Author: dar el khebra

Inventory valuation

Inventory valuation is a method that shows how much profit a business generate over a certain period of time. Inventory valuation is one of the most important and necessary steps in inventory management, and it shows the total cost of the current inventory.
Inventory valuation is the total amount spent on purchasing and maintaining inventory.
Know the difference between inventory valuation and cost of goods sold.

Annual inventory instructions

 

It is forbidden to buy or sell during the inventory, as shops and warehouses are closed until the inventory is over.
The number of the last supply and the last invoice shall be written, and this shall be noted in the record of the inventory process.
The items are arranged and grouped before the start of the inventory so that each item is in one place and it is forbidden to have the item in more than one place in the same store.
The product must be taken out of the boxes and removed from the shelves to ensure its presence and safety.
It is forbidden to have multiple inventory committees in one store and it is forbidden to transfer an item from one place to another during the inventory.
Work on the accounting system is stopped, and the inventory report is printed before the inventory to ensure any modification to the system during the inventory.
Inventory pages numbered and signed at the end of each page.
It is forbidden to estimate or assume, and when there is any doubt, the inventory is returned to the item whose quantity is doubtful.
The warehouse shall be handed over as custody to the inventory committee until the inventory is completed.
The inventory form is printed from the system according to the sequence of items in the system, and the inventory quantity is written in front of each item so that it is easy to enter the system later.
The store is divided into tracks or shelves, and the inventory starts from a specific corner, and the inventory ends there.
The shelf or bin that was inventory is marked.

Reda Abdel Qader, Assistant Minister of Finance for Tax Authority Affairs:

 

• Nearly 14 million receipts have been sent to the electronic receipt system so far.
• The electronic delivery system aims to contribute to the integration of the informal economy into the formal economy.

 Mokhtar Tawfik, head of the Egyptian Tax Authority:

• Holding several workshops with the funders of the second stage, to introduce the electronic receipt system and how to technical integration with it for the funders who are obligated to the second stage of the application.
• The funders of the second phase of the electronic receipt system must attend the workshops organized by the authority to benefit from them in integrating with the system before the date of the obligation.

Reda Abdel Qader, Assistant Minister of Finance for Tax Authority Affairs, stressed the keenness of the Ministry of Finance and the Egyptian Tax Authority to facilitate financiers to join the electronic receipt system, especially since the implementation of the second phase of the electronic receipt system begins on October 1, pointing out that the total of sent receipts has reached The system has so far nearly 14 million receipts.

Reda Abdel Qader added that the electronic receipt system is a natural extension of the electronic invoice system to cover all types and forms of electronic transactions from all parties, pointing out that the electronic receipt system aims to contribute to the integration of the informal economy into the formal economy, and the formation of an accurate database that can be relied upon. Subsequently, it must implement data analysis and decision support systems, achieve the principle of equal opportunities among financiers in the Egyptian market, and collect dues from the state’s public treasury.

Mokhtar Tawfik, head of the Egyptian Tax Authority, indicated that the authority provides full support to the financiers who are obligated to join the electronic receipt system, as several workshops are held with the funders of the second phase of the electronic receipt system, to introduce the system and how technical integration with it, calling on the funders of the second phase of the receipt system to need Attending workshops organized by the authority to benefit from them in integrating with the system before the date of the obligation.

The head of the Egyptian Tax Authority clarified that the financiers who are obligated to the first and second stages of the electronic receipt system, and for whom mandatory decisions No. (289) for the year 2022 and (345) for the year 2022 have been issued, can send their inquiries to the following

E-mail :  eReceipt.hd@eta.gov.eg

He added that they can also contact the authority’s integrated call center to respond to all inquiries on the hotline 16395.

The head of the Egyptian Tax Authority added that the electronic receipt system is based on the establishment of a central electronic system that enables the Tax Authority to follow up all commercial transactions for the sale of goods and the provision of services between sellers in sales and service centers and between consumers (B2C), moment by moment, and verify their validity through electronic integration. With vending machines at merchants and service providers (POS) by installing sales monitoring devices in them.

