Remove Duty from Sales and Cost of Sales

Remove the duty amount from sales and cost of sales postings.

A businesses might want to remove the duty element from sales and cost of sales values when a duty paid sales transaction for duty controlled stock is posted (sales order, sales invoice, sales return order or sales credit memo).

Prerequisites

Sales processing set up.

Setup Required

Bevica Setup

Navigate to Bevica Setup, Duty Management fasttab and toggle on Remove Duty from Sales and COGS. This then triggers the additional Remove Duty general ledger entries when duty paid sales orders, invoices, return orders and credit memos are posted. If you are unable to see this field you will need to personalise your page.

Chart of Accounts

If GL accounts do not already exist, create two new accounts to post the additional entries for Sales Duty and Cost of Sales Duty.

General Posting Setup

For the relevant Gen. Bus. Posting Group and Gen. Prod. Posting Group, populate the Sales Duty Account and COGS Duty Account with the relevant GL accounts. If you are unable to see these fields you will need to personalise the page.

Item Records

New field on the item record Remove Duty from Sales and COGS. You will need to personalise your page to see the field. Toggle this on if the additional duty sales and cost of sales entries should be posted for this item.

Note that you can only set this field if the item it set as Duty Controlled.

Additional Entries Posted

If the Remove Duty from Sales and COGS field is set in both Bevica Setup and against an item, the following additional GL entries will be posted when any Duty Paid sales order is shipped & invoiced, or a sales invoice is posted.

• DR Sales, CR Duty Sales
• CR COGS, DR Duty COGS

The following additional GL entries will be posted when a Duty Paid sales return order is shipped & invoiced, or a sales credit memo is posted.

• CR Sales, DR Duty Sales
• DR COGS, CR Duty COGS

Note that these additional postings will be created regardless of whether the duty paid sales order has been fulfilled from duty free or duty paid stock.

Example 1: Duty Paid sales order where Remove Duty from Sales/COS is set

The Remove Duty from Sales and COGS field is set in both Bevica setup and an item.

• Duty free cost = 60.00
• Duty amount = 13.00
• Duty paid price = 93.00

The following entries will be posted:

Account	Amount
If being replenished from Duty Free stock
Stock	-60.00
Duty Accrual	-13.00
If being replenished from Duty Paid stock
Stock	-73.00
Other entries posted for both of the above replenishment scenarios
Cost of Goods Sold	60.00
Sales	-80.00
Duty Cost of Goods Sold	13.00
Duty Sales	-13.00
VAT	-18.60
Sales Ledger Control Account	111.60

Example 2: Duty Paid sales order where Remove Duty from Sales/COS is not set

The Remove Duty from Sales and COGS field is not set in both Bevica setup and an item.

• Duty free cost = 60.00
• Duty amount = 13.00
• Duty paid price = 93.00

The following entries will be posted:

Account	Amount
If being replenished from Duty Free stock
Stock	-60.00
Duty Accrual	-13.00
If being replenished from Duty Paid stock
Stock	-73.00
Other entries posted for both of the above replenishment scenarios
Cost of Goods Sold	73.00
Sales	-93.00
VAT	-18.60
Sales Ledger Control Account	111.60

Example 3: Duty Free sales order where Remove Duty from Sales/COS is set

The Remove Duty from Sales and COGS field is set in both Bevica setup and an item.

• Duty Free cost = 60.00
• Duty amount = 13.00
• Duty Free price = 80.00

The following entries will be posted:

Account	Amount
Stock	-60.00
Cost of Goods Sold	60.00
Sales	-80.00
Sales Ledger Control Account	80.00

Example 4: Duty Free sales order where Remove Duty from Sales/COS is not set

The Remove Duty from Sales and COGS field is not set in both Bevica setup and an item.

• Duty free cost = 60
• Duty amount = 13
• Duty free price = 80

The following entries will be posted:

Account	Amount
Stock	-60.00
Cost of Goods Sold	60.00
Sales	-80.00
Sales Ledger Control Account	80.00