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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.

Before posting the invoice lines, the item charges are assigned to posted receipt documents.

The invoiced amounts update the Value Entries for the received 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 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.

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.

Purchase Invoice with Item Charges

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.

Click +New in the Purchase Invoice List to create a new Purchase Invoice.

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.

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).

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 click Line > Related Information > Suggest Item Charge Assignment to confirm the 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.

When there are multiple lines the system will ask how it should distribute the cost on the lines. The default method is weight.

Now the purchase invoice is ready for posting. Click Posting > Post.

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

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).

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