Dear Friends,
Please consider following details of an export invoice.
FOB value $ 261840
Freight $ 15810
CFR $ 277020
Frieght is recovered by exporter from the party and same is paid by exporter to ocean freight agent.
Now the issue i am facing is on which amount should i book the Sale on FOB or CFR?
Also suggest me accounting entries for Export sale and payment to ocean freight agent in this case.
Thank you in advance for your suggestions.
You are talking about Export Sale. In the regard make the invoices as per your PO basis otherwise you have to face the various observations regarding Export Invoices. Further any query plz forward the same.
You should book the sale on FOB value (convert it in to INR as per exchange rate as on Invoice Date)
1) Customer A/c Dr
To Export Sale A/c
To Frieght Account
2) when freight amount received from customer
Bank A/c Dr
To Customer account
3) When amount paid to C & F Agent
Freight A/c Dr
To Bank A/c
Please note that the exchange rate difference should be accounted seperatly in Income / Loss account.
CAclubindia
