AX2009_ENUS_TL1_11

Chapter 11: Over/Under Delivery and Miscellaneous Charges

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CHAPTER 11: OVER/UNDER DELIVERY AND MISCELLANEOUS CHARGES Objectives

The objectives are:

• Set up the Accounts receivable and Accounts payable modules to accept over and under delivery.

• Set up acceptable over and under delivery percentages on an item. • Manage over and under deliveries in sales and Purchase order

processing. • Set up a miscellaneous charges group for customers, vendors, and

items. • Assign miscellaneous group to customers, vendors, items, and

orders. • Add price miscellaneous charges to an item that are dependent or

independent of the item quantity. • Set up miscellaneous charges codes. • Manually add miscellaneous charges to a Sales and Purchase order. • Manually add miscellaneous charges to the Purchase order lines. • Set up automatic miscellaneous charges for a specific customer,

item, or item group. • Modify or delete the automatic miscellaneous charges. • Set up and use landed costs. • Add or change miscellaneous charges during the Purchase order

invoicing process.

Introduction Variability in a company's internal and supplier performance can cause significant backorder administration to manage even small differences in quantities ordered and received. The over delivery and under delivery functionality in Microsoft Dynamics® AX 2009 can be used where the received or delivered quantity of an item fluctuates occasionally and it is not significant enough to be managed as a backorder.

The Over/Under Delivery lesson introduces an effective way to manage small differences between ordered and received quantities when an order with only a partial quantity must be closed without administering backorders.

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Trade and Logistics I in Microsoft Dynamics® AX 2009

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Miscellaneous charges are additional costs added to sales and Purchase orders such as freight, transport, postage, insurance, packaging, and fees. The miscellaneous charges capabilities in Microsoft Dynamics AX 2009 lets companies eliminate data entry by assigning charges to items, customers, and vendors when charges frequently occur, or are required.

You can set up miscellaneous charges so that they are included in sales and purchase transactions automatically or you can add them manually to the orders to accommodate one-time charges.

The Miscellaneous Charges lesson discusses how to manage miscellaneous charges in sales and Purchase orders.

Over/Under Delivery To avoid unnecessary backorder handling every time that an order is slightly over- or under-delivered, you can configure Microsoft Dynamics AX 2009 so that such deliveries are accepted, if they are within predefined ranges from the originally ordered quantity. You can close and fully invoice these orders.

This functionality will most likely be used for particular kinds of items that are delivered by weight, in bulk, or in linear feet. These kinds of items are also low in value and carrying costs, frequently ordered, and easily sourced. Examples of these items are screws, brackets, and pins.

EXAMPLE: Contoso Entertainment Systems has run low on its stock of lamp projectors. The purchasing agent puts in an order with the vendor for 1000 lamp projectors. Typically, there is a one to two percent variance on the number of lamp projectors received when ordering from this vendor, but they offer the best price. Because of the variance, Contoso Entertainment Systems and the vendor have agreed to set up an over/under delivery variance to allow for a difference of two percent because it is not cost-effective for either company to create new orders or credit memos. When the order arrives, there are 1018 pieces in the order. The order is accepted because it is in the range that is specified in the over/under delivery setup. Six months later, the stock is down to 500 so another order is put in for 500 from the same vendor. This time, the order contains 492 lamp projectors. Again, the order is accepted because it is in the range of over/under delivery setup.

Over/Under Delivery Setup

Set up an item to accept over/under-delivery by using a two step process:

1. Set up Accounts receivable and Accounts payable parameters to accept over/under delivery.

2. Define the acceptable tolerance percentage for over/under delivery on the item.



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Parameters

To perform the first step in the over/under-delivery setup, you must set up the appropriate parameter for both the Accounts receivable and Accounts payable modules. These settings are global and affect all Sales orders and Purchase orders.

• To set up the parameters for Sales orders, open Accounts receivable > Setup > Parameters.

• To set up the parameters for Purchase orders, open Accounts payable > Setup > Parameters.

FIGURE 11.1 ACCOUNTS RECEIVABLE PARAMETERS FORM - ACCEPT OVER/UNDER DELIVERY

Accept Over/Under Delivery

For both setup areas, on the Updates tab, under the General field group, set the global parameter to allow for over delivery, under delivery, or both.

• If you select Accept overdelivery, you can receive or sell more items through the packing slip or invoice update than the quantity ordered in the purchase or sales line.

• If you select Accept underdelivery, you can receive or sell fewer items through the packing slip or invoice update than the quantity ordered in the purchase line or sales line.

• If you neither select Accept overdelivery nor Accept underdelivery, you cannot close purchase and Sales orders until the precise quantity ordered is received or delivered. This keeps a demand in the system for those backorders that still have to be fulfilled.



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Close a Partly Delivered Order

If you neither select Accept overdelivery nor Accept underdelivery, you have two ways to close a partly delivered sales or Purchase order and relieve the demand for backorder:

• If part of the quantity is received or invoiced, the remaining quantity can be canceled by going to Functions > Deliver remainder > Cancel quantity on the order line.

• You can update the quantity on the Sales order line.

Procedure: Set Up Tolerance on an Item

You must define the acceptable tolerance for over and under delivery for the item. Tolerance is expressed as a percent so that it can be scalable with every order.

To set up the acceptable tolerance for a specific item, follow these steps:

1. Open Inventory management > Item details. 2. Select the item and then click the References tab. 3. Under the Purchase order and Sales order field groups, specify the

acceptable tolerance in the Overdelivery and Underdelivery fields.

NOTE: When you add an item to a sales or Purchase order, the specified percentages are defaulted onto the order line. To make exceptions, you can override these values. When a new item is created, the default setting for the acceptable tolerance is 0%.

Over/Under Delivery Transactions

The over and under delivery functionality is generally the same for Sales orders as it is for Purchase orders. However, both situations are demonstrated: one where the over and under delivery is set up on the order and one where the over and under delivery is set up on the item.

In the following two demonstrations, parameters in the Accounts payable and the Accounts receivable modules are set up to accept over and under deliveries.



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Demonstration: Create a Purchase Order

Contoso Entertainment Systems needs 7000 pieces of item number 5012, 4-40 zinc nut, in the production. To ensure that the items can go into production immediately, the purchasing agent orders a quantity of 9000 in case any of the items are defective.

1. Open Accounts payable > Purchase Order Details and then create a new Purchase order for 9000 4-4 zinc nuts from vendor 4101, Discrete Parts Suppliers 1. The vendor can deliver 8000 pieces but because this will meet the current needs, you tell the vendor not to deliver the backorder for the 1000 pieces. Now you want to receive the 8000 pieces and close the order so no backorders remain.

2. When the order line is highlighted in the Purchase order, enter the 8000 pieces in the Receive now field on the Quantity tab.

3. Click the Posting > Packing slip to update the order. 4. In the Posting packing slip form, ensure that Receive now is

selected in the Quantity field under the Parameters field group. 5. Type a packing slip number in the Packing slip field. 6. On the Lines tab, select the Close check box to close the order and

then click OK.

NOTE: If you do not use the packing slip update step, you can close the order in the invoice update step.

Demonstration: Underdeliver a Purchase Order

Microsoft Dynamics AX 2009 will reject the posting and give the error Under-delivery of line is 11.11 percent, but the allowed underdelivery is only 0.00 percent. Update has been canceled.

NOTE: The calculation of the under delivery is rounded up to two decimal points.

Notice that the error provides you the calculated percent of the quantity that you are trying to post. To manually override the default item tolerance settings and close this order, you must return to the Purchase order.

1. Highlight the Purchase order line and then click the Setup tab. Specify the value from the error 11.12 in the Underdelivery field. Remember that the number in this field represents a percent, not pieces. The Receive now quantity must still be 8000 pieces.

