Import Shipment and Costing Extension Package for xTuple ......Import Shipment and Costing Extension Package for xTuple ERP Installation and User Guide VERSION 1.0 Created by Opensource

Import Shipment and Costing Extension Package for

xTuple ERP Installation and User Guide

VERSION 1.0 Created by Opensource Solutions Development Team

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Import Shipment and Costing User Guide ver. 1.0 2

Table of Contents

Table of Contents .................................................................................................................................... 2

Introduction ............................................................................................................................................ 4

Setup and Master Information................................................................................................................. 4

Import Shipment Items ........................................................................................................................ 4

Import Shipment Charges .................................................................................................................... 5

Note (Clearing Account) .......................................................................................................................... 6

Requirements of the Import Shipment Activity ........................................................................................ 6

Cost Category ...................................................................................................................................... 6

Purchase Order Released ..................................................................................................................... 6

Creating Import Shipment ....................................................................................................................... 6

Details Tab........................................................................................................................................... 7

Notes Tab ............................................................................................................................................ 8

Charges Tab ......................................................................................................................................... 8

Import Ship Charge .......................................................................................................................... 9

Est. Amount ..................................................................................................................................... 9

Notes ............................................................................................................................................... 9

PO Items Tab ..................................................................................................................................... 10

PO Number .................................................................................................................................... 11

PO Item ......................................................................................................................................... 11

Qty Ordered .................................................................................................................................. 11

Qty Extracted ................................................................................................................................. 11

Qty Available ................................................................................................................................. 11

Qty to Extract ................................................................................................................................ 11

Note (Quantity to Extract) ..................................................................................................................... 11

Creating Import Voucher ....................................................................................................................... 11

Shipment ........................................................................................................................................... 13

Charge ............................................................................................................................................... 13

Amount ............................................................................................................................................. 13

Import Voucher Cost Posting ................................................................................................................. 13

file:///C:/Users/JEFF/Documents/OSS/Guide/Import%20Shipment%20and%20Costing.docx%23_Toc336062497file:///C:/Users/JEFF/Documents/OSS/Guide/Import%20Shipment%20and%20Costing.docx%23_Toc336062515

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Import Shipment Costing ....................................................................................................................... 15

Item Number ..................................................................................................................................... 15

Description ........................................................................................................................................ 15

Est. Charges ....................................................................................................................................... 15

Actual Charges ................................................................................................................................... 15

Purchase Cost .................................................................................................................................... 15

Total Est. Cost .................................................................................................................................... 16

Total Actual Cost ............................................................................................................................... 16

Actual Unit Cost ................................................................................................................................. 16

Note (Actual Unit Cost) .......................................................................................................................... 16

file:///C:/Users/JEFF/Documents/OSS/Guide/Import%20Shipment%20and%20Costing.docx%23_Toc336062530

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Introduction Importation of commodities is a major trade activity for medium and large companies. With its complex business process and procedures, companies are continuously searching for ways to simplify, analyze and monitor the importation process. The importation process is a component of the requisition to payment process with some diversion and circular processes to accumulate the cost of items being imported. The process starts with the creation of Import Shipment Entry, assigning of charges applicable to the shipment, extracting PO items included in the shipment, and populating necessary information about the shipment like bill of lading documents, bill of exchange, proforma invoice, customs declaration, etc. The Import Shipment and Costing Package also include Landed Cost Computation which incorporates all Import Charges accumulated from A/P module paid to different suppliers (Bureau of Customs, brokers, banks, forwarders, etc.).

Setup and Master Information Before starting with Import Shipment and Costing, you need to set some Master Information needed for

the package.

Import Shipment Items

First thing is to identify the items to be used in Import Shipment Entry. Navigate to Purchase>>Import

Shipment>>Import Shipment Items. Click Add to add new item. The screen below appears.

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Item Number. Select for the item to be added in Import Shipment Items. Commodity Classification Code. Select the commodity classification code of the item. This is populated backend as this should be standard code to be used by the business. Volume. This is the volume-quantity ratio of the item. This will be used in allocating the Charges to the shipment items. Gross Weight. This is the gross weight-quantity ratio of the item. This will be used in allocating the Charges to the shipment items. Net Weight. This is the net weight-quantity ratio of the item. This will be used in allocating the Charges to the shipment items.

Import Shipment Charges

We now have to define the charges used in the import shipment. These are the other costs related the importation of goods. Among the common charges used are duties and taxes, bank commission and charges, freight, brokerage fee, storage charges, arrastre and the like. To open the import charge maintenance, navigate to Purchase>>Import Shipment>>Import Shipment Charges. Click Query to see all maintained charges or click Add to add a new one. When clicking the Add button, the below screen appears.

