Import LC Posting, Back to Back LC Journal Procedure and LC Posting.

Export Remittance Charges

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-

Export LC

a) By Bill
b) By LC (Letter of Credit)
c) By TT (Telegraphic Transfer or telex transfer)

Si No. ModeBill or B2B LC ProcessBill to B2B LC Process
LFDr. Cr.LFDr. Cr.
01.Bill/PIInventory-Items Name***Inventory-Items Name***
Ref: Buyer NameRef: Buyer Name
OnlyCreditor-Party Name***Creditor-Party Name***
Bill Ref: Bill NumberRef: Bill Number
02.PaymentCreditor-Party Name***
Ref: Bill Number
Cash/Bank***No Entry
Ref: Cheque No./ MR No. 
03.LCMaterials In transit***Creditor-Party Name***
False LiabilitiesRef: Buyer NameRef: Bill Number
B2B LC Margin***LC Margin***
Ref: Buyer NameNo Entry
Materials in Transit***
Ref: Buyer Name
Proces05.BOELC Margin****LC Margin***
actual LiabilitiesRef:86218041111Ref:86218041111
Bills Payable***Bills Payable***
06.PaymentBills Payable***Bills Payable***
FCH Bank***FCH Bank***
Ref: DateRef: Date

Accounting Treatment of Export LC | Accounting Treatment of Sales Contract

RMG Life Information

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:-

Video Link>>>>>

ParticularsAmount $Amount $
a) Export LC given from Buyer-
Assets (Debtors)H&M Buyer A/C (Export LC)Dr.       22,500.00
LiabilitiesUnearned Export R/V A/C Cr.       22,500.00
b) Goods Export to Buyer-
LiabilitiesUnearned Export R/V A/CDr.       15,750.00
IncomeExport R/V A/CCr.       15,750.00
c) T.T/Bill of Exchange Received from Buyer-
AssetsBill 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-
AssetsBank A/CDr.        15,750.00
AssetsBill Receivable A/C (T.T)Cr.        15,750.00
Equation AssetsLiabilities+Income
Si #H&MBill ReceivableBank=Unearned Export R/VExport R/V
a)    22,500.00     22,500.00
b)   (15,750.00)   15,750.00
c)  (15,750.00)    15,750.00
d)  (15,750.00)   15,750.00
Total       6,750.00                    –     15,750.00        6,750.00   15,750.00
Accounting Equation

How to Caculate Import stage duty CD, RD, SD, VAT, AIT & ATV?

Import stage National Tariff 2018-2019

How to calculate import stage duty is most important to any countries. when you import any product you may imposed import duty by the government. The duties are source of income of government.

AV=> Assessable Value.
CD=>Customs Duty.
RD=> Regularity Duty.
SD=> Supplementary Duty.
VAT=> Value Added Tax.
AIT=> Advance Income Tax.
ATV=> Advance Tread VAT.

B/ New Nissan Almera Sedan Car 1500CC Asses-sable Value after adding insurance & handling charge. Vehicle Management Software is essential.

TypeTax baseRate %Amount
CD      1,239,945.4225%     309,986.36
RD      1,239,945.424%       49,597.82
SD      1,599,529.5945%     719,788.32
VAT      2,319,317.9115%     347,897.69
AIT      1,239,945.425%       61,997.27
ATV      2,937,879.994%     117,515.20
Total Declaration   1,606,782.65
Tk.Total Declaration 
AV      1,239,945.42
Add. CD @25%         309,986.36            309,986.36
Duty paid Value      1,549,931.78
Add. RD @4% on AV           49,597.82             49,597.82
AV, CD & RD Value      1,599,529.59
Add. SD @45% on AV, CD & RD Value =         719,788.32            719,788.32
Base value on VAT      2,319,317.91
VAT @15%         347,897.69            347,897.69
AIT @5% on AV           61,997.27           61,997.27
ATV @126.67% on Base  Value of muilply @4%         117,515.20            117,515.20

Sub Contract work from Garments to Garments

Sub Contract work from Garments to Garments

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.

So, the management is concern about giving or take the sub contract order depended on capacity. The major part of sub contract order give or take by SMV of this order.

Style- 26321S002
Productivity Information:
Price Quotation: 
A. Considering  10% Profit
Factory Overhead             55.24
Nett Profit               6.14
Sales Price            61.38
CM Revenue             61.38
B. Considering  5% Profit
Factory Overhead             55.24
Nett Profit               2.91
Sales Price            58.15
CM Revenue             58.15
C. Considering  0% Profit
Factory Overhead             55.24
Nett Profit                  –  
Sales Price            55.24
CM Revenue             55.24
Sub Contract Pricing in different percentage

The sub contract pricing in different percentage when giving order from other garments factories the above calculation is most appropriate. You may details is below video.

Sub Contract Rate Offer

Please click for soft excel file>>>>

Daily Basis Inventory Tracker in RMG Sectors

Daily Basis Inventory Tracker in RMG Sectors

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

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

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