Tariff Calculation

Tariff Calculation

The tariff calculation is executed on a sales order by clicking Home >> Recalculate Tariffs.

The tariff calculation processes each line on the document separately, then adds the total to get the document level tariff.

GLOBAL SCOPE

  • If Calculate On = % of Subtotal, it calculates the tariff based on the Subtotal X Percent from Setup and adds a single TARIFF line to the end of the list of items.
  • If Calculate On = % of Line Item Cost, it calculates a per line tariff based on the Item’s Unit Cost X Line Quantity X Percent from Setup for each line and adds a single TARIFF line to the end of the list of items.
  • If Calculate On = % of Line Amount, it calculates a per line tariff based on the Item’s Line Amount X Percent from Setup for each line and adds a single TARIFF line to the end of the list of items.

DETAILED SCOPE

For each sales line it retrieves the Item-Tariff Code(s). For each Tariff Code assigned to the item:

  • If the Tariff Method is for Item Cost = It calculates each tariff based on the Item’s Unit Cost x Line Quantity X Tariff Percent.
  • If the Tariff Method is for Item Price = It calculates each tariff based on the Item’s Line Amount X Tariff Percent.
  • If a Tariff Amount is specified, the additional amount is calculated as Tariff Amount X Sales QTY X (Item Weight/Per Weight).
  • The Tariff Percent and Tariff Amount calculations are added together.
  • This process is repeated for each Tariff Code assigned to an item and the total dollar value calculated will be the tariff charge for the sales line.
  • If Use Production BOM or Assembly BOM is marked in Tariff Setup AND one or more tariff codes are NOT assigned to the sales line:
    • The calculation explodes the BOM and extends the quantities to calculate the tariff for each purchased part within the assembly. The total is rolled up to arrive at the finished good tariff.
  • If The Add Tariff As setting in Tariff Setup = One Line Per Document, then a single TARIFF line is added to the end of the list of items.
  • If the Add Tariff As setting in Tariff Setup = One Line Per Item, then a TARIFF line is added beneath EACH sales line.

In the screenshot example:

Scope = Detailed

  • 1920-S – No tariff codes assigned.
  • 1906-S – Unit Cost = $338.20, Line Amount = $867.20, Quantity = 2
    • 9403.20.00 – Unit Price Based, 10%
    • CA – Unit Cost Based, 100%
  • 9403.20.00 = $867.20 X 10% = $86.72
  • CA = $338.20 X 2 X 100% = $676.40
  • Total Tariff Value = $763.12

To view the value of each tariff line from in Business Central go to Line – Tariff Details.