Charge Code. Enter the code used to identify the import charge. Charge Description. Enter the long description used to describe the import charge. Active. The active flag signifies that the charge can be used in Import Shipment Transactions. Allocation. This is the allocation basis of the shipment charge. Selections are as follows:

Volume. If selected, the charge is allocated using the volume-quantity ratio as tagged in Import Shipment Item.

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Gross Weight. If selected, the charge is allocated using the gross weight-quantity ratio as tagged in Import Shipment Item. Net Weight. If selected, the charge is allocated using the net weight-quantity ratio as tagged in Import Shipment Item. Quantity. If selected, the charge is allocated using the extracted quantity of the items. Amount. If selected, the charge is allocated using the extracted PO Amount of the items.

Clearing Account. GL account used to accumulate actual charges posted in AP Misc. Vouchers. The same account is closed when the charges are posted to the items.

Requirements of the Import Shipment Activity Aside from the Configurations in Setup and Master Information, the following requirement should also

be done before starting the Import Shipment Process.

Cost Category

Cost Category setup should be created and assigned to applicable Item Sites.

Purchase Order Released

The Import Shipment Entry begins with the creation of the Shipment which will contain the PO items

included in the shipment.

Creating Import Shipment The Import Shipment is created at the time a confirmation of the import PO is received from the foreign

vendor. From this confirmation, the batch of the items confirmed by the vendor will be entered as an

import shipment.

To create a new import shipment entry, navigate to Purchase>>Import Shipment>>New, and the

following window appears.

Note (Clearing Account)

When posting actual costs to items, the item’s Cost Category Inventory Asset Account is used when quantity on hand has value; otherwise Cost Adjustment Account is used.

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Shipment No. The Shipment Number is a unique code either created by the company or given by the

Vendor. This is used to identify the shipment to be created.

Shipment Name. This is a more descriptive name of the shipment.

Status. This signifies status of the Shipment.

Open. The Shipment is newly created and not yet approved. Approved. The Shipment has been approved but no Actual Costing is done yet. Partial Cost. Some of the charges had been realized and posted. Completed. All charges had been realized and posted. Closed. The shipment has been closed. Close on Save. When checked, the form closes upon click of Save Button.

Details Tab

Terms of Delivery. This is the shipping reference of the Terms of Delivery of the shipment. It may either be FOB Shipping Point, FOB Destination, or any other Term of Delivery used by the vendor. Bill of Lading. This is the bill of lading reference document of the shipment.

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Est. Depart Date. The estimated date of departure of the shipment from the origin point. Est. Arrive Date. The estimated date of arrival of the shipment to the destination point. Order Confirmation No. The reference document given by the vendor confirming that the order is processed and now ready for shipping. Authority to Import. The document given by the Customs (in the Philippines, BOC) allowing the importation to proceed. Import Entry Declaration. It is a declaration document used for purposes of declaring import transactions to the revenue body of the government (in the Philippines, BIR). Clean Report of Findings. This is an audit report performed by an independent audit team about the contents of the shipment required for Customs releasing. Invoice No. This is the proforma invoice given by the vendor. Payment Method. The payment method, sometimes called settlement method, is the method used to settle the foreign obligations. It may either be thru Letter of Credit, Usance Booking, or Cash Remittance (telegraphic transfer). Payment Reference No. This is the reference document as referred to by the Payment Method above. Pack Reference No. The reference document used when packing the shipment. Insurance Reference No. This is the insurance reference document used to insure the goods in transit. Sales Contract. This is an agreement made by the vendor and the buyer about the commodities being imported. It is also called Purchase Contract. Bank Guarantee. The document used when entering bank guarantee transaction for the commodities imported. Bill of Exchange. This is the document used when the import transaction uses bill of exchange in the settlement of the obligation.

Notes Tab

You may also add additional notes and description about the shipment on the Notes tab.

Charges Tab

The charges tab shows all charges assigned to the shipment, together with their description, allocation

method and estimated amount. The following image shows the charges tab.

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Add Button. The add button opens a new window called Import Shipment Charge that allows you to

add a new charge to the shipment.

Import Ship Charge

The Import Ship Charge is a dropdown of all charges maintained in the Import Charges

Maintenance. It allows you to select a charge to be added to the shipment.

Est. Amount

This is the estimated amount of shipment charge, calculated based on company’s standard or

historical data.

Notes

Any additional comments or notes on the shipment.

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Edit Button. The edit Button allows you to edit contents of a selected charge.

Delete Button. The delete button allows you to delete a selected shipment charge.

PO Items Tab

The PO items tab holds all shipment items extracted from Purchase Order items. The tab appears as

follows:

The tab contains the columns PO Number, Item Number, Description, and Qty Extracted.

