Export sales at fob vaue or cif?

Sales are to be booked in the accounts on the basis of terms of sale with purchaser.  This could be ex Works, FOB, FOR, CIf  etc  Further, this will the amount the seller expects to receive from the purchaser.

However, we need to record the FOB value of sales as per GR as well separately.  This indicates the value of the goods that have been exported from Lndia.

Thnaks!

Dear Akash,

Export Sales will be at FOB price, insurance, freight etc will be for after export that means after payment of export duty goods does not become part of indian territory hence, such insurance, freight will not be added.

While in case of Import purchases insurance, freight etc will be added in transaction value .

Regards,

Siddharth Bumb

www.facebook.com/DTandIDT

WWW.SIDDHARTHBUMB.BLOGSPOT.COM

Accounting entry should be passed on the basis of Invoice. You have to debit to customer's account from invoice value and credit to the export sales account on FOB value. Other amount should be credited under seperate account heads

Rajesh

Any Accounting guidelines to support the same view available???

As per Sec. 217(1)e of Companies Act, Directors are required to disclose foreign exchange earnings and ourgo in their report.  For this purpose CIF value of imports and FOB Value of exports are required to be considered irrespective of the agreed terms between buyer and seller.

Rest is to keep track of the actual amount receivable from customer.

Thanks!

Thanks for your responses Gentlemans.

Mr Ram sec 217(1)(e) of Co. Act still not specifically state to show export at FOB value and CIF??

How to pass journal entries any idea

for sales as of fob 

so to actual receivable from customers