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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Item Charges - Purchas...
Small and medium business | Business Central, N...
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Item Charges - Purchase Invoices

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Posted on by Flynn.Fr 63
Hello,
 
We currently use Item Charges to assign freight costs to our items based on volume, weight, etc... I am wondering if it is possible to create an item charge that we could use to account for internal labor costs, without actually having to add the charge to an invoice. 

The goal is to add internal labor costs to an item so it impacts the Unit Cost of the item without actually impacting any G/L accounts. Since we technically already account for labor in the P&L, we would essentially want this charge to be a wash or only show up under the unit cost. 
 
Please correct me if I'm wrong. From what I've learned about Item Charges so far, this does not seem to be possible. With freight - once we've invoiced the item charge, that cost is attached to the Item(s) in the Item Ledger Entry, and then posted separately in the Value Entries and G/L account it's directed to. The Item Charge needs a Gen. Prod. Posting Group assigned which means it must have a set G/L account that it is posting to, otherwise the Item Charge will not post. 
 
If it were to post and then be reverted or credited in the G/L - the cost would then be removed from the Unit Cost as well.
 
We currently calculate a load percentage that is automatically tacked onto any sales made to account for internal labor costs among other things. For now, it seems as though this is the best/only way to do this in BC without making any major customizations.
 
Any and all insight is welcomed. 
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Business Central
Business Central
  • Flynn.Fr Profile Picture
    Flynn.Fr 63 on at
    Item Charges - Purchase Invoices
    Hi, 
     
    Sure thing! We are wanting a way for our Sales team to see the total cost of a product without having to look in multiple places. We have a custom, static field on the item card that the company had added where they can enter an average overhead cost of sorts. As great as this field is for reporting, being static it requires a lot of upkeep. Now we have pricing reports for sales to reference, but they often times end up going into the system to check the cost of an item (this is more of an internal issue). The purpose of this would be to allow sales to more accurately quote prices using the true cost of an item. 
     
    I hope this was enough information! If not, let me know and I can further clarify. 
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    VC-29041637-0 Profile Picture
    VC-29041637-0 115 Moderator on at
    Item Charges - Purchase Invoices
    We currently calculate a load percentage that is automatically tacked onto any sales made to account for internal labor costs among other things. For now, it seems as though this is the best/only way to do this in BC without making any major customizations

    To provide a solution, can you expand on this and what you're trying to achieve by adding an internal labor cost to an item? Are you trying to calculate the gross margin per item i.e. item sale price - (item purchase cost + internal labor cost) = gross margin per item? Or are you using it to calculate how to price your items i.e. item purchase cost + internal labor cost is the true cost off the item, or you increase the item price by the load %?
     
    Valentin Castravet
    Zander ERP Services
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    Azqar Profile Picture
    Azqar 50 on at
    Item Charges - Purchase Invoices
    I believe anything you do in BC , will be posted to the documents some how , would be sales or purchase , G/L or chart of accounts for reporting and analysis purposes for PNL, only suggestion, probably need to use indirect cost in items 
    Otherwise you do need customisation and you need to add a codeUnit. Thanks
     

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