The Estimated Additional Costs is optional and only for information purposes (it is never posted). The estimated costs are later on compared with the actual costs that are posted additionally.
Additional costs, such as freight costs, insurance costs and handling fees, can be recorded in Business Central as Item Charges.
Add Actual Costs to Purchase
Item Charges are entered on purchase invoice lines and posted to vendor accounts and the General Ledger.
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Note that the Purchase & Payable Setup must be configured as shown below so that Business Central will maintain posted receipt and shipment documents that item charges can be assigned against. |
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Purchase Invoice with Item Charges
Purchase Invoice - allocate cost to posted receipt - Cost Amount (Actual)
Highlight the invoice line with the item charge, then click 'Line' and select 'Item Charge Assignment'.
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In the 'Item Charge Assignment (Purch)' page, go to the 'Actions' tab on the ribbon and hit 'Select Receipt Agreements', then select the receipt agreement to assign costs to from a list.
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Allocate Cost to Posted Receipt
This method will make the cost a part of the price of a product or in other words will make the cost an actual cost. A purchase invoice is recorded against a vendor - item charge recorded on the invoice line. To create a purchase invoice search for Purchase Invoices in the search window in click the option in the list.
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Click +New in the Purchase Invoice List to create a new Purchase Invoice.
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The next step is to assign the item charge to a posted receipt. Fill in the header and then click Actions > Item Charge Assignment > Receipt Agreements Selection Wizard to record the charge item on the purchase invoice line.
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Select the item charge and enter the cost amount. The user can then choose a Delivery Agreement by using the Delivery Agreem. No. Filter. Once that is done, click Create Line(s).
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This action accumulates all related posted inventory document references (both receipts and return shipments) for selected receipt agreements and creates item charge assignment lines according to them.
Then hit 'click Line > Related Information > Suggest Item Charge Assignment' to confirm the assignment according to the 'Default Cost Calc. Method' defined on the Item Charge master file - in this case by Net Weight.
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Now the purchase invoice is ready for posting.
Notice that before posting the item charge invoice line, the 'Cost Amount (Actual)' for the received inventory (item ledger entry) is 1.000 LCY (purchase price from invoice).
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After posting the item charge, there are two value entries that increase the 'Cost Amount (Actual)' for the inventory ledger entry to 1.120 LCY.
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This same process can be more quickly entered by using the 'Receipt Agreements Selection Wizard' on the 'Actions' tab in the purchase invoice header.
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Let's say the transport company sends an additional invoice for 80 LCY for the same received items. Then create a new purchase invoice and run the 'Receipt Agreements Selection Wizard' action. Then select one or more receipt agreements to assign costs to, enter the item charge for the cost and the amount to assign. Then hit the action 'Create Document Line(s)'.
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By using this method the system automatically finds all posted receipt documents related to the selected receipt agreements, assigns the cost to them, and creates the purchase invoice lines - ready for posting.
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A new value entry is created for the related received item ledger entry and the total 'Cost Amount (Actual)' is now 1.200 LCY.
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A new page opens, click Suggest Item Charge Assignment to use a function that assigns and distributes the item charge when the document has more than one line of type item.
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When there are multiple lines the system will ask how it should distribute the cost on the lines. The default method is weight.
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Now the purchase invoice is ready for posting. Click Posting > Post.
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Allocate Cost to Posted Transfer Receipt
When cost is recorded on a purchase invoice line and allocated against a posted Receipt document, then the value is recorded as an addition to the Cost Amount (Actual) field in the value entries taggle. NB: It is only possible to select the Receipt part of the posted transfer order, not the Shipment part.
Sales Invoice with Item Charges
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Allocate Cost to Posted Receipt
This is not an option in Business Central. In sales invoices it is only possible to assign item charges to posted shipments (Delivery Agreements).