Estimated Charges and Credit Cards in Microsoft Dynamics AX 2012

By Jason Erickstad | January 21, 2016

Have you ever wanted to estimate freight charges when you authorize a credit card in Microsoft Dynamics AX 2012? There are many times when the order is placed, you might not know the actual freight charges when the sales order is invoiced.

The estimated freight charges can be calculated as percentages or as fixed charges in the Accounts Receivable Parameters on the Credit Card Tab.

Accounts Receivable Parameters

In order for the estimated freight charge to be included, you will need to ensure that the freight charge terms is set correctly on the Term of Delivery.

There are quite of few options, but the only ones that will work are:

 Core: The customer is charged only for basic freight charges from the shipping software.
• Ancillary and Handling: The customer is charged only for additional charges from the shipping carrier software that are indicated as ancillary or handling.
• Core, Ancillary, and Handling: The customer is charged for all charges from the shipping carrier software.

Terms of Delivery in Dynamics AX

Once you have done the following:

  1. Set up the above options
  2. The proper term of delivery is on the sales order
  3. You process an authorization

It will then include the estimated freight charges in the authorization.

Please keep in mind that if you did not authorize enough, when you invoice the order the system will void the original authorization and reauthorize for the proper amount. This is good and bad, as it will authorize for the right amount, but this means we have authorized more on the customer’s card, therefore tying up some funds. The key here is even though the original authorization was voided, it takes a few days for that to appear on the customer’s credit card.

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