Accounting Distributions for Free Text Invoices in AX/ Dynamics 365 for Operations

Posted on: May 5, 2017 | By: Jarrod Kraemer | Microsoft Dynamics AX/365

Authored by: Chris Rusing

As many of you may already know, a free text invoice is a very useful functionality when billing customers without having to use sales orders.  A common, positive attribute among users is the ability to select the revenue account to which you are billing to.  In certain situations, you may want to distribute an individual line of your free text invoice to different revenue accounts.  In these circumstances, I would suggest using the accounting distributions functionality within the free text invoice.  Let’s go into the system to see how this is executed.

Note: if you are interested in how to allocate revenue with the use of charges in a sales order, then please click here.

Below you will see that I’ve created my free text invoice.  I’ve decided that I’m going to bill the customer for services and parts on one line.  The main account 411100 is my Revenue – Labor account, but I also want to separate the revenue from selling the parts to a different ledger account.  Click Distribute amounts to complete this task.

 

It will bring you to this form.  From here, you can distribute the total amount to different ledger accounts by clicking the Split button.  Note: You can also distribute by amount or quantity.  I chose the typical option, which is percent.

 

I’ve added the ledger account 411200 Revenue – Products so I can account for the revenue earned from selling the parts.  As you can see at the bottom of the form, my distribution total is 100% so the original invoice amount is fully accounted for.

 

Once when the invoice is posted and printed, you will see that it only shows the original line entered – Services and Parts at an amount of $200 (plus the $8 in sales tax).

 

However, when we look at the voucher of the transaction, you will see that the total $200 (not including the $8 sales tax) is dispersed per the accounting distributions I setup before posting.

 

Please note that the functionalities described are also available in Microsoft Dynamics AX 2012.  For additional information please feel free to reach out to us at info@loganconsulting.com or (312) 345-8817. 

All the best! 
Logan Consulting 
www.loganconsulting.com

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