How to assign automatic charges at Purchase order line level in Microsoft Dynamics 365 F&O..?

• In this article you will quickly learn how to configure automatic charges and assign it to an item in purchase order.
• Charge codes are used to track and account the additional costs involved in purchase or sales.

For example, you pay freight charges, handling charges or insurance charges on a purchase order, and these amounts can be controlled at item or vendor level on the purchase order.

• To create charge codes go to the following path and create a charge codes which are required in the purchase order lines.Procurement and sourcing > Set up > Charges >? Charge codes
• Then Click on "new" and type the "Charge code" and "description".
• Assign the "Debit" and "credit" Posting account details after discussing with finance consultants. Finance consultants need to guide to capture the correct "posting" & "account" for the item.
• In this example we are considering the following details (as shown in below image) to capture the "Handling fees" as a charge code in purchase order.
• Also, in this case, you can specify expense account in which the charges will be posted.

• After creating charge codes we need to assign "Automatic Charges" to a specific item and vendor.
• To assign automatic charges navigate to following path and select the level as "Line" (if you want to apply the charge at header level then select "Header"). Procurement and sourcing > Set up > Charges > Automatic Charges
• Now click on "New" and add the vendor code and item code for which the automatic charges need to be applied.

• After updating the Vendor code and item code user need to click on "SAVE", otherwise "Add" button in the lines tab will not be enabled.

• Now assign the "handling fee" charge code which we created. Users can assign multiple Charge codes and select the category applicable for same.
• Charges value and charges currency applicable can also be updated.
• User can also select a specific site and warehouse for which this charge code and automatic charges are applicable and click on "Save".

• Now create a Purchase order for the vendor assigned in the automatic charges and select the item code in lines.
• Enter the quantity and unit price for which PO need to be generated.
• The charge codes are automatically assigned to the lines and it can be viewed in the following path.

• Also if user wants to view the total charges against any specific line, then click on "Totals" in the action pane to view the total amount and charges applicable.

• Using this process we can apply freight / insurance / handling / miscellaneous / rebates and many more charges which can be accommodated using the charge codes in purchase orders.

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