2. Click Posting > Packing slip. Enter the packing slip number, select the Close check box, and then click OK to post.

This time, the order is posted and the order status changes to Received and there is no backorder.



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Demonstration: View Purchase Order Transactions

To view the transactions on the Purchase order, follow these steps:

1. Click Inquiries > Packing slip. 2. Click the Lines tab and you see that 75 were ordered and 70 were

received. Also, there is no remaining quantity to be delivered because the order was closed.

BEST PRACTICE: If you must frequently manually adjust the accepted under and over delivery percent for an item on the order, specify a tolerance on the item to reduce the number of steps required every time you receive the item.

Demonstration: Create a Sales Order

Customer 2021, Graphic Design Training Center, orders 90 pieces of item number 1303, with configuration 01. A long-standing relationship with this customer has been established and this is a typical order for them.

During a production of 90 pieces, you sometimes have scrap and nonconforming parts. To accommodate this, you always do a production run of 95 pieces. The customer recognizes this and accepts the fact that you may ship a bit less or more and has decided on a five percent tolerance, over or under, on an order of 90 pieces.

1. Open Inventory management > Item details and locate item number 1301.

2. On the Reference tab, set up an over-delivery tolerance of five percent and an under-delivery tolerance of five percent for Sales orders. This allows for order lines to be closed when the quantity falls within five percent of what is ordered.

3. Open Accounts receivable > Sales Order Details, and create a new Sales order with a Sales order line for 90 pieces of the item number 1301, configuration 01 (black) for customer 2021, Graphic Design Training Center. Click No to override the suggested order quantity.

Demonstration: Underdeliver a Sales Order

After a production run, you can ship 85 pieces of item number 1303 - black, to the customer Graphic Design Center. Ship these pieces and close the order.

1. Highlight the Sales order line and then enter the 85 pieces in the Deliver now field on the Quantity tab.

2. Click Posting > Packing slip to packing slip update the order. 3. In the Posting packing slip form, ensure Deliver now is selected in

the Quantity field under the Parameters field group. 4. On the Lines tab, select the Close check box to close the order and

then click OK.



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The posting is rejected and gives the error Underdelivery of line is 5.56 percent, but the allowed underdelivery is only 5.00 percent. Update has been canceled. Notice that the error gives the calculated percent of the quantity you are trying to post.

Demonstration: Under/Over Deliver a Sales Order

Knowing that the customer will not accept this order, you will create another production run for six pieces. All six pieces from the production are received this time. Now try to packing slip update the order to ship the customer 91 pieces.

1. Highlight the Sales order line and enter 91 (85+6) in the Deliver now field on the Quantity tab.

2. Click Posting > Packing slip.

NOTE: When you overdeliver an item, you do not have to select the Close check box; the system will consider the order fulfilled.

3. Select Deliver now in the Quantity field and then click OK .

The order is posted, the 91 pieces are shipped to the customer, and the order status changes to Delivered.

To view the transactions on the Sales order, follow these steps:

1. Click Inquiries > Packing slip. 2. Click the Lines tab and notice that 90 were ordered and 91 were

delivered.



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Lab 11.1 - Use Over/Under Delivery with Purchase Orders Contoso Entertainment Systems - Company CEU

Scenario

You are the purchasing agent for Contoso Entertainment Systems and have received a requisition for 1000 of item number 5003, binding posts. You remember that frequently, when you purchase this item, you receive slightly more or less than the ordered amount. Because this vendor, Trey Parts, offers the best price, you, your manager, and the accounting manager agree to set up an over and under delivery variance of five percent for this item for both sales and purchases.

Challenge Yourself!

1. Verify that Microsoft Dynamics AX 2009 is set to accept over and under deliveries in the Accounts receivable and Accounts payable modules.

2. Set up item number 5003 with the five percent variance for both sales and purchases.

3. Create the Purchase order for 1000 pieces of item 5003, with vendor 4102.

4. When the order is received, it contains 1007 of item 5003. Because this amount is within the five percent variance, post the Packing slip. The Packing slip number is 3307.

Need a Little Help?

• The set up for an item to accept over and under delivery is located in the Items form on the References tab.

• Before you packing slip update the Purchase order, specify the quantity 1007 for the order line in the Receive now field on the Quantity tab.

• On the Posting packing slip form, ensure that you only update the quantity that you receive now, and then close the order.

Step by Step

To verify that the Accounts receivable and Accounts payable modules are set up to accept over and under delivery, follow these steps:

1. Click Accounts receivable > Setup > Parameters. 2. Click the Updates tab and verify that the Accept underdelivery and

Accept overdelivery check boxes are selected. 3. Close the Accounts receivable parameters form.



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4. Click Accounts payable > Setup > Parameters. 5. Click the Updates tab and verify that the Accept underdelivery and

Accept overdelivery check boxes are selected. 6. Close the Accounts payable parameters form.

To set up item 5003 with the five percent variance for both sales and purchases, follow these steps:

1. Click Inventory management > Item details. 2. Select the 5003 item and then click the Reference tab. 3. In the Overdelivery and Underdelivery fields, in the Purchase

order field group, enter 5. 4. In the Overdelivery and Underdelivery fields, in the Sales order

field group, enter 5. 5. Close the Items form.

To create the Purchase order for 1000 pieces, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. In the Advanced view, press CTRL+N. 3. Select Vendor account 4102. 4. Click Yes to transfer vendor information and then click OK. 5. Select item 5003 in the Item number field. 6. In the Quantity field, enter 1000.

To packing slip update the order with the quantity 1007, follow these steps.

1. To post the receipt, click the Quantity tab on the Purchase order line.

2. In the Receive now field, enter 1007. 3. Click Posting > Packing slip. 4. In the Posting packing slip form, select Receive now in the

Quantity field, and in the Packing slip field, type 3307. 5. Click OK.

The Packing slip posted without error because the quantity received is within the over delivery of the five percent variance.



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Lab 11.2 - Use Underdelivery with Sales Contoso Entertainment Systems - Company CEU

Scenario

You are a new order processor for Contoso Entertainment Systems. You have received an order for 100 of item number 1164 from customer Forest Wholesales. You create the Sales order for Forest Wholesales, but can only deliver 92 from stock.

When the Packing slip is posted for the 92 items, you discover that this item is set up with a variance of five percent. You contact the warehouse and are informed that an order for this item was recently canceled and there are six more available to ship.

Challenge Yourself!

1. Create the Sales order for 100 pieces of item 1164, configuration 01, and prepare to ship the order for 92 items.

2. Try to post the packing slip for 92 of item 1164. 3. Add another six pieces of item 1164 and post the packing slip again.

Need a Little Help?

• Create the Sales order from the Accounts receivable module. • On the order line, set the quantity to 92 in the Deliver now field on

the Quantity tab. • Packing slip update the Deliver now quantity. • Add the additional six items in the Quantity tab of the Sales order

and packing slip update again. Ensure that you only update the quantity that you deliver now (98) and remember to close the order.

Step by Step

To create and post the Sales order, follow these steps:

1. Click Accounts receivable > Sales Order Details. 2. In the Advanced view, press CTRL+N. 3. Select Customer account 1101. 4. Click Yes to transfer customer information and then click OK. 5. Select item 1164 in the Item number field. 6. Select 01 in the Configuration field. 7. In the Quantity field, enter 100. 8. Click the Quantity tab and enter 92 in the Deliver now field. 9. Click Posting > Packing slip.



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10. In the Posting packing slip form, select Deliver now in the Quantity field.

11. Click the Lines tab and select the Close check box. 12. Click OK. A message appears about printing, click OK.

The Packing slip does not post because the quantity to deliver is not within the five percent variance, it is eight percent.

13. In the Infolog, click Close.

To add the additional six items from the canceled order to the Sales order and try to post the Packing slip again, follow these steps.

