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Posting charges when doing product receipt in D365FO

One of the most frequently discussed topics in our classes is Charges.

It is a huge and time-consuming topic to cover and learn with numerous examples. However, we can break it down into manageable sections.

I am often asked if charges on purchase orders are posted at the time of product receipt or later at invoice update, and my answer invariably is “It depends…”.

Charge code setup, charge category, parameter – and then some

For now, I will just mention three of the vital components, where the interaction and dependencies can be tricky to understand.

The example is for Purchase orders.

  • Charge code setup
    • Posting DEBIT Type must be set to Item

  • Charge category
    • Must not be Fixed (This is one example. This is not the complete story)

  • Procurement and sourcing parameter
    • Generate charges on product receipt must be set to Yes

In addition to this, you might want to consider

  • the Item model group setting
  • the Accounts payable parameter Post product receipt in ledger
  • the Main accounts being used in the Item group/(Inventory) Posting
  • and even more.

The meaning of the parameter Generate charges on product receipt is fairly easy to understand, especially when reading the help text “Select this to automatically allocate charges when products are received”. However, even when you have set this parameter to Yes, you might not get the charges generated as expected at time of Product receipt.

The devil is in the detail and the inter-dependency, especially between charge code setup, charge category, and various parameters.

Webinar coming up

I'll be hosting a webinar about charges, and I'll be covering the important aspects you need to know – on the Purchase side, as well as for Sales.

Be the first to know about the actual date: click here to sign up for our newsletter

On-demand course shows this in detail

If you can’t wait until the webinar, our on-demand course Supply Chain Management – part 2 has a full module about charges.

Ensure you have set a decent amount of time aside to study this if you want to get a detailed understanding of the concepts.

 

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