How to Assign an Item Charge to a Posted Purchase Invoice in Business Central

 How to Assign an Item Charge to a Posted Purchase Invoice in Business Central

Managing additional costs accurately is crucial for maintaining precise financial records and ensuring proper inventory valuation. In Dynamics 365 Business Central, there may be instances where you receive an invoice for item charges (such as shipping or handling fees) after you have already posted the original purchase receipt. Assigning these item charges correctly ensures that your inventory values reflect all associated costs. Here’s a guide to assigning item charges from a separate invoice to a posted purchase invoice.

Step 1: Create a New Purchase Invoice

Step 2: Create a line of the type Charge (Item)

  1. Add a new line in the invoice.
  2. In the Type field, select Charge (Item).
  3. In the Quantity field, enter the number of units for the item charge.
  4. In the Direct Unit Cost field, enter the amount of the item charge.
  5. Fill in any other necessary fields.

Step 3: Perform the Item Charge Assignment

  1. On the Lines tab, select the Item Charge Assignment action.
  2. In the Item Charge Assignment page, click on the Get Receipt Lines action.
  3. In the Purch. Receipt Lines page, select the posted purchase receipt for the item you want to assign the item charge to, then click OK.
  4. Use the Suggest Item Charge Assignment action to automatically distribute the item charge across the relevant receipt lines.

Step 4: Verify and Post

  1. Review the item charge assignment to ensure it is correctly applied.
  2. Until the item charge is fully assigned, the value in the Qty. to Assign field will be displayed in red.
  3. Once verified, post the purchase invoice to update the item's inventory value with the cost of the item charge.

Example Scenario

Imagine a company receives a shipment of office supplies and later gets a separate invoice for the shipping charges. Here’s how they would assign the shipping charges to the original purchase invoice:

  • Original Purchase: Received and posted without shipping costs.
  • Separate Invoice: Received later for shipping charges.
  • Process:
    1. Create a new purchase invoice for the shipping charges.
    2. Add a line for the item charge and enter the necessary details.
    3. Assign the shipping charges to the original purchase receipt lines.

Conclusion

Assigning item charges to posted purchase invoice lines in Dynamics 365 Business Central ensures that all associated costs are accurately recorded, providing a true reflection of inventory value and improving financial reporting accuracy. By following these steps, you can efficiently manage and allocate additional costs, such as shipping or handling fees, to your inventory items.

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