What is the endorsement in accounting? Can you explain it in detail?

Before explaining the transfer by endorsement, we must first clarify the meaning of "endorsement". Endorsement usually exists in two major aspects. Let’s first talk about its application in the field of financial accounting: Endorsement delivery refers to an ancillary bill behavior in which the payee signs and seals the bill of exchange and makes necessary records for the purpose of transferring the rights of the bill. (1) When a bill of exchange is transferred by endorsement or certain rights in the bill are granted to others for exercise by endorsement, the name of the endorsee must be recorded. Individuals must record their original names, and units must record their full registered names. Only in a few cases, such as inheritance, business merger, bankruptcy compensation, etc., a bearer bill can be used. (2) If the bill and voucher cannot meet the needs of the endorser to record the matters, an adhesive slip can be attached to the bill and voucher. The first person recorded on the sticky note shall sign and seal the joint between the bill of exchange and the sticky note. The matters recorded on the sticky note have the same legal effect as the matters recorded on the bill of exchange. If the first person recorded on the sticky note is not present at If the bonding point is signed, the matters recorded on the bonding sheet are invalid.

Edit this paragraph on the method of endorsement and transfer

Usually on the back of the bill, the positions of several endorsement columns are printed in advance, indicating the transfer of the rights of the bill to the endorsee. sentence, leaving blank spaces for the endorser and the endorsee for the endorser to fill in when making the endorsement. The Negotiable Instrument Law generally does not limit the number of endorsements. When the endorsement column or the back of the instrument is full, a "sticky slip" can be pasted on the instrument for endorsement. The endorsement should be signed and sealed by the endorser and the date of endorsement should be recorded. If no endorsement date is recorded, the endorsement will be deemed to have been made before the maturity date of the bill. The endorsement must also contain the name of the endorsee.

Edit the legal effect of endorsement transfer in this paragraph

(1) Endorsement transfer does not require the consent of the note debtor. When a bill is endorsed and transferred, the actor does not need to give notice to or obtain an undertaking from the debtor of the bill. As long as the holder completes the endorsement act, it constitutes a valid transfer of rights to the instrument. (2) The transferor who endorses the transfer will not withdraw from the bill relationship. After the endorsement transfer, the transferor does not withdraw from the bill relationship, but changes from the previous bill obligee to the bill obligor, and assumes the liability for guaranteed acceptance and guaranteed payment. (3) Endorsement transfer has stronger transfer effect. The transfer of instrument rights through endorsement can provide the transferee with more adequate protection. The Negotiable Instruments Law has designed a series of special systems to protect the rights of the transferee of the instrument. First, the transferee only needs to endorse consecutive instruments to prove his or her identity as a legal obligee without providing other proof. Secondly, the transferee can claim against the note debtor that the prior adversary's defense is severed, so that its rights in the instrument are not affected by the defenses between the note debtor and the prior indorser; thirdly, the transferee can claim that the acquisition was made in good faith. .

Edit transfer restrictions in this paragraph

(1) If the drawer records the words "not transferable" on the bill, and the subsequent hand endorses the transfer, the original endorser shall not be liable to the subsequent hand. The endorsee shall not be liable for guarantee. (2) The bill must be transferred in its entirety. An endorsement that transfers a portion of the bill amount, or an endorsement that transfers the bill amount to two or more people respectively, is invalid. (3) The endorsement must not have conditions attached. The Negotiable Instruments Law stipulates that if there are conditions attached to the endorsement, the attached conditions will not have the effect of the bill of exchange. (4) If the endorsement records the words "entrusted collection", the endorsee has the right to exercise the entrusted bill of exchange rights on behalf of the endorser. (5) If a bill of exchange is refused acceptance or payment or exceeds the time limit for payment presentation, it shall not be endorsed for transfer; if endorsed for transfer, the endorser shall bear the liability for the bill.

Edit this paragraph Bill of Exchange Guarantee

Article 35, Paragraph 2 of the Negotiable Instruments Law stipulates that a bill of exchange can be pledged. When pledged, the word "pledge" shall be recorded in the endorsement, and the endorsee shall comply with the law. When the pledge is realized, the bill of exchange rights can be exercised. Another meaning of endorsement is applied to the bill of lading in the field of export trade, usually referring to the endorsement of the bill of lading. The endorsement of the bill of lading is only for the order bill of lading ORDER B/L. Other bills of lading, such as the named bill of lading STRAIGHT B/L and the bearer bill of lading B/L, do not need to be endorsed.

