How to: Transfer VAT in 3PL Dynamics
20 January, 2023
4min. reading time
In some cases, it is possible to transfer VAT. For example, when providing services to foreign entrepreneurs. New developments from Boltrics make it possible to set this up from our software. A situation in which this may apply to you as a logistics service provider is when billing storage fees.
If it is desired or even necessary to transfer VAT, we can ensure that the storage fee for bonded goods is invoiced on a separate line on the invoice. The VAT for this line is then posted to another product posting group.
In order for this to run smoothly, the correct design is required in a number of places:
- Customs codes
- Chart of accounts
- WMS Service list
- TAX posting setup
First, there are the customs codes. For the customs code(s) for which the transfer of VAT applies, the field ‘Prod. entry group (VAT+general)’ must be set to ‘Entrepot’.
Chart of accounts
Then we move on to the chart of accounts. Here it is essential that separate general ledger accounts are created so that the VAT can be booked to them. To indicate that it is a ledger account for transferring VAT, you can add this in the name, for example, “VAT Purchase 21% EU Transferred”.
WMS Service List
The third step in adjusting the configuration is within the WMS service list. This overview lists all the services that you can use. For this, it is important that the correct product entry groups are set up. This concerns the product entry group, the VAT product entry group, the bonded warehouse product entry group, and the bonded warehouse VAT product entry group.
If you have set up the customs codes, chart of accounts, and product posting groups correctly, it is time for the next step. To do this, open the relevant customer card, and set up the correct VAT business entry group for the customer. For the creation of new customers, we always recommend using customer templates where default setups such as booking groups can be automatically filled correctly.
In this example, the configuration on the card is sufficient for custody fees. For logistic services where the country of departure or arrival of the logistic document is important for the transfer, you can configure provisions in the sub-table booking settings per service, per document type.
VAT Posting Setup
And then it’s time for the last step! In the VAT posting settings, reference must be made to the correct general ledger accounts. The VAT calculation must also be completed correctly, as shown in the image below:
As mentioned earlier, the result is that two lines are created on an invoice for each custody fee service that is set up on the customer’s WMS contract. But what actually happens in the background? To provide more insight into this, we need to look at the WMS contract. When creating an invoice, periods are created for the custody fee services. When the prod posting group is set to bonded warehouse in the customs code, two detail periods are created for each period. From there it is also possible to click on the invoice.
Furthermore, you can see on the invoice that the VAT is transferred.
How do you get to the detail lines step-by-step?
1: Open the relevant WMS contract and choose “periods” under detail lines.
2: A new screen opens. Here, choose “Details” in the ribbon menu.
3: In the newly opened screen you can now see the result under “Customs code”.
Do you have any questions, or do you need support with the design? Contact us via the customer portal. Our colleagues are ready for you!