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.
Professional consultant answers
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 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 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 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 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 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 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 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 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.