3.3. 1. 1 accounting treatment of importers
Import goods shall be settled by letter of credit when signing a contract through transaction negotiation. The importer should first apply to the bank to open a letter of credit, fill in the letter of credit application, explain that the bank will be provided with funds to pay the purchase price, and agree to pay the bank's handling fee and interest. According to the letter of credit application and the amount of the import contract, fill in the withdrawal form and transfer it from the foreign exchange settlement account to the bank's letter of credit deposit account. The main accounting treatment is:
Borrow: other monetary funds-letter of credit deposits
financial expenses
Loan: bank deposit-× foreign currency account
Where there is no cash account, it is currently stipulated that foreign exchange cannot be purchased in advance (at this time, enterprises do not need to pay foreign exchange), and RMB should be used as the deposit of the letter of credit. The accounting entries are as follows:
Borrow: other monetary funds-letter of credit deposits
Loan: bank deposit-RMB account
In the way of settlement by letter of credit, the international practice is that banks only charge part of the deposit when opening letters of credit, so most of the depositors' funds in letters of credit are not enough to pay off the purchase price, and the difference needs to be made up. The accounting treatment of payment redemption documents is as follows:
Debit: accounts payable, merchandise purchase and other accounts.
Loans: other monetary funds-letter of credit deposits
Bank deposit-RMB account (or × foreign currency account)
Example 3.4 A foreign trade company imports A 100 pieces, and the foreign purchase price is 100 USD per piece, with a total value of/10 000 USD.
When (1) 1 applies for opening a letter of credit, 40% of the contract price is withdrawn from the foreign exchange deposit account, excluding the handling fee. The central parity of the exchange rate on that day is USD = RMB 8.28, and the accounting entries are as follows:
Borrow: funds in other currencies-deposit by letter of credit ￥33 120.
Loans; Bank deposit-USD account ￥33 120
(2)65438125/0. We received a complete set of documents from the bank. If the enterprise has no objection to the document review, we will inform the bank to write off the original deposit, and the rest will be paid by purchasing foreign exchange. The exchange rate of the day was USD = RMB 8.28, and the selling price was USD = RMB 8.29. The accounting entries are as follows:
Borrow: Commodity Purchase-Imported Commodities 82, 860 yuan.
Loan: funds in other currencies-deposit by letter of credit ￥ 33, 120.
Bank deposit-RMB account ￥ 49,740
The application for foreign exchange purchase shall be used as the original voucher for foreign exchange purchase business, and the purchased foreign exchange shall be paid directly by the bank and not reflected in the enterprise account.
3.3. 1.2 accounting treatment of the exporter
Under the letter of credit settlement method, the exporter, as the beneficiary, will receive the original letter of credit forwarded by the advising bank and the letter of credit issued by the importer. At this time, the exporter does not need to do accounting treatment, but can make records for future reference.
After delivery, the exporter will collect a complete set of documents and submit them to the paying bank or negotiating bank in order to obtain funds as soon as possible. Accounting treatment is as follows:
Debit: Accounts receivable (foreign exchange)
Loan: income from main business
Once the bank documents match, we will pay immediately. Due to China's foreign exchange management, the beneficiary receives a letter of credit in RMB, and the foreign exchange earned from export must be sold to a designated bank, and the bank issues a "settlement bill" as the original certificate for the exporter to enter the country. Accounting treatment is as follows:
Debit: Bank deposit-RMB account
Loans: Accounts receivable (foreign exchange)
3.3.2 Accounting Treatment of Collection
3.3.2. 1 accounting treatment of importers
If the contract is settled by collection, the exporter will submit the documents to the bank after delivery, and the undertaking bank will issue the "Notice of Import Collection Documents" to remind the importer of the full set of documents. At this point, the importer carries out the following accounting treatment:
Borrow: commodity procurement
Loans: Accounts payable (foreign exchange)
If D/P is adopted, the following accounting entries shall be made on the payment redemption date:
Debit: Accounts payable (foreign exchange)
Loan: bank deposit-RMB account (or × foreign currency account)
If D/A is adopted, the accounting treatment of acceptance date is as follows:
Debit: Accounts payable (foreign exchange)
Loan: Notes payable (foreign exchange)
Maturity date of time draft:
Borrow: Notes payable (foreign exchange)
Loan: bank deposit-RMB account (or × foreign currency account)
Accounting treatment of exporters in 3.3.2.2
Under the collection method, the exporter submits the documents to the bank after delivery, and the exporter confirms the income at this time, whether by D/P method or D/A method. Accounting treatment is as follows:
Debit: Accounts receivable (foreign exchange)
Loan: income from main business
If D/A is adopted, the exporter will carry out the following accounting treatment on the acceptance date notified by the bank:
Debit: Notes receivable (foreign exchange)
Loans: Accounts receivable (foreign exchange)
On the collection date of D/P or the maturity date of D/A forward draft, the settlement memo shall be treated as follows:
Debit: bank deposit-RMB account (or × foreign currency account)
Loans: Accounts receivable (foreign exchange)
Or notes receivable (foreign exchange)
3.3.3 Accounting Treatment of Remittance
3.3.3. 1 Accounting treatment of remittance
The accounting treatment of remittance is basically the same as that of domestic business, and it is accounted for by the subject of "other monetary funds". When the remitter fills in the application form and makes payment, he shall make the following accounting treatment with the receipt of the application form:
Borrow: funds in other currencies-bank drafts or funds in transit.
Loan: bank deposit-RMB account (or × foreign currency account)
When the payee receives the remittance, the remitter receives the returned receipt and resells it:
Borrow: related subjects
Loan: funds in other currencies-bank drafts or funds in transit.
Accounting treatment of inward remittance in 3.3.3.2
After receiving the remittance, the payee shall make the following accounting treatment with the remittance notice and settlement voucher:
Debit: bank deposit-RMB account (or × foreign currency account)
Credit: related subjects
Remittances are used less frequently and are usually only used to pay commissions, advertising fees, miscellaneous fees and mantissa.