Export Sales accounting - Date & Rate of exchange

A/c entries 51234 views 20 replies

Hello Professionals

 

I have one doubt we already received full payment from Customer (Buyer in China) and delivery the goods on after receiving payments but that goods not cleared in customs

 

What is treatment in booking sales entry and adjustment in payment received.

 

Thanks in advance

 

With Regards

T.Purushothaman

Replies (20)

Hello Professionals

 

I have one doubt we already received full payment from Customer (Buyer in China) and delivery the goods on after receiving payments but that goods not cleared in customs

 

What is treatment in booking sales entry and adjustment in payment received.

 

Thanks in advance

 

With Regards

T.Purushothaman

Dear purshothaman

If any advance payment  recived from customer than pass journal entry for reciept of payment.

and book sales on the date of SOB (shipped on board ) .

differance in amount transfer to exchange gain loss account.

as terms of payment is 100 % adv.. than AS per AS 9 no uncertainity exists regarding payment but it has to be full fill all other 2 condition which is must to recognised sales. transfer of ownership or risk and reward to buyer.

in your case owner ship of goods remain with u so revenue to be recognised on SOB date printed on BILL OF LADING.

as per AS-09 on Revenue Recognition the sales should be recorded in the books of account when the risk of owner ship is tranfer to buyer ie. Date when good handed over to custom authority, and bill of lading is prepared.

what exchange rate should i consider in Books of Accounts for Export Sales....

Hi
 

Regarding Export Invoice booking date, if any notification and rules copy is there, pls share it

 

Thanks

Ravi K

export sales invoice details?


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