There are likely many questions that your organization is facing in these challenging times. We're here to help you navigate the options that are available in WebSeries.
There are two sides to the Tarriff question as it relates to Modular ERP:
Sales
Purchasing
Sales
Let's discuss two basic scenarios.
Scenario 1: Pricing
This scenario involves changing your customer pricing. If you were charging your customer $100, the addition of a 25% tariff would raise the price to $125. This price increase should then be balanced with a cost increase, either on the Purchasing side or via Custom Costing.
Scenario 2: Invoice Addon
There are many things to consider when it comes to price/cost changes:
Which customers are affected by the cost change?
How is profit affected?
Have costs actually changed?
How do I make the tariff cost more transparent?
In this case it may make more sense to use an invoice addon. The additional charge is applied at invoicing and is transparent to your customer.
Purchasing
You may be facing additional purchasing costs above the regular purchase price. Let's look at ways to deal with this.
Duty Codes
The vendor must have a Currency Code set in order to use a Duty Code. If you buy from a vendor in CDN currency - and duty is applicable - the CDN currency would need to be created and used for that vendor. All items purchased would require a Duty Code on the Stock Vendor record.
Use of Duty Codes supports reconciliation of Broker invoices, with the duty posted when goods are received.
Extra Codes
Extra Codes can be set for both domestic and foreign currency vendors, and can then added to the Stock Vendor record. The extra value will be added to the cost of goods when they are received.
This allows you to keep duty as-is while recording tariffs as a separate value. Further, you can capture tariff costs for domestic currency vendors. However - you may need to manually reconcile variances between the extra value applied to received goods versus the tariff charged on your broker invoices.
How can we help?
We encourage you to reach out to our Support staff to discuss your needs in detail. Our software has a range of standard tools on both the Purchasing and Sales sides, and we have over 40 years of experience in creating customized solutions tailored to your particular need.
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