Trade in Microsoft Dynamics NAV-2017 - Locus IT Services

Trade in Microsoft Dynamics NAV

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Lesson 3: Sales Item Charges

Sales Item Charges

Sales Item Charges : The “Purchase Item Charges” lesson introduced item charges functionality and explained how to record and allocate both inventoriable and non-inventorial added costs.

When a customer pays these additional costs, this becomes a regular sales transaction that does not affect inventory. The company can therefore record the cost amounts as sales item charges linked to the relevant sales document. This improves the accuracy of the company’s revenue and profit statistics.

The principles of recording, assigning, and posting sales item charges are identical to those applied for purchase item charges, except that the item charges are entered on a sales document instead of a purchase document.

Demonstration:  Assign Item Charges to a Posted Sales Shipment

Scenario: After several shipments were made to customer 20000 in January, 2014, the CRONUS Shipping Department informed the Accounting Department that they had insured all the shipments for the total of 40.00 LCY.

Cassie, the accountant, must now invoice the customer for the additional insurance costs and make sure that sales statistics for the related items reflect these cost amounts.

First, she must create a new item charge called INSURANCE with the general product posting group of SERVICES and the value-added tax (VAT) product posting group of VAT25.

Demonstration Steps

To create the item charge, follow these steps.

  1. In the Search box, enter “item charges”, and then select the related link.
  2. On the Home tab, click New.
  3. In the Code field, type “INSURANCE”.
  4. In the Description field, type “Freight Insurance”.
  5. In the Prod. Posting Group field, select SERVICES.
  6. In the VAT Prod. Posting Group field, select VAT25.
  7. Click OK to close the Item Charges

To create the sales invoice, follow these steps.

  1. In the Search box, enter “sales invoices”, and then select the related link.
  2. On the Home tab, click New and then press Enter.
  3. On the General FastTab, in the Sell-to Customer No. field, enter “20000”. Accept any messages.
  4. On the Lines FastTab, in the Type field, select Charge (Item).
  5. In the field, select INSURANCE.
  6. In the Quantity field, type “1”.
  7. In the Unit Price Excl. VAT field, type “40”. Because the charge is sold to the customer instead of incurred by the company as a cost, you must enter the charge amount in the Unit Price Excl. VAT
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