How Can We Accurately Calculate The Cost Of Foreign Exchange?

    一、 換匯成本

The exchange cost of export commodities refers to the total cost of Renminbi, which is the amount needed to export net income per US dollar, that is, how much Renminbi should be exchanged for one US dollar.

The formula is:

The cost of exchange for export goods = the total cost of production (RMB) / export sales net income (US dollars).

The total cost of RMB includes: acquisition of goods cost, freight, insurance premium, bank charges, comprehensive assets and so on. The total amount of export tax rebates will be exported if the export goods are tax rebate subsidies.

The US dollar net income from export sales: US dollar income from export commodities minus foreign bank charges, and the US dollar net income after commission fees.

The cost of foreign exchange reflects the profit and loss situation of export commodities, which is an important index to examine whether the export enterprises have economic benefits. The standard of measurement is RMB's exchange rate with the US dollar.

If the exchange rate is higher than the RMB to the US dollar, the export of the commodity is a loss. Although there is foreign exchange earning, the export itself has no economic benefit. The higher the exchange cost, the greater the loss.

Therefore, in order to avoid losses, we must accurately calculate the exchange cost.

    二、 換匯成本測算不準確的問題

Generally speaking, the wrong calculation of foreign exchange cost will not occur on the main cost of acquisition of goods, export dollars and other expenses, but on minor expenses such as miscellaneous expenses, insurance premiums, bank charges and so on. People often pay little attention to minor expenses, and can not accurately grasp the possible cost items in export business. They are not clear about the starting and ending point of these expenses, not familiar with the level of fees, and do not know how to calculate these costs. Therefore, the cost of calculating foreign exchange is not accurate.

In the actual work, a lot of such errors have occurred. When calculating the cost of exchange, because of underestimation or even some expenses, the exchange cost calculated from the surface appears relatively low, but after the actual export of goods, the final settlement is a loss.

It is a problem that the export business can not be ignored before it can accurately calculate the swap cost before signing the contract. It is very likely to lead to losses.

    三、準確測算換匯成本應注意的問題

1, calculate freight with correct freight rate standard.

With the development of pportation and the extensive use of containers, foreign importers often require container shipping in our export trade.

Container shipment is for whole container shipment and LCL shipment.

The freight for whole case shipment is lower than that for bulk shipment.

By calculating the prices of many shipping companies at the same time and on the same routes, we found that the average shipment cost per ton of freight was less than a few dollars to a few dozen dollars.

Therefore, when calculating freight rates, we must pay attention to the freight standard. The quantity of export commodities can be filled with a whole container, so that the freight can be calculated by the whole box rate. The quantity of the goods is small, and only the bulk can be shipped. The freight rate can only be calculated by using the higher bulk price, otherwise the cost of the exchange will be wrongly calculated because of the less freight.

2, accurately grasp the number of goods that can be loaded into the entire container, and avoid delivery of empty freight.

If the contract stipulates that the whole container should be shipped, if we can not accurately grasp the inside and outside packaging of the export goods, we can not accurately grasp the quantity of goods that each container can load. It will easily lead to no load, and no load means freight charges in vain. Freight charges in vain also means that the calculation of freight charges is inaccurate, and the calculation of foreign exchange cost is not accurate.

3. Pay attention to the calculation of the loading mode of pallet + container.

Pallets and containers play the same role in pportation: protect goods, facilitate loading and unloading, and prevent pilferage. Therefore, the shipping process can be applied in one way according to specific circumstances.

If the two methods are adopted at the same time, not only will there be more packaging costs.

We also need to pay for the space occupied by pallets.

Therefore, when foreign importers ask for pallets and containers later, we should not forget to calculate the additional packing cost and pportation cost when carrying out the pallet + container shipment when calculating the exchange cost.

4. Correctly calculate additional premium for premium premium.

Insurance is to ensure that the owner can get some economic compensation after the goods are destroyed, so that their operation can continue.

According to international practice, the insurance premium is usually 10%, and the premium increases with the increase in insurance premiums.

When the insurance premium reaches 30%, the insurance company generally does not accept it. This is to prevent individual shippers from deliberately damaging the goods and defraud high insurance compensation.

Therefore, if there is a special case, there is a need to increase the insurance premium. Even if the insurance company can not accept it, the premium is relatively high. The insurance company needs to confirm the premium by writing. Then, when calculating the foreign exchange cost, we must add all the expenses that the insurance company confirms.

5, we must not calculate the premium required for the goods.

The insurance premium is determined by the basic rate of the commodity, such as the amount, category, insurance risk, and destination country. If the export commodity is a specified cargo that needs premium, the premium is calculated on the basis of basic insurance premium plus premium and the premium is higher than the basic insurance premium. Therefore, in addition to knowing the basic insurance premium of the export goods, we should also know whether the export goods belong to the specified goods and whether it is necessary to increase the premium.

