purchase orders

hasithajay

what is the difference between item(charge) and item in the purchase orders

pvrb

Hi,

purchase line:

Type=Item: In the No. field, you select an Item card.
It is usually important to select appropriate Location Code.
Once you receive an item, Navision creates Item Ledger Entry (i.e. the inventory goes up on the selected location) and Value Entry.
When you invoice your receipt, Navision creates another Value Entry linked to the original Item Ledger Entry (Item Ledger Entry has calculated fields and also the "Completely Invoiced" field which I'm sure a lot of user find very useful.
Please note: The above does no apply to subcontracting orders (manufacturing); also, 'job' purchase orders behave differently in different versions of Navision.

Type='Charge (Item)': receipt of such lines usually create no value entries, no item ledger entries.
Invoicing of Charge (Item) lines - additional value entries are created in line with item charge assignment (you/someone entered on Purchase Order).
Some might say, Charge (Item) is used to post additional costs (value) for your items, i.e. transport, insurance, etc.
Sometimes, the Charge (Item) is used to post corrections; some use item charge to record an invoice against already received items, if the invoice is in different currency than the Navision purchase order (happens quite often).

I shall stop here as my reply gets a bit too long.
Hope you have fun with Navision,
Pav