Importing Inventory (from Overseas)

Importing Inventory (from Overseas)

This document outlines how to process imported goods in COSTAR. It covers the following five steps:

  1. Making payments before goods are shipped
  2. Receipting the goods
  3. Processing any additional payment of the goods
  4. Processing Customs Agent’s Invoices (e.g. Freight, Customs duty, GST)
  5. Allocating payments to invoices and accounting for import variances


1. Processing Payments for Imported Goods

Usually a deposit is paid for the goods before they are shipped. This payment needs to be processed in Costar and left unapplied on the Overseas Suppliers account.

The Payment is entered as a Manual Cheque in Costar.

  1. Click on Suppliers
  2. Click on Manual Cheques
  3. Click on New
  4. Enter the Supplied Total
  5. Enter the Cheque or payment reference number
  6. Enter a reference for the import in the Description field
  7. Enter the date the payment was made
  8. Enter the amount that was paid in $AU
  9. Select the Bank GL the funds came out of
  10. Code the first line of the distribution to Accrued Payable (typically 90200)
  11. Tab to the Subledger column and select the appropriate Supplier
  12. Tab to the Apply to Document # field and click Ok to leave unapplied
  13. Delete the Tax Code G
  14. Close and Post the Manual Cheque Batch

 

2. Receipting the Goods

Before the goods are receipted, the price of the goods needs to be converted to $AU including freight, customs duty and any other charges that may be incurred that you wish to include in the cost.

The goods are receipted as a Delivery Docket using the Overseas Supplier.

From Purchasing:

  1. Click Purchase Orders
  2. Click on Add New
  3. Select the Supplier
  4. Enter the inventory item/s and their Order/Receipt quantity
  5. Enter the cost as calculated to include all costs that will be incurred to land them into your warehouse into the Supplier Cost field
  6. Untick the option to enter Invoice Details – this will change the document into a Delivery Docket
  7. Click Receipt on the top toolbar
  8. Enter the Shipment Reference as the Delivery Advice Number

 


 

3. Processing Further Payments of the Goods

If there are any further payments made to the supplier for the goods process them in the exact same way as the original payment (see Step 1).

 

4. Processing Additional Documentation (e.g. Freigtht, Customers Duty, GST)

Additional invoices will be received to do with the importation of the goods. These invoices are processed as follows:

From Suppliers

  1. Select AP Invoice Entry
  2. Click on New
  3. Enter the Supplied Total
  4. Click on Entries
  5. Enter the Invoice information at the top of the screen to the suppliers account the Invoice is received from
  6. In the Distribution Section code Customs Duty and Cartage/Freight to Accrued Payable GL (90200) and the Overseas Supplier Account. Take note that the Customs Duty usually has not GST Code but Cartage/Freight usually does have a GST Code.

 


 

Invoices that are just for GST are coded to GST Claimable (90100)



5. Allocating Payments to Invoices

Once all payments have been made to the Overseas Supplier and the stock receipted into the system, the payments need to be allocated to the invoice and any variances accounted for.

From Financials:

  1. Click on Journal Entries
  2. Click on New
  3. Enter a Journal Memo such as - Clear Import ABC795
  4. Highlight and copy the memo
  5. Click on Entries
  6. Click on Assign Next
  7. Paste the memo into the Description field
  8. In the Distribution area leave the amount as 0.00
  9. Select the GL for Accrued Payable (90200)
  10. Tab to the Subledger column and select the appropriate supplier
  11. Click on the dropdown arrow in Apply to Document#
  12. Tick the Apply box on all Payments for this import
  13. Tick the Invoices for this import – NOTE: Make sure the Applied Amount on each line is the same as the Owing Amount on each line
  14. Click on OK
  15. Click on Yes
  16. Delete any 0.00 valued GST Line
  17. Any variance will be shown on the last line. Select the General Ledger Account for Import Charges Variance

 

Close and post the batch


If you have any queries regarding Importing Inventory (From Overseas) in COSTAR, please contact the Support Desk.

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