1. On the Sales order line, on the Quantity tab, type 98 in the Deliver now field.

2. Repeat steps 9 through 12.

The Packing slip posted without error because the quantity delivered is within the five percent variance.



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Miscellaneous Charges Miscellaneous charges are costs and fees that you can add to the cost of items, sales, and purchases according to the setup. The following are examples of miscellaneous charges:

• Freight • Transport • Postage • Insurance • Recycling • Packaging

Methods of Adding Miscellaneous Charges

There are three ways of adding miscellaneous charges in Microsoft Dynamics AX 2009:

• Price miscellaneous charges: This is a fixed charge set up for a specific item, for example, a startup fee that is charged every time that the item is traded. The Price misc. charges feature is set up on the Items form.

• Manual set up of miscellaneous charges: You can add this kind of charge manually to the order header or order line of a sales or Purchase order. An example is a one-time fee that is charged to the whole order or a specific line on an order. You can also add this kind of charge to Purchase order invoice header or lines.

This charge is set up in the Accounts receivable or Accounts payable modules under Setup > Misc. charges.

• Automatic set up of miscellaneous charges: This kind of charge is

set to automatically add miscellaneous charges when you create a purchase or Sales order.

This charge is set up in the Accounts receivable or Accounts payable modules under Setup > Misc. charges > Auto-misc. charges. The charge can be added to: o A specific item o An item misc. charges group o A specific customer or vendor o A customer or vendor misc. charges group o All items, customers, or vendors o A combination of the above



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Price Miscellaneous Charges A price miscellaneous charge is an amount that is added to the price of an item. A miscellaneous charge might be production and setup costs, fees, or freight.

You can set up price miscellaneous charges with either of the following methods:

• Independent of the quantity of the items. The miscellaneous charge is a fixed amount that is added to the order price independently of the item quantity. Whether ten or twenty items are sold, the miscellaneous charges on the order line are the same.

• Dependent on the quantity of items. The miscellaneous charge is calculated based on the item quantity and added to the order line.

Price miscellaneous charges are set up on the Price/Discount tab of the Items form, and on price agreements.

Price Miscellaneous Charges Settings

The settings for price miscellaneous charges are specified for purchase prices, cost prices, and sales prices under the relevant Base purchase price, Base cost price, and Base sales price field groups. When you set up price miscellaneous charges, use the fields shown in the table.

Field Description Price misc. charges Price misc. charges is a fixed amount added to the

price of the item, for example, attaching a miscellaneous charge of 80 U.S. dollars (USD) to a sales price of 100 (USD). When you create an order for the item, the Unit price field for the order line displays 100 USD, and 80 USD is added to the Net amount field.

Price quantity Price quantity is the quantity that you can use when allocating the specified Price misc. charges on price for each unit. For example, if you want to add 10 USD to the order every time 20 of these items are traded, you must specify 20 in the Price quantity field.

Incl. in unit price Incl. in unit price divides miscellaneous charges by the number that is specified in the Price quantity field and adds them to the price specified in the Price misc. charges field. You must select the Incl. in unit price check box when the miscellaneous charge is dependent on the quantity of items traded.

NOTE: Any Trade agreements that are set up for a vendor override the price/discount specifications on an item. To view possible Trade agreements, click Accounts payable > Vendor Details > Trade agrmt > Purchase prices.



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Example: Add Miscellaneous Charges that are Independent of the Item Quantity

An item costs 10 USD and when you purchase it, an additional 2 USD is added to the total price to cover the cost of transport. Instead of always adding the 2 USD charge on the Purchase order line, the price miscellaneous charge is added to the item to ensure that the charge is always included. This charge is specified in the Items form for that particular item on the Price/discount tab. The setup of the parameters in the Base purchase price field group is as follows:

• Price: 10.00 • Price unit: 1.00 • Price misc. charges: 2.00

When you create a Purchase order for five of these items, the Net amount on the Purchase order line shows 52.00 USD because the 2 USD misc. charges is added to the price for all five items.

View the total of the miscellaneous charges by clicking the Price/discount tab on the Purchase order line and viewing the Purchase misc. charges field.

Example: Add Miscellaneous Charges that are Dependent on the Item Quantity

An item costs 10 USD, and when you purchase the item, a 2 USD charge is added for each set of ten. This also means that if only one of these items is purchased, one tenth of the amount indicated in the Price misc. charges field is added to the line item; this is specified in the Items form for that particular item on the Price/discount tab. The setup of the parameters in the Base purchase price field group is as follows:

• Price: 10.00 • Price unit: 1.00 • Price misc. charge: 2.00 • Price quantity: 10.00 • Incl. in unit price: Selected

When you, for example, create a Purchase order for one item, the Net amount field on the Purchase order line shows 10.20 USD because one tenth (0.20 USD) of the Price misc. charges is added to the price for one item.

If you create a Purchase order for ten items, the Net amount field shows 102.00 USD because the whole Price misc. charges value, 2.00 USD, is added to the price because ten items are purchased.

NOTE: When a fixed charge is specified on the Items form, the posting of the miscellaneous charges added is considered part of the price and included in the calculations of inventory value and margin.



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Miscellaneous Charges Codes To add manual and automatic miscellaneous charges when creating a sales or Purchase order, you must set up miscellaneous charges codes. The miscellaneous charges codes are used to specify the kind of charge and how the charge is debited and credited.

Set up Miscellaneous charges codes in both the Accounts receivable and Accounts payable modules by clicking Setup > Misc. charges > Misc. charges codes.

FIGURE 11.2 MISC. CHARGES CODE FORM - ACCOUNTS PAYABLE

The Misc. charges codes form contains two tabs:

• Overview • Posting

Overview Tab

On the Overview tab, specify the fields and use the buttons shown in the following table.

Field Description Misc. charges code A unique identifier for the charge.

Description A short description of the charge.



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Field Description Item sales tax group An item sales tax group that can be used for

calculation of taxes on the miscellaneous charge.

Intrastat Determines whether the charge is included in Intrastat transactions.

Language texts button Opens the Misc.charges code form where you can enter alternative language codes for the selected miscellaneous charges code. These language codes are then used to print the charges text in the language assigned to the customer or vendor.

External codes button Opens the External codes form, where you can create or update external codes related to the selected miscellaneous charges code. External codes are used with external transactions, such as Application Integration Framework, EDI, or intercompany processing.

Posting Tab

Use the Posting tab to specify how to automatically debit and credit the charge.

FIGURE 11.3 MISC. CHARGES CODE FORM > POSTING TAB - ACCOUNTS PAYABLE



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The following fields exist for both Debit and Credit field groups:

• Type: Determines who or what carries the charge. The options are as follows: o Item: A unit charge is added to the item cost, for example, a

landed cost. o Ledger account: The charge is incurred internally. o Customer/Vendor: The customer or vendor incurs the charge.

• Posting: Identifies a posting description. This field is required if the

Type field is set to Ledger account. • Account: Specifies the ledger account that must be debited or

credited, when the Type field is set to Ledger account. • Compare purchase order and invoice values: This field only

appears for Accounts payable miscellaneous charges. It is only enabled when the Debit or Credit type is Customer/Vendor. This option determines if miscellaneous charges transactions with this Misc. charge code will be included in Accounts payable Purchase order invoice matching.

Miscellaneous Charge Codes - Sales

There are two setups for sales in the Posting tab of the Misc. charges codes form that are used to determine who is responsible for the charge:

• Customer: The customer pays the charge and the charge is added to the Sales order totals.

• Internal: The charges are incurred internally and do not appear on sales transactions.

NOTE: You cannot use the Item miscellaneous charge in the Accounts receivable module. If the Type Item is selected on the Posting tab of the Misc. charges codes form, an Info log appears, stating that Misc. charges on item cannot be used.

