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Nov 06, 2014 at 06:17 PM

Import duty and VAT on fixed asset purchase



I have encounter the fixed asset procurement scenario where not able to configure the bydesign for business need, mentioned below

I have purchased fixed assets from foreign supplier, the cost sheet would be like

Fixed asset cost - 10000 USD

Accessories items - 200 USD - Separate serial number and ID

Import duty - 1000 USD (10%) - Non Deductible

VAT - 1500 USD (15%) - Deductible

Handing charges - 100 USD - Added to fixed assets for capitalization

Transportation - 250 USD - Added to fixed assets for capitalization

Installation charges - 200 USD - Added to fixed assets for capitalization

I have few questions, how to account each items during asset acquisition and capitalization.

Accessories item:-

As per my understanding, this will be additional Individual material ID but the cost will added to cost of main asset for capitalization?

Tax :-

In ByDesign we can have only one tax type in one tax code. How we can apply import duty and VAT using single tax code?

Would like to know how can i configure in system.

Import duty:-

This Import duty would be Non deductible - will be added to cost ( ByDesign works well here)

VAT :-

VAT will be deductible how it can be bifurgated if triggered with same tax code?


I have seen that ByDesign create fixed asset record at the time of goods receipt and change status as capitalized based on purchase order referance. In this case, if we need add some additional cost that will need to change the capitalisation date to incorporate additional cost?

Thanks in advance

Govind Sharma