Dynamics AX 2012: How To – Charges
Posted on: December 15, 2015 | By: Jarrod Kraemer | Microsoft Dynamics AX/365
In many business situations an organization will find a need to add various expenses to purchase or sales orders. For example your company may want to charge your customers for freight costs or processing fees associated with a sales order. In AX 2012 processing these additional expenses on orders are handled through charges.
In AX 2012 we have some options as to how charges are applied on purchase orders, depending on your business needs. Charges can either be added to the purchase order total on the vendor invoice, or the charge amount can be added to the cost of the items being purchased to be accounted for in the cost of the good. Whether the specific type of charge will be added to the vendor invoice or the cost of the good is determined in how you setup your charge codes, which will be covered next.
Charges codes are identifiers for all of the unique types of charges you can have on purchase orders, sales orders, or free text invoices. Charges codes can be setup from AR – for sales orders and free text invoices and AP or Procurement and Sourcing – for Purchase Orders. Once in the charges codes form define the following for each type of charge that you define for your organization:
1) Unique descriptive code for the type of charge
2) Description for the type of charge – to help expand upon the identifying code
3) Sales tax group if you want to calculate sales tax on the type of charge – this is optional
4) Maximum amount that the charge can be (only applicable for AP/Purchasing – not available in AR charges)
5) Posting setup – this is where we can setup to have the charge be added to the vendor invoice or to the item cost for purchase order charges (which will be displayed in purchase order charges steps 2a and 2b)
Posting for purchase order charges:
1) Choose customer/vendor in the credit type field to add the charge to the vendor’s account
2a) Choose Ledger Account in the debit field, and choose the main account to expense the charges to
2b) Choose Item in the debit field to have the charge be added to the item cost
Posting for Sales order charges:
1) Choose customer/vendor in the debit type field to add the charge to the customer’s account
2) Choose Ledger Account in the credit type field, and choose the main account to record revenue from the charges
Once charges codes are setup, they will be available to add to any purchase order, sales order, or free text invoice. The accounting for the charge (aka how to apply the charge – to a specific expense account or to the item) will flow through from the charge code setup. Charges can be manually added to orders or can be applied to orders automatically. To manually add a charge to an order or free text invoice:
1) Navigate to the order that you would like to apply the charge to before posting the invoice
2a) Navigate to the sales order header to apply the charge to the entire order, and click on the charges button in the sell action pane
2b) Navigate to a specific line to apply the charge to a single line item, open financials menu and select maintain charges
3) Choose the charge code that you would like to use
4) Enter amount for the charge
Note: You have the option to adjust charges after the invoice has been posted.
Charges can also be applied to orders automatically based on the item being purchased or sold, or the customer or vendor we are buying or selling from. To setup automatic charges for orders:
1) Navigate to AR or Procurement and Sourcing Auto Charges setup form
2) Click New to define a new automatic charge
3) In the level field select main to apply to the order header, or line to apply to sales order lines
4) In the account code field either select table for a specific customer/vendor, group for a predefined customers/vendors, or all customers/vendors
5) Select a specific customer or vendor or a specific group if you did not choose all
6) In the item code field select table, group, or all
7) Select a specific item or specific group if you did not choose all
8) In the mode of delivery field select table, group, or all
9) Select a specific mode of delivery or a specific group if you did not choose all
10) In the lines fast tab select the charge code for the automatic charge
11) Select if you want the charge to be fixed, based on unit (pcs.), a percent, or external
12) Select the Keep check box to have the charge added every time a new invoice is created following the rules that you have setup the charge for
We hope this helps your organization get started using charges in AX 2012. For additional information please feel free to reach out to us at email@example.com or (312) 345-8817.
All the best!
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