6. Attach importance to deductible compensation for export insurance.

The insurance company has a deductible stipulation for certain commodities, and the exemption rate varies from 0.5% to 5%. Therefore, it is necessary to know whether the export commodities belong to the goods within the scope of the insurance company's compensation. If the goods are within the scope of the compensation, the exporter will bear certain compensation risks if the contract is signed with the deductible clauses. Once the compensation is established, the exporter will pay a small price, and the loss will occur as a result of the increase in the exchange rate. Therefore, the goods stipulated in the deductible range of the insurance company must be signed on the contract with a corresponding deductible clause to avoid possible compensation risks and eliminate the hidden danger that the exchange cost can increase, so as to ensure the accuracy of the exchange cost.

7. Correctly estimate the normal bank charges.

The normal bank charges incurred in the collection mainly include: tolling and sending bills.

The normal cost of letter of credit settlement includes: letter of credit notification fee, confirmation fee, negotiation fee, sending order fee, document handling fee, telegram fee, reimbursement fee and so on.

Since the bank charges arising from the settlement of letters of credit are rather complex, the payment of letters of credit must be paid special attention to bank charges when calculating the exchange rate. Because the amount of the letter of credit is different, the terms of the terms are different, the issuing countries are different, and the banks charge different fees, and the preferential items are different. Therefore, the expenses arising from the settlement of letters of credit are different.

8. Appropriate estimates of abnormal bank charges.

Abnormal bank charges arise in the settlement of letters of credit, mainly including discrepancy of funds, discrepancy of cable charges caused by presentation of documents, as well as the issuing fees, pfer fees and so on.

There are many reasons for it. For example, the contract does not clearly define the bank charges. Foreign importers are loopholes in the pfer of the issuing fee or pfer fee to the export side, so that the issuing fee and the pfer fee will be borne.

For example, if the terms of the contract are incomplete, the contract can not be carried out smoothly; or there are traps clauses which are restricted by the other parties in the contract, which are difficult to perform; or because of operational errors, they fail to fulfill the contract terms, or there is an error in making the foreign exchange settlement.

No one can guarantee in advance that the signing of the contract terms one hundred percent is reasonable and the accuracy of the contract one hundred percent is no fault.

Therefore, when calculating foreign exchange costs, the abnormal bank charges that should be generated should be properly estimated.

9, pay less attention to commission.

Commission is the revenue earned by middlemen when they introduce pactions or act on behalf of business. A considerable proportion of our export contracts are arranged with all kinds of middlemen. We need to pay commissions to middlemen after the paction is completed and the loan is recovered. We should deduct the Commission of the expenses when calculating the exchange cost, especially in the middlemen, for some reasons, they ask us to pay the dark Commission and not to show the commission ratio in the contract.

10, interest payable on forward account should be credited to the cost.

In the export trade, we do l / C forward, D/P forward, D / A forward, and we can not just regard it as a late collection of foreign exchange. We should understand that the long-term repurchase is our credit to customers. If we have a pressure on our customers, we should not only assume the risk of not being collected at the time of maturity, but also pay interest on the funds that are being held up. The cost can be calculated according to our account amount, the days of credit and the rate of bank loans. The formula is: the interest rate for the deposit: the amount of the loan, the amount of X, the /360 days, the X bank loan interest rate.

When calculating foreign exchange costs, it should be noted that this interest expense should be included in the total cost of export.

    四、 準確計算換匯成本的意義

1, improve the level of enterprise management standardization.

The calculation of exchange cost is not only a simple calculation of the cost of exchange exchange, it is an important link in the quality management of enterprises, the management of the operational activities, the supervision and management of the management department, the regulation of operation and operation, and the randomness and blindness of the business personnel.

Improve the level of enterprise management standardization, so that enterprises in the fierce competition in the international market, can resist operational risks, occupy a place.

2, avoid losses.

Before signing a contract, a business person can calculate the exchange cost and predict the profit and loss of the business, so as to ensure the economic benefits of each business and curb the loss before signing the contract, so as to avoid losses and ensure the normal operation of the company under the premise of economic benefits.

3, improve professional and technical level of business personnel

Calculate the cost of foreign exchange before signing the contract, and promote the improvement of professional and technical level of business personnel.

Because, in order to accurately calculate the cost of exchange, business personnel must

(1) there are more detailed studies on the terms and conditions of the contract. The quality, quantity terms, price terms, payment terms, shipping terms, insurance clauses and other clauses of the commodity are different because of the different cost of the terms.

(2) familiar with the export business process, from negotiation, signing, acquisition of goods, shipping, insurance, settlement to write off tax rebate and other work links, and the cost of each link may occur.

(3) be familiar with the charging level of related aspects, such as bank loan interest rate, bill discount rate, premium rate, bank settlement fee standard and tax rebate rate.