Many firms use cars during work, which are attributed to the property of organizations. But vehicles have a limited service life and are also destroyed during operation, so any company’s accountant must know how to write off a car. Machines can be sent for recycling or sold to individuals or other businesses. The write-off should be carried out in accounting and in the traffic police department. The process is usually carried out by the chief accountant of the company, as well as another person in charge, who goes to the traffic police department to perform the necessary actions.
Process features
Sometimes, entrepreneurs who use cars while working, the question arises as to whether it is possible to write off a car. The procedure can be performed for various reasons, but it is important not only to remove the car from the register, but also to remove it from the company's accounting. The following features are taken into account:
- the head of the company must issue an appropriate order before selling the machine or before scrapping it;
- the main reason for the cancellation of the machine is its poor technical condition, so the company simply can not continue to use this vehicle to perform certain actions;
- if the car can still be used for different purposes, then it can not be disposed of, but sold;
- the decision on the need to write off the car is made by a special commission formed in the company;
- usually the commission includes the head of the enterprise, the chief accountant and other responsible persons involved in the operation of the car fleet in the company;
- the procedure begins by compiling a special memo, which is formed by the person in charge of the company;
- the commission, which decides to write off the car, can work throughout the year or be convened only if necessary.
Only when these conditions are taken into account can a car write-off procedure be performed.
Nuances for budgetary institutions
Often, public servants use machines to perform official duties. You can write off a car from an account with a budget institution only on the basis of an order received from a federal or municipal authority.
The head of the institution receives an order from the higher management, on the basis of which the car is decommissioned. The order indicates whether the machines will be disposed of, sold or transferred to storage at another government agency.
Other important points
Before writing off a car, you should understand the features of this process. If the procedure is carried out in a budget institution, then the provisions of the Order of the Ministry of Finance No. 157 and other regulatory acts are necessarily taken into account. If the machine is written off in a commercial organization, then the company can independently fix in the internal documentation the rules on the basis of which the machine will be transferred to the scrap.
In private firms, the decision to write off a car is made only by the director of the company. For this, a memo is usually given to him in advance by another employee of the company.
Reason for writing off
It is quite difficult to write off the car from the balance, and there must also be certain reasons for this. These include:
- poor technical condition of the property, therefore it is impossible to continue to use the car to achieve any goals of the enterprise;
- a decision is made to donate the car to a private person or other company;
- after the inventory, a shortage is revealed that can only be covered by selling the car;
- sale of a car that is not used by the company.
Most often, companies have to get rid of machines that are in poor technical condition, so it is simply impossible to use them for safe movement.
Rules for cancellation in the event of breakdowns
If the car cannot be used for movement due to its poor technical condition, disposal of the used car is required. The procedure is usually initiated by the responsible person, who monitors the condition of all vehicles on the balance sheet of the enterprise. How to write off the car in this case? To do this, the following steps are implemented:
- initially, the head of the fleet determines that the car has serious breakdowns;
- an examination is carried out, with the help of which the actual condition of the car is revealed;
- if the expert confirms that the machine is in poor condition, so it cannot even be repaired, then the procedure for decommissioning the machine begins;
- a special commission is convened in the company, which deals with all issues related to the cancellation of the machine;
- documents are collected that prove that the car cannot be used for further work;
- an order is issued by the management of the company;
- the car is removed from the register in the traffic police;
- property for rent;
- the machine is excluded from the accounting of the enterprise.
If the procedure is implemented in a budget institution, then you will additionally have to get permission to conduct the process from the senior management. Often an additional examination is carried out, which allows to obtain relevant data on the condition of the machine.
What actions does the commission do?
Before writing off the car, an investigation is necessarily carried out by the commission. The procedure allows you to determine why the machine has become unsuitable for further use.
If the write-off is made on the basis of the results of the inventory, then the reasons for the loss are identified. Only after an investigation is a decision taken to write off property.
After the investigation, the commission forms a conclusion stating the reasons for the write-off. The main technical parameters of the car are listed that do not allow further use of this property to achieve the goals of the enterprise.
Often the reason for the write-off is the completion of depreciation. If a machine with a zero carrying amount can be further used for safe operation, a revaluation or extension of its useful life can be carried out. Often, under such conditions, company managers decide to sell the car.
