Exploring Charge Codes in AX 2012: Part II

by | Updated August 15, 2016 | Dynamics AX, Financials, Manufacturing

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 charge codes in conjunction with vendors and items, this example guides us through potential uses for customer orders and invoicing in Dynamics AX 2012.

In our example, the customer manages the truckload freight for their shipments. In exchange, we grant them a 3% discount for all orders. This is deducted (or allowed) on each invoice. Therefore, we would like to set this up to be automatically calculated.

A charge code will need to be identified for use along with the appropriate posting and ledger account. In this example, we will use a code set as shown.

Charges Code in Dynamics AX

 

There are a few ways to accomplish an invoice allowance. For our purposes, the following steps will be taken:

Step 1. Set up a Customer Charge Group.

This was done from Accounts receivable/Setup/Charges.

Setup Customer Charge Group

 

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 “Frt_Allow”.

In some cases, it might be meaningful to incorporate a region, customer base, or other identifier as part of the group name. Since I only have one corporate customer (with multiple individual customer accounts existing in our system) with this allowance, this group naming convention will meet our needs.

Charges Group in Dynamics AX

 

Since this is a Customer Charge Group that I have created, I will assign this group to the customers for which it applies.

From the menu, I go to Accounts receivable/Common/Customers/All customers and locate the appropriate customers. Then I click the edit button. When the screen opens, I scroll down to the Sales order defaults section. In the Charges group field, I select Frt_Allow from the drop down list.

Edit Charges Group in Dynamics AX

Step 2. Go back to Accounts receivable/Setup/Charges and work with Automatic charges.

Setup charges in Dynamics AX

 

1. Automatic charges may be set up at the header level (Main) or the line level. In this example, we are working with the header level (main).
2. Options for Account code are ALL (all customers), GROUP or TABLE (a specific single customer). Group has been selected.  This will apply to all customer accounts that have been populated with the charge group value of Frt_Allow.
3. Options for Item code are ALL (all items), GROUP or TABLE (a specific single item).
4. Options for mode of delivery code are ALL (all modes), GROUP or TABLE (a specific mode).
5. In this section, I have added the Charges code for freight allowance. In this case, we are allowing 3% of the invoice value. Also, the Keep box is checked to ensure each invoice posted from a sales order will have the allowance applied.

 

Exploring Charge Codes in AX 2012

 

Let’s take a look at how this works on the sales order. I created a sales order with a total line value $6,890.00. To view or edit the charges at the header level, select Financial, and then select Maintain charges from the Sell tab of the ribbon.

Sell charges in Dynamics AX

 

The charge code applied is shown in the following screen:

Charges Transactions in Dynamics AX

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

Totals in AX 2012

 

 

 

$6,890.00 x .03 = 206.70

Note: Standard function of the calculation of cash discounts does include the value of charges. In this example, the cash discount would be calculated on $6,683.30.

 

Sales Order Totals in AX

 

When the invoice is generated, a summary value of charges is presented as shown:

Total Charges in Dynamics AX

 

There are other ways to manage invoice allowances in Dynamics AX. In some cases, rebates are issued. Stay tuned for a later blog addressing rebates!

 

Related Posts

  • 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…

  • **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…

0 Comments

Submit a Comment

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

Upcoming Events

june

02jun2:00 pm2:30 pmBusiness Intelligence for Batch Manufacturers

16jun10:00 am10:30 amHow AP automation can speed up month-end close in D365 Finance

17jun11:00 am12:00 pmConfab Live with Stoneridge – Real Time Marketing Strategies for Success

23jun10:00 am10:30 amThe Modern Manufacturer: Cost Accounting in D365

30jun10:00 am10:30 amAP Automation Checklist for a 2022 Rebound

30jun2:00 pm2:30 pmAchieving Success: How Technology Is Helping Nonprofits Thrive

july

01jul11:00 am12:00 pmConfab Live with Stoneridge – Dataverse Virtual Entities

14jul12:00 pm12:30 pmBeyond Reporting - What Business Intelligence Can Do For Your Agribusiness

15jul11:00 am12:00 pmConfab Live with Stoneridge – Integration Strategies for End User Success

21jul10:00 am10:30 amThe Modern Manufacturer: Manufacturing Software in the Real World

21jul12:00 pm1:00 pmIs it Worth it to Upgrade to Dynamics 365 Finance and Supply Chain Management? - Everything AX Users Need to Consider

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!

X