Hello friends, Just to give you hint about what is going to be there in today's topic. Today I will explain the sales order charges and their setup in AX.
But before I start, let me give you brief about what is meant by charges?
It is an amount of money paid against the service rendered or goods supplied. Charges can be of different type, such as freight charges, Shipping & Handling charges, Installation charges, Broker fees, Fuel surcharge and other miscellaneous charges.
Charges can be paid by the customer or can be paid to the vendor or to the third party depending on the type of service rendered. Sometimes company bares the charges instead of customer. Also sometimes charge amount is included directly in the item cost.
In AX 2012 R3, we can setup different type of charges which are applicable to the business while carrying out operations.
Before we apply any charges to the particular order in AX , we need to setup it up first and then we can apply them in the order,
A. Setup charges code in Account receivable:
1. Go to Account receivable > Setup > Charges > Charges code.
2. To setup new charges, click on New.
3. Enter charge code ( Lets say, Freight).
4. Enter description ( Lets say, Freight charges).
5. Item sales tax group : Select the item sales tax group in order for the sales tax to get applicable on charges.
6. Prorate: if this is ticked then the charges will be prorate across the invoices. it is only applicable in customer charges.
7. In the posting tab, select the appropriate debit and credit account for proper posting of the charges.
8. If the customer is paying the charges then charges should be added in the sales order total so you can do the following setup:
a. In Debit field group, in the Type field, select Customer/ Vendor in order to add the charges to the customer account.
b. In Credit field group, in the Type field, select Ledger account, then in the Posting field select appropriate posting type. In the Account field, select the main account to track the charges which are applicable to the customer.
B. Setting up charges in the Sales order
1. Create Sales order and add lines in it.
2. Go to Sell tab > click on Charges.
3. Select charge code which was created earlier from the drop-down list.
4. Select the category. It can be Fixed (for fixed amount charges for the order) or Percentage (it will calculate the percentage of total net amount in the order). Category also can be inter company percentage, external or pcs.
5. Enter the charge value. If the category is Fixed then enter the total amount of charges for the order. If the category is Percentage then enter the percentage value which are applicable for the order.
6. Description will get populated from the charge code.
7. Currency will get populated automatically from the sales order.
8. Sales tax:
Sales tax group : It will populate directly from the sales order.
Item sales tax group: It will populate directly from the charge code setup.
9. Ledger : the ledger information will get populated after the posting of the charges in the ledger i.e. after the sales order invoice posting.
10. Intercompany: Information will get populated during intercompany transactions.
12. Once all the setup is completed, save and close the form
13. Go to sales order > Click on Total > You can see the applicable charges against the invoice total amount.
14. Process the order till invoice.
15. Click on charges > to see the setup and for the ledger information.
16. Go to voucher > you can see charges posted in the ledger.
In this way, we can setup and apply charges for the sales order in AX 2012 R3.
In the next topic, I will walk you through the setting up of charges for the purchase order in AX.
Happy Daxing :-)
But before I start, let me give you brief about what is meant by charges?
It is an amount of money paid against the service rendered or goods supplied. Charges can be of different type, such as freight charges, Shipping & Handling charges, Installation charges, Broker fees, Fuel surcharge and other miscellaneous charges.
Charges can be paid by the customer or can be paid to the vendor or to the third party depending on the type of service rendered. Sometimes company bares the charges instead of customer. Also sometimes charge amount is included directly in the item cost.
In AX 2012 R3, we can setup different type of charges which are applicable to the business while carrying out operations.
Before we apply any charges to the particular order in AX , we need to setup it up first and then we can apply them in the order,
A. Setup charges code in Account receivable:
1. Go to Account receivable > Setup > Charges > Charges code.
2. To setup new charges, click on New.
3. Enter charge code ( Lets say, Freight).
4. Enter description ( Lets say, Freight charges).
5. Item sales tax group : Select the item sales tax group in order for the sales tax to get applicable on charges.
6. Prorate: if this is ticked then the charges will be prorate across the invoices. it is only applicable in customer charges.
7. In the posting tab, select the appropriate debit and credit account for proper posting of the charges.
8. If the customer is paying the charges then charges should be added in the sales order total so you can do the following setup:
a. In Debit field group, in the Type field, select Customer/ Vendor in order to add the charges to the customer account.
b. In Credit field group, in the Type field, select Ledger account, then in the Posting field select appropriate posting type. In the Account field, select the main account to track the charges which are applicable to the customer.
B. Setting up charges in the Sales order
1. Create Sales order and add lines in it.
4. Select the category. It can be Fixed (for fixed amount charges for the order) or Percentage (it will calculate the percentage of total net amount in the order). Category also can be inter company percentage, external or pcs.
5. Enter the charge value. If the category is Fixed then enter the total amount of charges for the order. If the category is Percentage then enter the percentage value which are applicable for the order.
6. Description will get populated from the charge code.
7. Currency will get populated automatically from the sales order.
8. Sales tax:
Sales tax group : It will populate directly from the sales order.
Item sales tax group: It will populate directly from the charge code setup.
9. Ledger : the ledger information will get populated after the posting of the charges in the ledger i.e. after the sales order invoice posting.
10. Intercompany: Information will get populated during intercompany transactions.
12. Once all the setup is completed, save and close the form
13. Go to sales order > Click on Total > You can see the applicable charges against the invoice total amount.
16. Go to voucher > you can see charges posted in the ledger.
In this way, we can setup and apply charges for the sales order in AX 2012 R3.
In the next topic, I will walk you through the setting up of charges for the purchase order in AX.
Happy Daxing :-)
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Abhijeet Hele | Dynamics AX Enthusiast | My Profile |
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.