Procedure: Set Up Miscellaneous Charges Codes for Sales

To set up the miscellaneous charges codes for sales, follow these steps:

1. Open Accounts receivable > Setup > Misc. charges > Misc. charges codes.

2. Press CTRL+N to add a new code. 3. In the Misc. charges code field, type a unique identifier for this

miscellaneous charge. 4. In the Description field, type a short description of the charge. 5. Click the Item sales tax group arrow and select the sales tax group.



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6. Select the Intrastat check box if this miscellaneous charge must be considered in Intrastat transactions for trade with countries/regions in the European Union (EU).

7. Click the Posting tab. 8. Determine who is responsible for the charge by using the

information displayed in the following table.

Debit Type

Debit Posting

Debit Account

Credit Type

Credit Posting

Credit Account

Customer Customer/ Vendor

not applicable

not available

Ledger account

Specify Specify

Specify Ledger account

Specify Specify Ledger account

Specify

Miscellaneous Charge Codes - Purchases

There are three setups for purchases in the Posting tab of the Misc. charges codes form that are used to determine who is responsible for the charge:

• Item • Internal • Vendor

NOTE: The Item miscellaneous charge cannot be used in the Accounts payable module as Credit Type. If the Credit Type item is selected on the Posting tab of the Misc. charges codes form, an Info log appears, stating that Misc. charges on the item cannot be used.

Procedure: Set Up Miscellaneous Charges Codes for Purchases

To set up the miscellaneous charges codes for purchases, follow these steps:

1. Open Accounts payable > Setup > Misc. charges > Misc. charges codes. 2. Press CTRL+N to add a new code. 3. In the Misc. charges code field, type a unique identifier for this

miscellaneous charge. 4. In the Description field, type a short description of the charge. 5. Click the Item sales tax group arrow and select the sales tax group. 6. Select the Intrastat check box if this miscellaneous charge must be

considered in Intrastat transactions. 7. Click the Posting tab.



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8. Determine who is responsible for the charge by using the information displayed in the following table.

Expenses are added to

Paid Debit Type Credit Type

Item Directly to creditor Item Customer/Vendor

Internally Item Ledger account

Internal Directly to creditor Ledger account Customer/Vendor

Internally Ledger account Ledger account

Vendor Customer/Vendor Ledger account

EXAMPLE: If there are miscellaneous charges on an invoice from a vendor, the credit type is Customer/Vendor and the amount is posted to the vendor's summary account. If the miscellaneous charge has some other cause (for example freight or insurance) that the company (internally) receives and pays for separately, specify the Ledger account and Account credit type.



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Lab 11.3 - Create a Miscellaneous Charges Code Contoso Entertainment Systems - Company CEU

Scenario

You are the Accounts payable coordinator at Contoso Entertainment Systems, and you must create a new Misc. charges code for transport charges that will be added to various items and paid to the vendor.

Create a new charge for transportation fees with the following specifications:

• Name of the Misc. charges code: 09 • Description: Transportation Fee

This fee does not require an Item sales tax group.

Challenge Yourself

Create a new charge for Transportation fees as specified in the scenario.

Need a Little Help?

1. The Misc. charges code form is located in Accounts payable > Setup > Misc. charges > Misc. charges codes.

2. On the Posting tab, indicate the item debit information and the vendor credit information.

Step by Step

1. Open Accounts payable > Setup > Misc. charges > Misc. charges codes. 2. Press CTRL+N to add a new line. 3. In the Misc. charges code field, enter Transport. 4. In the Description field, enter Transportation Fee. 5. Click the Posting tab. 6. In the Debit type field, select Item. 7. In the Credit type field, select Customer/Vendor.



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Manual Miscellaneous Charges When creating a Sales or Purchase order, you can add miscellaneous charges to the order header and/or the order lines. Typically, you can manually add miscellaneous charges to a sales or Purchase order when the charges apply only to the specific order.

For example, a customer calls and requests a large order. Because this is not a common order for the customer, the order taker adds the charges directly to the Sales order instead of setting up miscellaneous charges for the item.

Purchase Order Invoice

When you create a Purchase order invoice, miscellaneous charges can be added or modified on the invoice header and/or the invoice lines. You usually add or modify miscellaneous charges on a Purchase order invoice when the charges on the invoice from the supplier are different than what was on the Purchase order, or when additional charges were added to the invoice.

Example

You have created a Purchase order for an item. A miscellaneous charge on the order reflects that shipping costs are expected to be 50 U.S. Dollars (USD). Production losses in your company cause an inventory shortage and you call the vendor to ask them to use expedited shipping.

When the invoice arrives from the vendor, the shipping costs are 75 USD. You can modify the invoice miscellaneous charge to reflect the correct charge.

Notice that the difference between the 50 USD on the purchase order and the 75 USD on the invoice are visible in the Invoice matching form. Compared miscellaneous charges will be 75 USD. In the Compare misc. charges values form, the Invoice calculated value will be 75 USD, the Purchase order calculated value will be 50 USD.

Sales Orders

You can manually add miscellaneous charges to the Sales order header, the individual Sales order lines, or both. This is helpful when an order contains many different types of items that require different types of charges. The charges can be added to:

• The header: When an overall charge must be added to the order. • The individual lines: When only certain lines on a multiple line

order have miscellaneous charges. • Both the header and the individual lines: When charges are added

to the whole order but additional miscellaneous charges are required on individual lines. For example, when certain items on a multiple line order require special handling and therefore additional charges.



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Set up manual miscellaneous charges in the Misc. charges transactions form and access the charges from:

• The Sales order header by clicking the Setup button in the upper part of the form, and then selecting Misc. charges.

• The sales order lines by highlighting a line and selecting the Setup button in the lower part of the form, and then selecting Misc. charges.

Misc. Charges Transactions Form

The Misc. charges transactions form contains fields, which are described in the table.

Field Description Misc. charges codes Select a Misc. charges code that is set up in the

Accounts receivable and Accounts payable modules from Setup > Misc. charges > Misc. charges codes.

Transaction text The Transaction text field is automatically populated with the description of the Misc. charges code. This text is shown in the posted charge transaction and can be edited before posting.

Category Miscellaneous charges on sales or Purchase order lines can be calculated as fixed charges, a charge for each unit, or a percentage of the line amount. The Intercompany category is used to set up miscellaneous charges for intercompany trade.

Misc. charges value Enter the value for the specified charge. The value can be a fixed amount, a percentage of the order or line total, or a fixed amount per unit depending on what is selected in the Category field.

Currency The Currency field is inherited from the selected Misc. charges code.

Keep Select the Keep check box to indicate that the miscellaneous charges transactions must be retained after partial invoicing.

Procedure: Manually Add Miscellaneous Charges to a Sales Order

To manually add miscellaneous charges to both the Sales order header and lines, follow these steps:

1. Click Accounts receivable > Sales Order Details. 2. Create a new Sales order (header and lines) in the Advanced view. 3. Select the Sales order header and then click Setup > Misc. Charges.



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4. Select a Misc. charges code in the Miscellaneous charges code field.

5. Click the Category arrow and select a category.

NOTE: The Category options, Pcs. and Intercompany percent, are available only in the order lines.

6. In the Misc. charges value field, enter the value for the specified

charge category. 7. Select the Keep check box and then close the form. 8. Select the Sales order line, click Setup > Misc. charges. 9. Click the Miscellaneous charges code arrow and select a code. 10. Change the text in the Transaction text field if it is necessary. 11. Specify the Category. 12. In the Misc. charges value field, enter the value for the specified

charge category. 13. Select the Keep check box to keep charges after partial invoicing and

close the Misc. charges transactions form. 14. To view the total miscellaneous charges for the order, in the header,

click Inquiries > Totals. The Total misc. charges field displays the total charges for the order.

