Companies may have requirements to track various charges related to the purchases of items. To track these charges, Dynamics 365 makes this process.
In the accounts receivable module there are the following form where the charges are set up:
- Charges code
- Vendor charges group
- Item charge group
- Automatic charges
The Vendor charges group and Item charge group forms have only two fields: the group field and the description. These group are used elsewhere for various charge purposes.
In the following images are shown the forms for the two groups above:
Charges code
The Charges code and Automatic charges have more data and should have more attention while setting up.
Charges code can be found by navigating Accounts Payable -> Charges setup -> Charges code. By setting up and using charges code you may track additional amount on purchases. Some of the include freight, insurance, various fees etc. Another important step here is to define if expenses will be posted in expense or added to the cost of the item. The following image shows the Charges code form:
Automatic charges
Automatic charges when applied, as the name implied, adds additional amounts automatically to the purchases. These charges can be applied for specific vendors, customers or items.
The following image shows the Automatic charges form:
There are two fields that I would like to explain here since the other are more understandable by the field name.
In the Charges code field, you must select the charges code. This is important because by choosing the charges code you will decide how the amount will be posted.
The other important field is the Category field. In the field there are the following option:
- Fixed – this will be applied the fix amount as specified in the charge value field. Will can be applied in the header or in the order line
- Pcs. – this charge is based on the units of the item and can be only in the order line
- Percent – this charge will be as percentage of the line and can be in the header or the order line
- Intercompany percent – this is same as the percent but used only for intercompany orders
- External – this is calculated externally
- Proportional – this charge is applied proportionally on the lines of order
The explanations of the charges here are for vendors but can be applied for the customers also.
Applying these charges will be explain in another post.