RMG rejection analysis report also an another tools to followup improvement less rejection into process. When management daily followup the process by generating RMG rejection analysis report, departmental process concerns are effective work with his responsibility, In RMG sectors there are 06 (Six) types of process. The every process has goes to through some rejection. Every Rejection should be reported» Read more
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Wastage minimize through cutting department is an another tools or technique to improve profitability. RMG
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Fabric reconciliation by excel inventory tracker systems is common tools in RMG sectors. When any
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How to calculate import stage duty is most important to any countries. when you import
We all are well known about the procedures of any services given or taken by buyer and seller respectively. Here three types of procedures are maintain of Bangladesh Import Export Business industries. These are-
a) By Bill
b) By LC (Letter of Credit)
c) By TT (Telegraphic Transfer or telex transfer)
|Si No.||Mode||Bill or B2B LC Process||Bill to B2B LC Process|
|01.||Bill/PI||Inventory-Items Name||***||Inventory-Items Name||***|
|Ref: Buyer Name||Ref: Buyer Name|
|Only||Creditor-Party Name||***||Creditor-Party Name||***|
|Bill||Ref: Bill Number||Ref: Bill Number|
|Ref: Bill Number|
|Ref: Cheque No./ MR No.|
|03.||LC||Materials In transit||***||Creditor-Party Name||***|
|False Liabilities||Ref: Buyer Name||Ref: Bill Number|
|B2B||LC Margin||***||LC Margin||***|
|Ref: Buyer Name||No Entry|
|Materials in Transit||***|
|Ref: Buyer Name|
|Proces||05.||BOE||LC Margin||****||LC Margin||***|
|Bills Payable||***||Bills Payable||***|
|06.||Payment||Bills Payable||***||Bills Payable||***|
|FCH Bank||***||FCH Bank||***|
|Ref: Date||Ref: Date|
Accounting Treatment of Export LC is given form Buyers. Its very important to how will you enter the entry in our software/general ledger/manually. If you are responsible to maintain the RMG accounts. So obviously have to maintain to proper Accounting treatment the Export LC is given form buyer.
Example: Date- 01/01/2016 H&M Submit the order to BCL 5000Pcs @ $4.50 & also confirm the Export LC by bank $22,500.00. after given the order BCL Export the order 3500Pcs date-05/05/2016 after receiving the goods H&M send the T.T/Bill of Exchange by the bank date- 15/05/2016, $15,750.00 and the T.T/Bill of Exchange amount has realized end of the month. The accounting treatment as below:-
|Particulars||Amount $||Amount $|
|a) Export LC given from Buyer-|
|Assets (Debtors)||H&M Buyer A/C (Export LC)||Dr.||22,500.00|
|Liabilities||Unearned Export R/V A/C||Cr.||22,500.00|
|b) Goods Export to Buyer-|
|Liabilities||Unearned Export R/V A/C||Dr.||15,750.00|
|Income||Export R/V A/C||Cr.||15,750.00|
|c) T.T/Bill of Exchange Received from Buyer-|
|Assets||Bill Receivable A/C (T.T)||Dr.||15,750.00|
|Assets (Debtors)||H&M Buyer A/C (Export LC)||Cr.||15,750.00|
|d) Realized the amount by the bank-|
|Assets||Bill Receivable A/C (T.T)||Cr.||15,750.00|
|Si #||H&M||Bill Receivable||Bank||=||Unearned Export R/V||Export R/V|
Sub Contract work from Garments to Garments is the common process when capacity going idle. The sub contract is not allowed to in 100% RMG export oriented garments factory commonly. But internally involving buyer and BGME both are concerning to execute the sub contract process by inter bond.
Sub contract is most essential job to take proper order form other factory. when capacity blank factory propose or hire some order to other factory, they factory dose offer minimum or low price. On the other hand, when capacity is full and give some order from other factory price will be high.
|A. Considering 10% Profit|
|B. Considering 5% Profit|
|C. Considering 0% Profit|
Please click for soft excel file>>>>
Daily Basis Inventory Tracker in RMG Sectors is most important tools to increase companies profitability. Daily basis inventory tracker is new concept in RMG sectors. Now a days inventory maintain is not commonly used in garments.
Inventory can be anything a business acquires with the intention of selling to customers. Perhaps the most important advantage of inventory management is saving a company money. Inventory is often the largest & liquid asset a company has & deal with. Inventory is also expensive to purchase, putting a company in the red until it sells those products for a profit.
The three main types of inventory are (three forms) >raw materials >>work-in-process inventory >>>finished goods.
Inventory Management is what goes on behind the curtain of any successful business. It is the art and science of balancing supply and demand within a business – of managing the supply chain so that we always have the right amount of product to make a profit.
Here are seven benefits of inventory management control that are too important to ignore. 1.Save Money 2.Satisfy customer 3.Warehouse Organized 4.Save Time 5.Improve Cash flow 6.Maintain optimum Inventory level 7.properly track the cost of inventory for tax and accounting purposes.
Daily Basis inventory tracker advantage- Essential Mixers of an
Integrated Job Costing Report.
Daily basis inventory tracker has following features: ● 1.Inventory will be monitor and control from procurement to goods shipment . 2.Integrated inventory management system 3.Order wise material reconciliation 4.Process wise normal loss , abnormal loss ,rejection and lost identification 5.Daily basis inventory tracking and ensuring entry into tally 6.Daily basis order wise productivity monitoring which plays significant role in improving profitability 7.Respective users/department can get benefit from this report 8.Weekly basis process wise order/style analysis
Factory cost reduce by order wise process review is common tools and technique for RMG sectors. If any factory didn’t maintained his cost or recovered CPM (Cost Per Minute) by followup top authority or several policy, than factory cost reduce by order wise individual process review and followup.
The below executive summary is the cost reduction tools and technique>>>
|Particulars||Order Closing Report from Factory||Order Closing Report Finance Review|
|Total number of style/orders||23||23|
|Fabric Received in store in Yrd.||105,343||105,343|
|Fabric Issue to cutting in Yrd.||96,507||96,412|
|Left Over Fabric (In Yd.)||8,836||8,831|
|Excess Cut Yrd. in %||9.31%||9.31%|
|Excess Cut Qty. in %||3%||3%|
|Excess Shipped Quantity||436||436|
|Balance after shipment||2,110||2,110|
|Cut to shipped rejection Qty.||2,215||2,215|
|Cut to shipped ratio||97.73%||97.73%|