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Evo-ERP and DBA Classic >> Items >> Tarrifs
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Message started by HarryA on 02/26/19 at 21:15:47

Title: Tarrifs
Post by HarryA on 02/26/19 at 21:15:47

Does anyone have suggestions on how to best include tariff costs? Should they be applied as a transaction against an item or as a general expense?

It would be great to have the item cost reflect the addition, but also be reportable as a lump sum (tariffs).

Thanks.

Title: Re: Tarrifs
Post by AllanMac on 03/03/19 at 18:31:17

Enter in Duty costs at IN-B in Duty or Freight in the Costs tab. Alternatively use IN-L-A. You need to specify where the freight/duty gets coded to in your GL

Title: Re: Tarrifs
Post by HarryA on 03/04/19 at 09:48:03

Thanks for the reply Allan.

This would end up only posting to the standard cost and not actual thought. Correct? It seems the duties vary for many reasons and therefore I'm questioning where to put it.

Title: Re: Tarrifs
Post by AllanMac on 03/05/19 at 15:34:07

That's correct, and works well if using standard costing for inventory. Not sure how it works if using average costing. If using standard costing, I would put our best estimate of cost in IN-B. It creates a credit entry on receipt of the goods to the GL account you nominated. Then when you get the charge from customs or your freight forwarder, you code that cost to the same GL code. You then just have a variance from month to month for the difference in your estimate and the actual cost.
Thankfully, where I am there aren't many duties imposed on our imports, but we certainly have variation in freight costs coming across the border. If the variation is significant, I then query or adjust as required.