Post charges in product receipt in AX2012R3

Hi All,

Hope all doing well,

Last few years during my implementations some of my client is asking for a solution in AX which can able to post charges in Product Receipt Posting. Very recently me and my lead technical got same requirement in Asia's larges R3 Retail Project Implementation.

Here my client is one of the biggest warehouse shopping mall (3 Mil Sq. ft.) owner. Its include ; hypermart, furniture, F&B, Fashion, Medicals, Gifts etc. My client want to post all the charges when warehouse post product receipt via handheld devices.

As we all know ; in Std. AX dose not have capability to post the charges in the time of Product Receipt posting, its only post charges in the time of three way matching.

So we took the challenge and make it happened. Here is the solution as generalized as under;

Accounts payable setup

Accounts Payable -> Setup -> Parameter -> Update tab

Check mark " generate charges on product receipts"

Accounts payable -> Setup -> Charges -> Charges

Select the charges clearing A/C, this a special posting required when you post the charges in product receipts. Later stages financial entry details are there.


Accounts payable operation

1. Create purchase order in AX ( From Accounts Payable or Procurement & Sourcing Module)

 Purchase order Qty: 200 EA,
 Rate Per Unit S$ 100.00
Total Purchase Value : S$ 20000.00

2. I have added additional charges for this purchase " Handling Charges " Fixed base S$ 1200.00

So logically when I will post the product receipt in AX , cost of the product per unit will be S$ 106.00

3. Next step received the goods via RF Gun, because my warehouse is R3 Warehouse Management enable and Post the Product Receipt.

Product Receipt:

 

Financial Entry:

 

According to our change system;  posted the charges in a Charges Provision A/C as credit balance, other side same provision cost I have added with the Inventory cost as Debit Balance

On hand Inventory :

 

Now my purchase order in product receipt , cost of inventory (Physical cost) S$ 106.00.

 

Here might be the question come to your mind, can its able to proportionate charges if we do partial receiving. Answer is yes, it can do that. If you do the product receipt "Cancel" , system reversed charges what ever you posted in the systems.

 

 

Few people urge , why should I post the charges in the time of product receipt, what is the business séance behind that. Its very simple answer, if your costing method is weighted avg. date (It is accepted world wide and suggested by International Accounts Standard 2), if you want your GP margin very close to then you need to include charges in product receipt. You cant wait till the invoice come. Most of the retail environment invoice come few days or week later.

 

 

4. Invoice come after a month where vendor invoice stated Price Per Unit: S$ 110. My Finance team accepted the same and  recorded the Invoice in the system. Financial Impact is as below, 

 

 

Its revered the charges provision , reversed the product receipt entry. take the final Invoice entry in the system. My Cost of Inventory value increase S$ 116.00

 

 

 

Hope this solution give you a idea how to handle charges in product receipt. We were expection the same solution from MS last year, they are coming with same kind of solution, but I have not find the same in CU8 release. So we make it happened.

 

If you have any question let me know

 

Cheers

Paul Dipankar