Brokerage and broker functionality in Microsoft Dynamics 365 Finance and Operations

Brokerage and broker functionality in Microsoft Dynamics 365 Finance and Operations

Broker contract management helps companies better manage their brokerage agreements by automating tasks that are involved in administering, tracking, and paying the fees that are due to brokers.

Typical scenario for brokerage span:

• Registering details of the negotiated broker contract
• Running the negotiated contracts through ongoing sales and generating broker claims
• Approving the generated claims, so that they can be passed on to AP for payment
• Handling situations for partial claim approval and differential accounting

Key setup and processing is done in Accounts payable module:

-Define contract and approve

1. Accounts payable > Broker and royalties > Broker contracts

-Setup Misc. charges code in AP for broker fees

--Processing or claims automatically or manually

-Verify brokerage postings after sales invoice

On posting sales order invoice additional postings occur:

• The broker claim is generated for the invoice line.
• The accrued charge that represents the broker fee is posted to the interim liability and expense accounts, as appropriate.

The accrued broker fee posting can be viewed on the voucher transactions associated with the sales invoice journal.

-Review and process claims

After claims are either fully or partially approved, the vendor invoice is created and posted, if posting is supported by the A/P policy. In this way, the vendor credit is passed to the regular payable processing.

Review all claims on the Broker claims 

One can also check by running brokerage report

-Run brokerage report

Once broker claim is approved, an expense journal is posted thereby creating a vendor invoice on broker vendor

Reference https://docs.microsoft.com/en-us/dynamics365/finance/accounts-payable/broker-contract