> For the complete documentation index, see [llms.txt](https://kb.bevica.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.bevica.com/documentation/guides/duty-compliance-and-tax/duty_management.md).

# Duty Management

Set up and manage Bevica duty rules, rates, and postings in Business Central.

Bevica will let you manage your inventory that contains duty-controlled items as well as food, points of sale, etc. After setting up the duty management you will be able to integrate Duty Paid/Duty Free duty control into all stock movements, recording accurate costs and availability.

{% hint style="warning" %}
**Prerequisites**

All set up required for Purchases, Sales, Finance, and Inventory is completed.

Good understanding of Item Charges and their posting.
{% endhint %}

### Restrictions

* If items are governed by the duty rules set in Bevica, you cannot use ‘Variants’ for any other purposes.

### Bevica Setup

The Bevica Setup page contains links to all the pages required to set up Bevica duty. The Duty Management FastTab is the most important setting in Bevica, where you can activate your duty, set up your Dimension Code, your Duty Rounding precision and so much more. The below table will give you information on what exactly each field does in this fastTab.

**Fields in Bevica Setup- Duty Management**

* **Duty Dimension Code** - This dimension code is used for all replenishment transactions.
* **Duty Paid Variant Code** - For Duty Paid movements.
* **Duty Free Variant Code** - For Duty Free movements.
* **Duty Item Charge Codes** - Item Charge code used to post duty charges on duty replenishment
* **Volume Unit** - Denotes the unit of measure for Volume field against all items
* **Duty Rounding Direction** - specifies how you want duty figures to be rounded - the default is **Up**.
* **Duty Rounding Precision** - The rounding precision when calculating duty - the default value is **0.01**.
* **Duty Source Code** - Used internally this specifies the code used to identify replenishment transactions.
* **Remove Duty from Sales and COGS** - Tick this to split out the duty value from sales and cost of sales amounts when invoicing sales orders and sales return orders. This field is used in conjunction with a field of the same name on the item card. For more information see [Remove Duty from Sales and Cost of Sales](/documentation/guides/sales/remove_duty_sales_cos.md).
* **Alc. % Vol. Check on Receipt** - Specifies how you want the system to act when checking Alc. % Volume when posting receipts (purchase orders, sales return orders, sales credit memos) - the default is **No Action**. For more information see [Checking Alc. Vol](/documentation/guides/duty-compliance-and-tax/checking_alc._vol..md).

For more information, please see the document on [Bevica Setup](/documentation/guides/setup-and-configuration/bevica_setup.md).

{% hint style="info" %}
The Unit Volume field should be set up before creating Items and populating them with a unit volume in their item card.
{% endhint %}

### The Duty Table

The Duty table contains the fiscal codes and information needed to calculate the appropriate duty values.

To set up the duty codes in Bevica:

{% stepper %}
{% step %}

### Open Duty Codes

From the **Bevica Setup** ribbon, click on **Duty Mgmt. > Duty Codes**
{% endstep %}

{% step %}

### Create the duty codes

Create the codes you need for the different types of alcoholic items:

* **Code** - Create a code that represents a group of similar items
* **Description** - Enter a description that identifies your group of similar items
* **Description 2** - Enter an extra description if needed
* **Unit** - Select a Unit for the code, depending on what unit the calculation is based:
  * **HL:** calculation is based on hectolitres of liquid
  * **L%ALC:** calculation is based on litres of alcohol
  * **Nil:** no value is calculated, but linked items are still governed by Duty rules.
  * **HL%ALC:** calculation is based on hectolitre per cent of alcohol.
    {% endstep %}

{% step %}

### Create duty rates

For each Code, you will need to create the applicable rate.

* In the **Duty Codes** page, in the ribbon click on **Rates**.
* For the **Duty Rate (LCY)** field - Enter the value, in local currency, used to calculate duty amounts
* For the **Starting Date** field enter the date when the rate becomes effective.
  {% endstep %}

{% step %}

### Set optional alcohol % limits

Optionally you can populate each record's **Min Alc. % Vol.** and **Max Alc. % Vol.** fields. Bevica will check that the Alc. % Vol. value entered on the item card is within these values and error if not.
{% endstep %}
{% endstepper %}

{% hint style="info" %}
When duty rates change, you can create new **Rate** records for each Duty Code with the applicable starting date.
{% endhint %}

### Zero VAT Duty Free Transactions

To manage VAT free duty free transactions, you will need to populate the following two pages: **Purchase Posting Setup** and **Sales Posting Setup**. These manipulate the posting groups applied to your Duty Statuses’ (for example: Duty Free and Duty Paid) transactions to ensure the correct VAT is recorded.

