Summary of columns in the tax revenue and expense ledger

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Entrepreneurs who keep a tax book of revenues and expenditures are required to establish it on the first day of commencement of operations or on January 1 of a given tax year. Due to the obligation to keep the KPiR, entrepreneurs are obliged to perform other formal activities, such as summarizing the book's columns.

What columns are in the column summary and KPiR?

According to the ordinance of the Minister of Finance of August 26, 2003 on keeping the tax book of revenues and expenses - the book of revenues and expenses should contain 17 columns, and the entrepreneur should keep it fairly and in a non-defective manner. Each of the columns has its own specific, unique function.

Column 1

is intended for ordinal numbers

Column 2

date of incurring the expense, receipt of goods or obtaining income, or the date of the sales statement

Column 3

contains the number of the accounting voucher

Column 4

contains the name of the contractor or remains empty in the case of "no contractor"

Column 5

contains the contractor's address or remains empty in the case of "no contractor"

Column 6

contains a description of the economic event

Column 7

intended to enter revenues from the sale of goods (commercial goods) and the sale of services

Column 8

is intended to enter other revenues, e.g. revenues from the sale of assets for consideration, received contractual penalties, remuneration of the payer

Column 9

summary of columns 7 and 8

Column 10

is intended to enter the purchase of materials and commercial goods according to the purchase price

Column 11

is intended for the entry of incidental costs associated with the purchase of goods, such as transport costs

Column 12

is intended to enter gross wages and salaries paid to employees (in cash and in kind)

Column 13

is intended for entering other costs, e.g. rent for the premises, electricity, gas, water, central heating, telephone, fuel, renovation expenses etc.

Column 14

summary of columns 12 and 13

Column 15

she is free; this column may include other economic problems that do not belong to the other columns

Column 16

intended to enter the costs of research and development activities referred to in art. 26e of the Income Tax Act

Column 17

intended for entering comments on the content of entries in columns 2-16

As you can see, column 17 ends the KPiR. However, there are also side elements that it may contain, which are:

  • the sum of the page, i.e. summary of columns 7-14,
  • transfer from the previous page,
  • together since the beginning of the year.

The entrepreneur cannot include in the KPiR the costs that have been listed in Art. 23 of the Personal Income Tax Act, e.g. enforcement costs related to default, lost deposits, representation costs or loans granted.

Why is the column summary in the tax book?

Originally, the column summary was mainly used to calculate income, however, since the use of various accounting software has become more common, you can see other summary benefits, such as:

  • automatically summed up value of obtained revenue (column 9),
  • convenience in calculating the value of expenses incurred by adding summaries of columns 10, 11 and 14,
  • carrying out various analyzes, e.g. to assess how quickly expenses are growing from month to month,
  • valuation of commercial goods and materials at purchase price.

Based on the summary of the columns, it is possible to determine the value of the components included in the physical inventory if they are valued at the purchase price. In order to calculate the value of goods and materials at the purchase price, determine the percentage share of purchase side costs (column 11) in the purchase value of trade goods and basic materials (column 10). The value of the unit purchase cost should be increased by a predetermined ratio, thanks to which the assets will be expressed at purchase prices rather than purchase prices. This procedure results directly from Annex 1 point 21 of the Ordinance of the Minister of Finance of August 26, 2003 on keeping the tax book of revenues and expenses.

Example 1.

While creating a summary of the KPiR columns at the end of the month, Jan Kowalski noticed that the sum of the sums in the summary of columns 10, 11 and 13 is very high. He decided to conduct a cost analysis comparing the expenses with the previous month. Thanks to this, he noticed that he had incurred significantly more costs compared to the previous month. This fact alerted him that he should limit them.

Example 2.

The entrepreneur "ABC" wants to increase the unit purchase cost, which for the item "XYZ" amounts to PLN 50, by determining the index, and determine the value of individual components of the physical inventory. At the end of the month, in the summary of column 11, he received the amount of PLN 500, while in column 10 it was PLN 800.

Ratio Calculation: Column Summary 11 x 100% Column Summary 10 = 500 x 100% 800 = 62.5%

Increasing the unit purchase cost of "XYZ": (PLN 50 x 62.5) + PLN 50 = PLN 81.25

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Annual summary of the tax book columns

The regulations do not regulate by what date the taxpayer should close the tax book, however, it is recommended to do so after posting the economic events related to the tax year being closed. In order to properly close the book after the end of the tax year, the entrepreneur is obliged to summarize the columns in it, enter the final inventory and calculate the income for a given tax year.

The entrepreneur has time for an annual summary of the book entries by April 30 for the previous tax year. This is because the data resulting from the annual summary of the columns is necessary to determine the income, which in turn is needed to calculate the income tax withholding.

There are 2 methods of the annual summary of the tax book columns:

  • cumulatively from the beginning of the year,
  • separately for each month.

If the taxpayer:

  • summarizes individual columns of the book every month, must underline and sum up the data from columns 7-14. Additionally, under the prepared summary of a given month, he may enter in individual columns the sum from the beginning of the year to the month preceding the described month, and in the next position in individual columns, enter the sums from the beginning of the year;

  • did not summarize the individual columns of the book every month, after the end of the year he is obliged to prepare an annual statement on a separate page in the KPIR. For this purpose, a summary of the whole year should be entered in the appropriate columns.

In the new tax year, the entrepreneur is obliged to establish a new tax book.

Column Summary - How to Calculate Income?

Revenue (column 9)

PLN 100,000

Expenses:

physical inventory value at the beginning of the tax year

  • purchase of commercial goods and materials (column 10)
  • purchase side costs (column 11)
  • amount of other expenses (column 14)
  • the value of wages and salaries in kind included in other columns of the book
  • physical inventory value at the end of the tax year

PLN 14,000

PLN 20,000

PLN 7,300

PLN 50,000

PLN 0

PLN 6,000

Total tax deductible costs

PLN 85,300

Income

PLN 100,000 - PLN 85,300 = PLN 14,700

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KPiR and a summary of columns in the wFirma.pl system

Keeping KPiR in the wFirma.pl system is very simple and takes place in the tab: RECORDS >> KPIR. Thanks to the automation of the system, the expenses and revenues booked in the system are automatically redirected there.

For more information on posting expense and income inCompany, see Expense Posting and Revenue Posting.

Then, when all expenses and revenues for a given period have been posted, we can print the Bills of Lading by using the "Print Bills of Lading" function.

In addition, thanks to the "Print summary" function, it is possible to print a KPiR summary broken down by month and a monthly KPiR summary cumulative for a given year.