How To Add Tariffs To Sage 100cloud Purchase Orders and Sales Orders

Tariff Management With Sage 100cloud

The recent governmental activity has increased the likelihood that distributors who import goods from certain overseas countries will be assessed with a tariff.

While Sage 100cloud doesn’t have a native way to handle the tariffs your business may pay we have discovered the three most common methods consultants use to capture this new tax.

A tariff is a tax on imports or exports between sovereign states. It is a form of regulation of foreign trade and a policy that taxes foreign products to encourage or safeguard domestic industry.

Option 1: Use Sage 100cloud Landed Cost

The first option for managing tariff charges is to apply them using the native landed cost within Sage 100cloud.

Sage has a set of instructions on how to set up landed cost in Sage 100. This can be a quick and easy way to make sure all extra costs of import – including tariffs – are added to your product costs.

Using the standard Sage landed cost functionality you are able to allocate costs across your purchased items in one of four methods:

• Weight
• Cost
• Quantity
• Volume

Option 2: Use Scripting With Purchase Order

The second option which some companies have used is to create customization within their inventory items to:

• Add a checkbox for “subject to tariff”
• Add a field for “tariff percentage”

Then, using scripting, whenever an inventory item is placed onto a purchase order the system adds a separate miscellaneous code which contains the computed tariff for the line item.

Some companies have asked for this enhancement to make it easier to view the total tariffs charged.

Option 3: Use Scripting with Purchase Order and Sales Order

Lastly, a number of companies are using option 2 as well as creating a separate line charge on the sales order invoice to pass along the tariff amount to customers.

This separate line charge is similarly created using scripting which automatically adds a miscellaneous charge to any inventory item flagged as subject to the tariff.

The benefit of this method is the charge is separately stated so a customer can see that there wasn’t a random price increase.

Lastly, instead of using scripting to add a separate line item some users have opted to simply increase prices of the items subject to a tariff.

There are also various third-party solutions which can enhance the Sage 100cloud landed cost functionality.

No matter how complex your Sage 100cloud tariff situation, there are solutions – either built-in or custom – which can save you time processing shipments that include this new tax.

For more information on Sage 100 Tariff Management contact us here.