Creating customs duty

Use this procedure to set up the tariff rates for goods that are imported. The customs charges are included in the inventory cost of the item.

Configure customs charges in Supply Management:
1. Sign in as Application Administrator and select Supply Management > Supply Management Setup > Purchasing > Add On Charges.
2. Click Create.
3. Specify the Add On Charge short name and Description.
4. Specify this information:
  Type
  Select the type of add on charge:
  
  Select Cost to add cost to a PO line.
  
  Select Allowance to deduct cost from a PO line.
  Track Type
  
  Select a tracking type. Tracking type is an additional type that is required to report specific AOC.
  
  Spread Method
  Select the spread method that is applicable to the required computation.
  
  Select Rate to compute the percentage of the extended cost on the line. This option is for Ad Valorem computation.
  
  Select Quantity: to compute using a quantity-based method of computing customs duty and a per unit computation.
  
  Select Amount to add a fixed amount to the unit cost of the item.
5. Select the Print On PO and Landed check boxes.
Configure customs charges in Payables:
1. Select Financials > Payables > Tax Setup > Tax Codes.
2. Specify the Tax Code name and Description.
3. In the Tax Type field, select Stand-alone.
4. On the Rates pane, specify the Effective Date and Rate of the tax code.