Commercial "Acceptance" Bill Of Business

As a means of settlement and credit instruments, commercial acceptance bills have been used more and more frequently among enterprises, and financial personnel of enterprises have been developing some new uses of this tool.

In auditing, we should pay special attention to these "new developments", because they are likely to be hidden fields of audit risks.

Generally speaking, there are mainly three aspects that are commonly used at present.

financing

The use of commercial acceptance of bills of exchange for financing activities, mainly refers to the creditor business with commercial acceptance bill to the bank discount and obtain the money.

This method of financing by means of commercial acceptance bills may be used by debtors and debtors in bills.

1. debt financing.

In order to solve the problem of temporary capital turnover and obtain sufficient liquidity, the bill creditor enterprises can apply for discount to the bank by holding the receivable receivable, thus obtaining a sum of money from the bank.

The essence of such activities is equivalent to using the credentials of receivables as a pledge to obtain a pledge loan from the bank, and the advantage of such a loan is that its interest rate is slightly lower than the normal short-term borrowing.

In addition, for banks that limit the amount of loans, the use of notes receivable discount is a good way to get loans in disguised form, which is equivalent to obtaining more loans from banks.

2. debt financing.

Among the enterprises with good business cooperation, especially among the affiliated enterprises, the prevailing practice is to issue commercial acceptance bills to each other, so that the creditor enterprises will discount the bank with the commercial acceptance bill first, then pfer the discount from the bank to the original debt enterprises, so as to achieve the purpose of financing the original bills debt enterprises from the bank.

This kind of financing is indirectly carried out through the original bill creditor enterprises.

It is worth mentioning that the purpose of issuing a commercial acceptance bill at this time is mainly to finance the bank, so the amount of such a bill may be a real paction, or it may not be a real paction.

When the bill is due, it may be reimbursement to the bank by the original debt enterprise, or it may be reimburse to the bank by the original debtor creditor enterprise, and then collect the money from the original bill debt enterprise.

But no matter who ultimately pays back to the bank, the original bills debt enterprises have reached the purpose of financing the bank through the original bill creditor enterprises.

Moreover, if necessary, the original bill creditor enterprise can make the original bill debt enterprise re issue a commercial acceptance bill on the original amount of the bill, thereby circulating the above financing process (of course, it may also issue new commercial acceptance bill with other amount or new paction amount).

This method is mainly used by commercial debtors when commercial debtors are commercial enterprises, mainly existing among enterprises with good business cooperation.

The relevant provisions of the tax law of China stipulate that the purchase of goods by commercial enterprises will not be able to deduct the value added tax input tax until the payment of goods purchased is completed. At the same time, commercial enterprises can deduct the input tax after issuing commercial acceptance bills.

As a result, the sharp financial personnel of enterprises found here a method that neither violates the tax law nor brings money time value to enterprises, that is, when commercial enterprises purchase goods, they issue commercial acceptance bills to the sellers, that is, they are not accounted for in the accounts payable accounts, but are accounted for in the accounts payable.

Because if the account is payable in the accounts payable, the enterprise can not deduct the input tax immediately, but if it is accounted for in the "payable bill" subject, the enterprise can justifiably and honestly deduct the input tax in the current period, and do not have to worry about other ways in order to pay less value-added tax.

Just think that if each period is deducted in advance, it is equivalent to permanently detract part of the tax payable, and the result of such deferral is equivalent to paying less of the tax.

Besides, the time value of money in this part of money is not a small sum.

Avoid provision for bad debts

This method is mainly adopted by bills creditors.

The enterprise accounting system stipulates that enterprises should conduct comprehensive checks on accounts receivable on a regular basis or less than the end of each year, and make reasonable provision for bad debts.

The provision for bad debts will lead to changes in management costs, thereby affecting the amount of profits.

If enterprises try to keep profits at a certain level in order to achieve certain targets, the financial personnel of enterprises may make an issue on bad debt preparation.

If we want to increase profits, we must reduce the amount of provision for bad debts.

There are two ways to reduce the amount of provision for bad debts: one is to reduce the provision ratio of bad debts, and the other is to reduce the base of the provision for bad debts, that is, the balance of accounts receivable. Two

The first involves the change of accounting estimates, not only by the resolutions of the enterprises concerned, but also the reasons for the changes, the calculation and disclosure of their impact on profits, which is not desirable for the enterprises and financial personnel. The second way does not involve changes in accounting estimates, and it can maintain consistency.

Therefore, the financial personnel of enterprises naturally tend to adopt second ways.

Because the accounts receivable can not be prepared for bad debts, the enterprise can do the following:

1. when approaching the end of the accounting period, part of the accounts receivable will be converted into notes receivable, that is to say, the debt enterprises that owe their own debts will issue commercial acceptance bills to them, thereby converting accounts receivable into receivable receipts.

In this way, the end balance of accounts receivable will be reduced, and the provision for bad debts will be reduced accordingly.

2. when the business of the purchase enterprise with good relationship with himself, let the other party open a commercial acceptance bill for himself, so as to reduce the final balance of the accounts receivable in the subject of "receivable bill" in the subject of "receivable account".

Correspondingly, the other party's business is not accounted for in accounts payable and accounts payable in bills payable.

As mentioned above, if the buyer's business is just a business enterprise, because it can use the commercial acceptance bill to deduct the tax amount ahead of time in the current period, so the other side enterprises may also cooperate with the enterprise. If the relationship between the other party is related to the enterprise or the relationship is ambiguous, then the mutual cooperation between them is much less.

Moreover, after the expiration of the commercial acceptance bill, the two sides of the business can negotiate in accordance with the needs of the circumstances at that time and pfer the "receivable" into the "accounts receivable" (the other party will pfer the "payable notes" to "accounts payable"), or even renew the new commercial acceptance bill on this amount.