Customs Import Variance Analysis
The variance analysis report is specifically a customs-import-vs-sales reconciliation tool. It compares C7 customs import data against sales revenue to identify discrepancies, calculate gross margins, and flag potential compliance issues - including reconciling VAT Return Box 14 (import VAT) against actual C7 entries for the period.
This report is not a generic VAT period-over-period variance tool. If you need broader period comparison, see the Custom Report Builder (which includes a PeriodComparison report type).
Accessing the Report
Navigate to Reports > Variance Analysis.
Running an Analysis
- Select the Period Start date
- Select the Period End date
- Click Run Analysis
Summary Cards
After running an analysis, three summary cards display:
C7 Customs Imports
- Total import value
- Number of customs entries
- Import VAT calculated
Sales Revenue
- Total sales value
- Number of sales transactions
- Output VAT collected
Gross Margin
- Margin percentage
- Anomaly warning if margin falls outside normal range
Attention Flags
The report groups attention flags by severity:
- Critical - Issues requiring immediate investigation
- Review - Items that should be examined
- Warning - Potential concerns to monitor
Each flag shows:
- Description of the issue
- Recommended action
- Number of affected items
- Total value involved
Category Variance Table
A detailed breakdown by category showing:
| Column | Description |
|---|---|
| Category | Transaction category |
| Import Value | Total import amount (with entry count) |
| Sales Value | Total sales amount (with transaction count) |
| Variance | Difference between imports and sales (+/-) |
| Margin % | Calculated margin with anomaly badge if unusual |
VAT Reconciliation
A summary reconciliation showing:
- Box 14 (Import VAT) - VAT paid on imports
- Output VAT (Sales) - VAT collected on sales
- Net VAT Position - Whether you owe VAT or are eligible for a refund