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Extra Charges

Microsoft Dynamics NAV gives the user the ability to set up item charges for additional costs that are involved in shipping and receiving items, such as freight or handling charges, then assign these charges to sales and purchase documents. When a transaction is invoiced, the program creates value entries for any item charges that have been associated with the items on the document.

Due to the rapid inventory turnover that food distribution companies experience, it is common for a company to receive goods from a vendor and resell these items to customers before being invoiced. It may be that the vendor does not invoice the company until the sales activity is completed, as the invoice amount is determined by the price at which the items were sold. Invoices from third party vendors (for example, the freight company that handled the transport of the items) may not be obtained until after the goods have already been sold. As a result, food distributors who wish to include additional item costs when setting sales prices can not wait until invoicing is completed.

Companies that require this level of visibility for item costs can set up extra charges. Like item charges, extra charges represent additional costs associated with the receiving process. The major difference between these two types of charge is that extra charges are recorded at the time of receipt, rather than invoicing. This allows a business to enter and allocate additional item costs on a purchase or transfer document, receive the items into inventory, and immediately take these costs into account as sales prices are established for the associated items.

The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.

To	See
Get an overview of the principles and definitions that govern the extra charge functionality in Microsoft Dynamics NAV.	About Extra Charges
Define codes for the different charges that are added to inbound documents.	How to: Set Up Extra Charges
Set up the default extra charge posting accounts for each combination of a general product group and a general business group.	How to: Set Up Accounts for Posting Extra Charges
Select up to five extra charges that you will be able to access directly from document lines.	How to: Set Up Shortcut Extra Charges
Enter an extra charge, such as a freight charge, on an inbound document and add that charge to the unit costs of the related items.	How to: Assign Extra Charges to Orders
Enter an extra charge, such as a freight charge, on an inbound line and add that charge to the unit cost of the related item.	How to: Assign Extra Charges to Order Lines