I would like to ask for few thinks regarding import in foreign currency let me bring you to the scenario I’m operating in I have a business in South Africa, I import goods from Poland for which I pay in EURO, I’m transporting the goods in two stages, first one is courier from Poland and I’m paying him in USD, second one is in South Africa and I’m paying him in ZAR, to complicate the whole situation I have 60 day account with my Polish supplier and 30 day account with the Polish Courier, the South African bank charges for the forex transactions extra for each transaction, the true reflection of the exchange costs are only visible after the money is gone from the account. Please tell me if, it is possible to set up somehow the manage to reflect true cost of products in ZAR if I order from my supplier in Poland.

This will be a nice to know process Brucanna thanks for bringing it up jacekm :slight_smile:

Hi Brucanna Thanks for the response Answering your questions I have set the base currency to ZAR Supplier currency to EURO Courier currency to USD Clearing agent to ZAR I also have set the extra TAX CODE for 100% VAT on import My products are set as purchase price in EUR and retail in ZAR, since purchase order goes to my supplier,after purchase invoice was created I have adjusted the EUR to ZAR ratio (exchage rate) as well to give me the correct price paid in ZAR

[image] jacekm: after purchase invoice was created I have adjusted the EUR to ZAR ratio By this I am assuming that you adjusted the Purchase Invoice’s exchange rate to match the bank’s payment exchange rate - which is ok… Have you also entered the Courier and Clearing Agent invoices and posted them to a BS Asset - Transport Clearing account ?

I will do it today, post them both to that account

I have done this so both of the transport invoices are sitting now in Transport Clearing account What I have spotted that on the Clearing agents Invoice Import VAT can not be selected to 100% Import VAT, if I do that then the Transport clearing account will not contain that portion

OK, so on that invoice you need to do a couple of extra entries - read below [image] GST on importation We import goods and one of the things we get charged is GST on imports which is an amount associated with the value of the goods imported. I set up a tax code with a rate of 100% and then created a purchase invoice with that in it and it does not appear to of worked correctly. It also does not show in the Bas work sheet. It also does not look right in the invoice, it appears to add it in twice then removes it so the total is correct if that helps you. I suspect I have done something wrong and…

Brucanna OK, so on that invoice you need to do a couple of extra entries - read below Hi Brucanna what extra entries you talking about because I think I’ve lost you Like I’ve stated before if I select the portion of VAT for 100% VAT than this part does not appear on BS if I don’t assign it to the 100% vat than the thing is correct on BS [image] [image] This is without VAT being asign if I do it with full VAT [image] [image]

OK, lets just clear up this VAT situation first so that we have the same understanding. When you say VAT 100%, is this the same as when you say VAT on Import ? The BS account - VAT on Import, did you create this account in the Chart of Accounts ? When you run a VAT report, does it pick up your VAT on Import values ? Once this is cleared up we can move on to re-allocating the Transport Clearing PS: Do you don’t to add “account” after Transport Clearing.

[image] Brucanna: When you say VAT 100%, is this the same as when you say VAT on Import ? Yes this is the same VAT and it should be calculated as a VAT [quote=“Brucanna, post:19, topic:6903”] The BS account - VAT on Import, did you create this account in the Chart of Accounts ? [/quote]That’s correct I have created it in the Chart of Accounts [image] Brucanna: When you run a VAT report, does it pick up your VAT on Import values ?

Importing of goods

Uncategorized

Brucanna September 8, 2016, 11:17pm 17

OK, so on that invoice you need to do a couple of extra entries - read below

Topic		Replies	Views
Landed Cost - Multiple Vendors Uncategorized	29	3941	February 10, 2018
Multiple Currency Purchase Invoice Uncategorized	31	3794	November 5, 2020
Inventory Items under Assets in the balance sheet Uncategorized	13	1096	January 18, 2021
How to handle import duty tax? Uncategorized	29	8390	June 25, 2019
Foreign exchange Revaluation Uncategorized	52	2442	December 19, 2022

Importing of goods

Related topics