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Microsoft Dynamics GP (Archived)

Difference between "Misc Charges", "Services" and "Flat Fee"

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Posted on by 370

What exactly is the difference between these Item Types in GP? "Misc Charges", "Services" and "Flat Fee". Is there any difference in terms of how they are posted and how the data is maintained in GP? I don't find any so far. Any idea? Thanks.

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  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    46,625 Super User 2025 Season 2 on at

    Sudin, here are the definitions of these Item Types

    Miscellaneous Charges

    Quantities and current costs aren’t tracked in Inventory. Miscellaneous charges include costs such as freight expense. You can’t change this item type once it’s assigned. Posting updates the Sales and Cash accounts.
    Services Current costs, but not quantities, are tracked. You can sell these items individually or as part of a kit. Posting updates the Sales and Cash accounts.
    Flat Fees Current costs, but not quantities, are tracked. You can sell these items individually or as part of a kit. Posting updates the Sales account.
  • Sudin B Profile Picture
    370 on at

    Frank, Thanks for the response.
    I did some test with each item type (in the fabrikam company), it seems like they don't follow different rules and all of them behaves the same way.
    - I can update current cost in item maintenance for all 3 types. 
    - I can use all of them them as kit components.
    - They all give distribution types "RECV" and "SALES" in Sales Invoice, posting journals are similar.
    - The Item History Summaries are also updated with similar logic.
    - I cannot change Item type for any of them in the Item Maintenance.

     

  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    46,625 Super User 2025 Season 2 on at

    Those descriptions are straight from the GP Help files Sudin.  I'm not sure why the behavior in your system would be different.

  • Richard Whaley Profile Picture
    25,195 on at

    We have a chart in our Information Flow and Posting manual that details the differences.

    Costs (such as subcontractor charges, etc) are posted to the GL when Services or Flat Fees are sold

    Services and Flat Fees can be added to Kits but not Misc Charges

    Quantities on Hand are not tracked for any of those types.

     

    Generally speaking, Misc Charges are charges your firm puts on sales transctions to bill a customer for things like "Handling Charges"

    Services are used to charges customers for Service Calls and such where a third party may be involved and may bill you for the service.

    Flat Fees are very much like Service Charges but are usually pre-defined, such as $25 repair assessment fee.

  • L Vail Profile Picture
    65,271 on at

    Sudin,

    What you are describing is precisely how those item types act.

    You can add any item type to a Kit, except a Kit.

    You can update current cost in item maintenance.

    You can use it on a SOP document or POP document.

    My clients use the different types for different types of reports. Like Richard indicated, there is a 'typical' usage for the different item types. You can put them on a PO and sell them, However, quantities are not tracked, so you never have any in inventory and you cannot make item adjustment entries for them.

    Kind regards,

    Leslie

  • Community Member Profile Picture
    on at

    Hi Leslie,  

    For Miscellaneous Charges, if costs are not tracked, will a cost of goods sold transaction be generated if there is a cost on the item card?  

    Thank you!

    Kim

  • Suggested answer
    L Vail Profile Picture
    65,271 on at

    No, it will not - nothing is debited for the cost of the item.

    I know what the help file says, but I don't know what they mean by 'current cost' is not tracked. I've found them to behave exactly the same.

    Here's the scoop:

    Selling any of them doesn't create a COGS entry.

    Services

    Price pops in on SOP

    Current Cost per card or last vendor pops in on POP

    Current Cost is updated on the card from purchases

    Vendor's price is changed

    Quantity is not tracked in inventory

    Quantity in sale/po is listed in Item Transaction Inquiry

    Quantity sold is displayed on Item Inquiry Screen

    Flat Fees

    Price pops in on SOP

    Current Cost per card or last vendor pops in on POP

    Current Cost is updated on the card from purchases

    Vendor's price is changed

    Quantity in sale/po is listed in Item Transaction Inquiry

    Quantity sold is displayed on Item Inquiry Screen

    Misc

    Price pops in on SOP

    Current Cost per card or last vendor pops in on POP

    Current Cost is updated on the card from purchases

    Vendor's price is changed

    Quantity in sale/po is listed in Item Transaction Inquiry

    Quantity sold is displayed on Item Inquiry Screen

    Other than Quantity on hand and it not booking cost of goods sold, they look the same to me. Hopefully, someone will post what the difference means.

    Kind regards,

    Leslie

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