Dynamics Community Forum Thread Details

Item Charge Provisions

Is there any way that I can apply item charges to my inventory receipts for charges that are accrued and for which I don't have an invoice from a vendor?

Example: We want to apply an item charge to an inventory purchase to offset future costs such as:

* Inventory discrepancies

* Guarantees honored (such as on automotive batteries)

* Delay charges on return of freight equipment, such as trailer chassis and other.

Accounting entries would be:

* Debit to my inventory cost

* Credit to the specific Inventory cost provision

Note: When any of the events does occur (discrepancy, guarantee expense or delay charge) we would charge that against the provision, just as you would on a bad debt provision.

There are many ways to handle things so the other guys are welcome to step in if they have other ideas, these kind of questions will also be quite heavily dependent on your companies processes, so nothing beats someone onsite but i will try to help:

From the NAV help files: Examples of item charges are freight, insurance, and other additional charges directly related to a specific item,

So to expand on this, it is direct realized costs that are applied to the base value of the item, no allowance in the system has been make for a non realized cost as an accrual, Following on to that is the situation of trying to remove any unused portion of the item charge should the costs not materialize,

The route i would suggest would be:

Handle the accrual as a recurring journal directly to the chart of accounts, then possibly use it in the item charge transaction when the costs are realized, you would be able to have different GL accounts for the various Accrual types and link the Item charge to that account

Should these costs always be a fixed cost on the item then there is to possibility of using overhead or indirect cost on the item card

A combination of these two options could be used for the different costs

If the above does no work then you would need to approach your NAV partner to build a specific solution for you

Hope this sheds some light on your question?

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