accounting for imported products

[Tahirfayyaz]

Hi,

I am setting up a distribution company and I have products coming in from the USA and i wanted advice on if it is possible to account for the products in SAGE with the following details about the costs of the products;

- the products are sold to us in US dollars and we have 90 day credit

- When we receive the products we have to pay UPS duty fees, UPS clearance fees and VAT

Is it possible to put the cost of the product into sage by entering all those details into sage for each delivery we receive? the problem seems to be that we pay for the products after 90 days and have no way to determine what the exchange rate will be on the date we make the payment but we pay the duty fees upfront

Thanks for any help on this

Tahir

 

[taxattack]

Hi,

I am setting up a distribution company and I have products coming in from the USA and i wanted advice on if it is possible to account for the products in SAGE with the following details about the costs of the products;

- the products are sold to us in US dollars and we have 90 day credit

- When we receive the products we have to pay UPS duty fees, UPS clearance fees and VAT

Is it possible to put the cost of the product into sage by entering all those details into sage for each delivery we receive? the problem seems to be that we pay for the products after 90 days and have no way to determine what the exchange rate will be on the date we make the payment but we pay the duty fees upfront

Thanks for any help on this

Tahir

You will have two figures for each purchase - the cost of the product at the exchange rate when purchased, and the amount you actually pay, 90 days later. There will then be an exchange rate difference, either profit or loss. Vat Notice 700, para 7.7 tells more about the rules for translating into sterling.

The duty etc is a cost of sale.

Hope this helps

Chris

 

[Tahirfayyaz]

Thanks for the advice on this. Looks like the accounting software is set up to look out for this so that is perfect.

Tahir