What is Duty Processing?

Understand the concept of duty processing and what it means to inventory control and your business.

Video Transcript

What is Duty Processing?

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

There are three areas of file maintenance to undertake.

Firstly, specifying whether a site is a bonded warehouse. An inventory item may remain in a bonded site for an unlimited period of time, and duty is not required to be paid until the item is transferred from that site to a duty paid site.  Duty items can be transferred between bonded sites without incurring duty charges.  Bonded sites are linked to a general ledger Excise Duty liability account.  They can also be linked to a specific Duty paid site.  The significance of this will become apparent shortly.

Secondly, we need to indicate which inventory items are subject to Excise Duty.  In this demonstration I am using a range of wines.  This screen shows that a bottle contains 75 cl and is linked to a duty code called WINE which reflects a state excise rate of 59 cents a litre. This data will be used to calculate the duty paid on any transaction that moves stock from the bond to a duty paid site.

Finally, there may be customers who also have their own bonded warehouse. Duty Processing supports both Duty paid and under bond sales, in other words, a sale from your bonded warehouse to the customers bonded warehouse, meaning no duty is payable. This screen allows you to mark customer sites as a bond address.

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.  If you’d like to know more, please schedule your free demonstration today.  Thank you.