• Importers may add electronic sub-accounts to their customs agents at “Nafeza” e-portal.
• Continuous coordination is maintained with all bodies to ensure optimal implementation of “Advance Cargo Information” (ACI) system
• Starting from October 1^st, 2021, entry of any inbound cargo shall be banned at seaports, except through ACI system.
• Issuance of records for importers, exporters or agents shall be prevented, except for ACI registered members.
• No “export support” shall be given to companies not joining the ACI and electronic bill systems.
• Head of the Egyptian Customs Authority, at the Federation of Egyptian Industries (FEI), states: Joint committee shall be formed to facilitate joining the ACI system.

Head of Tax and Customs Committee at FEI, highlighted:

• High appreciation expressed for the Minister of Finance for his efforts to promote positive interaction with business community.
• We invite companies to register at ACI system to reduce time of customs clearance

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“We are strongly continuing the implementation of the national project of updating and automating customs management system, according to the presidential directions to facilitate the internal and external trade flows, along with reducing the cost of importation and exportation, decreasing the time of customs clearance and price of goods and services in the domestic markets” Minister of Finance, Dr. Mohamed Maait, assured.

The national single e-portal for national trade “Nafeza” has been updated, and a new version of smart phones’ application has been developed to facilitate procedures for the business community.  Accordingly, importers and their customs agents will be able to access the customs system through their smart phones, Dr. Maait also noted.

“Importers may add electronic sub-accounts for their customs agents via the single online e-portal “Nafeza”.  Besides, companies’ delegates are allowed to create electronic sub-accounts at the e-portal; thus, helping the business community to electronically follow their consignments, the minister added.

The minister further pointed out the importance of strengthening effective communication with business community to overcome any obstacles and facilitate procedures of joining the ACI system, especially given the fact that, as of next October the first, no inbound shipments shall be allowed to enter through seaports except through ACI application.

He noted that there is a continuous coordination with line bodies of the government to ensure the optimal implementation of ACI.  Directions from the Cabinet have been issued for the General Organization for Export and Import Control to not renew or issue new records for neither the importers nor exporters or owners of industrial activity or their customs agents, except for ACI- joined companies, starting from mid-August 2021.  In addition, there will not be “export support” for the companies who did not join ACI and electronic bill systems, starting from beginning of October 2021.

In that respect, Head of Customs Authority, Elshahat Ghetory, held an open dialogue with members of the Federation of Egyptian Industries (FEI) in a seminar about customs procedures to the ACI system, assuring that “we continue holding seminars and training workshops in coordination with Misr Technology Services (MTS) for all Customs Authority’s stakeholders; whether being importers, cargo owners or customs agents.

He explained that the unified electronic platform for the domestic trade “ACI” covers more than 90% of the Egyptian imports, and will extend to Safajah, Newbie, Ismailia, and Aswan before the end of this year, hence there will be an electronic link among all custom ports.

He also added that there is a joint committee with the Federation of Egyptian Industries (FEI) to foster communication with the business community and to ensure positive interaction with them; thus, facilitating the procedures of joining the ACI system.

On his part, Dr. Mohamed El-Bahey, head of tax and customs committee at FEI, expressed his appreciation for Dr. Mohamed Maait for his kind response towards the business community’s suggestions, and for taking instant procedures to facilitate the status for business community and encouraging them to join the new system.  This positive interaction helps in raising the spirit of optimism and confidence on the part of investors.  The minster also called on companies’ owners to register through ACI system before obligatory putting it into force starting from the beginning of October 2021, so as to eventually achieve the desired objective of reducing shipments’ customs clearance time

The said seminar was attended by Dr. Mona Naser, finance minister assistant for customs’ monitoring and development; Mr. Ibrahim Elsegeny, assistant of minister of trade and industry for economic affairs; Mrs. Nagwa Shehata, head of central department of customs’ policies and procedures; Mr. Mohamed Gomaa, head of central department of trade community affairs; Mr. Waleed Hussein, general manager of technical office of the head of customs authority; Eng. Khaled Nasef Selim, consultant of head of Misr Technology Services (MTS); as well as  FEI members and stakeholders.