Duty Settlement, Reimbursement, and Reporting

As a Accountant
I want to run the Create Duty Settlement batch at the end of a duty period
So that all open Imposition entries are settled and the corresponding purchase invoice lines are created ready for posting

Setup:

1. Create an open Purchase Invoice for the duty authority vendor.
2. Open Duties and choose Create Settlement, or search for Create Duty Settlement.
3. Set Duty Code Filter if you want to settle a specific duty only.
4. Set Starting Date and Ending Date to limit which entries are included by posting date.
5. Enable Create Invoice Lines and enter the Purchase Invoice No..
6. Confirm and run. The system creates Settlement duty entries and adds item charge lines to the invoice.
7. Open the invoice and review the lines, then post it.

Note: The batch processes all unsettled, open Imposition entries that match the filters. Settlement entries are created first (they appear in Duty Entries), and invoice lines are then added referencing the original item transactions. The invoice lines are grouped by Duty Code and Duty Rate, with one item charge line per unique combination.

As a Accountant
I want to run the Create Duty Reimbursement batch to reclaim duty on duty-free sales
So that purchase credit memo lines are generated for the duty amounts I am entitled to reclaim

Setup:

1. Create an open Purchase Credit Memo for the duty authority vendor.
2. Open Duties and choose Create Reimbursement, or search for Create Duty Reimbursement.
3. Set Duty Code Filter and date filters as needed.
4. Enable Create Credit Memo Lines and enter the Purchase Credit Memo No..
5. Confirm and run.
6. Open the credit memo and review the lines, then post it.

Note: Reimbursement entries are created automatically when items are shipped to duty-free customers. This batch collects those entries and converts them into credit memo lines. A prerequisite is that Shipment on Invoice in Sales & Receivables Setup must be disabled — sales must be posted as separate shipments (not invoices) so the item charge can be assigned to the shipment line.

As a Accountant
I want to run a settlement restricted to a single duty code
So that I can file and pay each duty type on its own schedule without processing all duties at once

Setup:

1. Create an open Purchase Invoice for the authority.
2. Open Create Duty Settlement and enter the specific duty code in the Duty Code Filter field.
3. Set the date range and invoice number as usual.
4. Run the batch. Only Imposition entries for the filtered duty code are included.

As a Accountant
I want to run the settlement batch without adding lines to a purchase invoice
So that I can review the settlement entries before committing to the financial posting

Setup:

1. Open Create Duty Settlement.
2. Leave Create Invoice Lines disabled (do not enter a Purchase Invoice No.).
3. Set filters as needed and run the batch.
4. Settlement entries are created in Duty Entries. The Imposition entries are marked as settled.
5. Review the Duty Entries before proceeding. When ready, run the batch again with Create Invoice Lines enabled to generate the invoice.

Note: If settlement entries already exist for an Imposition entry but have not yet been linked to an invoice, the batch skips those entries. Entries are only processed once per settlement run.

As a Accountant
I want to run the Duty Reporting report for a specific period
So that I have the summary I need to fill in the statutory duty declaration

Setup:

1. Open Duty Reporting from the Duties page or search.
2. On the request page, filter on the relevant Duty Code(s) and set the Date Filter to the reporting period.
3. Optionally filter on specific items if you want a subset.
4. Run the report.
5. The report produces one section per duty code, broken down by item, with columns for Purchase Duty, Sales Duty (total, with exemptions, without exemptions, domestic, foreign), Consumption Duty, Output Duty, and Adjustment Duty.

Note: The report calculates duty amounts using the current duty rate from Item Duty Setup as of today's date, applied to the quantities from item ledger entries for the period. It does not read from the Duty Entries ledger directly. This means the report values are recalculated at run time based on the current rate — if rates have changed, the report reflects the new rate even for historical transactions.

As a Accountant
I want to understand the Sales Duty exemption and domestic/foreign columns in the Duty Reporting report
So that I can correctly map the report output to the fields in my duty declaration form

Setup:

No setup action required. The report automatically splits sales into four sub-columns:

• Sales Duty exception: Quantity sold to customers who have a Customer Duty Exemption for this duty code.
• Sales Duty without exceptions: Quantity sold to customers who do not have a Customer Duty Exemption.
• Sales Duty domestic: Quantity sold to customers whose Country/Region Code is blank or matches the domestic filter.
• Sales Duty foreign: Quantity sold to customers outside the domestic country.

The total Sales Duty column is the sum of all sales regardless of exemption or geography.

As a Production Planner
I want to run the Rolled-up Duty batch after making changes to a Bill of Materials
So that the Qty. per Item Unit of Measure on finished goods reflects the accumulated duty content from all components

Setup:

1. Ensure Item Duty Setup lines exist for the raw material components (with the correct Qty. per Item Unit of Measure for each).
2. Open Rolled-up Duty from the Duties page, Item Duty Setup, or search.
3. On the request page, enable Use active version to use the active BOM version. Set Active Date if you want to roll up as of a specific date.
4. Optionally filter on specific items.
5. Run the batch. The system traverses each item's production BOM recursively and accumulates the component duty quantities into the finished item's Item Duty Setup.
6. Review Item Duty Setup for the finished item — the Qty. per Item Unit of Measure should now reflect the rolled-up value.

Note: The roll-up overwrites the existing Qty. per Item Unit of Measure on the finished item for each duty code. Use the Roll-up Quantity Adjustment field on Item Duty Setup to add a manual adjustment to the calculated roll-up value — for example, if there is a duty component not captured in the BOM (such as packaging material or processing waste).

As a Production Planner
I want to apply a quantity adjustment to the rolled-up duty value for a finished item
So that the calculated duty content accounts for factors not represented in the BOM, such as waste or packaging

Setup:

1. Open Item Duty Setup and find the line for the finished item and the relevant duty code.
2. Enter the adjustment in the Roll-up Quantity Adjustment field. Positive values add to the rolled-up quantity; negative values reduce it.
3. Run Rolled-up Duty to apply the roll-up including the adjustment.
4. Verify the resulting Qty. per Item Unit of Measure reflects the expected total.

Note: The Roll-up Quantity Adjustment is preserved across roll-up runs — it is always added on top of the calculated BOM-based quantity. It is not cleared when the batch runs.

As a Accountant
I want to confirm that duty entries are correctly marked as settled after posting the settlement invoice
So that they are excluded from future settlement runs

Setup:

1. Post the purchase invoice containing the settlement item charge lines.
2. Open Duty Entries and filter on the duty code and period.
3. Check that Settlement entries show Settled = true and Open = false.
4. Check that the corresponding Imposition entries also show Settled = true.

Note: The settlement status update happens automatically when the system detects that the item charge assignment linked to a Settlement entry has been posted (i.e., the purchase invoice has a posted invoice counterpart). The update runs as part of the next settlement batch execution. If you need to verify immediately, run Create Duty Settlement again — the status update logic runs at the start of every settlement batch execution.

As a Accountant
I want to understand why a reimbursement entry fails and how to resolve it
So that the duty-free sale is correctly reflected in the duty ledger

Setup:

The most common cause of a reimbursement error is that the sale was posted as a Sales Invoice with Shipment on Invoice enabled in Sales & Receivables Setup. The reimbursement process requires the item charge to be assigned to a shipment document — not an invoice.

To resolve:

1. In Sales & Receivables Setup, confirm that Shipment on Invoice is disabled.
2. For future sales, this ensures that a separate Sales Shipment document is created, which can carry the item charge assignment.
3. For already-posted invoices, the reimbursement cannot be processed retroactively via the batch — it must be handled manually if required.