The reasons for the deterioration of the car
Typically, the reasons for writing off a car are:
- improper operation of the car;
- poor-quality performance of current repair work;
- high wear of the machine due to the duration of operation;
- an employee of the enterprise in an accident.
Therefore, each employee of the company must be responsible for the use of official cars.
How to write off a car?
The procedure is considered quite complicated, and also during its implementation involves a large number of employees. It is important to decide whether the car will be disposed of or sold. How to write off a car in an organization? To do this, the following actions are performed:
- the employee of the company responsible for the organization’s fleet submits a memo to the head of the company;
- this document indicates the reasons for the cancellation of the car, for example, it had an accident, cannot be repaired or depreciation has ended;
- the head issues an order to form a special commission;
- members of the commission conduct an investigation to determine the reasons for the cancellation of the car;
- documents are prepared by the commission for transmission to the director and the traffic police;
- these documents include the TCP, certificate of registration for the car, confirmation of acceptance of the car on the balance sheet, an inventory card, technical papers on the property, a certificate of the book value of the car, as well as a diagnostic card obtained as a result of the technical inspection;
- if the cause of the write-off is an accident, then a special act is additionally transmitted to the STSI;
- if the car was stolen, then a copy of the decision, on the basis of which a criminal case was instituted, is transmitted to the STSI;
- if the car was damaged or completely destroyed by officials who were negligent with the company's property, then the results of the official investigation are prepared, as well as the director’s order, on the basis of which the guilty persons are held accountable;
- as soon as all documents are collected, the vehicle is inspected and examined;
- a conclusion is drawn up on the basis of which it can be understood whether it is allowed to continue using the machine for work;
- if it is not possible to draw optimal conclusions, then the company orders a technical examination of the suitability of the car for further operation;
- an act to write off the car is drawn up, and for this, the requirements of Order of the Ministry of Finance No. 52 are taken into account;
- the car is deregistered in the traffic police;
- if the car is not suitable for further operation, the property is additionally disposed of, for which the company has to contact the appropriate organization.
The company must keep acts on the cancellation and disposal of the car. If you understand how to write off the car in the scrap, the process is easily and quickly carried out by an accountant and other officials of the company.
Accounting Rules
An accountant of any company should know how to write off a car without recycling or in scrap. To do this, you need to make certain changes to the accounting of the enterprise. Therefore, the following requirements are taken into account:
- in order to draw up the necessary accounting entries, a write-off certificate is required, received from the director of the company or a higher state body, if the procedure is implemented in a budget institution;
- to write off depreciation, D 0 104 25 (35) 411 K 0 101 25 (35) 410 is used;
- the residual value of the machine is written off using D 0 401 10 172 K 0 101 25 (35) 410.
If a decision is made to turn the car into a scrap, it can be transferred for disassembly for parts or for scrap. Often, the commission decides on the future use of certain spare parts that are in optimal condition. The remaining elements are transferred to scrap.
What actions are made with the car?
During the time when a decision is made regarding the further use of this vehicle, the machine remains at the disposal of the company. The rules are taken into account:
- it is not allowed to dismantle the car ahead of schedule or to hand it over in scrap metal;
- even the seizure of various parts or assemblies is prohibited until the order of the company management is received;
- only after that the person in charge of the company is engaged in disassembling the car or selling it, depending on the decision made by the commission.
How to write off a car without recycling? To do this, it is enough to eliminate the car from the accounting of the company, and after that the car is sold or donated to other users.
If the machine is disposed of, a special agreement is drawn up with the relevant company. It gives the client an act of disposal, which is then transferred to the traffic police to remove the car from the register, as well as to compile transactions by the accountant of the company.
How to write off a personal car?
A personal car is deducted in a standard way. To do this, you need to contact the traffic police department with all the documents for the car, as well as a statement on disposal. After that, the machine will be deregistered. First you need to draw up a contract with the recycling company.
Cars are usually scrapped when they get into a serious accident, after which the vehicle cannot be repaired. Additionally, the procedure is carried out for very old cars.
Conclusion
Writing off the car from the balance sheet of the company is a standard process, but its features depend on why the procedure is performed. The machine may be sold, disposed of or transferred to other users at no cost.
The write-off must be confirmed by the necessary accounting entries, and the procedure must be accompanied by the removal of the car from the register in the traffic police.