Exploring Charge Codes in AX 2012: Part 1

by | Updated February 5, 2020 | Dynamics AX, Inventory, Procurement and Sourcing, Set Up

In this post I’m going to expand upon basic use of Charge Codes in Dynamics AX 2012. There are more than a few ways to leverage this feature!

In an earlier post my co-worker, Wally, demonstrated the setup of charge codes.

First we are going to work with automatically bringing the Deposit charge code to purchase orders at the time of creation.

Charge Codes

In our example, we are purchasing a product that is shipped in a 55 gallon plastic drum. The manufacturer charges a refundable deposit for these containers.

Rather than just setting up a charge code to be used to manually for this fee, I would like to make this a bit more visible to the buyer when they create the purchase order.

There are a number of ways to accomplish this. For our purposes, the following steps will be taken.

Step 1: Set up an Item Charge Group.

Set up for this step was done from Procurement and sourcing/Setup/Charges.

Setup Charges

Charge groups must have a name and a description. The charges group name may be alpha, numeric or mixed.  In our example, I have created a charge group named “Deposit”.

Item Charge Groups Deposit

Since this is an Item Charge Group that I have created, I will assign this group to the product that is purchased in the refundable containers.

From the menu, I go to Product information management/Common/Released products and locate my product. Then I click the edit button. When the screen opens, I scroll down to the Purchase section. In the Charges group field, I select Deposit from the drop down list.

Release Product Details


Step 2: Procurement & Sourcing

The next step is to go back to Procurement and sourcing/Setup/Charges and work with Automatic charges.

Setup Automatic Charges

1.  Automatic charges may be set up at the header level or the line level. I have chosen line level for a few reasons. A) It allows other products that have been assigned the Deposit charge group to each have a charge calculate. B) It allows handling of the credits granted for the returned poly drum credits to be managed at the header level.

2.  Since this product is available from multiple vendors, I have selected the value of ALL.

3.  Selection of Group allows me to choose the newly created Deposit group.

4.  In this section, I have added the Charges code for deposits. In this case, all vendors charge a $100 deposit on each container. Also, the deposit fee is tax exempt for all of our jurisdictions. We use tax groups to manage this so I have assigned this as well.

Auto Charges

There are so many things that may be done with automatic charges! It is really just a matter of identifying how to make this useful for your business. Once the scenarios have been identified, it becomes easier to identify how to establish groups and automatic charges.

  – Above in 2), we could have selected a specific vendor to enable a vendor specific deposit fee. Alternately, a vendor charges group could have been established and assigned to further group specific vendors to specific charges.
– Above in 3), we could have selected a specific item to apply the charge to. In that case, an item charges group would not have been utilized.
– Above in  4), additional lines could have been added as appropriate. Imagine that the 55 gallon poly drum is delivered on a pallet and there is a charge of $25 for this. I could add “Pallet” at fixed charge value of $25.


Charge Codes for Purchase Orders

Let’s take a look at how this works on the purchase order. I created a purchase order for 360 lbs of M0062 Resin which is the equivalent of a single poly drum. To view or edit the charges at a line level, select Financial, and then select Maintain charges from the appropriate line.

Maintain Charges

The detail is shown in the following screen. The charge value is editable if an adjustment is required.

Charges Transactions

The total value of charges is also visible from the View Totals button in the Purchase order tab of the ribbon.  View Totals



Note: Standard function of the calculation of cash discounts does include the value of charges.

View Purchase Order Totals

Charges appear as a summary total on the purchase order as shown.

Charges in Summary

When we receive the invoice from the vendor, they have included a credit for $200 (deposit refunded) which represents two drums that have been returned to the supplier. Earlier, I directed the ability to edit line charges to the Financials button at the line level. Our business process is to manage refunds credited at the header level, so I will select Maintain charges from the Financials tab in the ribbon. A new charge transaction is created with an entry to reflect the credit of ($200) as shown. When posted, the voucher will show an entry for $100 debit (deposit charged at line for current product purchase) and an entry for ($200) credit (refund of deposit collected on prior purchases).

