These are modeled as Line Taxes in Cetec ERP, meaning you will follow the same Tax Authority / Tax Group setup for Tariffs. As of version 4.21, Cetec also allows you to automatically apply component cost based line taxes for BOM components on quote/order/invoice lines.

Tax Groups:

• Tax Groups now have a Tariff Information section. To view this section for existing groups, use the new version of the Tax Maintenance screen (Admin->Maintenance->Tax Groups), and click the edit icon for an existing group. This section will also be displayed when creating new tax groups.
• The Tariff Information section has three Qualifiers that the system will use to automatically apply a line tax for a part on a quote/order/invoice line, or for BOM components from the line.
  • Country of Origin:
    • Assign a Country of Origin (COO) to a tax group if you would like it to apply to parts or components that have the same COO defined on their Warehouse records or Bin records. Countries are defined in the AddressCountry Data Maintenance table (Admin>Maintenance>Data Maintenance).
  • Tariff Code (HTSCode):
    • Assign a Tariff Code (HTSCode) to a tax group if you would like it to apply to parts or components that have the same Tariff (HTS) code defined on their part record. These codes are defined on the HTSCode Data Maintenance table.
  • PRCPart:
    • This can be used with a wildcard character, to apply tax groups to parts whose prcpart matches what is set. For example, if you set prcpart to SMT2100% (the percent sign is the wildcard character), then any parts that start with SMT2100 will be eligible to have the tax/tariff charge applied. It can also be used to match to a specific part, if the wildcard character is not used.
• Qualifier Rules:
  • If a tax group has more than one qualifier set, then a part or component must match all qualifiers set for the tax group to be applied.
  • If a part matches multiple tax groups, only the most specific match will be applied. For example, if you have the same COO set on two tax groups, but one also has a matching Tariff code, then only the one with the matching COO and Tariff Code will be applied.
• Other Tariff Information:
  • Apply To Non Taxable:
    • Allows applying this tax group for line taxes for Non-Taxable orders.
  • Include Components:
    • Allows applying this tax group for component based line taxes.
  • GL Account:
    • You can use your Tariff Capture GL Account rather than a defaulted Tax Expense account

Component Cost based Tariff/Taxes

• Cetec ERP now allows you to apply component cost based taxes for both Stock and Build lines (transcode).
  • This requires the Include Components” checkbox to be checked on any applicable tax group
  • For Stock Lines, this requires turning on the Enable Component Taxes On Stock Lines configuration setting.
• Component Cost
  • Build Lines
    • At the quote level, the component cost will be pulled from the BOM quote worksheet. These currently only apply to direct children of the BOM on the quote line.
    • At the order level, when no parts are picked, the cost will pull from the default cost of the part. When picked, component cost will be calculated from the bin cost that the component is picked from. Picking a component will now automatically update the amount on a component based line tax.
    • Invoice level line taxes will be pulled directly from the order level line taxes, and will pull proportionately for partial shipments.
  • Stock Lines
    • Component cost is pulled from the component parts default cost for stock lines. Only direct child components are currently applicable at this time (direct child components of the parent bom).

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
  • 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
  • If the country you need to set is not defined on the Admin>Maintenance>Data Maintenance table already, you can add them there, and they will appear as an option to set on a parts warehouse records or bin records.

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 one or more qualifiers in the Tariff Information section.

Once all of this data is set up, when you have a component on an order that has the HTS, COO, or PRCPart qualifier (or combination of them) from the Tax Group qualifiers, 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. At the invoice level, all line taxes have a delete option, as well as the ability to manually add line taxes on a line on the invoice edit page.