Day End Processing (Bond)
Introduction
The day end process groups all outstanding excise duty transactions and allocates reference numbers to these, which are then used to generate HMRC’s W5(D) & W6(D) forms. These forms can be generated in the system although nowadays they’re not really used, instead the data is submitted electronically at a later stage.
Where customers within the warehouse used the warehouse deferment (“cash deferment” customers) and the duty is not prepaid in the Warehousing system, during the day end process “demands” will be sent requesting payment from those customers and this will also include the request for any outstanding customs duty.
At the end of the process, summary reports are generated and files are produced for the user to save and import into their accounts system to maintain accurate sales / purchase ledgers.
How ‘day end’ fits into the overall process
There are a number of steps that a Bond user would typically follow surrounding Day End and they should be done in a particular order.
Step No | What do to | Notes |
---|---|---|
1 | CDS Data Interchange | For customs approved warehouses only The submission of customs declarations (to pay customs duty) are handled in these modules. If your system is configured to demand the HMCR customs duty value (accurate) instead of the value calculated by the Warehousing system then this step should be run first, otherwise you can skip to the next step. See: CDS Data Interchange |
2 | Duty Deferment Adjustments | ESSENTIAL THAT THIS IS RUN BEFORE DAY END …if there are “cash deferment” customer transactions which you wish to defer to the the warehouse deferment account and produce a W5D instead of a W5 for immediate payment. See: Duty Deferm........ |
3 | Day End Processing | The process described on this page |
4 | ATWD Data Interchange | To submit the Excise & VAT data to HMRC. |
The Day End process
In this screen the user enters the Site Code and clicks the ‘Process Day End’ button and repeats for each site. This will:
Prepare all of the data as mentioned in the Introduction
Sends demands to any cash deferment customers (a re-charge of the Excise & Customs Duty & VAT)
Generates the sales & purchase ledger files to import into the accounts system
Payments are NOT submitted to HMRC here, that is the next stage, see ATWD Data Interchange.
What data is processed?
All unprocessed customs & excise transactions up to but not including the current day.
How is the data processed?
Although it's usually run daily, it's not compulsory to do so and the system will group the movements for each day as per HMRC guidelines.
“Day End Document Numbers” are assigned to the Excise movements. Reference numbers are unique in the year to each site and the format is MM/INCR (MM = Month number of the movement (01 for January, 12 for December), (INCR is an incremental number). Each month the incremental numbers are reset:
W6 numbers start from 1
W6D numbers start from 2000
W5 numbers start from 4000
W5D numbers start from 6000
Duty & VAT Demands are sent to each of the deferment owners for the excise movements with numbers allocated above, these demands also include any customs duty charges not already sent to the deferment owner.
A Duty Cash Deferment Report is generated, stored, and displayed to the user.
If you're licensed for this feature, Accounts Extract Files are generated for easy import into your accounts system.
Movements older than 2 months are archived.
Output documentation
Duty & VAT Demand
An example of the Duty & VAT Demand can be seen below:
The "Surcharge %" column is only displayed if surcharges are applicable, otherwise hidden
Certain free text lines on this report are configurable, contact support for assistance.
Duty Cash Deferment Report
An example of the Duty Cash Deferment Report can be seen below:
This report will be produced if you have customers using the warehouse deferment account; those are cash deferment customers where prior to running the day end you moved them to use the warehouse deferment
This is used as an entry document if you do not have the accounts extract or a checking document if you do.
Accounts Extract Files
For cash customers charging the warehouse deferment you can output a file in several accounts import formats allowing you to import into your finance system instead of entering manually from the duty cash deferment report.
This requires a license, if your system does not have the license then these files will not be generated. File formats are supported for the following accounts systems:
Sage Line 50
Sage Line 200
SUN Accounts
Multiple .CSV files can be output:
The Purchase Ledger postings file for the cash deferment transactions
The Sales Ledger postings file for the cash deferment transactions
A separate Sales Ledger postings file for the cash deferment surcharges (if there are any using surcharges)
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