Dynamics Community Forum Thread Details

Hello Experts.

We have below requirement client which is related to maintaining transfer price and custom duties (charges).

The business wants to separate Transfer Price (TP) and Customs Duty as distinct cost components instead of maintaining a single aggregated product cost.
Inventory must include both TP and Customs Duty, meaning inventory should be valued at TP + Duty.
The business requires separate accounting visibility for Transfer Price and Customs Duty, including separate General Ledger postings and reporting.
The same SKU can have different Transfer Prices depending on market, legal entity, site, supplier, and sourcing model; TP is not globally fixed.
Transfer Prices are currently maintained as standard costs and are updated quarterly.
TP maintenance is currently performed locally by each market and at site level within Dynamics.
There is currently no workflow or system approval process for TP or Duty changes, although there is interest in supporting a future approval process and potential centralisation.
Customs Duties are currently calculated outside the ERP based on business rules, assumptions, percentages, or local regulations, and the resulting values are uploaded or entered into the ERP.
Customs Duty applicability varies by market and product type. Some products or markets may have no duty, while others may require duties (e.g., machines and accessories in certain countries).
Even where no duty applies, the business wants a mandatory value of zero rather than leaving duty information blank.
The business expects Customs Duty information to be a mandatory data element for all relevant products.
Customs Duty costs should flow through the inventory lifecycle and be recognised in P&L/COGS when the inventory is sold.
The business wants to maintain a clear distinction between: Transfer Price cost / Customs Duty cost and Variances between estimated and actual duty costs
Estimated customs costs are initially recorded and later adjusted when actual customs invoices are received.
Any difference between estimated and actual customs costs must be recorded in a dedicated variance account.
Separate GL accounts are required for:
Transfer Price related postings
Customs Duty related postings
Duty variances/adjustments
The client would like accounting entries to be generated automatically within the source ERP rather than relying on manual accounting corrections for consolidation purposes.

Guidance required:

1. How can Transfer Price and Customs Duty be maintained separately while both forming part of inventory value?
2. Can D365FO support separate TP and Duty accounting postings through standard functionality?
3. What standard capabilities exist for handling estimated versus actual duty costs and variance accounting?
4. How can duty be made mandatory (allowing zero values)
5. What is the best approach to support site-level and market-level TP/Duty management while maintaining inventory valuation and separate reporting requirements?
6. What standard D365FO capabilities are most suitable for achieving these business requirements?

Much appreciate your help.

Thanks & Regards,

Naveena G.

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Dynamics 365 Finance