Tariffs and sell prices

Kinetic ERP
1

Hi all,
I’m interested to know what methods others may be adopting to account for the tariffs currently being applied to goods going to the US and in particular how you are translating this to your sell prices. It seems the political environment is in a state of flux at the moment so these tariff rates could change significantly in the near future.

Up until now we generate our sell prices based off a cost x margin dashboard.

I’m thinking we’ll need to include the tariffs incurred as a material burden and that will flow through into our costs and therefore sell prices.
However I’m aware of one of our suppliers that are showing their sell prices as the same, and the tariff as a surcharge on their invoice. I like that this provides some transparency but not sure how we would implement something like this in Epicor.

I’m interested in how others may be handling these tariffs at the moment.

Thanks,
Ben

2

We use miscellaneous charges to pass this through.

3 Likes
3

We’re doing the same.

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4

same here

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5

I just wrote up a process in another thread.
This could seamlessly make your charging your customer straight forward.

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6

Thanks. I presume your users are manually determining the tariff charge to add onto the sales order. E.g. if the order is for 5 parts, and 3 parts have incurred tariff. They are working out what the tariff was for those parts and input the total as a misc charge?

7

Thanks, I presume your customer isn’t currently using the material burden for anything else, and that’s why you can separate it out on the invoice? We currently use the material burden to capture freight (landed) costs.

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8

The customer is buying components that go into subassemblies up to three deep.
As long as the enable cost components is checked in company configuration the cost will consolidate into its given type.

A miscellaneous cost is available when invoicing
You could do it at the salads order level by looking at the part cost too.

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