Why are tariff costs averaged instead of applied by country or region?
Our inventory system uses FIFO. To keep inventory aging, turnover, and cost flow accurate, each item must have one continuous FIFO cost stack. Once inventory is combined, we cannot reliably split costs by region without breaking those calculations.
Why cant tariffs be tied to a specific warehouse or country?
Inventory often moves between warehouses and regions. Because of this movement, there is no reliable way to say which exact units belong to a specific country while still keeping FIFO accurate.
Does this affect COGS accuracy?
Total COGS remains accurate. The limitation is only in how costs are split by region. Averaging tariffs ensures overall costs stay correct.
Is there a way to track tariffs separately by region?
Yes. A possible workaround is to create separate items per region, such as a US item and a CA or EU item. Each item then has its own FIFO, aging, and tariff costs.
Is this recommended for everyone?
Not always. This setup requires careful planning and may add complexity to transfers and reporting. We recommend reviewing it with our support team before making changes.