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.
Hi Abhujeet ,
ReplyDeleteThe above blog is too good .Can you also mention something on assigning charges on Invoiced PO / SO
Thanks for appreciation. regarding your query, It is possible to add charges to invoiced PO. For that you need to go to PO invoice journal -->in the overview tab, click on charges --> Adjustment (You can allocate charges over here).
DeleteIt is not possible to add charges in Invoiced SO. currently that functionality is not available in AX.
Soon I am going to post on assigning the charges to Invoiced PO on my blog. You can get detail explanation of this topic at that time.
Hi Abhujeet.
ReplyDeleteYour explanation about this escenario its very clear, but i have another one in wich ia have some troubles.
we need to post the distribution charges to de invoices, but the customer dont pay for it, we pay to a third (other vendor) but we need to analyze the invoice's margin reading cogs and misc charges.
i setup a charge's code using legder account in debit and credit, its works fine, except because the custinvoicejour table dont sumarize de charges, either the TOTALS button dont show the charges, its shows zero.
what can i do?, can you help me?
appreciate your time, please email me to sergio_gurrola@citrojugo.com.mx
Best regards
Reply has been sent to your ID.
DeleteFor other viewers, Regarding the scenario, where charges are being incurred on the invoice but are not being paid by the customer and those charges are paid to the third party vendor by the company.
In this scenario, charges are independent and are not linked to customer in any ways hence those are being tracked in separate ledger accounts (Debit and credit) and are maintained separately.
As these charges are not part of customer and are tracking separately, those are not summarized in CustInvoiceJour and are not coming in Total as both these places hold information with respect to the customer.
Hi Abhijeet,
ReplyDeleteI've tried the configuration for PO scenario. In Total view, there's charges amount. However upon Product Receipt, I can't see any charges. Then I posted the Product Receipt, then I checked the Journal ==> the charges is not included.
Contrary to SO configuration, I put Customer/Vendor on credit side, while on debit I put Ledger Account type.
Please advise, thanks..
Hi Santrio,
DeleteCharges are included only in the purchase order invoice.
As per your setup, charges are included in the vendor balance. (Go to PO invoice Journal --> Voucher for more details.
Note: If you want to include charges in item cost then put Item in debit and ledger account in credit for specific charge code. Then check the Invoice journal -->Voucher for more details.
How to set up the calculation method of inventory costing when faced below situations:
ReplyDelete• 06/19/2017, receipt the inventory in PO with 100 quantities, physical cost amount is 1.000.000 VND
• 06/22/2017, receipt the inventory in PO with 50 quantities, physical cost amount is 1.500.000 VND
• 06/26/2017, move out the inventory in Movement journal with 120 quantities, physical cost amount is 1.999.999,98 VND
• 06/27/2017, move in the inventory in Movement journal with 20 quantities, physical cost amount is 333.333,33 VND
• 06/28/2017, receipt the inventory in PO with 50 quantities, physical cost amount is 1.000.000 VND
• 06/28/2017, move out the inventory in Movement journal with 60 quantities, physical cost amount is 1.100.000 VND
• 06/29/2017, move out the inventory in Movement journal with 10 quantities, physical cost amount is 183.333,34 VND
According to Vietnam Accounting System, the unit price of inventory issued calculated based on:
unit price of inventory issue = (1.000.000 + 1.500.000 + 1.000.000 + 333.333,33) / (100 + 50 + 50 + 20) = 15.909,09
this unit price will apply for all inventory issued with hightlighted is yellow, thus, cost amount of inventory issued is:
• In journal num MAE-000281: cost amount = 120 * 15.909,09 = 1.909.090,91
• In journal num MAE-000283: cost amount = 60 * 15.909,09 = 954.545,45
• In journal num MAE-000284: cost amount = 10 * 15.909,09 = 159.090,91
But the Dynamics AX system calculated cost amount not correct with result is calculated above (view details in figure below)
We’ve set up inventory model group is Weighted average, view details in figure below
Please help us in this case.