Is there anyone out there using Epicor/Kinetic to calculate “Deductive Values” of product that is transferred within the same company from the USA to Canada in order to create the Customs Invoice required at the border that is then used to determine both the Tariff that you will be charged as well as the estimated tax you are expected to collect from customers when you sell the product within Canada?
The product is manufactured and owned by us within the USA.
We have a distribution warehouse within Canada.
We use Transfer Orders to send the product from our location in the USA to our location within Canada.
Shipping product across the border requires a Customs Invoice even though we are not selling the product to a customer yet. The values on this Customs Invoice determine the tariff fees and a base GST tax owed to Canada.
When the product is sold to a customer, we collect Canada taxes from the customer based on the territory.
At the end of every quarter, we must report what we actually collected compared to what we paid when the product crossed the border.
The “Canada Deductive Value” is an interesting formula involving Most Common Price (MCP) and various anticipated expenses such as Commission and Freight.
Is there anyone else out there doing something similar that has already built a solution?
Thanks in advance,
Tim Sodowsky