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KB3006787 Procurement accounting charges as product cost with product receipt

  • 项目

We are pleased to announce the availability of KB3006787 Procurement accounting charges as product cost with product receipt

The KB introduces the capability of accounting for Misc. charges already at time of posting Product receipt.

This capability will provide customers with the opportunity to better estimate cost of purchase and avoid cost fluctuations at time of Invoice.

Setup

As this capability directly impacts valuation of inventory assets and thus can be considered a change in accounting principle, the feature will be controlled by a new parameter.

Path: Procurement and sourcing/Setup/Procurement and sourcing parameters.

We recommend the following parameter settings for accounting of inventories. Applying these recommended settings will make reconciliation to General ledger simpler at end of fiscal period.

Module/Form

Parameter

Recommended setting

Inventory Management/Item model group

Post physical inventory

Yes

Inventory Management/Item model group

Post financial inventory

Yes

Inventory Management/Item model group

Accrue liability on product reciept

Yes

Accounts payable/Accounts payable parameters

Post product reciept in ledger

Yes

Procurement and sourcing/Procurement and sourcing parameters

Generate charges on product reciept

Yes

Accounts receivable/Accounts receivable parameters

Post packing slip in ledger

Yes

Production control/Production control parameters

Post picking list in ledger

Yes

Production control/Production control parameters

Post reports as finished in ledger

Yes

Note: If you want to account for Misc. charges at time of posting product receipt and have check marked “Generate charges on product receipt”, you must as minimum also check mark “Post physical inventory” and “Post product receipt in ledger”.

Defining misc. charges

Before the misc. charge will be accounted at time of posting product receipt, it has to fulfil certain requirements.

Misc. charge code

The misc. charge code has to be configured so it will be accounted as Inventory asset.

In the Fast tab Posting under field group Debit the Type has to be Item. The Credit type can be either Ledger or Vendor.

Misc. charge calculation categories

Not all misc. charge calculation categories will post at time of product receipt. The table below lists the misc. charge calculation categories applicable and how the value is calculated.

Misc. charge calculation category

Applicable charge value on product receipt line

Applied amount

Pcs

As per purchase order line applicable charge value

Received Quantity x Pcs value rate

Percent

As per purchase order line applicable charge value

Receipt net amount x % value

Proportional *

(Purchase order line applicable charge value / ordered quantity) * Received quantity

(Received quantity / Ordered quantity) x "PO line proportional value"

*Proportional: A new misc. charge calculation category delivered as part of the KB

Note: Misc. charge calculation category = Fixed. No cost will be accounted for at the time of posting product receipt. The cost will still be accounted for at the time of Invoice.

Note: Sales tax on misc. charges will not be posted at the time of product reciept.

Auto charges

Auto charges will now be applied on the time of product receipt if records correspond to the rules defined above.

 

Example (based on Dynamics Ax2012R3)

Prerequisite for the example:

Item: Misc. charge D1

Valuation method: Moving average

Auto charge: 10.00 Category = Percent

Misc. Charge: 200.00 Category = Proportional

Indirect cost: 1.00 % on purchased price + Misc. charge cost

 

1: A purchase order of 10 pcs is created. The unit cost is agreed at 100.00

2. Add misc. charge manually

3. Allocate the misc. charges

4. Confirm the PO

5. Post the product receipt.

  • Because of insufficient stock at the supplier, a partial delivery of 5 pcs will be received

  • Select “Receive now quantity” in field Quantity and generate the product receipt.

Press button Charge. The user can validate the misc. charges calculated by the system for the specific product receipt prior to posting:

Line net amount = 5 x 100.00 = 500.00

Charge code 04: 500.00 x 10% = 50.00

Charge code INS: 5/10 x 200.00 = 100.00

Press OK to post product receipt.

