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Tracking Tarriffs on Inventory Purchases

  • 1.  Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 12:18
    A customer emailed: 

    We are beginning to see tariff's on purchased goods, are companies finding it of value to track this cost and if so, how do you recommend we set this up.

    I'm sure a few people have already encountered this. How are you tracking the cost?

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 2.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 12:20
    Isn't that what the Landed Cost feature is for?

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 3.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 12:36
    That's what I've been using

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    Beth Bowers
    Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
    Beth Bowers
    269-445-1625
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  • 4.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 12:24
    We created a script that handles tariff's within Purchase Order Entry.​

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    Shannon Sadowsky
    RKL eSolutions, LLC
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  • 5.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 12:43
    @Shannon Sadowsky - What exactly does your script do?  Increase the PO Cost of the item, charge the tariff to a separate GL account? ​

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    Jeff Schwenk
    FORMER 90M Board Member
    Bottomline Software, Inc.
    Waynesboro VA
    540-221-4444
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  • 6.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 12:48
    @Jeff Schwenk The latest request had us build the following:

    UDF Checkbox for "Apply Tariff" in Inventory Maintenance

    UDF for Tariff Percentage

    The client then preferred that at the time of Purchase Order Entry, if the item is selected for "Apply Tariff" (and this could be unchecked at the time of entry) and entered as a line item, the script would be triggered to enter a misc item at the line below that item with the calculated amount.  They wanted to track individually and they may want us to eventually track the total of all misc tariff lines.​​

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    Shannon Sadowsky
    RKL eSolutions, LLC
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  • 7.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 13:02
    We have done a similar script for a client on the Sales Order Invoice side (they charge tariffs to their customers). 
    We have not had to deal with this on the PO side yet but I like the idea of using Landed Cost for this

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    David Overholt
    DWD Technology Group
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  • 8.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 13:04
    We've done almost exactly what Shannon is describing.

    Initially, our solution also applied tariffs in a similar fashion in Sales Order, so they could keep prices constant, but the customer ended up increasing prices (slightly) instead and absorbing some of the cost.

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    Eric Lunceford
    First Mate Business Solutions
    Oklahoma City, OK
    877-880-8960
    https://www.firstmatellc.com/
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  • 9.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 13:06
    We did the same thing on our script with the misc code. Also, the client asked us to add a script to write a tariff misc code in Sales Order for any items that had the tariff (Inventory UDF). 

    This way, they could show the tariff items to their end users.

    Thank you
    Michael



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    Michael Davis
    Warren Averett Technology Group
    Birmingham, AL
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  • 10.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 13:40
    I know of at least one client using the Sales Tax functionality.

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    - Brett
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  • 11.  RE: Tracking Tarriffs on Inventory Purchases

    Posted 08-12-2019 13:46
    A tariff has a HSN code for a product.  Landed cost is preferable so the item gross profit and commissions are calculated correctly.  Off-the-shelf Sage 100 doesn't handle this well if there are multiple items with different tariffs on the same PO.  IIG has the Allocated Landed Cost add-on that allows the user to specify the HSN code in item maintenance.  In HSN code maintenance the tariff rate can be specified.  There may be other developers that have landed cost add-ons.

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    Doug Higgs
    Assistant Technical Support / Building Maintenance Specialist
    Midwest Commerce Solutions, Inc
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