Question: How do I set up duty charges to be automatically added to purchase orders?
Answer: Perform the following steps:
In Purchase Additional Charge Maintenance, create a new purchase additional charge type, as follows:
Enter a name for the charge type (e.g. DUTY) in the Charge Type field.
Enter a description of the charge type in the Description field.
Select the Percent radio button for the Amount Type field.
Select the Other radio button for the Supplier Type field.
Enter the company or government to which you are paying the duty in the Supplier field.
Select the Include in Landed Cost check box.
Select the Used in Harmonization Charges check box.
If other charges will be used in the duty basis for the charge type, select the Include Charges in Duty Basis check box. If you do this, you will also have to select the Include in Duty Basis check box for the other purchase additional charge types that will be included in the duty basis.
If you want to create estimated vouchers for harmonization charges, create a new purchase additional charge type to use for estimated charges, which combine all the container line item harmonization charges into a single estimated shipment charge.
In Harmonization Code Maintenance, create harmonization codes for each commodity type.
In Product Maintenance, for every product being imported with duty charges, enter the corresponding harmonization code(s).
In Purchase Automatic Additional Charge Maintenance, set up purchase automatic additional charges for every from/to country combination, using the purchase additional charge type defined in step 1 with the relevant duty percentage. The from country is the country stored for the supplier in Supplier Maintenance. The to country is the purchase order ship-to country.
In Purchase Order Maintenance, during line item entry, an additional charge is automatically added to each line item if all of the following are true:
The product has a harmonization code.
The harmonization code is properly defined in Harmonization Code Maintenance.
The purchase order supplier has a from country and the purchase order ship-to address has a to country that both correspond to a defined harmonization code.
The value of the line item additional charge will be the percent defined in the harmonization code times the line item extended value.
In Container Management and Shipment Management, if a purchase order is put on a shipment, the harmonization code additional charge is carried over to the shipment. If you want to create an estimated voucher for all of a shipment's harmonization charges, create an estimated shipment charge in Harmonization Charges on Shipment, then create an estimated voucher for the charge in Estimated Voucher Creation.