Skip to content
  • There are no suggestions because the search field is empty.

How do I handle charging tariffs to our customers

In Acctivate, a "tariff product" can be represented as a non-inventoried item, allowing you to charge customers for additional costs like tariffs, duties, or fees without tracking physical inventory. By setting up a tariff product and adding it to a Sales Order, you can ensure these costs are accurately reflected in your billing and synchronized with QuickBooks for accounting purposes. This guide assumes you have basic familiarity with Acctivate’s interface and permissions to create products and manage Sales Orders.

Step 1: Create a Tariff Product in Acctivate

Follow these steps to create a tariff product as a non-inventoried item in Acctivate:
  1. Access the Product List:
    • From the left menu in Acctivate, click Products to open the Product List window.
  2. Create a New Product:
    • In the bottom-left corner of the Product List, click + New Product. This opens the Edit Product window in edit mode.
  3. Enter Product Details:
    • Product ID: Assign a unique identifier (e.g., TARIFF001 or CUSTOMS_FEE).
    • Description: Enter a clear description, such as "Customs Tariff Fee" or "Import Duty Charge."
    • Product Type: Select Non-Inventoried from the dropdown menu. This ensures the item isn’t tracked as physical inventory.
    • Unit of Measure: Set to a unit like "Each" (or another appropriate unit for a fee).
    • Product Class: Assign a Product Class (e.g., "Fees" or "Tariffs") for accounting purposes. This links to the appropriate General Ledger accounts in QuickBooks.
  4. Set Pricing:
    • Go to the Prices tab in the Edit Product window.
    • Define a List Price (e.g., $50.00) or leave it at $0.00 if the tariff amount varies per order. You can adjust the price manually when adding it to a Sales Order.
    • Optionally, configure additional pricing rules if applicable (e.g., percentage-based tariffs).
  5. Save the Product:
    • Click Save in the Edit Product window to create the tariff product. It will now appear in your Product List.

Step 2: Add the Tariff Product to a Sales Order

Once the tariff product is created, you can add it to a Sales Order to charge your customer. Here’s how:
  1. Create or Open a Sales Order:
    • From the left menu, click Sales to open the Sales List.
    • To create a new order, click + New Sales Order, or open an existing order by double-clicking it in the list.
  2. Enter Customer Information:
    • In the Enter Sales Order window, select the customer from the dropdown or enter their details manually.
  3. Add the Tariff Product:
    • In the order detail grid (bottom section), click into an empty line under the Product ID column.
    • Type or select the tariff Product ID (e.g., TARIFF001) from the dropdown list.
    • Press Tab or Enter to populate the description and default price (if set).
  4. Adjust Quantity and Price (if needed):
    • Enter the Quantity (e.g., "1" for a flat fee).
    • If the tariff amount varies, update the Price field manually to reflect the correct charge (e.g., $75.00 for a specific customs fee).
  5. Schedule the Order:
    • Ensure the Sales Order is set to Scheduled status by clicking the Schedule Order button at the top. Non-inventoried items don’t require inventory allocation, so this step prepares the order for further processing.
  6. Save the Sales Order:
    • Click Save to record the order with the tariff product included.

Step 3: Process and Invoice the Sales Order

After adding the tariff product, process the order as usual to charge the customer:
  1. Pick, Pack, and Ship (if applicable):
    • If the order includes physical goods alongside the tariff, proceed with picking, packing, and shipping as per your workflow. Non-inventoried tariff items will not appear in picking documents.
  2. Create an Invoice:
    • Open the Sales Order and click the Next Suggested Action button (likely labeled Invoice if the order is ready).
    • Alternatively, use the Sales Order Manager to batch-invoice multiple orders.
    • Verify that the tariff product and its price appear correctly on the invoice.
  3. Sync with QuickBooks:
    • Once the invoice is saved, Acctivate will sync it to QuickBooks, posting the tariff revenue to the General Ledger account tied to the Product Class (e.g., "Other Income" or "Fees").

Additional Tips

  • Variable Tariffs: If tariffs fluctuate, consider leaving the List Price at $0.00 and manually entering the amount on each Sales Order. Alternatively, create multiple tariff products for different rates or categories (e.g., TARIFF_5PCT, TARIFF_10PCT).
  • Reporting: Use Acctivate’s reporting tools (e.g., Sales by Product reports) to track how often tariffs are charged and their impact on revenue.
  • Customer Communication: Clearly indicate the tariff as a separate line item on quotes or invoices to maintain transparency with customers.

Troubleshooting

  • Tariff Not Appearing in Dropdown: Ensure the Product ID was saved correctly and that your user permissions allow access to all products.
  • Price Not Updating: Check the Prices tab in the Edit Product window to confirm the List Price or pricing rules are set as intended.
  • Sync Issues with QuickBooks: Verify that the Product Class is mapped to the correct income account in QuickBooks (File → Configuration Management → Inventory → Product Class).
For further assistance, contact Acctivate Support or refer to the Acctivate Documentation for detailed guides on product setup and sales order management.
This knowledge base article ensures Acctivate users can efficiently create and apply tariff products, enhancing their ability to manage additional costs within the software.