NOTE: Miscellaneous charges on the header and line are included in the price. This means they are not specified on any of the posting updates.

Purchase Orders

The process for the manual setup of a miscellaneous charge for a Purchase order resembles the setup for a Sales order. However, for Purchase orders, the header miscellaneous charges can be allocated to the lines.



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Typically, you will allocate miscellaneous charges to the lines when the cost must be allocated to each line item in a Purchase order. When you add miscellaneous charges to the Purchase order header, determine how the charges are to be allocated to the lines by clicking the Setup button in the header and selecting Allocation.

FIGURE 11.4 ALLOCATE MISC. CHARGES FORM

Allocate Misc. Charges Form

Set up the method by which the misc. charges must be allocated in the Allocate misc. charges form. Open the form from the Purchase order header by clicking Setup > Allocation. The methods that are available in the Allocate misc. charges form are shown in the following table.

Method Description Misc. charges allocation If the charge is a fixed amount, you

determine the method for dividing miscellaneous charges: • Net amount: The amount is allocated

according to the line's net amount. • Quantity: The amount is allocated

according to the quantity of units on the lines.

• Per line: The amount is equally allocated among all lines.

Allocate misc. charges to lines Identify the lines to which the miscellaneous charges are to be allocated: • All lines: Allocate to all lines • Positive lines: Allocate to lines with a

positive quantity • Negative lines: Allocate to lines with a

negative quantity



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Method Description Allocate all If you select the Allocate all check box, the

miscellaneous charges allocation will be made to all miscellaneous charges, regardless of the Debit Type specified in the Misc. charges code setup. If it is cleared, only those with a Debit type of Item are allocated.

Received Select Received to only allocate charges to received order lines.

NOTE: If a header miscellaneous charge is added to the order and the Debit Type is Item in the selected Misc. charges code, the charge must be allocated to the lines before you can create an invoice.

Procedure: Allocate Miscellaneous Charges to Purchase Order Lines

To allocate miscellaneous charges to Purchase order lines, follow these steps.

1. Click Accounts payable > Purchase order. 2. Click Advanced to see the complete form. 3. In the order header pane, click the Setup button and select

Allocation to allocate the charges to the Purchase order lines. 4. Select the allocation method from the Misc. charges allocation list.

NOTE: This step applies only if the charge is a fixed amount.

5. In the Allocate misc. charges to lines field, specify whether to

allocate charges to All lines, Positive lines, or Negative lines. 6. Select the Allocate all check box to allocate charges to Purchase

order lines, even if the miscellaneous charge code has the debit type other than Item.

7. Select the Received check box to allocate charges only to received order lines.

NOTE: Charges are allocated to all lines based on the criteria that you selected. To allocate charges to selected lines, define the miscellaneous charges manually for each line.



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Lab 11.4 - Manual Setup of Miscellaneous Charges Contoso Entertainment Systems - Company CEU

Scenario

Part 1: The Kingbird Wholesales customer (Customer account 1204) orders 250, Lamps for video projector model 02 (1508) and 20 Standard DVD player - black (1701). Because of the large order, a 150 U.S. dollars (USD) freight charge is added to the complete order. In addition, the bulbs require a special freight fee of 25 USD.

As the order processor, you create the Sales order, adding the overall 150 USD charge and the special freight fee of 25 USD to the Purchase order line.

Part 2: You are now the purchasing agent and have been informed that the stock is now low on the lamps, 1508. You call your regular supplier but they are out-of-stock. You call the recommended supplier, Opal Electronics (Vendor account 1203), and they have lots of stock.

Create a Purchase order for 50 items of 1508, and because there is a special on Item 1507, you order for 25 of those also.

You are informed of the 200 USD freight charge. Allocate this amount by the quantity on the lines.

Challenge Yourself!

• Create the Sales order as specified in part 1 of the scenario, adding the overall 150 USD charge and the special freight fee of 25 USD to the Purchase order line.

• Verify the amounts in the Totals form. • Create a Purchase order for 50 items of 1508, and for 20 items of

1507. • Allocate the 200 USD freight charge by the quantity on the lines.

Need a Little Help?

1. Create the sales order as specified in part 1 of the scenario. To set up both the overall charge and the special freight on the sales order, click Setup > Misc. charges on the sales order header.

2. Set up of the special freight on the sales order line. Click Setup > Misc. charges on the sales order line.

3. The Totals form is accessed from the sales order header by clicking Inquires > Totals.

4. To create a purchase order as specified in the scenario, create two lines, one for 50 items of 1508 and 20 items of 1507.



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5. Set up the 200 USD freight charge from the sales order header by clicking Setup > Misc. charges.

6. To allocate the 200 USD according to quantity locate the Allocate misc. charges form from the sales order header by clicking Setup > Allocation.

Step by Step

Create the sales order and verify the amounts in the Totals form.

1. Click Accounts receivable > Sales Order Details. 2. Press CTRL+N. 3. Click Customer account 1204. 4. Click OK. 5. Click the Item number arrow, locate and select item 1508. 6. In the Quantity field, type 250. 7. Press CTRL+N. 8. Click the Item number arrow, locate and select item 1701. 9. In the Quantity field, type 20. 10. In the header, click Setup > Misc. charges. 11. Click the Misc. charges code arrow and select 01. 12. In the Misc. charges value field, type 150. 13. Close the Misc. charges transactions form. 14. In the lines, select the line for item 1508. 15. In the lines section, click Setup > Misc. charges. 16. Click the Misc. charges code arrow and select 01. 17. In the Misc. charges value field, type 25. 18. In the header, click Inquires > Totals and verify the amount of 175.00

in the Total misc. charges field.

Create the purchase order and allocate the amount by quantity on the line.

1. Click Accounts payable > Purchase Order Details. 2. Press CTRL+N. 3. Click Vendor account 1023. 4. Click Yes to transfer vendor information. 5. Click OK. 6. Click the Item number arrow, locate and select item 1508. 7. In the Quantity field, type 50. 8. Click in the lines and press CTRL+N. 9. Click the Item number arrow, locate and select item 1507. 10. In the Quantity field, type 20. 11. In the header, click Setup > Misc. charges. 12. Click the Misc. charges code arrow and select 01.



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13. In the Misc. charges value field, type 200. 14. Close the Misc. charges transactions form. 15. In the header, click Setup > Allocation. 16. Click the Misc. charges allocation arrow and click Quantity. 17. Select the Allocate all check box. 18. Verify the charge allocation on the first line by clicking Setup > Misc.

charges in the lines section for each item. 19. Verify that the misc. charge for item 1508 is 142.86 (200 USD/70

pieces x 50 pieces), and the misc. charge for item 1507 is 57.14 (200 USD / 70 pieces x 20 pieces).



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Automatic Miscellaneous Charges Set up Microsoft Dynamics AX 2009 to add miscellaneous charges automatically when you buy or sell an item. Before you set up and assign automatic misc. charges, you can create and set up Miscellaneous charges groups.

Miscellaneous Charges Groups

Miscellaneous charges groups are used for the automatic setup of miscellaneous charges. This is because they classify items, customers, or vendors into groups for which the same miscellaneous charges applies. The groups are available for selection on the Auto-misc. charges form, and when orders are then created for these groups, the charges are automatically calculated and applied to the order.

There are three kinds of groups:

• Customer misc. charges • Vendor misc. charges • Item misc. charges

Miscellaneous charges groups are useful when:

• A company has charges that apply to certain customers or groups of customers.

• Vendors charge certain fees on all orders. • One or more items are associated with one or more customers or

vendors.

