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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Itemcharges PO not vis...
Small and medium business | Business Central, N...
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Itemcharges PO not visible for purchase invoice, nor in expected costs

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Posted on by Community member 16
Hi there,
 
Hopefully someone can offer me some insight.
 
When processing goods invoices in use with an advanced warehouse. You create a purchase invoice and then pull the receipt lines, which the warehouse department created when receiving the goods, and then match them.
However when receiving invoices for item recharges. You cannot pickup the item recharge lines from the purchase order it seems.
 
Is that how is it intended to work or is there a way? 
And if not. What is the use of item recharges in purchase orders then in combination with an advanced warehouse? 
Purely visual confirmation?  It seems too dumb to be true. Because then item charges are simply not unifiable with advanced warehousing. 
 
The entire cost price administration then falls on the shoulders of the finance department properly assigning 
item recharges by processing invoices. While the information is on the front end of the process, not the back end. Great. 
 
Not not to mention the bigger issue. The expected cost of goods received only seem to take in account the value of the item lines/goods. Not the entire value of the purchase order of goods plus item recharges.
So your cost price will be to low until you receive all the invoices. Blindsiding you if they are too late.
 
I mean this all would work for a normal shop. But not medium/big companies with an advanced warehouse. Exactly the ones that need these item charges....
The item charges should have the same function as a regular item. Be included in expected costs and create lines to match the invoices coming in for the itemcharges.
 
Someone please tell me I am wrong. 
 
With kind regards,
 
 
 
 
Categories:
Dynamics 365 Business Central
  • Community member Profile Picture
    Community member 16 on at
    Itemcharges PO not visible for purchase invoice, nor in expected costs
    @applwin123
     
    "I would recommend you to explore the AppSource for BC, there are quite a few extensions with advanced feature on landed costs handling. Get a trial version to test it out. " 
     
    I agree, that seems to be the best course of action. With any luck we a can find something that includes being able to process goods invoices before the goods are received as well, by working with suspense accounts. 
     
    There are a few design choices that are standing in the way to make BC workable for a SMB international trading company and which I to be frank don't understand why they have chosen for it.  
     
    1. No expected landed costs.  -> Can be solved by TMS app hopefully.
    2. Approvals prevent posting of invoices. Instead of payment and no option to change it. So you can't see them in the vendor open invoices either or what their status is. -> Maybe solvable by Power automate, but may limit other functionality from what i heard so far.
    3. You cannot process goods invoices unless goods are received. -> Hopefully solvable by TMS system as well. By letting you process the goods invoices and parking the goods amount on a suspense account. Which functionality to later net the goods amount against the receipt lines. Thus clearing the suspense account. 
    4. Due to above restriction, being unable to include invoices in AP payment cycle , which have payment terms they need to be paid before goods receipt. -> Normal in export. But in order to solve, we need to know how above mentioned issues are resolved first. 
     
    But first this TMS app.
     
    Thank you for your time and assistance. 
     
  • Jun Wang Profile Picture
    Jun Wang 7,447 Super User 2024 Season 2 on at
    Itemcharges PO not visible for purchase invoice, nor in expected costs
    I would recommend you to explore the AppSource for BC, there are quite a few extensions with advanced feature on landed costs handling. Get a trial version to test it out. 
  • Community member Profile Picture
    Community member 16 on at
    Itemcharges PO not visible for purchase invoice, nor in expected costs
    @Appliwin123 
     
    what you need to do is as follows
     
    1. create a po for wms location, don't add item charge at this stage.
    2. create a whse receipt, process and register
    3. create a purchase invoice
    4. fill out the name of the same vendor
    5. use get receipt lines function to pull the registered receipt line 
    6. add item charge and assign to the received item line
    7. post invoice and your costing will be correct.
     
    The problem with this is that some of our landing costs arrive weeks later. So we are blindsided until then. It can appear we are doing good, but when the last invoices land. We will be to late to act.
     
    Thus we like to work with expected costs and BC won't allow us to do that unless we invoice the expected recharges and credit them when the actual invoice comes.  Which is really labor intensive and prone to error.
  • Community member Profile Picture
    Community member 16 on at
    Itemcharges PO not visible for purchase invoice, nor in expected costs
     
    Thank you for providing insight into this. I was blissfully unaware there were different versions. And that Dynamics 365 F&O is for organisations + 250.
    Hence why it probably never came into our view.
     
