Mastering Tariff Surcharges in NetSuite: A Strategic Guide by Satva Solutions

Mastering Tariff Surcharges in NetSuite: A Strategic Guide by Satva Solutions

Rising tariffs pose significant challenges for businesses, increasing costs and complicating pricing strategies.

Implementing a NetSuite tariff surcharge is a practical solution, but it requires careful planning to ensure compliance, transparency, and customer satisfaction.

As a leading NetSuite integration and implementation expert, Satva Solutions has developed a robust tariff surcharge feature for NetSuite’s UI, seamlessly integrated across sales orders and e-commerce platforms.

This article explores strategies for implementing surcharges, how top ERP systems and leading e-commerce platforms handle them via NetSuite landed cost features, and our custom NetSuite solution.

Strategies and Perspectives for Tariff Surcharge Implementation

Legal and Compliance Considerations

Tariff surcharges must comply with consumer protection laws, such as the FTC’s Junk Fee Rule and California’s Honest Pricing Law.

Transparency is critical surcharges must be disclosed upfront in the total price, with clear documentation linking them to tariff costs.

Non-compliance risks penalties or lawsuits. Businesses should consult legal and tax experts to ensure adherence to federal and state regulations.

Tax Implications

Surcharges are typically included in the taxable sales price. For example, a $100 product with a $10 surcharge is taxed on $110.

Exceptions apply if the customer directly pays the tariff to the government, which is rare.

Proper tax configuration in ERP systems ensures compliance across jurisdictions.

Customer Transparency

Transparency builds trust. Companies like Dame and Lionel Racing add surcharges as line items to signal that price increases stem from tariffs, not profit motives. However, visible surcharges risk customer pushback if perceived as excessive.

Embedding costs in base prices is an alternative but sacrifices clarity. Satva Solutions recommends a balanced approach: clear surcharge labeling with flexible ERP configurations.

Strategic Flexibility

Surcharges allow businesses to adjust pricing dynamically in response to tariff changes, unlike permanent price hikes.

Clauses in B2B contracts should permit price adjustments, and EDI systems need updated invoice mappings (e.g., SAC segment) to reflect surcharges. Monitoring competitors’ pricing ensures market alignment.

Tariff Surcharge Handling in ERP and E-Commerce Platforms

Most ERP systems, including NetSuite, Microsoft Dynamics 365, and SAP, leverage Landed Cost functionality to manage tariff-related costs, which can be adapted for surcharges.

Leading e-commerce platforms, both private and open-source, also support similar capabilities to ensure seamless tariff management:

Learn more about our comprehensive Multiple ERP Integration Solutions across NetSuite, SAP, and Microsoft Dynamics platforms.

NetSuite: The Landed Cost module tracks tariffs, duties, and freight, allocating costs to inventory items by weight, quantity, or value.

A “Tariff Impact” category can be configured to reflect surcharges, with SuiteAnalytics providing cost impact reports.

NetSuite’s integration with e-commerce platforms like Shopify and WooCommerce ensures surcharge visibility at checkout.

Microsoft Dynamics 365: Business Central’s purchase order processing tracks tariffs as additional costs, reflected in inventory valuation.

Custom surcharge logic requires Power Platform development. Integration with platforms like BigCommerce supports surcharge display in online stores.

SAP S/4HANA: Global Trade Services (GTS) manages tariffs and duties, with landed cost calculations supporting surcharge tracking.

Custom solutions can be built via SAP’s Business Technology Platform. SAP integrates with e-commerce solutions like Magento Open Source for consistent surcharge application.

Explore our specialized SAP Integration Services for Global Trade Services and custom trade management solutions.

SAP Business One/ByDesign: Basic tariff tracking is supported, but surcharge implementation often requires third-party hosting or customizations, increasing complexity.

These systems can connect with platforms like PrestaShop for e-commerce surcharge display.

Shopify: A leading private e-commerce platform, Shopify allows businesses to add surcharges as line items at checkout, ensuring transparency.

Its integration with NetSuite streamlines tariff cost tracking and surcharge application across sales channels.

WooCommerce: As an open-source platform built on WordPress, WooCommerce supports surcharge plugins to display tariff costs at checkout.

Its flexibility makes it ideal for businesses using NetSuite or Dynamics 365, with Spocket enabling multi-channel surcharge syncing.

Magento Open Source: This open-source platform offers robust customization for tariff surcharges via its Marketplace extensions.