Set Up Miscellaneous Charges Groups

Miscellaneous charges groups are set up in the same manner for customers, vendors, and items, but on different forms. To access the specific form, follow these paths:

• Customer misc. charges groups form: Open Accounts receivable > Setup > Misc. charges > Customer misc. charges groups.

• Vendor misc. charges group form: Open Accounts payable > Setup > Misc. charges > Vendor misc. charges groups.

• Item misc. charges group form: Open Inventory management > Setup > Misc. charges > Item misc. charges groups.



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Procedure: Set Up a Miscellaneous Charges Group for Customers

To set up a miscellaneous charges group for a customer, follow these steps:

1. Open Accounts receivable > Setup > Misc. charges > Customer misc. charges groups.

2. Press CTRL+N to create a new misc. charges group. 3. In the Misc. charges group field, enter a unique identifier for the

group. 4. In the Description field, type a short description of the charges

group.

Assign Miscellaneous Charge Groups to Base Data

Now the Misc. charges group can be assigned to the specific base data:

• Item misc. charges groups can be assigned to specific items from the Items form.

• Customer misc. charges groups can be assigned to specific customers from the Customer form. Customer misc. charges groups can also be assigned a specific Sales order in the Sales order form.

• Vendor misc. charges groups can be assigned to specific vendors from the Vendors form. Vendor misc. charges groups can also be assigned a specific Purchase order in the Purchase order form.

Procedure: Assign Miscellaneous Charges Groups to Items

To assign miscellaneous charges groups to items, follow these steps:

1. Open the Items form by clicking Inventory management > Item details.

2. Select the item to which to assign miscellaneous charges groups and then click the References tab.

3. In the Purchase order and Sales order field groups, select the relevant misc. charges group in the Misc. charges group field.



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Procedure: Assign Miscellaneous Charges Groups to Customers and Vendors

To assign miscellaneous charges groups to customers and vendors, follow these steps:

1. Open Accounts receivable > Customer Details or Accounts payable > Vendor Details.

2. Select the customer or vendor to assign miscellaneous charges groups to.

3. Click the Sales order tab on the Customer or the Purchase order tab on the Vendor.

4. Select the relevant misc. charges group in the Misc. charges group field.

Procedure : Assign Miscellaneous Charges Groups to Orders

To assign miscellaneous charges groups to orders, follow these steps:

1. Open the Sales order or the Purchase order. 2. Select the order to assign a miscellaneous charges group to. 3. Click the Price/Discount tab on the order header. 4. Select the relevant misc. charges group in the Misc. charges group

field.

Set Up Automatic Miscellaneous Charges

You can specify automatic miscellaneous charges for:

• A specific customer account, a group of customers, or all customers. • A specific vendor account, a group of vendors, or all vendors. • A specific item, or group of items, or all items. • A combination of the above. Miscellaneous charges can, for

example, be added when a specific customer buys a specific item.



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Set up Auto-misc. charges codes for sales in the Accounts receivable module and for purchases in the Accounts payable module. For both setup areas, select Setup > Misc. charges > Auto-misc. charges.

FIGURE 11.5 AUTO-MISC. CHARGES FORM - CUSTOMER

Select the Main or Line level at which the miscellaneous charges should be calculated, in the Level field.

Set Up Automatic Miscellaneous Charges - Overview Tab

The fields in the Overview tab of the Auto-misc. charges form are described in the following table.

Fields Main level Line level Account code Specifies whether the charge is

to be calculated for a specific account (Table), a specific account group (Group), or for all accounts (All). If you select All, the remaining fields cannot be specified.

Refer to Main level.



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Fields Main level Line level Customer/ Vendor relation

If the value in the Account code field is set to Table, specify the account number for which the charge has been created. If Group is selected in the Account code field, specify the customer or vendor charge group for which the charge has been created. If All is selected in the Account code field, the charge will be calculated on the order line, regardless of the item number selected.

Refer to Main level.

Item code By default, this field is set to All. If you are on the Main level, this field cannot be changed.

Specify whether the charge is to be calculated for a specific item, a specific item group, or for all items.

Item relation By default, this field is blank. If you are on the Main level, this field cannot be changed.

If the value in the Account code field is set to Table, specify the item number for which the charge has been created here. If the value is Group in the Account code field, specify the item misc. charge group for which the charge has been created. If All is selected in the Account code field, the purchase charge will be calculated on the Purchase order line, regardless of the item number selected.

NOTE: The miscellaneous charges are applied according to the Microsoft Dynamics AX 2009 hierarchy, first being applied at the Table level, and then the Group level and, finally, the Items level.



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Set Up Automatic Miscellaneous Charges - Lines Tab

The fields on the Lines tab of the Auto misc. charges form are described in the following table.

Fields Description Currency Specify the currency code for the

miscellaneous charges transaction.

Misc. charges code Select one of the charges defined in Misc. charges code form.

Category Specify whether miscellaneous charges are to be calculated as one of these three options: • A fixed amount per invoice • An amount per piece • As a percentage of the invoice amount Fixed and percent can be used on charges in the order header and the order lines, whereas per piece can only be used on order lines.

Misc. charges value Specify the value for the specified category.

Misc. charges currency code The Currency field is inherited from the selected Misc. charges code. Specify the currency code for the charge if you want to use a different currency than specified in the sales/Purchase order. However, this is only possible if the debit/credit type is either Ledger account or Item for the selected Misc. charges code.

Sales tax group Specify the tax group for the miscellaneous charges transaction.

Keep Select the Keep check box to indicate that miscellaneous charges transactions must remain after partial invoicing.

NOTE: The Misc. charges currency code must be the same as the default currency for the customer or vendor currency for the misc. charges to be allocated to the sales or Purchase order.



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Procedure: Activate Automatic Miscellaneous Charges

To ensure that automatic miscellaneous charges are appropriately handled, you must activate them in the Accounts receivable or Accounts payable parameter form.

To activate automatic miscellaneous charges, follow these steps:

1. Open Accounts receivable > Setup > Parameters or Accounts payable > Setup > Parameters.

2. Click the Prices tab. 3. Select the Find main misc. charges and Find misc. charges for line

check boxes. 4. Close the form.

Procedure: Edit Automatic Miscellaneous Charges

Occasionally, you must change miscellaneous charges on orders. For example, because of a problem with a previous purchase, the vendor has offered to waive the typical handling fee on the next order.

To view, modify, or delete the automatic miscellaneous charges, follow these steps:

1. Open a sales or Purchase order. 2. Click Setup > Misc. charges for the order header or the order lines,

depending on if the charges are allocated on the header or on the lines.

3. In the Misc. charges transactions form, modify the transaction. To delete an automatic miscellaneous charge line, select the line and then click the Delete icon on the Toolbar.

NOTE: You can modify or delete the Automatic Misc. Charges at any time through the posting process.



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Lab 11.5 - Create a Customer Miscellaneous Charges Group Contoso Entertainment Systems - Company CEU

Scenario

Contoso Entertainment Systems is the largest supplier of item 1508, the lamps for video projector model 02, for customers 1204,Kingbird Wholesales, and 1302, Turtle Wholesales.

Because of the large quantity and weight of items sold, Contoso Entertainment Systems and the two customers have agreed to a 15 percent freight charge for all orders. This charge represents a reduced fee because of the bulk purchases.

As the Accounts receivable administrator, you have been asked to set up a new Customer misc. charges group and assign the code to the customers 1204 and 1302.

The name of the new charge group is 06 and the Description is Freight 15%.

Challenge Yourself!

Set up a new Customer misc. charges group and assign the code to the customers 1204 and 1302.

NOTE: This group will be defined on the Auto-misc. charges form by the controller. You are only responsible for the new group and assigning it to the customer.

Need a Little Help?

1. Set up a new Customer misc. charges group. The Customer misc. charges groups form is located in Accounts receivable > Setup > Misc. charges > Customer misc. charges groups.