Add Button. To add a new PO Item, click the add Button. The following screen appears.

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PO Number

Select Purchase Order to be added to the shipment. Only Open Orders will be shown on this

selection.

PO Item

This is a dropdown of all items included in the selected purchase order.

Qty Ordered

This is the ordered quantity entered for the PO item.

Qty Extracted

This is the sum of all quantities extracted as shipment items.

Qty Available

This is the net quantity available for shipment item extraction.

Qty to Extract

This is the quantity to be extracted for the shipment.

Creating Import Voucher The Import Voucher is used to realize actual costs to be included in the import shipment. It is used to

record all charges paid to the forwarders, brokers, customs, and other vendors relating to the additional

charges incurred by the shipment.

To create a new import voucher, navigate to Purchase>>Voucher>>New Misc. Voucher (you may also

navigate to Accounting>>Accounts Payable>>Voucher>>New Misc. Voucher. The package add two new

buttons to the standard AP Misc. Voucher.

The AP Misc. Voucher appears as follows:

Note (Quantity to Extract)

You can only extract quantity which is less than or equal to the quantity available for extraction.

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The Import Voucher Process is the same with AP Misc. Voucher Processing except in adding the Misc.

Distribution.

Import Charge. This button allows you to add an import charge entry to the voucher. Clicking this gives

the following screen.

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Shipment

This is a dropdown of all import shipments. Select a shipment to where the actual charge will be

posted.

Charge

List of all charges tagged to the selected shipment. Select the charge to be posted.

Amount

This is the shipment charge amount to be posted.

Click Ok Button when you are done.

Delete Charge. The delete button allows you to delete a selected import charge.

Import Voucher Cost Posting Posting of Voucher cost to item is a separate routine different to the posting of the Misc. Voucher. The

Misc. Voucher creates the following entries:

Import Charge Clearing Account xxx,xxx.xx AP Account xxx,xxx,xx

When posting the voucher cost, the import charge clearing account it reversed to either Inventory

Account (when Item Site has QOH), and Cost Adjustment Account (when Item Site do not have available

QOH). The resulting entry will be as follows.

Inventory/Cost Adjustment Account xxx,xxx.xx Import Charge Clearing Account xxx,xxx,xx

To perform the Voucher cost posting, navigate to Purchase>>Import Shipment>>List. Click Query and

double click on the shipment. This will give you the Import Shipment window. Go to Accounting Tab.

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Select a Voucher to Post. Click Voucher Cost. A summary of how the voucher cost will be allocated per

extracted PO Item item will appear.

When Post Button is clicked, the item site Inventory Value will be adjusted by the Adjustment column

and corresponding GL Entries will be posted. If the Voucher Cost had been posted, the Post Button will

be disabled.

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Import Shipment Costing The Import Shipment Costing is an overall costing report of all Charges allocated to the extracted PO

Items. You can navigate the Shipment Cost using Purchase>>Import Shipment>>Costing or by going to

the Shipment>>Accounting Tab and click Shipment Cost. The following window appears.

Item Number

This is the item number of the extracted PO Item in the shipment.

Description

This is the description of the extracted PO Item.

Est. Charges

This is the total estimated charge allocated to the PO Items. You can expand the item line to

show breakdown of the estimated charge.

Actual Charges

This is the total actual charges allocated to the PO items. You can expand the item line to show

breakdown of the actual charge.

Purchase Cost

This is the total PO amount of the extracted PO Items in the shipment.

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Total Est. Cost

This is the sum of Est. Charges and the Purchase Cost, giving you the total estimated cost of the

PO item.

Total Actual Cost

This is the sum of Actual Charges and Purchase Cost, giving you the total actual cost of the PO

Item.

Actual Unit Cost

This is unit cost resulted from dividing the total actual cost to the quantity of the PO Item

extracted in the shipment.

Note (Actual Unit Cost)

The actual unit cost is created for purposes of Shipment Costing Only. This cost does not necessarily reflect the current unit cost of the item site. As long as the Voucher Costs are posted, your item site value is updated.

Table of ContentsIntroductionSetup and Master InformationImport Shipment ItemsImport Shipment Charges

Requirements of the Import Shipment ActivityCost CategoryPurchase Order Released

Creating Import ShipmentDetails TabNotes TabCharges TabImport Ship ChargeEst. AmountNotes

PO Items TabPO NumberPO ItemQty OrderedQty ExtractedQty AvailableQty to Extract

Note (Clearing Account)Creating Import VoucherShipmentChargeAmount

Note (Quantity to Extract)Import Voucher Cost PostingImport Shipment CostingItem NumberDescriptionEst. ChargesActual ChargesPurchase CostTotal Est. CostTotal Actual CostActual Unit Cost

Note (Actual Unit Cost)