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Units of measure for line-level charges

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All line-level auto charges and line charges include a category that controls how and where the charge applies. The available categories include Specific unit and Specific unit match. These categories let you set up and apply line charges that are specific to the unit of measure for a line item that's either sold or purchased. They work in the following way:

  • Specific unit – The auto charge is defined by using a specific unit (such as ea). The system then converts proportionally from other units if a conversion factor is available. For example, a sales line is for 2 boxes of an item where a box is defined as containing 10 ea. There's a charge of 2 USD per ea. In this case, the sales line produces a charge of 40 USD (= 2 boxes × 10 ea/box × 2 USD/ea). If no conversion factor is available, the charge isn't applied.
  • Specific unit match – The auto charge is defined by using a specific unit (such as ea). However, the system applies that charge only to lines that use the same unit. For example, you set up a charge so that a line charge is added when the item is sold in smaller units (such as ea). However, there's no line charge for orders that are specified in larger units (such as cases).

The Specific unit and Specific unit match categories are supported for sales quotation lines, sales order lines, purchase requisition lines, request for quotation lines, and purchase order lines. Because both categories apply to both sales orders and purchase orders, they're also supported for intercompany trade.

Prerequisites

Before you can use the features that are described in this article, your system must meet the following requirements:

  • You must be running Microsoft Dynamics 365 Supply Chain Management version 10.0.38 or later.
  • The feature that's named Unit of measure for line level charges must be turned on in Feature management.

Example scenario: Set up line-level auto charges for specific units and unit matching

This example scenario shows how to set up line-level auto charges that apply to a specific unit, or that are calculated based on unit matching.

Enable demo data

To work through this scenario by using the demo records and values that are specified here, you must be on a system where the standard demo data is installed. Additionally, you must select the USMF legal entity before you begin.

Set up the auto charges

Follow these steps to set up a line charge in auto charges.

  1. Go to Accounts receivable > Setup > Charges > Auto charges. (Similar steps can be completed at Accounts payable > Setup > Charges > Automatic charges and Procurement and sourcing > Setup > Charges > Automatic charges.)

  2. In the list pane, set the Level field to Link.

  3. On the Action Pane, select New to create an auto charges record.

  4. On the header of the new record, set the following values:

    • Account code – Select All.
    • Item code – Select All.
    • Mode of delivery code – Select All.
    • Charge description – Enter a short description.

  5. On the Action Pane, select Save.

  6. The Lines FastTab should now include a blank line. If it doesn't, select Add on the toolbar to add one. Set the following values for this line:

    • Currency – Select USD.
    • Charges code – Select Freight.
    • Category – Select Specific unit.
    • Unit - Select ea.
    • Charges value – Enter 2.
    • Sales tax group – Leave this field blank.
    • Site – Leave this field blank.
    • Warehouse – Leave this field blank.
    • Keep – Leave this checkbox cleared.

  7. On the Lines FastTab, select Add on the toolbar to add a second charge line. Set the following values for it:

    • Currency – Select USD.
    • Charges code – Select Install.
    • Category – Select Specific unit match.
    • Unit - Select dz (dozen).
    • Charges value – Enter 5.
    • Sales tax group – Leave this field blank.
    • Site – Leave this field blank.
    • Warehouse – Leave this field blank.
    • Keep – Leave this checkbox cleared.

  8. On the Action Pane, select Save.

Use the auto charges on a sales order

The charges can now be automatically applied to a sales quotation line or a sales order line. To apply the charges to a sales order line, follow these steps.

  1. Go to Sales and Marketing > Sales orders > All sales orders.

  2. On the Action Pane, select New to create a sales order.

  3. In the Create sales order dialog box, set the Customer account field to US-004. Then select OK to create the order. The selected customer must use the same currency as the auto charges that you set up (USD).

  4. The new sales order is opened. On the Action Pane, on the Sell tab, in the Charges group, select Maintain charges.

  5. If any charges are listed on the Maintain charges page, select them, and then select Delete on the Action Pane.

  6. Close the Maintain charges page by selecting the back button on the Action Pane.

  7. You're returned to the order. On the Sales order lines FastTab, add an order line, and set the following values for it:

    • Item number – Select A0002.
    • Quantity – Enter 2.
    • Unit – Select ea.
    • Site – Select 6.
    • Unit price – Enter 50.

    The Net amount field should show a calculated value of 100.

  8. While the new order line is still selected on the Sales order lines FastTab, select Financials > Maintain charges on the toolbar.

  9. Confirm that the Maintain charges page shows the two auto charges that you set up earlier. Then close the page by selecting the back button on the Action Pane.

  10. On Action Pane, on the Sales order tab, in the View group, select Totals.

  11. The Totals dialog box shows the different calculation results that apply to the current order. Notice that the value that's shown for Total Charges is 4 USD. This value is calculated in the following way:

    • There's a Specific unit charge of 2 USD per ea. Because the line is for the equivalent of 2 ea, this charge is 2 ea × 2 USD/ea = 4 USD.
    • There's also a Specific unit match charge of 5 USD per dz. However, because the unit that you're ordering in is ea, not dz, this charge doesn't apply.
    • The total charge for the line combines both charges. Therefore, the total charge is 4 USD.

  12. Select OK to return to the sales order.

  13. On the sales line, change the Unit value to dz. When you're prompted to overwrite prices and discounts, select No, and then select OK. (The system is configured to convert 1 dz to 12 ea.)

  14. On Action Pane, on the Sales order tab, in the View group, select Totals.

  15. In the Totals dialog box, notice that the value that's shown for Total Charges is now 58 USD. This value is calculated in the following way:

    • The unit is now dz, and there's a Specific unit match charge of 5 USD per dz. Because you're now ordering two dozens, this charge is 2 dz × 5 USD/dz = 10 USD.
    • There's also a Specific unit charge of 2 USD per ea. Because the system is configured to convert 1 dz to 12 ea, and you're now ordering a total of two dozen items, it can determine that the order line is for 24 ea. Therefore, this charge is 24 ea × 2 USD/ea = 48 USD.
    • The total charge for the line combines both charges. Therefore, the total charge is 10 USD + 48 USD = 58 USD.

Pricing management

The features that are described in this article work together with the Pricing management module. Pricing management introduces changes to the setup and search of auto charges. Therefore, it also changes some of the behavior that's described in this article. When the Pricing management module is enabled, charges that are set up at Accounts receivable > Charges setup don't apply. Instead, only charges that are set up on the auto charges page that's specific to the Pricing management module apply to sales orders and sales quotations. To set up auto charges in Pricing management, go to Pricing management > During-sales pricing > Charges setup > Auto charges.