It integrates with SAP and NetSuite for seamless cost allocation, though it requires technical expertise for setup.

BigCommerce: A private platform with open API capabilities, BigCommerce supports surcharge implementation through its Promotions Manager and integrates with ERP systems like NetSuite for unified tariff management.

PrestaShop: An open-source solution, PrestaShop allows surcharge configuration through modules, with support for multi-currency tariffs.

Its compatibility with SAP ensures consistent surcharge application in e-commerce workflows.

While these systems and platforms handle tariffs effectively, none offer a native UI-based surcharge feature as robust as Satva Solutions’ custom NetSuite implementation.

Satva Solutions’ Custom Tariff Surcharge Feature in NetSuite

Satva Solutions developed a tailored tariff surcharge feature for a client, enhancing NetSuite’s UI and e-commerce capabilities.

Below are the detailed steps and customizations, showcasing our expertise in NetSuite integration.

Discover our comprehensive NetSuite Integration Services for seamless business solutions across platforms.

Requirements

The client required:

• A tariff surcharge applied to sales orders, carried through to Item Fulfillment, Cash Sale/Invoice, Return Authorization, and Credit Memo/Cash Refund.
• A global company-level preference to enable/disable the feature.
• Transparent surcharge display in the e-commerce checkout, compatible with platforms like Shopify and WooCommerce.

Implementation Details

Using SuiteScripts, we implemented:

For secure API connections and automation setup, see our NetSuite M2M Authentication Guide.

1. Global Preference Toggle

Added a custom preference under Setup > Company > General Preferences > Custom Preferences to enable/disable the tariff surcharge feature.

2. Sales Order UI Enhancements

• Before-Load User Event Script: Adds an “Apply Tariff Surcharge” button to the Sales Order form if the feature is enabled. Hides/shows the “Surcharge Rate (%)” column based on the preference.
• Client Script: Handles the button’s click event, adding a tariff surcharge line item to the order.
• SaveRecord Client Script: Prevents saving the order without a surcharge item if the feature is enabled, displaying an alert.
• Before-Submit Server Script: Recalculates the surcharge amount before saving to ensure accuracy.

3. Custom Field

Created a Tariff Surcharge Rate (%) transaction line field to store and display the surcharge percentage.

4. E-Commerce Integration:

Added the surcharge as a line item in the e-commerce checkout, clearly showing the percentage to ensure transparency before purchase.

This integrates seamlessly with platforms like Shopify, WooCommerce, and BigCommerce.

5. Demo Video

Watch our implementation in action.

Benefits

• Compliance: Transparent surcharge display aligns with legal requirements across platforms like Shopify and Magento Open Source.
• Flexibility: Global toggle allows quick activation/deactivation, ideal for dynamic tariff environments.
• User-Friendly: Intuitive UI integration simplifies surcharge application within NetSuite’s Sales Order form.
• E-Commerce Ready: Clear line-item display enhances customer trust on platforms like WooCommerce and PrestaShop.

Why Choose Satva Solutions?

Satva Solutions’ expertise in NetSuite integration ensures seamless, compliant, and scalable solutions.

Unlike standard ERP landed cost features or e-commerce platforms like Shopify, BigCommerce, WooCommerce, Magento Open Source, and PrestaShop, our custom surcharge implementation offers:

• Native UI Integration: Streamlined surcharge application within NetSuite’s Sales Order form.
• E-Commerce Transparency: Clear surcharge visibility at checkout across leading platforms.
• Comprehensive Support: Surcharges carry through all related transactions, ensuring consistency.
• Proven Success: Our solution empowers clients to manage tariffs effectively while maintaining customer trust.

Conclusion

Implementing a tariff surcharge requires balancing compliance, transparency, and operational efficiency.

While ERP systems like NetSuite, Microsoft Dynamics 365, and SAP, and e-commerce platforms like Shopify, BigCommerce, WooCommerce, Magento Open Source, and PrestaShop offer landed cost features to manage tariffs, Satva Solutions’ custom NetSuite implementation provides a superior, user-friendly solution.

By leveraging SuiteScripts, we’ve created a flexible, compliant, and transparent surcharge feature that integrates seamlessly with leading e-commerce platforms, setting businesses up for success in a volatile trade environment.

Partner with Satva Solutions to transform your NetSuite experience and navigate tariff challenges with confidence.

See real-world examples in our Success Stories and Case Studies showcasing custom NetSuite implementations and integrations.