GRV with Importation Split

Creditors/Suppliers > Activity> GRV

 Typically, one would only use the importation split function when purchasing from a foreign supplier in the respective foreign currency.

Let’s use the below sample data:      

Foreign Supplier:  IS Foreign Supplier

Item Purchased:         Brother LC23 Value Pack at cost price of $30

Quantity Purchased:  2

Shipping Details:

Cartage Company:                                                  DHL Couriers

Non-Vatable cartage/Shipping charges:             R 200

Custom VAT:     (100% of which is VAT):             R 3000

Standard Vatable cartage/shipping charges:     R 1800

Capture the GRV as you would normally do:

Select the Foreign supplier:

Enter the Date:

Enter the Description

Enter the Reference

Enter the exchange Rate applicable: in this case 14

This is the exchange rate at which the item was secured. Also know as Spot rate in most cases.

Ener the Supplier Invoice Number. This is the Invoice number from the supplier of the item.

 Your screen will now look as follow:

 

Proceed to enter the item(s) purchased

Click the Add button in the centre of the screen

Select the item

Enter the quantity

Enter the Purchase price (in the foreign currency, in this case $30)

Change the VAT type to: Non VAT

Click Save and Close

Repeat these item entries for each different item you purchased.

Your screen should then look as follows:

 

 

Once all the items have been captured, you can proceed to capture the Shipping invoice:

On the above screen, click the Importation Split Button

Then click the Add Button

On this screen you are going to enter the details on the Shipping or Cartage company Invoice

Select the shipping Company in the Creditor field

Enter the invoice number (invoice number of the shipping company)

Enter a Reference

Enter the Order number

Enter the Description: The description could be the line item description on the shipping invoice, if you capturing each line individually.

OR, you could capture all the Non Vatable Line Items as a single line and the al the Vatable Lines items as another line

And finally the Custom VAT line item as the 3rd Line

  

 

 

 Once the transaction is processed

Vat report will reflect these entries as shown below

Report List> VAT> VAT Report Original

GRV VAT Portion

 NON VAT Portion

 

 Import Tax Portion