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What accounting subjects are generally included for agency export?

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My company has agency export business. I haven't been exposed to it before and I'm not sure how to handle the accounting. I want to ask what subjects agency export should be included in. I hope it can be explained in detail, such as aspects of income and cost involved, and also what subjects the related taxes should be included in. I want to make the accounting in this area accurate and clear. I ask professionals to help answer.

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Professional consultant answers

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

In agency export business, the following subjects are generally involved:

For the income from agency export, it should be recorded in the "other business income" subject. Since agency export is not the company's main business, it is accounted through this subject. For example, when receiving the agency fee paid by the principal, credit "other business income".

In terms of cost, the direct expenses incurred during the agency process, such as customs declaration fees and transportation fees, are recorded in "other business cost". When paying these expenses, debit "other business cost".

Regarding the taxes involved, if there is value-added tax, for general taxpayers, when receiving the agency fee and recognizing income, credit "Taxes payable - Value-added tax payable (output tax)"; when paying, debit "Taxes payable - Value-added tax payable (paid tax)". If surcharges are involved, when accruing, debit "Taxes and surcharges" and credit "Taxes payable - City maintenance and construction tax payable", etc. When paying, debit the corresponding taxes payable subject.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

Ocean freight and the like generated by agency export, if paid on behalf of the principal, are recorded in "Other receivables", and this subject is reduced when recovering the funds from the principal later.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

If there is an advance payment from the principal for agency export, it should be recorded in "Advance receipts", and then carried forward accordingly when recognizing income later.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

Regarding export tax rebates, agency export enterprises generally are not involved in tax rebates, and the principal handles the tax rebates. However, if the trustee has advanced relevant expenses related to tax rebates, it can be temporarily recorded in "Other receivables".

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

If some bad debts occur during the agency export process and the accounts receivable involved cannot be recovered, a bad debt reserve should be accrued first. Debit "Credit impairment loss" and credit "Bad debt reserve". When the bad debt actually occurs, debit "Bad debt reserve" and credit "Accounts receivable".

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

When receiving the agency export funds paid by the principal, except for the agency fee part recorded as income, the rest of the advanced funds should be distinguished. If it was previously recorded in "Other receivables", reduce this subject.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

In the accounting of agency export business, expenses such as bank handling fees are recorded in the "Financial expenses - Handling fees" subject.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

If the agency export contract stipulates additional income such as rewards, it should also be recorded in "Other business income".

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

If there is customs duty paid on behalf of the principal for agency export, it can be recorded in "Other receivables" first and then recovered from the principal later.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

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