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.

1 Introduction
2 On this page
3 How ‘day end’ fits into the overall process
4 The Day End process
- 4.1 What data is processed?
- 4.2 How is the data processed?
  - 4.2.1 VAT Status
  - 4.2.2 Sales values
5 Output documentation
- 5.1 Duty & VAT Demand
- 5.2 Duty Cash Deferment Report
- 5.3 Accounts Extract Files
  - 5.3.1 The Purchase Ledger file
  - 5.3.2 The Sales Ledger files

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

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. See: ATWD Data Interchange

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:
1. W6 numbers start from 1
2. W6D numbers start from 2000
3. W5 numbers start from 4000
4. 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.

VAT Status

Different VAT statuses are used depending on various parameters described below:

	Customer is supplier	Customer VAT registered	Owner changed in UK	Customer VAT number is the deferment owner VAT number	CWC is an EU country	CWC is GB	Stock receipt date

	Customer is supplier	Customer VAT registered	Owner changed in UK	Customer VAT number is the deferment owner VAT number	CWC is an EU country	CWC is GB	Stock receipt date
PVA
PVA							Before 1 January 2021
None due
Acquisition							Before 1 January 2021

PVA applied if:

Customer is VAT registered
Owner has not changed in UK
Customer VAT number (at point of stock receipt) is the same as the excise deferment owner VAT number (used on the order)
Stock is receipted on or after 1 January 2021
CWC is not GB

None due if:

CWC is GB
Owner has not changed in UK
Customer is the supplier

Acquisition VAT applied if:

CWC is an EU country
CWC is not GB
Customer is VAT registered
Owner not changed in UK
Customer VAT number (at point of stock receipt) is the same as the excise deferment owner VAT number (used on the order)
Stock is receipted before 1 January 2021

Otherwise VAT will be deferred.

Sales values

Sales values can be entered against order lines, these will only be applied (in place of the product / insurance / freight costs) when deferring duty to an account other than the stock owner’s.

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)

The Purchase Ledger file

This inserts purchase invoice entries into the accounts system for you, we will need a balance sheet nominal code to post the transaction to (this is not part of your trading accounts but form a liability until HMRC take the money/ customer pays you).
We will require a finance system account code for the HMRC account.
Many customers use the same nominal for both the SI and PI postings.

The Sales Ledger files

These insert sales invoice entries into the accounts system for you, on this basis most customers use a single balance sheet nominal code to post to all transactions into.
Your customers finance system account codes are held within VW Deferment
(these are technically not part of your trading accounts but form a liability until HMRC take the money/customer pays you).

If you use deferment surcharges then two Sales Ledger files are produced separating the Duty & VAT charges from your surcharges (retaining the W5/D or W6/D references on both).

Day End Processing (Bond)