Dear all,
I have a following accounting transaction in case of Letter Of credit. Is there any means of handling this in without just passing a plain JE. My client wants to take it thru a bank receipt:
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1) Purchase import dr. 8818320 (amount of commercial import invoice* currency rate as specified by bank)
party cr. 8818320 ( This can be handled by A/P Invoice)
2) Party dr. 8818320
to Bank L/C A/c Cr. 8818320 ( On same day) ( This can be handled by incoming payments window)
How will we handle the under mentioned transaction:
After 90 days bank will pay on company's behalf as per that days exchange rate. Bank will send an advice regarding the same
3) Bank Lc A/c dr. (with amount on commercial bill * exchange rate of that day)
Bank CC a/c Cr. ( with same amount)
bank Commision a/c debit
Service tax receivable a/c dr. (on commision)
Bank Interest a/c debit
Bank Charges Debit
to Bank CC a/c credit
Foreign Rate Difference gain/loss db/credit (as the case may be)
Kindly advice