(Digression - In order to better understand the endorsement transfer: The registered bill of lading lists the name of the consignee in the CONSIGNEE column, and the goods can only be delivered to the listed consignee. This kind of bill of lading loses the ability to represent the goods, It offers the convenience of transferable circulation, but at the same time, it can also avoid risks that may arise during the transfer process; the name of the consignee is not listed on the bearer bill of lading, also known as the bill of lading on the person's head. This kind of bill of lading does not require any endorsement procedures. It is extremely simple to transfer or pick up the goods. The carrier should hand over the goods to the holder of the bill of lading. Whoever holds the bill of lading can take delivery of the goods. The carrier only delivers the goods against the bill, not the person. If the bill of lading is lost or stolen. The risk is great, and if it is transferred to a malicious third party, it will easily cause disputes, so this kind of bill of lading is rarely used internationally. In addition, according to the regulations of some liner conferences, any use of bearer bills of lading is for the first mate. The name and address of the notifier at the port of discharge must be indicated in the copy of the bill of lading. )

Edit this paragraph Classification of Instruction Bills of Lading

To get back to the subject, to understand the endorsement of the bill of lading, you must understand the instruction bill of lading. The consignee is not listed on the instruction bill of lading, and the transfer is carried out by endorsement, which is conducive to the turnover of funds, so it is more commonly used in international trade. Instruction bills of lading are divided into the following three types according to the different methods of indicating the instructing person: 1. Shipper's instruction bill of lading: only fill in the words "TO ORDER" in the consignee column, and be transferred after endorsement by the shipper, also known as blank Bill of Lading. Before the shipper does not designate a consignee or assignee for this kind of bill of lading, the ownership of the goods still belongs to the seller. Under the documentary letter of credit payment method, the shipper uses the negotiating bank or the consignee as the assignee and transfers the bill of lading. and obtain negotiated payment. Different from the named order bill of lading (see 2), this kind of bill of lading does not have the restriction that it can be transferred only if it is endorsed by the person designated in the bill of lading. It can only be transferred with the blank endorsement of the shipper, so its liquidity is greater; 2. The named order bill of lading : Fill in the "XX instruction-TO ORDER OF..." in the consignee column. According to the different instructions, it is divided into the instructions of the shipper SHIPPER, the instructions of the consignee or the instructions of the importer's bank, etc., and they need to be shipped respectively. The goods can be transferred or picked up only after being endorsed by the person, consignee or importer's bank, also known as the instruction-headed bill of lading; 3. Select the instructor's bill of lading: If "someone or instruction" is filled in the consignee column, it is called a selected instruction. Bill of Lading. "XX" in the named order bill of lading is equivalent to the named order bill of lading, and "or instruction" is equivalent to the shipper's instruction bill of lading. Instructing that a bill of lading can be transferred once endorsed means that the endorser confirms the transfer of ownership of the bill of lading. There are two types of endorsements for instruction bills of lading: BLANK ENDORSEMENT and SPECIAL ENDORSEMENT: Blank endorsement means that the transferor of the bill of lading signs the name of the endorser's unit and the signature of the person in charge on the back of the bill of lading, but does not indicate the name of the endorsee. It has strong circulation and is widely used. In addition to the signature of the endorser like a blank endorsement, a registered endorsement must also indicate the name of the endorsee. If the endorsee transfers again, additional endorsement must be added (for example, in the export business of a letter of credit, the exporter makes a registered endorsement of the issuing bank as the consignor, and the letter of credit stipulates that the consignee of the bill of lading is the negotiating bank. Before the bill is issued, the negotiating bank makes a registered endorsement to the issuing bank. When the importer pays for the bill, if the bill of lading is payable or the endorsee is the issuing bank, the issuing bank will endorse it to the importer).

Edit this paragraph to endorse the classification of bills of lading

1. Blank endorsed bill of lading (TO ORDER OF..., without indicating the endorsee): the shipper, consignee or importer's bank acts as the first endorser and transfers the ownership of the bill of lading to an unknown person; 2. Bearer bill of lading with blank endorsement (TO ORDER, without indicating the endorsee): the shipper, as the first endorser, transfers the ownership of the bill of lading to an unknown person; 3. Named Instruction Bill of Lading (TO ORDER OF..., indicating the endorsee): The shipper, consignee or importer's bank acts as the first endorser to transfer the ownership of the bill of lading to a specific other person; Supplement: In import business , the registered bill of lading must have the same authentic official seal endorsement as the consignee of the bill of lading before picking up the goods, and the instruction bill of lading must have the authentic official seal endorsement of the bill of lading holder before picking up the goods.