COMMODITY CREDIT: LEGAL ASPECTS AND ACCOUNTING

Abstract

Commodity credit is an effective way to implement the company's sales policy in the market, which is characterized by the struggle for the client, and firstly – for his money. Any crisis that generates problems of non-payment requires the use, among other things – commodity credit. As an economic category, commodity credit is a multifaceted term and is considered in many ways by economists: as a type of financial and economic relations, as a special form of credit along with financial credit, consumer credit, and as a type of contract. The aspect of differentiation of commodity credit as a type of contract and legal relations makes reference to the previously unresolved problems of their legal regulation and the peculiarities of their accounting. The basics of legal regulation of commodity credit are determined by the scope of the Tax Code of Ukraine (on the definition of the essence, terminology) and the Civil Code of Ukraine (on contracts). The authors present the place of commodity credit among a set of other related categories – consumer credit and financial credit; the disadvantages and advantages of a commodity credit are given, as well as an assessment of the benefits, risks and scope of its application. Emphasis is placed on the possibility for the buyer to choose the scenario of creating his credit history, because with a commodity credit, he avoids the involvement of a banking institution as a party to the relationship. For the seller, the focus is on the credit agreement, its legal form, the date of transfer of ownership of the goods, documentation and taxation of accounting transactions and more. In retail and small wholesale, a installment credit demonstrate its expediency. Partial payments according to the schedule for a certain period of time are quite acceptable and beneficial for the buyer and his financial condition. Deferred credit – when the buyer pays for his goods once, but later – is inherent in the calculations in the wholesale trade. After all, companies-buyers put their free funds into circulation for the period of deferment and close other current issues. Recognition of income of trade credit operation occurs in the reporting period to which they belong, guided by the standards of accounting standards and the parameters of the contract of sale in installments. As for VAT, tax liabilities are reflected according to the rule of the first event.