Accounting Practice: How To Receive Remittance Under The Exchange Settlement Method

Remittance is a way of settlement by which remittance units entrust banks to remit funds to different places.

According to the regulations,

The account receivable should be directly pferred to the account of the receiving unit.

In the form of mail pfer, the Bank of the receivables Bank (i.e. the remittance bank) is handed over to the receiving unit after the "pfer" chapter is attached to the fourth letter of the letter of exchange, which means that the remittance has been made by the Bank of account.

In the form of telegraphic pfer, the Bank of the receivables bank makes a supplementary report based on the telegram sent by the remittance trip, and adds the "pfer" chapter to the collection unit on the third party, which indicates that the bank has already paid the bill.

The receivables shall prepare the certificates of deposit for bank receipts according to the remittance certificates drawn on the bank, the fourth part (mail pfer) or the linked telegraph supplement (wire pfer), debit the account of the "bank deposit", and credit the relevant accounts (depending on the nature of the remittance).

If the remittance is used to pay the old debts, the receivables receipts from the receivables shall be collected.

For:

Borrow: bank deposit

Loan: accounts receivable

If the payment is prepaid by the other unit for the purchase of its own product, the accounting entry of the collection voucher is:

Borrow: bank deposit

Loan: advance accounts receivable

When the actual delivery is made, the accounting credentials will be compiled according to the relevant original vouchers.

Borrowing: advance payment

Loan: product sales revenue (or sales revenue, etc.)

If payment arrives, delivery receipts can also be directly prepared.

Borrow: bank deposit

Loan: product sales revenue (or sales revenue, etc.)

If you need to withdraw cash from a bank, you must specify the word "cash" in the "remittance amount" column, which can be made by the payee.

The fourth party (or the third party of the bank's declaration, collect the supplementary declaration form) and bring relevant identity documents to the remittance bank for withdrawals.

Once the bank has checked the relevant documents, it will pay the cash payment at once.

The words "cash" are not specified on the remittance voucher, and the units that need to withdraw cash from the remittance bank shall be paid by the remittance bank according to the provisions of cash management.

For the remittance to be retained, the payee should carry his identity card or the certificate that the relevant unit is sufficient to confirm the identity of the payee to be remitted to the bank for withdrawals.

The bank will check the situation with the payee, check with the letter and the telegraphic pfer certificate, and endorse the name of the certificate, the number and the name of the issuing unit in the blank of the letter and the telegraphic pfer certificate, and sign or seal the payee's stamp at the "receiver", and then go through the payment formalities.

If the seal is drawn, the stamp of the payee must be the same as the reserved seal.

If the payee needs to collect remittance at the place of remittance, he may open a temporary depositor at the remittance bank, and deposit the remittance into the account temporarily.

The temporary deposit account only takes away, pays the end of the account, and does not pay interest.