    But reading the functionality of TMS, that is exactly what we require.
    Is there a way to get this functionality into BC? 
     
    I found an app. But is there like a industry standard for BC which provides such function and which we can safely rely upon to do so in the near and longer future?
     
    Gr 
     
     
  • Verified answer
    Jun Wang Profile Picture
    Jun Wang 7,447 Super User 2024 Season 2 on at
    Itemcharges PO not visible for purchase invoice, nor in expected costs
    what you need to do is as follows
     
    1. create a po for wms location, don't add item charge at this stage.
    2. create a whse receipt, process and register
    3. create a purchase invoice
    4. fill out the name of the same vendor
    5. use get receipt lines function to pull the registered receipt line 
    6. add item charge and assign to the received item line
    7. post invoice and your costing will be correct.
     
     
     
  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 7,447 Super User 2024 Season 2 on at
    Itemcharges PO not visible for purchase invoice, nor in expected costs
    the solution you find is not for business central but for Dynamics F&O, which is also by the name Dynamics SCM, (supply chain management) 
  • Community member Profile Picture
    Community member 16 on at
    Itemcharges PO not visible for purchase invoice, nor in expected costs
    I think I may have stumbled onto the answer myself. 
     
    Landed cost vs Transportation management. Landed cost being the simply version and transportation management the advanced one.
    A substantial part of our product costs consist out of transport cost, duties and levies. Which we would like to be included into the expected cost upon receiving them from vendors outside the EU.
    So I'm thinking we can setup transport methods with markups on item level. From the first impression.
     
    If this is indeed the fix, I'll have to ask our consultants why this was never suggested by them...
     

    TMS charge and cost features

    TMS uses miscellaneous charges to manage additional costs for loads that are allocated to the related source document lines. These miscellaneous charges can be set at the level of either the purchase order line or the purchase order header.

    In TMS, miscellaneous charges can be apportioned, or divided, by the weight, volume, or quantity of the inventory. Charges can be divided by freight or accessorial charges. Further development will be required to use additional apportionment methods in TMS.

    Landed cost charge and cost features

    Landed cost provides a set of cost functions that handle additional costs that are associated with the shipment of goods. These costs are known as auto costs, and they are applied at the time of initial shipment invoicing by using the estimated cost amount. Each cost type is managed in its own posting. After the actual invoices for overhead costs are posted, the estimated costs are automatically updated to reflect the actual costs.

    Additionally, the overhead costs that are associated with the shipment of goods can be invoiced during the voyage from the port of origin or any time after the goods are received. This capability provides greater flexibility for the consumption of goods.

    The following list outlines some concepts for the charge and cost features in Landed cost:

    • Cost area â€“ Costs and charges can be assigned to different levels, or cost areas, on a voyage. The cost can be applied at the voyage level and broken down to each item in the voyage. Additionally, costs can be applied at the level of the container, purchase order, item, or transfer order. Each cost charge can be managed separately across the various areas and is broken down to a per-item cost.
    • Apportionment methods â€“ Several apportionment methods are available in Landed cost. Cost charges can be apportioned by quantity, dollar amount, value, weight, volume, measurement, or a user-defined volumetric measure.
    • Clearing/variance control â€“ Cost charges are set up as their own cost code type in Landed cost. Each cost code type lets you define a clearing account for estimated costs charges, and also accrual and purchase price variance accounts for variances in estimated costs versus actual costs. When the estimated costs are initially posted, there is a credit to the clearing account. After the actual invoices are posted, the actual cost charges are posted, and the estimated costs are debited out of the clearing account.

    Matching freight bills and invoices

    TMS bill and invoice matching features

    TMS can match freight bills that contain estimated costs and invoices with the actual cost of the freight. Invoices can be received either electronically or on paper. Matching variance between the estimated cost and actual cost doesn't affect the inventory valuation.

    For more information, see Reconcile freight in transportation management.

    Landed cost bill and invoice matching features

    Landed cost can match freight bills to estimated cost charges and can invoice the actual cost charges to the estimated costs. At the time of invoicing, the freight charges are in an invoice journal, and the estimated costs are cleared out of the clearing account. Additionally, the actual cost charges are posted against the cost of goods sold for the item, together with the variances between the estimated charges and actual charges. This behavior allows for flexibility in the invoicing process.

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