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Posting Control for Purchase Charge Type

  • 6 September 2021
  • 13 replies
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Userlevel 6
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Hi Team,

Which Posting Control should I use to handle Charges like Freight, Custom Duty etc used in Purchase Order window “Charges” tab.

I have a specific account for the above charges.

But I have no idea which posting control should I use to connect the same account.

Request you to please guide me on this.

Thanks in Advance.

Best Regards,

Rakesh Rout

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Best answer by Asela Munasinghe 6 September 2021, 16:48

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13 replies

Userlevel 7
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@Rakesh did you notice this thread?

 

 

Userlevel 6
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Hi @EnzoFerrari 

 

Thank u :)

Just a confirmation for my case it should be M65 right?

Userlevel 7
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@Rakesh depends on your business. If you decide not to absorb PO charges to inventory value its M65. 

We have some charge types absorbed into the inventory, hence would use M187 / M189 only like below

 

 

It would be good to align with Finance if you are not sure on how to make a call here

Userlevel 7
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@Rakesh were you able to figure it out?

Userlevel 6
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Hi @EnzoFerrari 

Thank u so much for the detailed explanation.

In my case I will be using M65.

 

Best Regards,

Rakesh

Userlevel 6
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Hi @EnzoFerrari 

 

Just a query if charge types absorbed into the inventory, then in such case Posting Types M187/M189 should have same account that is connected with Posting Type M18??? Logically it should be same correct me if I am wrong.

 

Thanks,

Rakesh

Userlevel 7
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Hi, Rakesh,
You could use same or different account for M10/M18, and M187/M189, as those are parallel couples…

On arrival, inventory value is booked as debit M1 credit M10 (ARRIVAL inventory event), and supplier invoice matched with receipt is booked debit M18 credit IP5 (APINVOICE, to simplify picture).
Charge absorbed on arrival are booked as debit M1 credit M189 (ARRCHG inventory event) and invoice matched with such charge as debit M187 credit IP5. 

So in case of balance sheet accounts, M18 closes M10 balance, and M187 closes M189. Please note that in some countries (e.g. France) cost accounts are used for inventory purchase, so this setup may depend on your local rules.

Userlevel 7
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@Rakesh in our business, we use the same account. Thanks for the additional input @Adam Bereda. And yes, we are also based in Europe

Userlevel 6
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Thanks a lot @Adam Bereda @EnzoFerrari 

 

Best Regards,

Rakesh Rout

Userlevel 6
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Hi @EnzoFerrari @Adam Bereda 

 

Similarly, which Posting Control can be used for handling the Sales Charge Type??

Thanks in Advance.

 

Best Regards,

Rakesh Rout

Userlevel 7
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We use M69

Userlevel 6
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Thanks @EnzoFerrari 

Userlevel 4
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Hello - Where do you mark the charge type so it is not absorbed in inventory value?  I am testing charge types and they are absorbing into inventory.

Thanks