I know that this may be a long winded question but I’m a little baffled and once again would appreciate some more advice…
I’m regularly importing goods from the UK and although the goods are Duty Free, I still have to pay GST and clearance fees etc when the shipments arrive.
At the moment, I’m not registered for GST (but I soon will be, the way things are going so I really need some help using two different scenarios).
As my supplier is in the UK, I have set them up in “Suppliers” using £GB as their default currency so that my purchase orders are all good.
I am of course invoiced in £GB but, as a direct debit, obviously the amount is taken out of my account is in $AU.
I have initiated a “Spend Money” Transaction to get the money out of my bank account (Say $3,000) and will do the same when I receive an invoice from FEDEX for the GST and Clearance Fees etc (Say $400)
The total cost of $3,400 is for approximately 40 items.
Up until now, I have been using MS Money so it was just a matter of adding the cost of the goods with the GST and customs fees and then dividing it (pro rata) by the goods purchased to come up with a unit cost and them manually updating my inventory quantities.
I would really appreciate any advice on firstly, whether or not I’m doing the right thing by using the “Spend Money” transactions for taking the money from the bank and secondly, how I should set out my Purchase Invoice so that the costs are correct and my inventory is updated accordingly.
I’ve also noticed that if I refer the Purchase Invoice back to the Purchase Order, the figures listed default to £GB instead of $AU.
As mentioned earlier, I’m not currently registered for GST so I assume that the GST doesn’t need to be listed as a specific item (on the Purchase Invoice) as such, but when I do register, as it will have to be shown I would really like to know how to handle it when that time comes.
I would also like to thank everyone that has been generous with their time up until now in addressing my previous queries and hope that one day, I won’t have to bother you guys again and hopefully, will be able to assist other newbies with their questions.