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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / tracking duty on inven...
Microsoft Dynamics GP (Archived)

tracking duty on inventory

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Posted on by Community Member

What are my options on managing duty costs on our inventory that needs to be passed on to a selected group of customers that we sell to?

Here's my scenario: After the issue of a PO for Product A, we receive everything in one warehouse location. Of that group of inventory quantities, we would peridocially, convert a portion of that inventory to include an additional cost of duty fees (customs, inspections, terminals, etc).

When well sell Product A to customers, depending on their ship to address location, we need to pull the quantities from Product A that includes duty. On some ship to locations, we don't need to pass duty.

What options do you recommend I use for tracking duty on received items?

If I need the option for choosing duty vs duty-free quantities, how can I do this within GP? Two virtual warehouse? Two items codes?

Please advise.

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  • sueconrod Profile Picture
    sueconrod 337 on at
    Re: tracking duty on inventory

    Take a look at the landed cost module where you can record duty and other fees as they are happening.  It is part of the Receivables module.

  • Community Member Profile Picture
    Community Member on at
    Re: tracking duty on inventory

    The landed cost module will allow you to add costs to the basic product cost. But you need to know these costs at receipt time. You can certainly add the Duty at this stage.

    However - you say below that you periodically 'convert' some of that stock to include duty? This suggests that it is a sort of after thought - something that is done after you receive?

    Also - you won't know what quantity of items should have duty at receipt stage, since this decision is based on where it is sold to - and you can't know up front exactly where it will be sold to? (Unles ou are generating PO's from sales demand).

    If you can deterine at receipt stage - then the best thing is to seperate the items - eithre by using two 'Site ID's' in GP, or using Multiple Bins, or by using two Item Numbers.

    You could also look at using the Update Costs functionality in GP.

    But - are you increasing the sales price ... or the Item Cost?

    Ian.

  • Community Member Profile Picture
    Community Member on at
    Re: tracking duty on inventory

    Ian, thanks for the reply. It appears that the recommended option is using Landed Cost. We don't quite have a process yet as to when we should apply the duty. It seems like doing this at the time of receipt would be best.

    just some follow up question and comments to your reply:

    Is there a way to apply duty after an item has been received? Or is your recommendation is to use the Updated Costs function?

    Would there be any value for using Bin vs two different site IDs to track duty items? I'm just wondering which would be more simplistic for transactions and maintain reporting capabilities.

    We do plan on increasing the item cost and the sales price to the customer for the cases where duty is applied.

    Thanks

    -jm

  • Community Member Profile Picture
    Community Member on at
    Re: tracking duty on inventory

    Once the receipt is posted, you can't retrospectively increase the cost of the item.

    Using a seperate site ID would be the simplest. Otherwise you have to enable Muliple Bins - which has some overhead when adding new items etc. Not much...but in pure simplest terms - a seperate site ID would be easiest to maintain and enter transactions.

    What if you had an item called 'Duty'?

    This way you could receive all your actual items as per normal. Then when one is going to be sold with duty attached - you can receive a duty item and resell it along with the normal item?

    If you wanted to see just one line on your sales invoice - you could set up a Kit item (Than includes the standard item plus the duty item as components).

    Just thinking out loud!!

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