Learn about the Duty Processing module for Microsoft Dynamics GP:
How to Manage Duty Processing in Dynamics GP
Welcome to this Presentation on the Trinity Duty Processing module, from Dynavistics.
The Duty Processing module is aimed at wholesale distributors who stock alcoholic beverages and gives them the functionality to stock and sell inventory items, both duty paid and under bond.
What do we mean by this?
Alcoholic products will be subject to State Excise rates, payable when the stock moves from a bonded warehouse to a normal duty paid warehouse. So, it makes sense to move stock from bond to duty paid once we have firm orders rather than move stock from bond to duty paid, incur the excise charge, and then wait for orders to turn up.
The duty processing module is designed to manage and support this process. It does this by:
- Defining sites as Bonded sites with the option to link a Bonded site to a Duty Paid site
- Defining inventory items as duty items
- The automatic calculation of duty charged on an item
- The automatic transfer of stock from Bond to Duty Paid
- The provision of a consolidated stock view of both Bond and Duty Paid linked sites
Let’s look at under bond sales.
This screen shows an item being sold to a normal customer out of our duty paid site at a price of $46 a case. If we switch to our bond site and sell the same product to a different bonded customer address you will see that the price has reduced to $43.34 case. This is because Duty Processing has automatically calculated the duty payable and deducted from the duty paid price as shown by the price calculator screen on the right. You will see that the bonded price calculation can be optionally amended to reflect any required rounding rules, or additional handling and administrative costs.
If we stay in the bonded warehouse and sell to Aaron Fitz, the sale is rejected because the selected address is not marked as bonded site. Here we are selling to Aaron Fitz from our duty paid site called Warehouse and have entered an order line for a quantity of 6 cases. However, if we look at the available quantity screen on the right-hand side, we can see that the quantity on hand in Warehouse is zero. However, the order line went through without the shortage option screen appearing because our duty paid site is linked to our bonded warehouse, which gives us a consolidated qty on hand of 136 cases.
Here I am going through the normal transfer to invoice process for a specific order.
But in addition, it has automatically created a transfer of stock from bond to our duty paid site, calculated the duty payable, and posted the general ledger duty liability journal. The duty value of $15.93 has also been incorporated into the duty paid cost price. Once we have picked and despatched the goods we can post the invoice as normal.
A separate duty calculator screen will show the value of potential movements out of bond and this screen proves an audit trail of our bond to duty paid inventory transactions.
Now a key question a raised in processing our last order was how and why the inter site transfer occurred. Very simply as part of the set up that’s the method of working that we requested. By unticking this box, we are placing responsibility for initiating stock transfers onto our warehouse or customer services teams.
There are two ways we can manage this process. The first is to manually create a site transfer from bond to duty paid, specifying the inventory items and quantities that we require. Alternatively, we can request a transfer based on the outstanding orders in our duty paid location. So that the transfer will directly match actual customer demand.
The preview screen will show what items will be transferred from bond to duty paid. Once the transfer is complete, order can be despatched in the duty paid warehouse in the usual way.
So, to recap, Duty Processing allows you to
- Manage inventory and sales in both Duty Paid and Bonded sites
- Calculate duty charges
- Manually or automatically transfer stock from Bond to Duty Paid
- And view consolidated stock levels based on linked Bond and Duty Paid sites
The module is fully integrated with the Inter-Site Transfers module from Dynavistics and GP’s lot number and serial number functionality.
This presentation is one of several short videos on our website that cover Additional Inventory, Purchasing and Order Processing functionality that will complement your Dynamics GP system.
I hope you found this presentation interesting and if you would like to know more, please schedule your free demonstration today. Thank you.