Charge Item

omard

Hi All

We met a situation on the use of charge item at a client of ours which have left us somewhat perplexed and therefore thought to share this post with you in the hope that some of you have encountered something similar and has came up with a solution.

The client is a second hand car dealer and has opted to register each car as a new item code (irrespective if the same second hand car has been bought/sold for a couple of times). So far so good. Most of these second hand cars are allocated charge items (to maintain its saleable condition, repairs, etc). Therefore each car (item) would have a ledger entry recording the purchase of the vehicle and a subsequent set of value ledger entries to record the charge items.

Our issue is that when the user discovers a mistake in the original purchase invoice and therefore requires to reverse the purchase invoice (often using the copy document funtion of the credit memo), Navision reverses the entire cost of the vehicle - basically the COST + CHARGE ITEMS.. which is fine. But when the user reposts the invoice with the correct entry, then how can we "apply automatically" the charge items to the new, revised invoice ?

Our ideas are:

1. use of revaluation journal - ie use the procedure described above then post a reval journal in order to reflect the cost of charge items on the new car; or

2. inform the client that once a charge item has been posted on the car then any changes to price (cause mainly issues are related to price), needs to be posted as charge items rather then reverse orig invoice and post a new invoice

Any suggestions appreciated..

Thanks

Omar

omard

Hi

any tips/ideas/comments/suggestions re my post? please! ](*,)

regards

Omar

Deep

If the original change in value is due to some additional charges, then its better to post a charge item.

Its a cumbersome process to reverse an invoice each time and then repost it if this is frequent.

Jaspreet

Hi Omar
Its not possible to automatically apply item charges.The process of assigning item charges to receipt lines has to be done all over again.
Better option is to use Item charges. Create an Item Charge with the a name as 'Price Correction' and map to the same G/L accounts.

omard

Thanks guys for your responses

The use of revaluation journal is not appropriate since there are cases where vehicles would have been sold and therefore the journal will not consider such items.

The last option is to use a charge item but the issue with using charge item relates to the mandatory need to use an invoice ie (therefore a vendor) and since the posting setup of charge item does not link to vendors, users need to post a journal to "settle" the vendor against the expense account.

Thanks again

Deep

omard wrote:

The last option is to use a charge item but the issue with using charge item relates to the mandatory need to use an invoice ie (therefore a vendor) and since the posting setup of charge item does not link to vendors, users need to post a journal to "settle" the vendor against the expense account.
Thanks again

I din't got what you want to say by "Settle the vendor against expense account"
If it is like you so that you do not want to create the vendor ledger entry and thereby the vendor balance, do create a dummy vendor, assign it a posting group and then in the payment method, assign a code with the same G/L account in the posting group.
Create the item charge line and assign it over the item in question, and post it.
This way, the charge will be assigned, the original vendor is not affected, the posting group g/l will get nullified and you need not to post any journal entry to settle the vendor balance.

omard

well thought Deep! forgot about the payment method

thanks again