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:
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.