In the entrepot trade business, the purchased goods are generally recorded into the "Merchandise Inventory" subject because these are goods held for resale. When selling goods, "Main Business Revenue" is confirmed, and at the same time, the cost of the corresponding merchandise inventory is carried forward to "Main Business Cost". For the relevant logistics expenses, if they occur in the purchasing link, they can be recorded into the cost of "Merchandise Inventory"; if they occur in the selling link, they are usually recorded into "Selling Expenses".
In addition, in the entrepot trade process, there may be taxes involved, such as customs duties. The import duties are recorded into the cost of "Merchandise Inventory", and the value-added tax is processed as the corresponding input or output according to regulations. If there are exchange gains and losses, the gains or losses arising from exchange rate fluctuations are recorded into the "Financial Expenses - Exchange Gains and Losses" subject. Such classification helps to accurately calculate the revenues, expenditures and profit situation of the entrepot trade business and clearly reflect the financial situation of the business.
In short, the accounting subjects should be reasonably determined based on the business occurrence links and the nature of the expenses.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In the entrepot trade business, the purchased goods are generally recorded into the "Merchandise Inventory" subject because these are goods held for resale. When selling goods, "Main Business Revenue" is confirmed, and at the same time, the cost of the corresponding merchandise inventory is carried forward to "Main Business Cost". For the relevant logistics expenses, if they occur in the purchasing link, they can be recorded into the cost of "Merchandise Inventory"; if they occur in the selling link, they are usually recorded into "Selling Expenses".
In addition, in the entrepot trade process, there may be taxes involved, such as customs duties. The import duties are recorded into the cost of "Merchandise Inventory", and the value-added tax is processed as the corresponding input or output according to regulations. If there are exchange gains and losses, the gains or losses arising from exchange rate fluctuations are recorded into the "Financial Expenses - Exchange Gains and Losses" subject. Such classification helps to accurately calculate the revenues, expenditures and profit situation of the entrepot trade business and clearly reflect the financial situation of the business.
In short, the accounting subjects should be reasonably determined based on the business occurrence links and the nature of the expenses.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The purchase payment of entrepot trade is generally recorded in the asset category of "Merchandise Inventory", and the sales payment is recorded in the revenue category of "Main Business Revenue", so that the revenues and expenditures are clear.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
For the logistics expenses, it depends on the situation. If it is to transport the goods to the sales place, it is recorded in "Selling Expenses". If it occurs during the purchase, it is included in the cost of the goods.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If there is foreign exchange settlement involved, the differences arising from exchange rate fluctuations are recorded in "Financial Expenses - Exchange Gains and Losses", don't make mistakes.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The purchase of goods in entrepot trade is recorded into "Merchandise Inventory", the sales confirm revenue and the cost is carried forward. This is similar to general trade. The key is not to misclassify the expenses.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Some miscellaneous expenses generated in the sales process, such as packaging fees, etc., can also be recorded into "Selling Expenses".
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If the customs duties are in the import link, they are added to the cost of "Merchandise Inventory". If they are in the export link, depending on the situation, they may be recorded in "Business Tax and Surcharges".
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
For the accounting of entrepot trade, as long as the subjects of purchase, sales and expenses are determined well, the basic accounts will be clear.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The port miscellaneous fees in entrepot trade, if they are related to sales, are recorded in "Selling Expenses".