Handling Tariff Surcharges on Product

ASSA ABLOY recently announced to their customers that several of their brands will be subject to a new surcharge related to tariffs faced on imports from overseas. 

There are three areas that Comsense Enterprise users need to address in order to properly account for this surcharge, Default and Hardware Discounts, Item specific net prices and discounts, and Managed Products with Net Prices or Discounts. 

Manufacturer Default and Hardware Discounts

  • Much of the surcharge is handled in the same way a change to your buying program is handled. In this case, you have an additional discount factor of -3, yes that's a negative 3. This in effect takes your existing buying program and adds 3% to the cost you'd otherwise pay under your buying program.
  • To add these negative discounts, open Discounts window in Advantage (Catalog Maint. > Discounts)
  • Select the division you want to work with first. If your buying program is consistent across divisions, you can make the necessary discount modifications to one division, and then use the Copy tool to apply the same discounts to your other divisions.
    Note for Hotfix version users with 1.25.2512 or greater which includes the new Catalogs Settings feature: Your discounts will apply to the Catalog Settings group you select. If you have divisions that qualify for the same discounts but are not yet grouped together, please use the Catalog Settings window to combine the applicable divisions. 
  • On the Mfg Default Discounts tab, filter for the manufacturer to be addressed.

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  • For McKinney, Pemko, Markar, and Rockwood, the surcharge applies to all products, so you can simply add a -3 to your existing Discount String for all Product Categories. For example, if your standard buying program provides you with a 50,5 on Door Edge category items, your discount string will now be 50, 5, -3.

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  • For Corbin Russwin, Norton, Sargent, and Yale the surcharge applies to all closer products. On the Mfg Default Discounts tab add -3 to your current discount string for Product Category Closer.

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Item and Finish Specific Net Prices and Discounts

  • If you have any items configured in the Discounts window with a Net Price or a Discount String on the Hardware Discounts tab, they need to be reviewed and possibly modified to account for the surcharge.  To find these items, click on the Hardware Discounts tab in the Discounts window, add the manufacturer code to the filter row, and if applicable, add Product Category Closers to the filter row and retrieve the results.
  • Scroll to the right so you can see the Has Net and Has Disc columns. Any items with a checkmark in these columns have either a special discount or net price applied by the user which may need to be reviewed.
  • In the image below, we can see that the item has a Net Price set by the user for the EB finish. This Net Price overrides any other discounting the system may do from the list price, so it should be verified with the manufacturer to determine if the Net Price is still correct as-is or if it needs to be increased by 3% to account for the surcharge. The user will need to make the necessary modifications to any net prices.

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  • In the image below, the item has a Discount String specified for the EB finish. This discount string overrides the Default Discount which comes from the Product Category for the item, therefore any discount strings applied manually to items in this way should be reviewed to ensure they are still valid and make any necessary modifications.

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Managed Products with Maintain Discount or Maintain Net Price

Another area that may need to be reviewed is Managed Product. If your organization has any managed product for the affected brands or categories, you should perform a review of any items where you have Maintain Discount or Maintain Net Cost checked on the Cost tab for the item in any of the warehouses the product is included within.  Having either of these settings checked will override any cost calculations based on buying programs, or specific net price or discounts previously established in the Discounts window discussed above. 


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Off Hours Operation

The modification of discounts can be an intensive operation for organizations with a large amount of configured products. We recommend that discounts are modified during times of light system usage, ideally outside of regular business hours in order to avoid any negative performance impact on users.

Project Quotes

Please also keep in mind that special project quoted discounts provided by Assa Abloy will not include the tariff surcharge.  When entering your project discounts you must consider the brand and product category of the discounts and add the -3 discount factor to those brands and/or product categories that are subject to the surcharge.

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