How to make accounts for foreign exchange settlement of enterprises?
1. The accounting entries of enterprise settlement are:
Debit: Bank deposit-RMB
Financial Expense-Exchange Gain/Loss (or Debit Red Letter)
Loans: bank deposits-foreign currency
2. At the end of the period, the financial expenses are carried forward, and the accounting entries are:
Debit: this year's profit
Credit: financial expenses-exchange gains and losses
How to understand foreign exchange settlement?
Settlement of foreign exchange refers to the behavior that the owner of foreign exchange income sells his foreign exchange income to the designated foreign exchange bank, and the designated foreign exchange bank pays the equivalent local currency at a certain exchange rate. There are many forms of foreign exchange settlement, such as compulsory foreign exchange settlement, willingness foreign exchange settlement and quota foreign exchange settlement. Compulsory foreign exchange settlement means that all foreign exchange income must be sold to designated foreign exchange banks, and foreign exchange is not allowed to be retained; Willingness to settle foreign exchange means that foreign exchange income can be sold to designated foreign exchange banks or left in foreign exchange accounts, and the owner of foreign exchange income decides whether to settle foreign exchange; The limit of foreign exchange settlement means that foreign exchange income cannot be settled within the quota approved by the state, and those exceeding the limit must be sold to designated foreign exchange banks. At present, China mainly implements the compulsory settlement system, and some enterprises are approved to implement the quota settlement system; Implement a system of willing foreign exchange settlement for domestic residents.
As long as the relevant regulations are met, there is no total limit on the settlement or purchase of foreign exchange under personal real trade, and it shall be handled according to actual needs.
What does the financial expenses include?
Financial expenses include interest expenses (minus interest income) incurred in the production and operation of enterprises, net exchange losses (some enterprises, such as commodity circulation enterprises and insurance enterprises, are accounted for separately and are not included in financial expenses), handling fees of financial institutions, bond printing fees, foreign loan guarantee fees and other financial expenses incurred in financing.
1. Interest expense refers to the net amount of short-term loan interest, long-term loan interest, bill payable interest, bill discount interest, bond payable interest, long-term interest payable and other interest expenses (except capitalized interest) of imported equipment minus bank deposit interest income.
2. Exchange loss refers to the difference between the buying price and selling price of the bank and the exchange rate used for bookkeeping due to the settlement or purchase of foreign exchange from the bank, and the difference between the ending balance of foreign currency in each foreign currency account at the end of each month (quarter and year) and the original book amount.
3. Relevant handling fees refer to the handling fees to be paid for issuing bonds (excluding the handling fees to be capitalized), handling fees of issuing banks, handling fees for adjusting foreign exchange, etc. , but does not include the handling fee paid for issuing shares.
4. Other financial expenses, such as financing lease expenses incurred in financing fixed assets.