For more information on how Posting Groups work in Business Central, please read more about [Posting Group Setup](https://docs.microsoft.com/en-gb/dynamics365/business-central/finance-posting-groups) on Microsoft documents.

To set up the **VAT free duty posting groups for Purchase Transactions**, this is what you need to do:

{% stepper %}
{% step %}

### Open Purchase Posting Setup

From the **Bevica Setup** ribbon, click on **Finance > Purchase Posting Setup**
{% endstep %}

{% step %}

### Review the duty status columns

Depending on how you have named your Duty statuses’ the page will have the columns as below:
{% endstep %}
{% endstepper %}

| Vendor Gen. Bus. Posting Group | New Duty Paid Gen. Bus. Posting Group | New Duty Paid VAT Bus. Posting Group | New Duty Free Gen. Bus. Posting Group | New Duty Free VAT Bus. Posting Group |
| ------------------------------ | ------------------------------------- | ------------------------------------ | ------------------------------------- | ------------------------------------ |
| DOMESTIC                       | DUTY PAID                             | DOMESTIC                             | DUTY FREE                             | OOS                                  |

When a purchase transaction is created for a Vendor that is assigned the ‘DOMESTIC’ General Business Posting Group, Bevica changes the General Business Posting Group and VAT Bus posting group depending on the transaction duty status.

#### Duty Free (In Bond) transaction result

* General Business Posting Group DUTY FREE
* VAT Business Posting Group OOS

#### Duty Paid transaction result

* General Business Posting Group DUTY PAID
* VAT Business Posting Group DOMESTIC

{% hint style="danger" %}
You need to ensure that the posting group combinations are set up to apply the correct VAT.
{% endhint %}

{% hint style="warning" %}
The same logic applies if you want to set up VAT free duty posting groups for Sales Transactions. In the **Bevica Setup’s** ribbon, click on **Finance > Sales Posting Setup**
{% endhint %}

### Setting up Items

#### Setting up Dutiable Items

Besides containing general specifics about the item, the item card also contains the duty details specific to that particular item. To be able to set up all the necessary information about the Duty in the Item Card, this is what you need to do:

{% stepper %}
{% step %}

### Open the item card

Select an item and open the **Item Card**
{% endstep %}

{% step %}

### Populate duty fields

Navigate to the Duty Fasttab and populate the below fields. These fields are used to calculate duty when stock is moved between statuses’:

* **Alc. % Vol.** - Enter the percentage alcohol for the item. The software can check if the value is within the allowed range. See **Min Alc. % Vol.** and **Max Alc. % Vol.** above.
* **Unit Volume** - Enter the volume of the base unit of measure for this item, typically the bottle volume.
* For the **Duty Code** field - Select the appropriate code. Populating this field will check that the two fields above are also populated, if not you will receive an error.
  {% endstep %}

{% step %}

### Set the duty code (variants are created)

Setting the Duty Code, ticks the **Duty Controlled** field and automatically creates two Variant codes for the item; a Duty Paid and a Duty Free code.
{% endstep %}

{% step %}

### Review unit duty amount

The system will automatically populate the ‘Unit Duty Amount’ field, to serve as a reference and a visual check to make sure that the correct duty will be applied when necessary.
{% endstep %}
{% endstepper %}

See [Duty Controlled Items](/documentation/guides/duty-compliance-and-tax/duty_controlled_items.md) for more information on managing these fields.

#### Setting up Non-Dutiable Items

Not all items are duty controlled. Bevica setup also manages non-dutiable items.

To set up non-dutiable items, this is what you need to do:

{% stepper %}
{% step %}

### Open the item card

Select an item and open the **Item Card**
{% endstep %}

{% step %}

### Disable Duty Controlled

On the **Duty** Fasttab, the **Duty Controlled** field should be off.
{% endstep %}

{% step %}

### Complete other item fields

You can set up all other necessary item fields to manage your item in Bevica.
{% endstep %}
{% endstepper %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://kb.bevica.com/documentation/guides/duty-compliance-and-tax/duty_management.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.