Import purchase
This query is : Resolved
25 June 2013
Dear Experts, please suggest the correct accounting for import purchases w.r.t
Date of recording transaction as the material or asset is received in the factory after the date of BOE by transport.
Rate to be adopted as per AS-11 as to what should be the transaction date for accounting purpose, because some people apply CBEC rate for accounting too.
Bill for Clearing and forwarding and freight charges are issued/received almost one month after BOE.
Whether there should be separate date for accounting clearing and forwarding charges other than the date adopted for raw material purchase.
Date of recording transaction as the material or asset is received in the factory after the date of BOE by transport.
Rate to be adopted as per AS-11 as to what should be the transaction date for accounting purpose, because some people apply CBEC rate for accounting too.
Bill for Clearing and forwarding and freight charges are issued/received almost one month after BOE.
Whether there should be separate date for accounting clearing and forwarding charges other than the date adopted for raw material purchase.
25 June 2013
1)clearing agents expenses can be booked on date on invoice provided by C& F agent.
2)TRANSACTION SHOULD BE recognized when all the significant risks and rewards associated with ownership are transferred.
3)According to this required date of transaction is as under:
(a)In case of FOB contracts – The date of Bill of Lading
(b)In case of CIF contracts-The date of Bill of Entry
(c)In case of Ex-works- The date on which risk rewards transferred to buyer.
4)if BOE date is applicable customs exchange rate mentioned in BOE can be taken.
5)remaining dates..can refer to RBI exchange rates
Thanks & regards
Ganesh babu k
2)TRANSACTION SHOULD BE recognized when all the significant risks and rewards associated with ownership are transferred.
3)According to this required date of transaction is as under:
(a)In case of FOB contracts – The date of Bill of Lading
(b)In case of CIF contracts-The date of Bill of Entry
(c)In case of Ex-works- The date on which risk rewards transferred to buyer.
4)if BOE date is applicable customs exchange rate mentioned in BOE can be taken.
5)remaining dates..can refer to RBI exchange rates
Thanks & regards
Ganesh babu k
Message likes :
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25 June 2013
RBI Exchange rates can be refereed from here
http://www.rbi.org.in/scripts/referenceratearchive.aspx
http://www.rbi.org.in/scripts/referenceratearchive.aspx
25 June 2013
Since the C & F invoice is of a different date, tracking purchase cost for a particular transaction becomes difficult.
Since rate of CBEC is given for 15days and the rate to be adopted as per AS 11 should be that of transaction date. Please elaborate the correct treatment.
Since rate of CBEC is given for 15days and the rate to be adopted as per AS 11 should be that of transaction date. Please elaborate the correct treatment.
25 June 2013
1)You should have some MIS which will suits for your requirements.we cannot book expence till you receive invoice..
2)Generally import purchases will be booked on custom exchange rate which is provided in Bill of entry..
.
.
And there are some companies who are following RBI exchange rates instead of custom exchange rates..
You can follow one process and can maintain consistency there in ..you can also take your auditor help in this regard
2)Generally import purchases will be booked on custom exchange rate which is provided in Bill of entry..
.
.
And there are some companies who are following RBI exchange rates instead of custom exchange rates..
You can follow one process and can maintain consistency there in ..you can also take your auditor help in this regard
Message likes :
2 times
25 June 2013
Also normally we account for purchase of material/ assets after entry in factory and in case of imports goods are received after BOE. whether it would be appropriate to record as per BOE date
25 June 2013
YES. it is correct as i said above we should recognize when all significant risks rewards transfered..
in case of imports on CIF basis risks ,and ownership of purchases goods transferred to us when goods reached to our port which can be confirmed with BOE.
So here we should recognize import purchase on BOE
in case of imports on CIF basis risks ,and ownership of purchases goods transferred to us when goods reached to our port which can be confirmed with BOE.
So here we should recognize import purchase on BOE
06 August 2013
As per AS 11, Date of exchange to be taken as transaction date.
Transaction date generally means When All Risk & reward transferred.
No hard & fast Rule for that.
Its better to take Bill of lading rate date.of RBI. in case of FOB Contract
many Corporate Use to take Custom rate but i strongly recommend to take RBI rate Only.
We are Not at all Concerned with Custom rate, This is Only for Custom Duty calculations.
Further accounting date will be Bill of Entry date only as risk and rewards are transferred as BOE raised.
Transaction date generally means When All Risk & reward transferred.
No hard & fast Rule for that.
Its better to take Bill of lading rate date.of RBI. in case of FOB Contract
many Corporate Use to take Custom rate but i strongly recommend to take RBI rate Only.
We are Not at all Concerned with Custom rate, This is Only for Custom Duty calculations.
Further accounting date will be Bill of Entry date only as risk and rewards are transferred as BOE raised.
Message likes :
3 times
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