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| Tip |
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You do not have to be holding stock in the warehouse to record a deferment account. You can have a deferment account which can be used for “duty deferring” this is when the stock holding customer is charging an alternative customer for the duty. |
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Deferment Account
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Options
There are three options
When adding a new customer the CREATE button appears on the BOND tab
The Create Menu from the menu options allows you to create a new deferment manually.
If the deferment already exists then use the navigation menu on the right side and search for the deferment you want to look at or edit.
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Delete button - You will not be asked to confirm the deletion of the currently selected customer. |
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Deferments for Charging (No Stock)
If you wish to charge to a customer who is not holding stock in the warehouse this is known as “duty deferring” where you are charging the duty element of a duty paid order to an alternative customer.
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Field Name | Notes | ||
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Deferment Account | Generally this would be set to your customers account code where your using this for charging duty purposes only (and they do not hold stock) then use a suitable code to identify this account. | ||
Deferment Number | For Government duty accounts - this is the deferment number of your account. It is 7 digits long For Cash duty accounts - you will have a virtual account number here which the system generates which is seven characters long starting with your customer code followed by 4 number. | ||
Email Address | This is the address which is used to send the following information
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Cash Deferment (Virtual Accounts)
What is a cash deferment
This is a stock holding customer who does not have a real government deferment account, we provide them with a virtual account which is known as a “cash deferment”
Cash Deferments are generally produced on a W5 document for submission to HMRC and for payment immedaitely upon submission.
However within Vision Bond you will have the opportunity to move this cash W5 account to be warehouse keeper paid on the warehouse keeper deferment, in which case a W5D against the warehouse keepers deferment would be generated and submitted.
Using Cash Deferments
This area will only be available if the account you are setting up is a cash account.
The surcharge is the amount you will be charging the customer for the use of a cash deferment account.
Optional Finance extract is available - this is not a standard module, but where this is enabled the Vision Bond system will provide you (in addition to the paper report) an extract which you can then load onto your finance / accounting system, if you are using this option then the account code must be completed here as well as the nominal account code this transaction will use on the finance system.
The Direct Debit option - this will add On the customer record you need to ensure you have not ticked “Deferment Agreement” as cash deferment should not have this selected.
Cash Deferment Type Options
Options | Explanation |
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Credit | This is where you offer the customer credit for their deferment and will not be notifying them of payment collection using direct debit |
Direct Debit | This is similar to the credit option however this adds an additional notification onto the duty demand (which is created at Vision Bond day end operation) regarding the payment of the deferment by direct debit. |
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Pre- |
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Payment | configure a cash deferment for pre-payment, which results in all orders using the deferment being put on hold awaiting payment. The existing 'held order email’ has been updated to display the pre-payment required so users can generate this
Users can then take the order off hold once payment has been obtained. |
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| Warning |
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In order to ensure the duties paid are correct and do not change once the order is picked, these types of orders will result in a ‘soft pick’ which will pre-allocate rotations to the order based on the existing FIFO calculations at the time the order is saved, therefore saving of orders for prepayment deferments is more resource-intensive and therefore slightly slower. |
Surcharges
The surcharge is the amount you will be charging the customer for the use of a cash deferment account.
This is recorded as a % of the duty amount you are deferring on their behalf.
This amount is added to the existing duty and vat demand or the pre-payment demand for the customer to pay.
Optional Modules
Optional Finance extract is available - this is not a standard module
When this is enabled the Vision Bond system will provide you (in addition to the paper report) an extract which you can then load onto your finance / accounting system, if you are using this option then the account code must be completed here as well as the nominal account code this transaction will use on the finance system.
This will provide an output for the
Customer amount they owe for duty relating to the orders they have cleared
Customer amount they owe for the service charge
Supplier amount which you would be due to pay customs for the customer duty
Add Customer button
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By clicking the button the above form will open up allowing you to specify who can use this deferment account.
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and enter the appropriate information before pressing the ADD Customer button.
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Frequently Asked Questions
What to do if a customer runs out of credit on HMRC and wants to use a cash deferment?
Setup a Cash Deferment for that Customer marking the Stock holding accounts which will use it.
On the customer record, change the customer default account to the cash account WHEN YOU NEED TO CHANGE TO CASH DEFERMENT.
Return it back to the HMRC number whenever you finish using it.
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