Hi ,
Generallly in the Misc. Charges form what is the debit account and credit account ?( Which accounts need to configure ).
Defines to which account the debit and credit amount(misc charge) need to be posted. Defining this depends upon the Business process.
You can post the debit and credit to seperated ledger accounts or you can debit the inventory account and credit the vendot account by selecting the debit type as Item and credit type as customer/vendor or debit item and credit vendor vice versa…(considered vendor misc charges)
Hi,
As Kranthi said its exactly right.
In simple words, How Misc.charges should get effected in terms of business. I mean, In general business seniors, some times this can be applied depend upon the Contract agreements between you & your customer or vendors. Who is going to bare the Misc.charge amount. As i told you, it depends upon the agreements.
Simple e.q: If your receiving materials from your vendor… the transport expenses who is going to bare. You or your vendor. it depends upon the agreements or mutual understanding between you & your customer or vendors.
I hope you got it.
Hi Lally, You raised this question in your other post also … have a look here.
Yes it will effect vendor account, when we select Misc.Charges at header pane.
1Q. Which Vendor A/c …?
Ans: The Vendor account on whom you will raise a PO.
2Q. What would be offset account?
Ans: The account which you will mention it in Misc.Charge code form (AP>Setup> Misc.Charge> Misc.Charge Code> Posting (tab)).
3Q: If i attach the Misc.Charge code at Purchase order line level ???
Ans: You attach Misc.Charge code at PO Header level or at Line level … the Calculation process will remains same. End of the day the charges will be applied and bared by either Vendor or by you… this will depend upon the setups which we do at Misc.Charge code form, this setup will depend upon the agreements done between your company and Vendor.
Example: Your expecting some materials from vendor through Transport (Truck) and committed that you will bare the Transport fee… Then we will setup the Misc.charge code like this:
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Goto > Misc.Charge code form ; 2. Select the Code (ex: 10) and describe as Transport fee; 3. Goto > Posting (tab) ;
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At Debit section, Select Debit Type as : Ledger a/c … Debit Posting as : Trans fee … Debit A/C as xxxxxx (Chart of Accounts);
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At Credit section (below), Select Credit Type as : Customer/ vendor and leave Credit posting and Credit account as EMPTY.
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SAVE
Now come back to PO, you specify Misc.Charge at header or lines pane. … Once you open this Misc.Charge form in PO (Setup button> Misc.Charge) … select the Code which we have created above (ex: 10) and select the category (Fixed, Percentage,Pcs) … select main or lines and save it. … if you have selected Fixed category and taken 1000 as amount (example). Say for example: If PO net amount is 10000. When you invoice PO… Total amount will come as 11000. this includes 1000 Misc.Charge amount and this can we viewed at bottom of Invoice print… OR if you want to check Misc.Charge got added to PO before invoice… then Click on Inquiries button> select TOTAL. It will show you Net amount as well as Misc.Charge amount.
I Hope i have clarified your doubts.
Sarathy
Hi Sarathy ,
Awesome explanation . I am sure you would be a great assest to this forum and if you continue the rocking ,shortly will have a chance to become moderator and MVP also , because you have the awesome knowledge on Axapta.
I have one more doubt , I will have agreement with vendor in different ways.
a) I will place a PO to Vendor A and Transportation fee also i pay to same vendor A.
a.1 ) In this case as you said Debit account - Transport fee , what i need to define the credit account ?
a.2) Does this Transportation amount will load on inventory automatically or do i need to do any configuratin ?
a.3) Does this Transportation amount will load on Inventroy during Packing slip or Invoice ?
b) I will place a PO to Vendor A and Transportation fee also i pay to same vendor B .
b.1 ) In this case what is the Debit account and , what i need to define the credit account ?
b.2) Does this Transportation amount will load on inventory automatically or do i need to do any configuratin ?
Please clarify my doubts.
Hi Lilly,
Thanks for your compliments. I’m not here to become a MVP or something. All i want is Knowledge sharing. What ever i know, i wish to share nothing much buddy.
Coming to topic,
Your Q: I have one more doubt , I will have agreement with vendor in different ways.
a) I will place a PO to Vendor A and Transportation fee also i pay to same vendor A.
a.1Q ) In this case as you said Debit account - Transport fee , what i need to define the credit account ?