2. Create a new freight charge 06, with a description of Freight 15%. 3. Assign the misc. charges code to the customers. Do this by locating

the customers 1204 and 1302 in the Customers form. Then add the new Customer misc. charges group to each customer on the Sales order tab.

Step by Step

Set up a customer misc. charges group

1. Open Accounts receivable > Setup > Misc. charges > Customer misc. charges groups.

2. Press CTRL+N. 3. In the Misc. charges group field, enter 06.



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4. In the Description field, type Freight 15%. 5. Close the Customer misc. charges groups form.

Assign the misc. charges group to customers

1. Open Accounts receivable > Customers. 2. Locate and select customer 1204, Kingbird Wholesales. 3. Click the Sales order tab. 4. Select 06 in the Misc. charges group field. 5. Click the Overview tab. 6. Locate customer 1302, Turtle Wholesales. 7. Repeat steps 3 to 4.



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Lab 11.6 - Set Up of Automatic Miscellaneous Charges Contoso Entertainment Systems - Company CEU

Scenario

The customer Otter Wholesales (Customer account 1304), purchases in small quantities from Contoso Entertainment Systems. Because of their purchase history, an agreement has been made that all orders now include a 15 U.S. dollar (USD) freight charge. As the accounting manager for Contoso Entertainment Systems, you must set up a new automatic miscellaneous charge for customer 1304. The Misc. charge code 01 is used for this freight charge.

NOTE: This Misc. charge code is set up to debit the customer and credit the miscellaneous charges ledger account 403500. This information is used at the end of this lab to verify posting.

Later, the purchaser for Otter Wholesales orders 45 of item 1702, the Standard DVD player - Silver. As the order processor for Contoso Entertainment Systems, you create the Sales order. The purchaser asks you to verify that the 15 USD freight charge is included in the order. You verify it in the header and then post the Sales order.

Challenge Yourself!

On the Auto-misc. charges form, add the 15 USD freight charge for customer 1304.

1. Create a Sales order to customer 1304 for 45 of item 1702. 2. Pick the sales order line, and post and review the Invoice for the

freight charge. 3. After you post the Sales order, open the ledger transactions for

account 403500 and verify that the miscellaneous charge was correctly posted to the account.

Need a Little Help?

1. Add the 15 USD freight charge as an Auto-misc. charge for customer 1304. The Auto-misc. charges form is located in Accounts Receivable > Setup > Misc. charges > Auto-misc. charges.

2. From the Accounts receivable module, open the Sales order form to create a new Sales order.

3. Click Inventory > Pick to pick the sales order line. 4. Click Posting > Invoice to post the invoice. 5. Open the Chart of accounts from the General ledger located in

General ledger > Chart of Account Details.



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Step by Step

Add freight charges for customer 1304 on to the Auto-misc. charges form:

1. Open Accounts receivable > Setup > Misc. charges > Auto-misc. charges.

2. In the Auto-misc. charges form, verify that the Level field = Main. 3. Press CTRL+N. 4. Select Table in the Account code field. 5. Select 1304 in the Customer relation field. 6. Click the Lines tab. 7. Select 01 in the Misc. charges code field. 8. Enter 15 in the Misc. charges value field. 9. Close the Auto-misc. charges form.

Create a Sales order, post the invoice and review the freight charge

1. Open Accounts receivable > Sales Order Details. 2. Press CTRL+N. 3. Select Customer account 1304, and then click OK. 4. Select item 1702 in the Item number field. 5. In the Quantity field, type 45. 6. Click Inventory > Pick on the sales order line. 7. Select the Auto-create check box, and then click Post all. 8. Close the Pick form. 9. Post the Sales order by clicking Posting > Invoice. 10. In the Parameters field group, select All in the Quantity field. 11. Select the Print invoice check box and then click OK. 12. Click Yes to the message about printing. The Invoice appears. 13. Note the Invoice number and then scroll to the bottom to verify that

the 15 USD miscellaneous charges appear. 14. Close all the open forms.

Verify that the misc. charges were correctly posted to the account:

1. Open General ledger > Chart of Account Details. 2. Locate and select Ledger account 403500 and then click

Transactions. 3. Locate the invoice number noted in step 13 and verify that the 15

USD charge is posted to the account.



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Landed Cost Miscellaneous Charges A landed cost enables a company to capture all the costs related to an inventory item. Calculating landed cost is valuable when the additional costs are a significant part of the item cost. Determining landed costs is also helpful when you compare item costs between vendors. For example, vendor A sells an item for 4.75 U.S. dollars (USD) and vendor B sells the item for 4.25 USD. However, vendor B charges more in freight charges so that the complete cost of the item is more than vendor A's cost.

In Microsoft Dynamics AX 2009, landed costs can be added when an item is posted and will provide the item's total cost. Third-party charges, such as freight and import duty, can be posted to an item so that the item transactions include these charges. This process provides a landed cost for the item.

You can add these additional charges at following points in time:

• Before the order is posted, if known. • Later, if the charges come in after posting.

Adding Landed Cost Misc. Charges after Invoice Update

In Microsoft Dynamics AX 2009, miscellaneous charges can be added to a Purchase order until it is invoiced. If an invoice from the vendor contains a miscellaneous charge, it must be added and allocated among the items before or during invoicing.

However, in some cases, a company might receive a bill from a third-party at a later stage. To adjust the cost price for the items, you must set up the Misc. charges code as a Debit to the Item and a Credit to the Ledger account.

Procedure - Adjust Miscellaneous Charges using a Journal

To make an adjustment on an invoice from the Invoice Journal form, follow these steps:

1. Open Accounts payable > Inquiries > Journals > Invoice. 2. On the Invoice Journal form, select the invoice to adjust. 3. Click Misc. charges > Adjustment; the Allocate misc. charges form

appears. 4. If the miscellaneous charge is for a fixed amount, select the

allocation method in the Misc. charges allocation field. 5. In the Posting date field, enter the date of posting in the ledger. 6. Click the Allocate misc. charges to lines arrow and decide how to

allocate charges to the lines. 7. Click the Misc. charges code arrow and select the relevant code.



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8. Update the Transaction text, if necessary. 9. In the Misc. charges value field, enter a value. 10. Click the Category arrow and select how to calculate the charge. 11. Click OK to adjust the charges to the lines. 12. To view the adjustment to the lines, click the Lines tab of the

adjusted invoice and then click Misc. charges. Each line will display the charges as allocated in steps 4-11.

Adjust Miscellaneous Charges on a Purchase Order

Make adjustments on an invoiced order directly from the Purchase order form. For example, a freight bill is received from a third-party vendor after the original Purchase order was received and invoiced. The charge can still be allocated to the items received on the original Purchase order through the adjustment process.

Purchase order adjustments use the same process as the Invoice journal. To access the Allocate misc. charges form for the Purchase order, follow these steps:

1. Open the Purchase order that requires the adjustment and then visit Inquiries > Invoice´> Misc. charges > Adjustment.

2. Follow the steps 4-12 of the Procedure: Adjust Miscellaneous Charges on a Purchase Order.

NOTE: Ensure that the miscellaneous charge debits the item and credits the appropriate ledger account or it will not appear in the Misc. charges transactions form.



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Lab 11.7 - Add Landed Costs to an Invoice Journal Contoso Entertainment Systems - Company CEU

Scenario

You receive a freight bill for an order that was already invoiced. The insurance required to ship the items was significantly greater than expected. Therefore, you must add the cost and allocate it to the items as a landed cost.

As the accounts payable coordinator, add 500 U.S. dollars (USD) to the posted invoice 2414 (Purchase order number 000005) in the Invoice Journal by using the Misc. charges code 04, Other miscellaneous charges.

Challenge Yourself!

• Add 500 USD to the posted invoice 2414 (Purchase order number 000005) in the Invoice Journal by using the Misc. charges code 04.

• Allocate the insurance charge to the line's net amount. • After you post the adjustment, verify the allocations on the lines and

then verify that the charge posted to the Prepaid insurance account (600150).

• This ledger account is specified on the Misc. charges code 04. • Verify the allocation to the lines and the posting to the Prepaid

insurance account.

Need a Little Help?

1. Add 500 USD to the posted invoice 2414 (Purchase order number 000005) in the Invoice Journal form located in Accounts Payable > Inquiries > Journals > Invoice journal.

2. Locate and select Invoice number 2414 and open the Allocate misc. charges form. Select the Insurance charge code 04 and then add the 500 USD fee.

3. On the Lines tab, verify the allocation of each line on the adjusted invoice.

4. Open the Chart of accounts from the General ledger located in General ledger > Chart of accounts details. Verify that the 500 USD charge appears for Ledger account 600150.

Step by Step

Locate the invoice 2414 and adjust:

1. Open Accounts payable > Inquiries > Journals > Invoice. 2. Locate and select Invoice number 2414.



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3. Click Misc. charges > Adjustment. 4. Select 04 in the Misc. charges code field. 5. In the Misc. charges value field, type 500. 6. Click OK. 7. To view the adjustment to the lines, on the Invoice Journal form,

with the adjusted invoice line selected, click the Lines tab. 8. On the first line, click Misc. charges to view the charge allocation

for the line. 9. Close the Misc. charges transactions form. 10. On the second line, click Misc. charges to view the charge allocation

for the line. 11. Close all open forms.

Verify that the charge appears for Ledger account 600150:

1. Open General ledger > Chart of accounts details. 2. Locate and select Ledger account 600150 and then click

Transactions. 3. Verify that the 500 USD charge is posted to the account.



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Add Miscellaneous Charges to a Purchase Order Invoice Add or change miscellaneous charges during the Purchase order invoicing process with Microsoft Dynamics AX 2009. You can apply the miscellaneous charges to the invoice header or the invoice lines. Additionally, you can connect the transactions to the Purchase order header or lines so that you can find and correct differences, if necessary. For each customer/vendor miscellaneous charge code, determine whether you want to compare miscellaneous charges values on Purchase orders and invoices.

Example

If a miscellaneous charge on an invoice differs from the expected miscellaneous charge on the corresponding Purchase order, you can change the miscellaneous charge transaction for the invoice. For example, a miscellaneous charges transaction for a handling fee might be 10.00 USD on the Purchase order, but when the invoice arrives, the handling fee may have increased to 20.00 USD.

Account for Purchase Order Invoice Variance Caused by Miscellaneous Charges

If the miscellaneous charges for an invoice differ from the miscellaneous charges for the Purchase orders, you can change the miscellaneous charges for the unposted invoice.

Miscellaneous charges are copied to an unposted invoice from the applicable Purchase orders. Purchase order miscellaneous charges transactions that are copied to an invoice are not copied to later invoices for the same Purchase orders, except for any miscellaneous charges transactions that have the Keep check box selected in the Misc. charges transactions form.

NOTE: Miscellaneous charges values for an invoice are not included in the price tolerance calculations for accounts payable invoice matching. However, you can view expected and actual values for Customer/Vendor type miscellaneous charge codes in the Compare misc. charges values - Invoice form.

When you post a Purchase order invoice, the system posts the miscellaneous charges transactions from the invoice. The system removes corresponding miscellaneous charges transactions from the Purchase order, except for any miscellaneous charges transactions that have the Keep check box selected in the Misc. charges transactions form.

NOTE: If you are working with an invoice for an intercompany Purchase order, you cannot change miscellaneous charges on the invoice. The miscellaneous charges for the intercompany Purchase order must match the miscellaneous charges for the corresponding intercompany Sales order, and any changes to miscellaneous charges for the invoice for the Purchase order will cause posting to fail.



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Procedure: Add Miscellaneous Charges to a Purchase Order

To add miscellaneous charges to a Purchase order, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. Select a Purchase order and then click Posting > Invoice. 3. Select which miscellaneous charges transactions to add, change, or

delete: a. To add, change, or delete miscellaneous charges transactions for

the invoice header, click Setup > Misc. charges on the Overview tab.

b. To add, change, or delete miscellaneous charges transactions for an invoice line, click the Lines tab and then click Misc. charges.

c. To add, change, or delete miscellaneous charges for the invoice header for a summary invoice that is selected on the Overview tab, click the Purchases tab and then click Setup > Misc. charges.

4. In the Misc. charges transactions form, enter the miscellaneous

charge from the invoice that you received from your vendor. 5. Click to Connect the selected miscellaneous charges transaction for

an invoice header or line to the corresponding Purchase order header or line. Close the form.

6. Close the Misc. charges transactions form.

Procedure: Invoice Match the Miscellaneous Charge

To invoice match the miscellaneous charge that was added to the Purchase order, follow these steps:

1. In the Posting invoice form, click Matching details. 2. In the Invoice matching details form, click the Compared misc.

charges button. 3. In the Compare misc. charges values - Invoice form, compare

information about Customer/Vendor type miscellaneous charges for the Purchase order and invoice.

The comparison includes only miscellaneous charges codes that have the Compare Purchase order and invoice values check box selected in the Misc. charges code form.



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Update of Miscellaneous Charges and Allocation

If a miscellaneous charges transaction was added to Purchase order lines and the miscellaneous charges amount is different on the invoice, you can enter a new miscellaneous charge transaction for the difference and then allocate it to the invoice lines.

NOTE: If you are working with an invoice that has been summarized and you add a miscellaneous charge to the summary invoice header (on the Overview tab), allocation affects all invoice lines that are included in the summary invoice. If you add a miscellaneous charge to one of the individual invoice headers (on the Purchases tab), allocation affects only the invoice lines that are associated with the selected invoice header.

For example, assume that a miscellaneous charge for freight was expected to be 20.00 U.S. dollars (USD) and was allocated equally to four Purchase order lines. If the freight charge on the invoice is 30.00 USD, enter an additional miscellaneous charge transaction for the invoice header and allocate it to the four invoice lines. The additional miscellaneous charge amount is allocated only to the invoice lines. The Purchase order lines are not affected.

Procedure: Allocate Miscellaneous Charges

To allocate miscellaneous charges, follow these steps:

1. Click Accounts payable > Purchase Order Details. 2. Select a Purchase order and then click Posting > Invoice. 3. Enter or select an invoice. 4. To add miscellaneous charges transactions to the invoice header,

click Setup > Misc. charges on the Overview tab. 5. In the Misc. charges transactions form, enter the miscellaneous

charge from the invoice that you received from your vendor. In this example, enter 10.00, because that is the difference between the Purchase order miscellaneous charge and the invoice miscellaneous charge.

6. Close the Misc. charges transactions form. 7. In the Posting invoice form, click Setup > Allocation. 8. Select how to allocate the miscellaneous charge to the lines. For this

example, select Per line to allocate the charges equally to all four lines on the invoice.



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Summary Over/Under delivery is an effective way to manage small differences between ordered and received or delivered quantities in Microsoft Dynamics AX 2009.

Miscellaneous Charges helps companies to:

• Add additional costs to sales and purchases such as freight, transport, postage, insurance, packaging, and fees.

• Eliminate data entry by: o Allocating charges to items o Setting up and using automatic miscellaneous charges

• Set up and use manual miscellaneous charges on sales and Purchase

orders.

• Include landed costs in an item's total cost with the following methods: o On an Invoice Journal o On the Purchase order

• Add miscellaneous charges to a Purchase order invoice and allocate

to the Purchase order lines.



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Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter:

1.

2.

3.


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