Accounting Models Regarding the Transactions of Inward Processing of Goods

With an increasing international trade, a more and more significant expansion was experienced by combined commercial operations, also including goods processing transactions. The expansion of these international economic affairs had as motivation the multiple direct and indirect positive effects they produce both at micro and macro level, such as: obtaining a significant commercial profit and on this basis, increasing the currency contribution, increasing the general indicator of the international trade volume, relieving the balance of external payments of certain payments in currency, making optimum use of production capacity and labour force etc. Given the complexity of the combined commercial operations of foreign trade, in this article we shall address the commercial transactions of inward processing of foreign goods in terms of accounting models specific for conducting these transactions. In this regard, after the theoretical delimitation of these operations we shall emphasize the benefits of inward processing of foreign goods but also without forgetting the limitations of these international commercial operations. To develop accounting models we shall first clarify the tax matters that affect the entry in the accounts of inward processing of foreign goods, then we shall proceed to their reflection in accounting starting from a case study, if the recipient of such operations is based in the extra-community or community area. Thus we will be able to identify the conditions that the entities must meet in order to use as little cash money, the affecting fiscal conditions and the reflection in accounting of inward processing of foreign goods.