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 Sale
Item Charges are either entered on purchase invoice lines or sales invoice lines and posted to vendor-/ customer accounts and the General Ledger.
Before posting the invoice lines, the item charges are assigned to either posted receipt documents or posted shipment documents.
The invoiced amounts update the Value Entries for the received/ shipped stock (item ledger entries) related to the posted documents that are assigned to the item charge.
When cost is recorded on a purchase invoice line and assigned to posted Receipt documents, then the value is recorded as an addition to the Cost Amount (Actual) field in the value entries table.When cost is recorded on a purchase invoice line and is allocated against posted Shipment documents, then the value is recorded as an additional Non-Inventoriable cost in the Value Entry table.
When cost is recorded on a sales invoice line and allocated against a posted Shipment document, then the value is added to the 'Sales “Sales Amount (Actual)' ” in the value entry table.
When cost is recorded on a purchase invoice line and allocated against a posted Receipt document (transfer), then the value is recorded as an addition to the Cost Amount (Actual) field in the value entries table. NB: It is only possible to select the Receipt part of the posted transfer order, not the Shipment part.
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Invoice type
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Item Charge Assigned to...
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VE: Cost Amount (Actual)
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VE: Cost Amount (Non-Invtbl.
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VE: Sales Amount (Actual)
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Purchase
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Posted receipt
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X
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Purchase
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Posted shipment
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X
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Sales
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Posted shipment
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X
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Transfer
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Posted Tr. receipt
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X
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Note that the Sales & Receivables Setup must be configured as shown below so that |
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Business Central will maintain posted |
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sales documents that item charges can be assigned against |
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Purchase Invoice with Item Charges
A purchase invoice is recorded against a vendor - item charge recorded on the invoice line.
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Allocate Cost to Posted Shipment
Using this method will make the cost amount non-inventoriable. To allocate a sales cost to a posted shipment (Delivery Agreement), start by creating a purchase invoice. 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 to create a new purchase invoice.
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The next step is to assign the item charge to either a posted receipt or a posted shipment. Here are two examples:
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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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 '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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Purchase Invoice - allocate cost to posted shipment - Cost Amount (Non-Invtbl.)
With the same inventory let's add sales freight cost of 40 LCY and allocate it to a posted shipment (delivery agreement). Start by creating a purchase invoice, and this time use the 'Delivery Agreements Selection Wizard' to record the charge item on the purchase invoice line.
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shipment. Fill in the header and then click Actions > Item Charge Assignment > Delivery 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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A line will then have been created in the Purchase Invoice. To post the invoice, click Posting > Post.
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Make sure to assign the item charge to the lines in the Delivery Agreement. To do so, click Line > Related Information > Item Charge Assignment.
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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After posting the purchase invoice with the item charge the system adds 40 LCY as 'Cost Amount (Non-Invtbl.)' to the item ledger entry for the posted sales shipment related to delivery agreement DA180014.
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Purchase Invoice - allocate cost to posted Transfer Receipt - Cost Amount (Actual)
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 tagle. NB: It is only possible to select the Receipt part of the posted transfer order, not the Shipment part.DA2200073.
Sales Invoice with Item Charges: Non-Inventoriable
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Sales Invoice - allocate cost to posted receipt - Not possible
This is not an option in NAV. In sales invoices it is only possible to assign item charges to posted shipments.
Sales Invoice - allocate cost to posted shipment - Sales Amount (Actual)
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Costs.
Allocate Cost to Posted Shipment
Using this method will make the cost amount an actual amount. Go to the Sales Invoices list. This list can be found by searching for Sales Invoices in the search invoice and then clicking the option in the list.
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Click +New to create a new sales invoice.
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Fill in the header and then click Actions > Item Charge Assignment > Delivery Agreements Selection Wizard to record the charge item on the purchase invoice line. The Delivery Agreement Selection Wizard auto-populates the sales invoice line and item charge assignment.
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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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A line will then have been created in the Purchase Invoice. To post the invoice, click Posting > Post.
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Make sure to assign the item charge to the lines in the Delivery Agreement. To do so, click Line > Related Information > Item Charge Assignment.
A new page opens, click Item Charge > 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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After posting the sales invoice line with item charge the system adds value to the 'Sales Amount (Actual)' for item ledger entry for the posted shipment related to delivery agreement DA180014.
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