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Item charges - tariffs and unreceived inventory

  • 1.  Item charges - tariffs and unreceived inventory

    Posted Nov 29, 2018 12:56 PM

    We have hit a snag regarding posting tariffs using an item charge to a Purchase Order that hasn't been received yet.  We are invoiced for tariffs about 2-3 weeks before the container is received at the warehouse and we can receive in the PO.  We have to pay the tariff invoice immediately.  However, we can't post the purchase invoice for the tariff that is connected to the PO until the PO is received.  This would hold up the payment of the tariff invoice for weeks.

    Does anyone know if it is possible to post the purchase invoice using item charge to the purchase order before it is received?  Maybe the tariff cost could go to an interim inventory or prepaid account and then systematically be moved once the PO is received?  We are trying to avoid extra steps such as posting the tariff to prepaids and then manually moving it once the PO has been received.

    Thanks for any advice,

    Lesley-Anne Colosmo
    The Fishin' Company
    Munhall PA

  • 2.  RE: Item charges - tariffs and unreceived inventory

    Posted Nov 30, 2018 07:34 AM

    I don't believe that can be done, but you could do the following:

    1. Create a PO for the tariff cost as an item charge
    2. Make it prepaid to post the invoice
    3. Once the inventory is received, assign the item charge and post the "final" invoice.

    Good luck!

    Amanda Mayer
    New View Strategies
    Milwaukee WI

  • 3.  RE: Item charges - tariffs and unreceived inventory

    Posted Nov 30, 2018 11:39 AM
    One option is to receive the goods to a "DOCK" location when shipped, and then use transfer orders from "DOCK" to the warehouse location.  You can then apply freight and duty charges to the purchase receipt or transfer receipt as needed.

    One other suggestion is to enroll in the ACH withdrawal plan offered by US Customs.  Basically CBP will automatically withdraw duty fees from your bank, but withdrawals occur ~30 days after goods enter the country.  Your customs broker should be able to help set it up.  It solves the timing problem you experience and probably improves your payables dating.

    Eric Moe
    Global Supply Chain Manager
    Industrial Revolution
    Tukwila WA

  • 4.  RE: Item charges - tariffs and unreceived inventory

    Posted Nov 30, 2018 05:00 PM

    We have an add-on module which our NAV Partner created to do what Eric Moe recommends with the "DOCK" receiving and then Transfer Order. Without the module, I suggest using Eric's approach. Works real well for incoming containers from overseas which you need to associate Item Charges in advance.

    Pratik Patel
    Symbex Companies

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