In today’s global economy, businesses often import goods from around the world and the use of bonded warehousing facilities is one way in which businesses can help to structure and manage the processes and requirements involved. A bonded warehouse is a customs controlled warehouse for the retention of imported goods until the required duty has been paid and there are a range of benefits for businesses who use bonded warehouses to hold imported stock.
Firstly, the use of such facilities can greatly aid cash flow as payment of VAT and import duties only become payable when goods are needed and not when they enter the country. Furthermore, it may be that goods held in a bonded warehouse are subsequently purchased by an overseas buyer, thus re-exporting the goods may mean that VAT and import duty are not payable at all. In addition, a bonded warehouse is a useful facility for bringing in stock early, to avoid peak season charges for example, or where there may be capacity limits on inward transport.
Whilst there are benefits to such a facility, there are also issues such as the requirement for detailed record keeping, full visibility and traceability of stock and the need for tight control over the allocation of costs. With stringent HMRC rules being applicable to the use of bonded warehouses, it is vital that information is clear, accurate and readily viewable in appropriate formats, so that accounts are reconciled correctly. Similarly, a robust system for transferring stock is necessary to manage demand and to ensure that all requirements are efficiently fulfilled.
OrderWise already provides businesses with a comprehensive range of functionality for effective stock control and warehouse management. Now this suite of software has been further extended with version 12.4 of OrderWise seeing a brand new Bonded Warehousing feature added. With this latest licensed feature, businesses can now effectively manage the warehousing of bonded stock with the visibility, cost control and accurate record keeping they need.
Introducing New Bonded Warehouse Management Tool
Using this feature within OrderWise, stock booked into a designated bonded bin will be marked and the net cost will be kept the same as the original purchase order line. For non-bonded stock the net cost will be recalculated to include the Duty rate %, Clearance rate % and Subsidy rate %. These bonded rates can be set up against supplier records and will be automatically added to a purchase order line when raising a new purchase order for that supplier. The rates can also be applied on an ad-hoc basis on the purchase order line itself for greater flexibility.
Providing clear visibility, bonded transactions can be viewed from the “Bonded Stock” grid in the Stock Module and from here they can be easily moved to a different bin. When bonded stock is moved to a non-bonded bin or adjusted out of stock, the record is moved from the Bonded Stock grid to the released stock grid where it can then be accurately and efficiently processed. When the transactions are processed, the net cost is recalculated to include the Duty rate %, Clearance rate % and Subsidy rate %.
Building on an already extensive suite of stock control and warehouse management functionality, this useful new Bonded Warehouse feature caters for companies handling bonded stock in a structured, effective manner. What’s more, businesses can successfully manage HMRC requirements for bonded stock with the clear visibility and cost control needed.
More information on the comprehensive range of OrderWise Warehouse Management features can be found HERE.
Existing users can contact the Client Services Team on 01522 704083 for more information.