I know this is a really vague question, but I don’t understand the details so it’d kind of intentional… I’m told we are struggling as depending upon when orders are firmed and when parts are received a tarrif applies and the rate changes based on date. So we can’t say the tarrif is $x for part y, instead it more like if date is a tarrif is $b for part y, but for the same part after date c the tariff is something else. I understand it’s important we know from an accounting standpoint how much the tariff is for a given delivery/order…
The only date that matters from a tariff perspective is the day in which the goods arrive on shore and clear customs. That’s the “rate” you pay when you become the official importer of record.
You should get a tariff bill from CBP (very rare these days to self service this) or your Freight Forwarder (more likely) if you are using one.
I’m not sure if that helps at all or if I missed what you are trying to do.
That’s correct, sorry I didn’t say that… We are trying to know the tariff cost so we can pass it on to customer, right now we’re struggling with what to charge who…
So say we know what the price is for a part(since part prices vary over time for different reasons, tarriffs being one reason). I think there are different ways in Epicor to account for this. So say we buy 100 of a part and it’s more expensive than when we buy 1000. I think there was like a FIFO where as you use the parts, say the first 100 that get pulled the cost reflects the 100 piece pricing we paid, and the next 1000 use the 1000 piece pricing we paid. Is my memory right, and if so what is the term for this(average cost vs FIFO costing or something)?
So you are saying COST… not Price right? these two a different… You said you wanted to pass on to the customer (that would be Price)
COST → You pay to supplier (not customer facing)
PRICE → Customer Pays you, not directly affected by your COSTS
So I’m not 100% following there are different costing methods in Epicor (for COST not price) and this is not going to affect the pricing that’s the part that I’m not understanding on your side.
You can setup the part as
Average Cost → Which takes an average of receipts over time for this part to keep the cost
FIFO → Assumes that you always ship the oldest available receipt and uses that COST as the cost of that shipment / invoice.
Last Cost-> Updates all the parts to use the last cost regardless of age
Lot Average Cost → Same as average but it is based on the Lot of the Part
Lot FIFO → Same as FIFO but uses the oldest receipt for a given lot as the cost
However none of these are going to affect the price of the part that’s the piece that doesn’t make sense. If you want to affect PRICE (Customer facing) based on Date / Time you can use a Price List where you can set an effective date on prices and based on the Order Date the price will be used
Jose you are awesome, sorry as you can tell keep me away from finances
As our costs vary(the price we pay) we want to pass the delta on to the customer via a price increase.
Thanks so much for breaking this all down for us! I just got wind our finance / operations team is working with a consultant to help us solve this problem. Unfortunately he’s telling us since we transfer parts to our CM(they build the product for us), there is no standard solution to what we want to do and we are going to have to build something custom - Ouch!
Seriously thank you @josecgomez the amount of times you have helped me is unbelievable from setting up authentication to finance configuration of Epicor you seem to have a breadth and depth of knowledge that is quite hard to find and you also are so quick to help others!
Tarrifs, interesting topic. Joshua Bardwell had a good YT video on how it is effecting the rc hobby market and why they up the price early rather than ran out all their stock then up the price…
Essentially regardless of cost method, your business has to make a decision, when and how they are going to charge your customers.
Capturing the costs in Epicor, really depends on if you have the Landed Cost licence or not. There is a pretty good recent Webinar on the Landed Cost module in yhr Epicare KB also.
We have been doing this as a separate billing since 2018. I hold the per unit tariff on the partlot record and when we ship a job I have a routine that goes thru from the sales order invoice to the material used and then invoices the per unit tariff used for the shipment.
We do not want our prices to customers impacted by tariffs for competitive reasons, so they are only billed actual since we don’t know where the components we get will have been produced.
