Allowance Price Calculation - (By Manufacturer)
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Eric Kalpakoff
Crestron dealers got an email today that states:
"The Tariff Surcharge will initially be set at 12% of the total gross amount of all hardware items included on each invoice, prior to the application of any discounts, sales tax, or shipping charges, but will not be applied to services and software subscriptions."
We are looking on how we want to handle this, but this is a huge can of worms. We now need to, per project, manually calculate a 12% surcharge on these items specifically starting May 1st. We can group the Crestron BOM items affected by this surchage into their own location or system and add an allowance that calculates the 12% surchage, but that then breaks any other groups that we would want/need for quoting/sorting purposes.
So at first glance, an allowance that can calculate based on 'Manufacturer' would solve this problem, especially if we have multiple manufacturers that have a similar model but different percentages, each can have a different allowance and calculation percentage.
I am open to other methods, but this is my first thought. Would appreciate feedback from DT if this is a legit feature request or if another method is more appropriate. Seems like just raising all costs by 12% isn't appropriate either as the item costs we would get from the manufacturer and ultimately through vendor syncing would not include this surcharge as Crestron is stating that the surcharge will be a line item on the invoice rather than a price increase on individual items.
Randall Starr
I need to look at creating a Price Rule for this. We should be able to create one for each tariff and then apply it in the project.
Still messy though
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Paul Cunningham
Randall Starr if you go this route just know that you're not going to be able to tell if you've applied the tariff to your item's Cost unless you reference it against the Purchase Cost. Might be a good idea to use a custom field to track it.
Randall Starr
Paul Cunningham Good point.
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Paul Cunningham
I posed a similar question on the forum. I'm exploring potentially using the Use Tax feature to cover tariffs, and including the use tax in the margin/markup calculation. My primary concern is how those numbers can display on our existing reports and how much effort would be needed to update the reports to show it satisfactorily and how it would affect our Catalog.
Another option I'm looking at is a non-taxable calculated equipment line item as an accessory to each affected product. Like the use tax this would allow it to sit in any location or system and have whatever % charge the specific item requires.
In either case I'm trying to be prepared for the possibility that every manufacturer may apply a different tariff surcharge, it may not apply to every product from that manufacturer, and a single manufacturer may apply a different surcharge to different products.
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Andy Frazier
Agree, and also curious if others recommend an alternate method?
Our example - during pandemic we had one vendor in particular that we had to hand calculate tariff on their materials. And as the vendor passed along price increases throughout the year, tariff was not built into the cost sheets they were providing to us. This same vendor provides project specific discounts. In order to refresh older proposals and verify discounts are applied correctly to materials costs to current vendor portal pricing, we kept tariff as a separate line item in each proposal and hand calc'd at each update. If we had simply added in the additional tariff % increase into updating all of this vendor's materials in our catalog, we would not have a clear and concise validation of updated cost & discount on each part number. This particular scenario applies to roughly 60% of our proposals.