This method covers the purchase of imports where you want to include tax, freight and insurance in the inventory value for imported inventory items. To enter an Import Purchase where you would like the inventory value to include other costs often billed by a customs agent. Setup the inventory item as –no tax code– as tax is not payable to the offshore supplier in this example (i.e. it is a foreign tax you don’t care about and/or don’t need to track) . Then add a purchase for the goods or services:

Later when we receive our customs and freight invoice we can establish the tax charged ($50 in this example) and accordingly need to adjust the inventory value to reflect this. To do this we are effectively removing the inventory with no tax code and putting it back in as having tax using the appropriate tax code for your zone.

Next add a Purchase to capture Tax, Freight and Insurance.

In the above example we established from our customs invoice that $50 Tax is being charged. If this is the case you only want to do the “remove and add back” line items in the appropriate amount that reflects the tax portion. i.e. in the example above if it were only $30 tax (not $50) you would only remove $300 worth of inventory and add back $330 of inventory with your zone tax code.

Zone Information

*Your Zone Tax Code