Customs duty rate
Overview
Some products may have different customs duty rates associated with them. To have a customs duty amount, applied against a Purchase Order, correctly allocated to the landed cost of the products in that Purchase Order, create a customs duty rate in Cin7 Omni and then apply it to a product.
Create customs duty rate
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While logged in as an Administrator, select your username in the top right and then select Settings.
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Under the Accounting menu, select Customs Duty Codes.
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Select Add New.
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Select "On" for the Active dropdown list. If set to "Off" this customs duty rate cannot be used.
Enter a number for Sort. This is used to order all the customs duty rates in the list.
Name the customs duty rate; for example, "5% Duty" or "No Duty".
Enter a unique code to identify the duty rate; for example "5-Duty" or "10%-Duty".
Select "Import" as the Type (this is optional).
Type the percentage duty rate as a whole number; for example, 5 or 10.
Once complete, select Insert to complete the creation process.
Apply a customs duty rate
Only one customs duty rate can be assigned to a product. Assigning a customs duty rate ensures that an accurate portion of the customs duty amount will be added to the product's landed costs when it is received in a Purchase Order, which also has a customs duty amount applied against it.
To apply a customs duty rate to a product:
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From the left navigation, select Products.
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Click on the Product Name you want to update.
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From the Accounting section, select the duty rate from the Import Customs Duty code drop-down.
Select Save.
The new customs duty rate will now be used when this product is received in any Purchase Order, which also has a customs duty amount applied against it.
Example:
A Purchase Order has two product line items on it with the following details:
- $100 value for Product A with a 5% customs duty rate applied against it.
- $200 value for Product B with a 10% customs duty rate applied against it.
The total customs duty paid is ($100 x 5%) + ($200 x 10%) = $25
Therefore, when $25 is entered as the total customs duty amount against this Purchase Order, Cin7 Omni will split it and add it to the landed cost of each product as follows:
- $5 for Product A, calculated from: $25 x (($100 x 5%) / (($100 x 5%) + ($200 x 10%)))
- $20 for Product B, calculated from: $25 x (($200 x 10%) / (($100 x 5%) + ($200 x 10%)))
The customs duty amount is entered against a Purchase Order either:
- From another Purchase Order using the linked transaction functionality or, Refer to this article.
- Entered in the Landed Costs section of the same Purchase Order. Refer to this article.
Only one method of entering the customs duty amount must be used in a single Purchase Order, i.e. entered either via the linked transaction functionality or via entering it in the Landed Costs section of that Purchase Order. Using both entry methods against a single Purchase Order will result in Cin7 Omni calculating inaccurate landed costs of the product line items in that Purchase Order.