Adding tariffs to sales orders can significantly impact businesses involved in international trade. Understanding how tariffs affect pricing, supply chain dynamics, and customer relationships is crucial for companies aiming to navigate the complexities of global commerce effectively. This blog explores the considerations and practical steps to integrate tariffs into sales orders seamlessly.
When wanting to add tariff charges to sales orders, there are three options to do this:
3 Different Ways to Add Tariff Charges to a Sales Order
1. Sales Invoicing Element
- This option is a “footer” charge on the Sales Order and is applied to the entire sales order.
- This may be the best approach if the tariff charge applies to the entire Sales Order and not specific lines.
Go To: Setup > Sales > Invoicing Elements
- New invoicing element created for Tariff Charges
- Can setup / configure specific GL account for the invoicing element by customizing accounting code
- Can be dollar amount or % amount
- Use "Element position" to add to specific screens (Customer, Sales Order, Delivery, and Invoice)
- Added to the invoicing element section of the Sales Order screen as an amount (increase).
- Additional charge added to the footer section of Sales Order
2. Sales line level charge via price structure
- This option is a “line-level” charged on the Sales Order and is applied to individual sales order lines.
- This may be the best approach if the tariff charges applies to specific sales order lines and / or products. Or, if the tariff charges are tracked at the line level.
Go To: Setup > Sales > Price Lists > Structures
- New price structure code added
- Note—this can be tied to the invoice element above and posted to the specific GL account configured in the invoicing element, if needed.
- Can be dollar amount or % amount
- Discount / charge field(s) must be set to “entered” to sales entry transaction screens
- This price structure can be referenced in a sales price list to setup default tariff charges for specific products, customers, etc.
- Will default if it is set up in a price list and the parameters are met
- Example price list setup below:
- Added in sales order lines (below):
3. Tariff charge product
- This option can be used if you would like to add the tariff charge as a miscellaneous service / non-inventory product on the line of a sales order.
- This is like the invoicing element option mentioned above (Option 1), however, it is displayed on the lines instead of in the footer section of the Sales Order. Both options work, and the tariff charge details can be added to the Sales Order acknowledgement crystal report for customer reference, if needed.
- Added as a separate line / product within the Sales Order lines screen
Reach out to RKL eSolutions with questions about adding tariffs to your sales orders.
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