Stock adjustment: Beer Lost, Duty Paid option

We occassionally have gaps in our stock that are probably down to human error. Wrong orderpicking etc.

These following stock adjustments require duty to be paid as the products are probably in the market. Currently when manually adjustng the stock there is the beer is lost option, which I think means beer is bad/destroyed and no duty has been paid.

An additional Beer is lost Duty Paid option would be very usefull in appeasing a strict duty officer

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Are there any thoughts on this?

It’s not strictly “lost” beer is it. We just don’t know where it went :slight_smile: Or who drank it.
For us, while it’s not a big issue, we assume they’ve gone to the taproom (does occasionally happen). Effectively, this means we have the taproom customer as a dumping ground for missing duty-liable stock. So the duty gets paid.
As a workaround, you might have a “Lost” or “Missing Stuff” customer, with a 100% discount.

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What do you call your keys when you don’t have them, can’t find them and don’t where they are then?

Obviously there are work arounds - have been working around it up untill not and in my pre-breww years and kinda done with these. An official option is better though as you can log/report on it better, don’t have it obscure your sales orders and/or personal/sample/taproom use of stock.

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What do you call your keys when you don’t have them, can’t find them and don’t where they are then?

Stolen?

Seriously, for the purposes of duty, I think, here (UK) at least, it’s a “loss” if it’s duty suspended and there’s a satisfactory explanation. Once past duty point, i.e. if we think it’s gone out the door, and it doesn’t come back spoiled, then it’s not a “loss” from the pov of the Excise. Even if we don’t know where it is.

I would be nice if Breww had a way of simply representing these exceptions though, I agree. "lost Duty Paid " isn’t what I would call it. It doesn’t seem to agree with the Excise terminology, and might be confusing because of that.
Oh [EDIT] “Losses of duty paid beer” is precisely what notice 226 calls it. I take that all back. Sorry. I should have read that first. You’re right. This should be an option.

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This is important. The FR title is insufficiently scary - Breww is mishandling duty here.

HMRC guidance states: “Normally there is no duty relief in respect of alcoholic products which are lost after it has passed the duty point.” (See: Alcoholic products technical guide - Section 14 — irregularities, losses and deficiencies in approved premises - Guidance - GOV.UK )

Marking a container (and its contents) “lost”, if it’s past duty point, shouldn’t “normally” generate a duty reclaim. “Spoilt” is maybe another matter.

While, of course, we can make a manual adjustment (or just ignore Breww when we complete the duty return) that’s not an ideal solution. Far better would be for Breww to follow HMRC guidance in the first place.

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Breww knows when a container is duty-paid, so we shouldn’t need to select another option when marking a container “lost”. The issue is the duty reclaim when there shouldn’t be one.

Would that be a different FR?

(Looks like I’m arguing with a past self here :slight_smile: )

Hi all! We’re working on adding some configurability here to handle the different ways breweries understand and utilise the terms “lost”, “spoiled”, and “samples” when removing stock from Breww, and we expect it to be live next week.

You’ll be able to choose whether Breww reclaims duty already paid on stock you record as lost, spoiled or used for samples. You’ll set your defaults in a new “Lost and spoiled stock” section of your duty settings, and you’ll also be able to override them on an ad hoc basis under “Additional options” when you reduce stock.

We’ve made it a setting rather than a fixed rule, both because not all breweries use those types in the same way or align them with HMRC’s categories (or any other tax authorities), and also because HMRC’s guidance lets you offset stock losses against surpluses where they’re related (section 14.5) - which Breww isn’t always able to know applies, so this way you can set both your default and override them when you know exceptions apply.

Stock takes will have their own separate default for the same reason, since stock that turns up in a later count that might be related is added back duty-suspended and pays duty again.

We’ll update this thread once it’s live!

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