Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Removing Item Charges ...
Small and medium business | Business Central, N...
Suggested answer

Removing Item Charges from Value Entry on Shipments

(0) ShareShare
ReportReport
Posted on by Giovanni Azrak 64
Hello Community,

I am in a situation where I need to remove or nullify item charge records on shipments from the value entry. These charges were not applied to the correct records, although the accounting entries remain accurate.
Could someone advise on the potential consequences of deleting these records from the value entry or zeroing them in both value and quantity?
 
Appreciate your insights.
 
Kind regards
Categories:
Business Central
  • Giovanni Azrak Profile Picture
    Giovanni Azrak 64 on at
    Removing Item Charges from Value Entry on Shipments
    Dear Valentin,
     
    The issue originated from the client's desire to calculate their margin net of shipping costs, which led to the input of purchase invoices for transportation as item charges on sales shipments.

    Due to systematic recording errors, in some cases, the invoices were correctly allocated across all sales lines, while in others, they were all allocated on some sales line , resulting in randomly altered records.The use of item charges on sales shipments was intended not to impact inventory valuation, and to my understanding, it should not necessitate adjustments in tables other than the value entry.
     
    Thank you for your expertise and feedback
  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 7,443 Super User 2024 Season 2 on at
    Removing Item Charges from Value Entry on Shipments
    if manual fix is not possible, the danger of further messing up the entries out-weight the benefit, in my opinion. Valentin has a very good point.
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 24,822 Super User 2024 Season 2 on at
    Removing Item Charges from Value Entry on Shipments
    Got it. Personally, without knowing the full details of what you're planning, I would not recommend doing it with a processing report.
     
    Are you planning to only zero out the value entries for the item charges, or zero out and then change it to the correct amounts? If only zero out, won't the inventory subledger item cost of goods sold not reconcile to the cost of goods sold posted by the system in the GL? In the GL you have the original cost which includes the item charge, in the inventory subledger you will have the item cost excluding the item charge. 
     
    Also, if the original item charges were applied to shipments, that means the shipment entry is fully closed in the item ledger entries if Adjust Cost Item Entries has been run, or its scheduled to run automatically, and the item card has cost is adjusted=true. Technically, if you modify the value entries now, the system should not do anything further. But then if you do this, your inventory subledger or purchase/sales subledger (depending on where those item charges came from), will not reconcile. This is a big issue to me. It would make having an audit trail difficult and incorrect. For example, your auditor picks a random invoice to look at. The item charges on that invoice that are posted to the GL are correct, but if they look at the inventory subledger, the item charges are not there as they've been zeroed out?
     
    Lastly, can I confirm the purpose of doing this? If the accounting entries are accurate, that means the GL is accurate? So really, the only problem is with the inventory subledger having the cost distribution among sold items incorrect. Do you do reporting off of the inventory subledger, and this is why this correction needs to happen?
     
     
     
  • Giovanni Azrak Profile Picture
    Giovanni Azrak 64 on at
    Removing Item Charges from Value Entry on Shipments
    Thank you for your response and the suggested standard approach of reversing the document and re-booking the item charges correctly.
    Unfortunately, this method is not feasible in our case due to the volume of records involved - we're looking at thousands of records. I plan to write a cleanup report to address this issue. However, I'm concerned about potential unintended effects this might have.
    Would appreciate any further advice or insights on mitigating such risks.
     
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 24,822 Super User 2024 Season 2 on at
    Removing Item Charges from Value Entry on Shipments
    Can you reverse the document where the item charges were initially booked on? And then re-book it and apply it to the correct records.
     
    If not, then you can post a reversing document manually - i.e. if the item charges were booked on an invoice, create a credit memo with the same item charge amount and apply it to the same shipment. This will zero out the initial item charge. You can then re-book it and apply it to the correct records. 
     

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

December Spotlight Star - Muhammad Affan

Congratulations to a top community star!

Top 10 leaders for November!

Congratulations to our November super stars!

Tips for Writing Effective Suggested Answers

Best practices for providing successful forum answers ✍️

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,280 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 230,214 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans