goods are considered the property of the guarantor. The money received from the client is also considered the principal's funds.
Formula for calculating the financial independence coefficient
The parties may independently regulate the content and timing of the formation of such papers in the text of the agreement.
It is better to set the deadlines for submitting reports in the contract. If they are not specified in the document, the agent may submit the results as they fulfill their obligations or upon expiration of the contract.
Calendars
Source: shutterstock.com
The report should be supplemented with documents confirming the amounts of expenses that were incurred at the expense of the principal. This is necessary so that the customer can compensate the agent for the losses incurred in the process of fulfilling obligations.
It is also advisable to specify in the agreement the period during which the principal must express his objections to the agent's report. If such a clause is not specified in the agreement, the customer is given 30 days from the date of receipt of the report. When the period expires, the document will be considered accepted by the principal.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned how to use the rcs database for direct marketing about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153328
Accounting for agency agreements
An agency agreement for the provision of services is a document that obliges the agent to perform the work assigned to him by the customer. However, this must be recorded in the document.
On behalf of the guarantor
The agent must find the client. The documentation for the client is prepared by the actual seller, through whom all financial transactions are carried out:
The implementation is demonstrated: Dt 62 Kt 90.
VAT is accrued on income and registered through Dt 90 and Kt 68.
The agent’s services and expenses reimbursed to him are recorded as Dt 20 (26, 44) and Kt 76.
VAT paid for the agent’s services and expenses reimbursed to him is allocated and accepted for deduction through Dt 19 and Kt 76, as well as through Dt 68 and Kt 19.
Settlements are made with the agent: Dt 76 and Kt 51.
The total amount of expenses, including the guarantor’s own expenses, reduces the income from sales: Dt 90 Kt 20 (23, 25, 26, 41, 43, 44).
The agent's accounting operations will be as follows:
Income from services rendered: Dt 76 Kt 90.
VAT: Dt 90 Kt 68.
Reimbursable expenses for the provision of services: Dt 76 Kt 60.
Money from the guarantor for services and reimbursement of expenses: Dt 51 Kt 76.
If the agent operates on his own behalf, he independently prepares documents for the client, but the goods are considered the property of the guarantor. The money received from the client is also considered the principal's funds.
Formula for calculating the financial independence coefficient