I am currently working with a customer and determining the best practice to capture tariff costs.
We are looking at utilizing some standard functionality in Epicor to push tariffs through to the customer based on the “actual” cost.
The following is assuming that you are average costing your parts.
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When an invoice is received for tariff against a purchase order, the charge will be added as a miscellaneous charge to the purchase order and supplier invoice to track the expense.
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Using a reason code that will be for tariff costs (tied to a GL), the part costs will be updated to apply the tariff cost to all units in inventory as material burden. Following the average costing rule.
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When that material is issued to a job the material burden cost on the job will capture all of the tariff charges on that job into one bucket. When the job is received into inventory and subsequently issued to another job, the material burden will be applied to that job. At the end of the line, when the part is shipped to a customer, the material burden which has been collected by the various sources will be on the cost of sale and will be recorded in the InvcDtl.MtlBurUnitCost field for the invoice line.
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A line miscellaneous charge will be added to the invoice line based on the MtlBurUnit Cost.