What is Deferments
A Deferment account is an account that a customer uses to record the duties for goods which need to be paid.
There are two types of deferment accounts
Government provided account - where you have your account setup with the relevant tax body and you pay them directly.
Cash account - where the warehouse are paid the duty and they will then transfer payment to the government on your behalf.
When setting a stock holding customer up in VW you have to determine whether they have a government account for deferment or they will be using cash, this is on the Customs tab of the customer setup and the field is called “Deferment Agreement”
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.
Accessing the Deferment Account Option
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.
When you open the deferment account form you should see something similar to the example below.
The above example shows the setup of a deferment account which is being used to allow stock holding customer AMA to charge the TESCO deferment account.
Once the Deferment Account details have been entered you need to add the Customers that can use this Deferment Account.
Those will be added either as
“OWNER” where you are the stock holder and owner of the deferment
OR/AND
“Customer using deferment” where the stock holding customer can charge this account with the duties.
It is possible to have multiple Customers using the same Deferment Account.
Delete button - You will not be asked to confirm the deletion of the currently selected customer.
Field Use Information
Most fields in this section are self explanatory however please note the following fields
Field Name | Notes |
|---|---|
Deferment Account | Generally this would be set to your customers account code or if this is a charge to deferment only 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
|
Cash Deferment
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 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.
The Pre-payment option - 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
Manually from the held orders screen
Automatically by the Scheduler service.
Users can then take the order off hold once payment has been obtained.
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.
Add Customer button
By clicking the button the above form will open up allowing you to specify who can use this deferment account.
This is the instruction as to who will be able to charge the deferment, you will need to enter the customer code and customer name and then you need to decide whether this is a “Owned” or “Customer using deferment” addition to this deferment.
If it is an owner then nothing else is required and you can ADD customer.
If it is somebody using the account then based on the C1207 form you have you need to decide
Unlimited use (C1207N)
Specific dates use (C1207S)
and enter the appropriate information before pressing the ADD Customer button.
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.
Under no circumstances should anybody be given the warehouse keepers' own account as their deferment.
Doing so will cause your W5D and ATWD to reject.
Some examples of Deferment account setup:
The Deferment account VINCER is used by the Stock Holding account VINCER (the codes can be the same).
If VINCER has a second account this can also be added into the Deferment Owners, they MUST own the Stock.
If VINCER give another Stock Holding Customer permission to use this Deferment then they MUST appear in the section marked "Customers using the deferment"
The Stock Holding account VINCER must only appear on this HMRC Deferment account.
In the current version, you can have VINCER setup on other accounts as Stock Holder, this is WRONG.
However, you can have them on a Cash Deferment for times when the Customer is in need of additional credit (e.g. Christmas).
This will be restricted in a later version as it can cause issues if added to multiple REAL Deferment accounts.