Ans: As i said earlier you need to select Credit type as Customer/Vendor and leave Credit posting and Credit account as EMPTY… Simple Debit is “what goes out” and Credit is " what comes in"… So here your paying the Transport fee… its Debit for you (Money is going out from your pocket…its Debit). if suppose Vendor is ready to bare that Misc.Charge amount then the he will pay you for that, then it will be a Credit for you… got it? So, here in above case you don’t need to select Credit account… even if you try to give AX will throw message. try once.
a.2Q) Does this Transportation amount will load on inventory automatically or do i need to do any configuration?
Ans: Yes we need to do small setups. Once you setup Misc.Charges code… Goto PO > Setup button> Misc.Charges … it will open Misc.Charge form… select the Code which you have created, category and amount… then save it.
a.3) Does this Transportation amount will load on Inventroy during Packing slip or Invoice ?
Ans. Yes it will… Before Packslip or Invoice we can check that Misc.Charge amount added to Net amount or not . For that, Click on Inquiries button > select TOTAL. it will show you the Net amount as well as Misc.charge amount in Misc.Charge field. … (Ex: Select the Category as fixed and amount 1000. If net amount is 10000, then in the total form you can see Net amount as 10000, Misc.charge 1000 and Total amount as 11000). Check once.
Hope you got it.
Have a great weekend guys … EnJoY!!!
Please clarify my doubts.
Hi Lally,
I have posted Misc.Charge doubts very clearly in my last post…
http://dynamicsuser.net/forums/t/57363.aspx
let me know what is your exact requirement now?
Sarathy
Hi Satya ,
You have explained the case when the Purchase order vendor and Transport amount vendor , both are same .
What i am asking is Purchase order vendor and Freight amount paid vendor are different ?
In that case Can you explain the following questions .
b) I will place a PO to Vendor A and Transportation fee also i pay to different vendor B .
b.1 ) In this case what is the Debit account and , what i need to define the credit account in Misc charges ?
b.2) How to book the Transportation invoice ?
Could anyone help me please?
I beleive the Thrid party invoicing has been removed, which existed in the eralier versions(In 3.0).
One of the way is to use an intermediate account to post the amount into during the invoice and do an manual journal entry later to transfer amount to the third party vendor.
Hi Lally,
I can suggest you a workaround for this.
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Create PO for the item. In the Misc. charge, assign ledgers to both debit and credit. Now the credit entry will not go to vendor, but some other ledger which you defined.
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Load the charges on inventory so that inventory is financially updated accurately.
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Create an invoice journal. Select the transport vendor and offset it to the credit account of misc. charge. The invoice value should be same as Misc. charge value.
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This way the Misc. charge will be nullified and the credit balance will be posted against the third party vendor.
Try this and let us know if you face any issues.
Pranav…
For an example: My item basic cost is 100 USD and I have created misc charges 10 USD for freight, 5 USD as handling charges in the same PO. This freight and handling service provided by another service vendor.
Now I request you please explain the entries in details .
In that case you need to assign two Misc. charges on the PO. Route the credit of both the misc. charges to a separate account such that in misc charge setup both the account type should be ledger in Debit and credit.
By posting the PO, Vendor will be credited with PO amount only and charge will be loaded on inventory. (Don’t forget to allocate charges on Lines)
Now, create a invoice journal with two lines, one for vendor 1 and other for vendor 2. Offset both the lines with credit account of misc charge.
Note here that when we post the invoice journal, the offset account is debited and at PO posting that account will be credited.
This way the offset account will be nullified with cross transactions.
Pranav…
Thanks Pranav,
Can i know that above mentioned clearing account comes under BS or P&L ?
Since this is a clearing account and in normal practice there will be no balance it, it will be ideal if you put it into BS only.
Pranav…
Hi All
Regarding the Scenario told by Lally i want the same to be implemented. I follow the full discussion i did the following:
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Create the two Misc Charges Code, one Custom Charges and other as the Freight Charges. In both the code i select the Ledger Accounts in Debit Section (Select the Purchase freight under field Debit Posting) and Customer/Vendor in Credit Section.
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Then i create the purchase order of one item (10 Quantity and Unit Price 1000)and from the setup//Alloacation button Allocate the Misc chrages on “Quantity” and “All Line” and check mark the Allocate All.
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Om the Misc Charges Form i assign the two Misc Code Custom (500) and Freight (200)
4 Invoice the PO.
then i generate the trail balance in which:
Inventory Account value 10000
Creditor Value 10700
Custom Charges 500
Freight Charges 200.
here my Question is why 700 is not Allocated on the inventory Cost.
Please Advise