6. Validate posting of the product receipt.

  • Purchase cost transactions

  • Validating the voucher

Account Name Calculation Direction Amount 

600510 Indirect cost absorption 650 *1% Credit 6.50

142100 Inventory 500.00 + 100.00 + 50 + 6.50 Debit 656.50

150690 Purchase accrual 5*100.00 Credit 500.00

600150 Auto Misc. charge absorption 500.00 * 10% Credit 50.00

606200 Misc. charge absorption (5/10) * 200.00 Credit 100.00

 

  • Validating the physical cost amount on Inventory transaction

7. Post a product receipt of the remaining 5 pcs.

  • The postings are identical with the above

 

Account Name Calculation Direction Amount 

600510 Indirect cost absorption 650 *1% Credit 6.50

142100 Inventory 500.00 + 100.00 + 6.50 Debit 656.50

150690 Purchase accrual 5*100.00 Credit 500.00

600150 Auto Misc. charge absorption 500.00 * 10% Credit 50.00

606200 Misc. charge absorption (5/10) * 200.00 Credit 100.00

 

8. Post a vendor invoice of all 10 pcs and validate postings

  1. The system will automatically reverse the misc. charges postings done at time of product receipt.

  2. The system will automatically apply the same misc. charges codes at time of Invoice

    1. New calculations will be performed as the base amount (unit price) could have changed

    2. Additional misc. charges code can be added

For simplicity reasons no change in unit price or additional misc. charges are added in this example.

  • Voucher of Invoice

 

Account Name Direction Amount 

600510 Indirect cost absorption Credit 0.00

142100 Inventory Debit 0.00

150690 Purchase accrual Debit 1000.00

600150 Auto Misc. charge absorption Credit 0.00

606200 Misc. charge absorption Credit 0.00

211100 Vendor Balance Credit 1000.00

Note: You will see a few 0.00 postings in the voucher. These are related to a current limitation in the posting engine and are not addressed as part of this KB. The postings are not effecting any balances in General ledger.

  • Inventory transactions after invoicing

 

Released versions

KB3006787 “Procurement accounting charges as product cost with product receipt” is currently available for following releases of Microsoft Dynamics AX:

  • Microsoft Dynamics AX 2012 R3

KB is planned to be released for Microsoft Dynamics AX 2012 R2 end of year 2014

Comments

  • Anonymous
    January 01, 2003
    You have to install the KB. It did not get ready in time for R3 CU8 cut off and hence is not included.
  • Anonymous
    January 01, 2003
    We did not want to change the exiting behavior of the Fixed charge category. The full amount of these charges are posted with the first vendor invoice and as of that point not tracked on the order anymore. With partial invoices this drives the distinct behavior that we would not be able to determine at the time of product receipt what cost would go with the invoice. The proportional charge category makes this deterministic and scenarios where charges are adjusted in the invoice is possible with the proportional charge category as you may override the amount charged when recording the vendor invoice. We do not have current plan to make changes to this behavior with future releases.
  • Anonymous
    January 01, 2003
    Search for KB3006787 in Lifecycle Services - note it is only tagged as an R2 fix at this point. When you select to download the hotfix you will be presented with both R2 and R3 versions of the hotfix.
  • Anonymous
    December 22, 2014
    We are pleased to announce the availability of KB3023131 "Accounting for Purchase charge and Stock
  • Anonymous
    December 22, 2014
    We are pleased to announce the availability of KB3023131 "Accounting for Purchase charge and Stock
  • Anonymous
    December 30, 2014
    Hi,
    Is this already include in R3 CU8 or do I still need to install this KB. I red in other posts that the parameter would be removed and implanted in the model group instead.
  • Anonymous
    January 21, 2015
    What are the reasons why the fixed calculation category was not taken into account? Are there plans to include this in a future release?

    Thanks
  • Anonymous
    February 02, 2015
    "KB is planned to be released for Microsoft Dynamics AX 2012 R2 end of year 2014"

    Is the R2 -version already available, I couldn't find any information about it?

    Thanks!
  • Anonymous
    February 09, 2015
    Will this also work for inventory that has a "Fixed price" model?
  • Anonymous
    February 25, 2015
    The comment has been removed
  • Anonymous
    February 25, 2015
    The comment has been removed
  • Anonymous
    April 28, 2015
    Hi, if I post product receipt from a purchase order, charges will be generated, but if we post product receipt from posted arrival journal and its journal lines consists of several purchase orders, it will raise an error. Is it a bug or is it a limitation?

    We also able replicate this error from purchase order if we multi select purchase order and hit product receipt button.

    Thanks.