These are modeled as Taxes in Cetec ERP, meaning you will follow the same Tax Authority / Tax Group setup for Tariffs.

Prerequisite Data:

• HTS codes
  • In Data Maintenance (Admin>Maintenance>Data Maintenance), go to the HTSCodes table, and create the codes needed for your parts and components
  • Part Record: you can enter the HTS, description, and Schedule on the edit screen of any part
• Country of Origin
  • First, setup the AddressCountry data maintenance table, under Admin>Maintenance>Data Maintenance. Verify the countries you need exist; create them if not.
  • Then, make sure COO is captured on your part records.
    • This can be stored at the Warehouse level of a part as a default
    • It can also be stored per PO receipt in the bin-level

Modeling Tariffs as Taxes:

1. Setup Tax Authorities
   • This is where the amount, based on flat rate or percent, is determined.
   • You will (likely) want to set up a Tax Authority for each HTS / COO combination you need/want to support. This is a lot of data, but gives you significantly more control and ability to leverage full functionality.
2. Setup Tax Groups
   • Create a Tax Group (Admin>Data Maintenance>Tax Groups), and link the correlating Tax Authority.
   • Set a Country of Origin and the Tariff Code
   • Other fields you may want to set:
   • Apply to Non Taxable: this overrides the non-taxable setting on orders so that the tariff can be applied
   • Include Components: this will pull the tax group for components of BOMs from the first level. Otherwise Cetec ERP only looks at the sellable item on the order line.
   • GL Account: you can use your Tariff Capture GL Account rather than a defaulted Tax Expense account.
   • Prcpart: You can apply the tariff to a specific part or group of parts with a wildcard rule eg: PRT% or %-123.

Once all of this data is set up, when you have a component on an order that has the HTS / COO combination from the Tax Group qualifiers (or any other qualifier), Cetec ERP will grab that tax group (and rate) and attach it to the order line.

A few important notes:

• COO will use the parts default (in the warehouse section) if you dont have a bin-level COO defined. And, until a part is picked Cetec ERP will use the default cost and the warehouse COO; once a part is picked, Cetec ERP will leverage the actual cost in that bin and the COO, to pick the correct Tax Group to apply
• Line taxes will be auto-applied to lines on any order update, including when you invoice/ship the order. You will be able to make final adjustments to the invoices line taxes before sending the invoice to your customer. There is a Delete option on the invoice.