Question

Apply Duty / Import costs to a part

  • 3 February 2021
  • 1 reply
  • 267 views
T

Hi all,
We currently use landed costs to disburse the carriage / freight cost over the parts on receipt which works well.

Occasionally (becoming more frequent) there is an additional Duty / Import cost being charged by the transport vendor.
Therefore a seperate PO is being raised for this cost as its a separate Vendor to the supplier of the goods.

We would like this additional cost also to be disbursed and added to the parts cost, so the parts final cost is the true value, (Cost + Freight + Duty)

What is the best methods to handle this? 


The only solusion that came to mind is to do a cost adjustment on a FIFO stack to increase this cost manually. Possibly add a reason code for "Duty / Import"
This results in manual calculation with possible risks of error.

Thanks
 

1 reply

J

If you use Standard Cost, Material Burden is an option.  We use Standard Cost where Material = what we pay the supplier & Material Burden represents inbound freight for a total landed cost.  Increasing Material Burden to cover duties as well could work in this case.

Good luck,

John

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