Hi My 1st post so be gentle! My understanding of Item Charges is they can be added to documents, are assigned to other transactions and update the item cost and push costs around the system. I have a sales order where we chose not to charge the customer carriage, however I get an invoice from my supplier. I assign the purchase invoice item charge to the sales shipment. My idea is to see the purchase cost against the profit of the sales order and reduce the profit. However when I post the purchase invoice it simply posts to the ledgers and does not affect the sales order. Am I missing a set-up, processing it incorrectly or does it simply not work this way (and if so why can you assign the purchase invoice item charge to a sales shipment - or is it because every item charge needs assigning?). Any pointers appreciated [:D]
Hi Celine, and welcome, Basically this is a design feature of Navision. Navision basically define a number of table types. Amongst them are Documents, Posted Documents and Entries (there are many more). When you create a document, you are creating a basic template where you hold numbers, and prepare data that will eventually be posted as a posted document and a set of entries. Posted documents have no value in Navision, and are used ONLY (with exceptions of course) for historical reference, such as re-Printing an historical invoice or navigating a G/L entry to find its history. Since these document history, they do not change. (And you can delete them at any time, since they don’t do much). Entries on the other hand are created in ledgers, and their values can change (by creating more entries) to reflect different values. This means that you could for instance look at an Inventory transaction, and see that the value changes AFTER posting. OK so if you got this far, lets answer your question. Since Posted Documents never change, (they should not change, and don’t need to), it means that if you change the cost of sales, then that will not reflect on the Posted Sales Invoice. BUT since entries do change, if you now go and look at the Entries (get there by hitting Navigate on the posted invoice) you will now see that there is a new Value entry for the Charge Item. You will also see this reflected on the GL. Now as to an unposted order. Well you really have no idea what ever of the cost for this (unless you are using standard costs), since the cost of the itme won’t be known till you have all the costs posted, AND you have selected the actual item you are going to sell. Thus the best you can get at the sales order level, is a guess of what your profitability is going to be. (OF course all this assumes that you have run the inventory adjustment routines). Getting stated in Navision it is a bit complex to see the difference between Posted Documents and Entries, but you will get the hang of it. As a side note, becuase of the design of Entries and Documents, we ALWAYS base reporting on Entries and never on Documents. So your reporting will always be correct anyway.