- Created by admin, last modified by AdrianC on Dec 05, 2016
https://help.myob.com/wiki/x/2wic
ANSWER ID:9384
This page details two suggested methods when importing goods from overseas. It can also be adapted to other similar situations and in all cases should be assessed by a tax professional to confirm its suitability in your personal case.
When importing goods from overseas, there are two parties involved:
The overseas supplier: The Company you purchased the goods from, and who you will pay without any GST.
The Customs Office: The Customs Agent is usually employed to handle the costs associated with the import of the goods. When the goods are landed in Australia, the Customs Office will determine your GST liability and provide you with a detailed account of the amount payable. Some normal costs incurred are Customs Duty, Freight, Insurance and GST liability.
Scenario 1: Recording overseas purchases where fees incurred by Customs Agent are included in true cost of goods
- Setup the overseas supplier as a supplier, and setup the goods being imported as stock items.
- Make sure you have a tax code for N-T set-up. If it doesn't exist you will need to create one. Refer to your RetailManager User Guide for instructions on this.
- Create a Goods Received as per usual, making sure that the amount is entered as your local currency AUD$ with the tax code N-T. See our example below.
Note: Using the tax code N-T ensures that GST is not incurred against this supplier, and allows us to record the GST component against the Customs Office.
Note: Before committing the Goods Received, we need to allocate the additional fees from the Customs Agent to ensure they are included in the costs of the item. - Click the Cost Price Adjustment button, and type the GST Exclusive amount of the fees chargeable from the Customs Agent. Example: The Customs Agent invoice shows: Freight: $65 Plus GST Transfer Fee: $15 Plus GST Insurance: $20 Plus GST GST Liability: $50.00 GST only - (10% of invoiced unit cost - $500) The fees that can be added to the cost of the items are: $65 + $15 + $20=$100 Note: The amounts that are incurred as cost are Exclusive GST amounts only.
- This will change the amount of the Goods Received by the amount entered in the Cost Price Adjustment window.
- Commit the Goods Received & Export to the accounting software as per usual.
Edit the overseas suppliers Purchase Order to the correct total
- Find the overseas Supplier invoice and overwrite the amount to deduct the additional customs fees from the previous step 4. In this case change the $600 to $500.
- Record the bill. The total should now match the original supplier invoice in Australian dollars.
Create a new bill for the Customs Agent
- Create a new supplier for the Customs agent, if not already created.
- Record a bill to match the Customs Agents' invoice, as shown below. Note: Normally the accounts used would be the nominated expense accounts for the customs fees, but since we have already included these costs in RetailManager, the Inventory Asset account should be used instead as shown in the example below.
Scenario 2: Recording an overseas purchase in RetailManager and record customs fees in MYOB accounting software
- Setup the overseas supplier as a supplier, and setup the goods being imported as stock items.
- Ensure you have a tax code for N-T set-up. If it doesn't exist you will need to create one. Refer to your RetailManager User Guide for instructions on this.
- Create a Goods Received as per usual, making sure that the amount is entered as your local currency AUD$ with the tax code N-T. See our example below.
- Create a new bill for the Customs Agent.
- Create a new supplier for the Customs Agent, if not already created.
- Record a bill to match the Customs Agent's invoice, as shown in our example below.
Note: For detailed information on creating the Customs Agent invoice in your MYOB software please refer to Recording overseas purchases and import costs (Australia)/