10 December 2013
Logically the date on which the ownership of goods is transferred should be recognised as date of purchase for purchaser party... In above case, after custom clearance the risk and reward relating to ownership of goods gets transferred hence purchase shall be accounted on date of custom clearance.. But in many cases, people makes entry for purchase on the date on which material comes in their possession.. Hence, it depends on the policy of entity making purchase...
As per my view, date of custom clearance shall be reckoned as date of purchase...
10 December 2013
it is on date when all risks and rewards on ownership of goods transfered to you from your buyer . . suppose if your responsibility starts once it reaches to indian port you have book purchases on date of bill of entry . . if your responsibility starts once it reaches to your factor on date of GRN/MRIR . . if your responsibility starts from supplier premises on date of supplier invoice--
if responsibility starts after goods shipped ,,on date of bill of ladding . . so decide on this
10 December 2013
In case if any other date is choosen then always there is a chance of taking advantage of exchange fluactuation and the entity may keep its goods cleared from custom warehouse for several days and later to take adv it may clear it.
10 December 2013
Tushar, How benefit of exchange fluctuation can be related to date of clearing the goods from custom warehouse??? As payments terms may not depend on the date of clearance... The only thing that may affected is way of accounting of foreign exchange fluctuation which will not impact the decision of clearing the goods from custom warehouse... and keeping the goods in custom warehouse will lead to additional ground rent charges which can be high depending on the goods...
10 December 2013
the question relates to import when entry will be booked in case of import there will be role of converion of foreign currency into indian rupees and the bal in foriegn exchange fluctuation account will be hit by this transaction and ultimately it will affect profit or loss a/c.
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