Create charges codes
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
If you have to track sales amounts or purchase amounts in addition to line items, you can use charges codes. For example, you might pay freight and insurance on a purchase order, and these amounts might be itemized separately on the purchase order. You can specify whether these amounts are posted to expense accounts, or whether they are added to the cost of the items.
You can create charges codes for Accounts receivable and Accounts payable.
Set up charges codes for Accounts receivable
Click Accounts receivable > Setup > Charges > Charges code.
Click New. In the Charges code field, type a code for the charge.
In the Description field, type a description of the charge.
Optional: In the Item sales tax group field, select a sales tax group.
On the Posting FastTab, specify how the charge is automatically debited and credited.
If you selected Ledger account as the debit type or credit type, specify a posting type in the Posting fields, and specify the main account in the Account fields.
Example
Your customer pays the charge. Therefore, the charge is added to the sales order totals. You set up the following posting information:
In the Type field in the Debit field group, select Customer/Vendor to add the invoice charge to the customer's account.
In the Type field in the Credit field group, select Ledger account. Then, in the Account field, select the main account for revenue from invoice charges.
Note
You can enter a different currency for the charge transaction if the debit type or credit type is either Ledger account or Item for the selected code.
You can print the text for charges in the language that is assigned to the customer. Click Translations to specify text for the charges code in other languages.
Set up charges codes for Accounts payable
Click Accounts payable > Setup > Charges > Charges code.
–or–
Click Procurement and sourcing > Setup > Charges > Charges code.
Click New. In the Charges code field, type a code for the charge.
In the Description field, type a description of the charge.
Optional: In the Item sales tax group field, select a sales tax group.
Optional: In the Maximum amount field, type the maximum amount that is allowed for this charges code.
This field is used to validate charges for vendor invoices. You can enable the validation of charges in the Accounts payable parameters form. In the Invoice validation area, select the Enable invoice matching validation check box.
Important
To validate charges for invoices, you must also create an instance of a policy rule type that is based on charges for the specific vendor invoice policy. For more information, see Key tasks: Vendor invoice policies.
On the Posting FastTab, specify how the charge is automatically debited and credited.
If you selected Ledger account as the debit type or credit type, specify a posting type in the Debit posting and Credit posting fields, and specify the main account in the Debit account and Credit account fields.
To enable the comparison of charges values for an invoice that contains the charges from the corresponding purchase order header or lines, select the Compare purchase order and invoice values check box.
Example
You can record the charge as an expense as part of the total for the purchase order or vendor invoice. You set up the following posting information:
In the Type field in the Credit field group, select Customer/Vendor to add the invoice charge to the vendor's account.
In the Type field in the Debit field group, select Ledger account. Then, in the Account field, select the main account for expenses from invoice charges.
To add the unit charge to the item cost, you set up the following posting information:
In the Type field in the Credit field group, select Customer/Vendor to add the invoice charge to the vendor's account.
In the Type field in the Debit field group, select Item to add the charge to the item cost.
Note
You might want to use a currency other than the currency that is specified on the purchase order or invoice. You can enter a different currency if the debit type or credit type is either Ledger account or Item for the selected code.
You can print the text for charges in the language that is assigned to the vendor. Click Translations to specify text for the charges code in other languages.