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.

Prerequisites

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

Good understanding of Item Charges and their posting.

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.
• 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.

For more information, please see the document on Bevica Setup.

The Unit Volume field should be set up before creating Items and populating them with a unit volume in their item card.

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:

1

Open Duty Codes

From the Bevica Setup ribbon, click on Duty Mgmt. > Duty Codes

2

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.

3

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.

4

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.

When duty rates change, you can create new Rate records for each Duty Code with the applicable starting date.

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 on Microsoft documents.

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

1

Open Purchase Posting Setup

From the Bevica Setup ribbon, click on Finance > Purchase Posting Setup

2

Review the duty status columns

Depending on how you have named your Duty statuses’ the page will have the columns as below:

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

You need to ensure that the posting group combinations are set up to apply the correct VAT.

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

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:

1

Open the item card

Select an item and open the Item Card

2

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.

3

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.

4

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.

See Duty Controlled Items 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:

1

Open the item card

Select an item and open the Item Card

2

Disable Duty Controlled

On the Duty Fasttab, the Duty Controlled field should be off.

3

Complete other item fields

You can set up all other necessary item fields to manage your item in Bevica.