Which accounting subject should the import agency fee be recorded in?
Solved#Import agent#
My company has recently had import business and incurred an import agency fee. I'm not quite sure where to record this expense. I haven't dealt with a similar situation before. I asked my colleagues around me, and everyone had different opinions. Some said it should be included in the procurement cost, some said it might be counted in the selling expense, and some thought it might be put in the administrative expense. So I'd like to ask professionals, which accounting subject should the import agency fee actually be recorded in?
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The bookkeeping subject of the import agency fee needs to be judged according to the specific situation. If the imported goods are used for production and processing, the import agency fee can be included in the procurement cost, because it is a necessary expenditure to make the goods reach a usable state, so that the product cost can be accurately calculated. For example, when importing a batch of raw materials for production, the import agency fee of this batch of raw materials should be included in the procurement cost of raw materials.
If the imported goods are used for sales, and the import agency fee is closely related to sales activities, such as the expenses incurred to promote the sales of imported goods, it can be included in the selling expense.
If the import agency fee is related to the company's administrative activities, such as the expenses incurred to handle the administrative affairs in the process of import business, it can be included in the administrative expense. In short, the bookkeeping subject should be determined according to the nature of the expense and its connection with the business.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Generally, if it is an agency fee directly related to the imported goods, such as the customs declaration agency fee, etc., it is usually recorded in the procurement cost, so that the cost calculation is more accurate.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the agency fee is generated due to communication and coordination with foreign suppliers, etc., and is more inclined to daily operation and management, the administrative expense is also a suitable choice.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If the agency fee is mainly spent to quickly sell the imported goods, it is also reasonable to put it in the selling expense.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
When the amount of the import agency fee is small and has little impact on the cost, for the sake of simplifying the calculation, it can also be directly included in the administrative expense.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If it is the agency fee generated by importing items for exhibition and display, perhaps it is more appropriate to record it in the selling expense, because it is more closely related to the display and sales activities.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the imported goods are self-used equipment, etc., the import agency fee should be included in the cost of fixed assets, so that the cost of asset acquisition can be completely reflected.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If what is imported is an intangible asset, such as patented technology, etc., the import agency fee can be included in the cost of the intangible asset.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
For enterprises specializing in import trade, the import agency fee may mostly be recorded in the selling expense or the procurement cost according to the specific situation of the business.