If it is desirable, a separate charge code could be created for the refund on the deposits.

Maintain Charges


For more on addressing the use of customer orders and invoicing, see my post: Exploring Charge Codes in AX 2012: Part II.



Related Posts

  • In an earlier post, Exploring Charge Codes in AX 2012 - Part I, we explored automatically populating charges to purchase orders based on the Item that was ordered. Having explored…

  • **Updated 11/20/2013** There are quite a few important keyboard shortcuts that can really save some time when entering data and moving around in AX 2012.  One in particular - hitting…

  • The much anticipated release of AX 2012 R2 has been announced. Here are the new features that have my attention. I'll be sure to post some detail, as I explore…



  1. Exploring Charge Codes in AX 2012: Part 1 – 9/17, Stoneridge Software | - […] Continue reading on Source Blog […]

Submit a Comment

Your email address will not be published. Required fields are marked *

Upcoming Events


01sep10:00 am10:30 amEnsuring Quality and Compliance for Batch Manufacturers in Life Sciences

01sep12:00 pm12:30 pmIs it Worth It to Move to the Cloud? A Look at Considerations for Current Agribusinesses Using Dynamics GP

01sep2:00 pm2:45 pmWhat’s New in Dynamics 365 Finance and Supply Chain

09sep11:00 am12:00 pmConfab Live with Stoneridge – Data Strategy and Reporting – Mining Decision Making Insights

15sep10:00 am11:00 amSolving the Biggest Challenges in Agribusiness Through Innovation and Technology

22sep12:00 am12:30 pmSimplifying Payroll and HR Management with ADP Workforce Now

22sep10:00 am10:30 amStreamlining Batch Manufacturing with Technology

22sep2:00 pm2:30 pmProcess Automation for Microsoft Dynamics D365 for Business Central, Finance and Operations and GP

23sep11:00 am12:00 pmConfab LIVE with Stoneridge - Riding the Wave 2 Release – Key Features Coming to Dynamics 365 this October

29sep10:00 am11:00 amTop Five Reasons Why NOW is the Right Time to Move from Salesforce to Dynamics 365 Customer Engagement

29sep12:00 pm12:45 pmUnderstanding Job Costing and Tax Management in Business Central

29sep2:00 pm3:00 pmDigitalizing Horticulture & Agriculture - How to Sell Plants Online and Simplify Business Management

30sep12:00 pm4:00 pmSecurity and Permissions Training for D365 Business Central or Dynamics NAV


06oct10:00 am10:30 amPreview of D365 Business Central Fall Release Features and Functionality

06oct12:00 pm12:30 pmInsider's Guide to New Features Available in the Fall Release of D365 Finance and Supply Chain

07oct11:00 am12:00 pmConfab LIVE with Stoneridge - Dataverse and Dynamics in Review – Let’s Get Technical

21oct11:00 am12:00 pmConfab LIVE with Stoneridge - Dataverse and Dynamics in Review – Let’s Get Functional

26oct(oct 26)9:00 am28(oct 28)5:00 pmStoneridge Connect Leadership and Community Conference

About Stoneridge
Stoneridge Software is a unique Microsoft Gold Partner, with emphasis on partner. With specialties in Microsoft Dynamics 365, Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP and Microsoft Dynamics CRM, we focus on attracting the most knowledgeable experts in the field to our team, and prioritize delivering stellar solutions with maximum impact for your business. At Stoneridge, we are deeply committed to your results. Each engagement is met with a dedicated team, ready to provide thorough, tailored, and expert service. Based in Minnesota, we intentionally “step into your shoes,” wherever you are. We focus on what you care about, and develop trusting, long-term relationships with our clients.

Subscribe To Our Blog

Sign up to get periodic updates on the latest posts.

Thank you for subscribing!