Handling of Import Duty can be broken down into a few steps :
Step 1 : record Import Duty payable ( compulsory )
- this can be done by SINV
- Dr Import Duty ( expenses )
- Cr custom ( current liability )
Step 2 : record payment for Import Duty ( compulsory )
- this will be done by PV
- Dr custom ( current liability )
- Cr bank ( current asset )
Step 3 : increase MA based on Import Duty (optional)
- this will be done by Reset MA ( either manually or by specifying Import Duty during GRN)
- Dr inventory ( current asset )
- Cr Import Duty ( expenses )
- it is to allow for Import Duty to be realized only upon Sales as part of Inventory Cost, rather than 1 lump sum as expenses
So, as you can see from the steps above, if user were to do Step 1, 2 and 3, but later perform PR ( which will revert the Reset MA done in Step 3 ), Import Duty should still be recorded correctly (as expenses).