Tariff Calculation

Tariff Calculation

The tariff calculation must be executed manually on a document, or it occurs automatically during the transfer process. To calculate a document in Sales Transaction Entry go to Additional >> Recalc Tariff (CTRL + 6 is the hotkey).

The tariff can also be recalculated/applied for a Sales Batch from the Sales Batch Entry window.  Select the Batch then go to Additional >> Recalc Tariff (CTRL + 6 is the hotkey).  Only orders will be processed and any locked documents will be skipped (i.e. they are open in a window).

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

  • If the Item Number does not exist in Item Maintenance it is skipped
  • If the Scope is global it gets the Tariff Method and Multiplier from Tariff Setup then calculates tariff based on the Cost, Item Weight, or Price. Everything below pertains to the detailed calculation.
  • It gets the Item Country and Weight
  • It gets the Country Tariff Detail. If it is excluded it moves to the next sales line.
  • It gets the Vendor Tariff Detail. If it is excluded it moves to the next sales line.
  • It gets the Item Tariff Detail. If it is excluded it moves to the next sales line.
  • It gets the Customer Tariff Detail. If it is excluded it moves to the next sales line.
  • It determines which calculation method to use:
    • If a Customer method is specified it uses that, next
    • If an Item method is specified it uses that, next
    • If a Vendor method is specified it uses that, lastly
    • If a Country method is specified it uses that
  • NOTE: Customer, Item and Vendor can have an ADDITIVE method specified, which is a set dollar amount per SOP Line Quantity. The Additive amounts are added in later in the calculation
  • If no Tariff Method is identified from the above steps the process skips to the next sales line. NOTE: Additive charges cannot be used alone, there must be another tariff calculation method, such as at the Country level. Country is not allowed to be set as an Additive tariff.
  • BOM Source
    • If the Tariff Method is % List Price no BOM is used
    • Based on the setup options that are enabled it checks for an assembly in the order shown below. It uses the first one it finds. 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.
      • MFG BOM
      • INV BOM
      • INV KIT
  • If No BOM Source is used tariff is now calculated:
    • % Value = Tariff% * ExtendedCost
    • Specific% = Tariff$ * SOPLineQuantity
    • Weight$ = Tariff$ * SOPLineQuantity * ItemWeight
    • %Price = Tariff% * ExtendedPrice
  • Additive Charges are added in

The total for the document is rounded using the decimal setting from Tariff Setup.

The SOP Line Tariff is divided by the SOP Line Quantity to get back to a per unit fee. This is saved in a companion table to the SOP Line (SOP10200). The SOP Line Tariff Table is:

W7136SOPLineTariff

  • SOP Type
  • SOP Number
  • Line Item Sequence
  • Component Sequence
  • Country Code
  • Tariff Method
  • DecVal (dollar or percent, depending on the Tariff Method)
  • Unit Cost (the per item fee)

If tariff is calculated on an Order which is then transferred to Invoice, a copy of the Sales Line Tariff information comes over to the Invoice. The tariff on the Invoice is then recalculated using that information. This ensures that the calculation reflects the tariffs at the time the order was created.