This post is the last of a series. I started using automatic miscellaneous charges to estimate the landed cost for purchased items, here. Then I went one step further and used the Dynamics AX 2012 R3 Transportation management module to assign freight charges on a vendor-by-vendor basis here. Finally I posted an actual freight invoice against the inbound load here. But if you read that last post, you’ll realise that it was a very simplistic example – one purchase order, one load, one charge and one invoice.
I’m not going to repeat all of the content in the previous blogs, but I’m going to try to make this post a more realistic example. Firstly, the route assigned to the inbound load has three separate charges from three vendors (Ocean freight, Port charges, and Local freight):
And this has generated miscellaneous charge codes which have been added to my purchase order lines:
I could use that zero charge port line for an unexpected charge like demurrage.
When I received the purchase order I went to the Load planning workbench from the purchase order line and confirmed my inbound load:
Then I went to Related information > Transportation > Freight bill details
The system shows me the Freight bill details from my selected load:
Incidentally I can see these un-matched Freight bill details on a ‘Periodic’ form (which is actually an Inquiry), Transportation management > Periodic > Unmatched freight bills:
Back on the Freight bill details form, I could click on ‘Generate freight bill in…’ to generate a Freight bill invoice, but a more realistic scenario is that one of my vendors is going to send in an invoice, and it’s going to relate to more than one load, and it’s going to be for slightly more (or less) than my estimate. So let’s head over to Transportation management > Inquires > Freight invoice details and create the vendor’s invoice:
All I need on the header is the Shipping carrier / Vendor account; their invoice number and date. Then I add their invoice lines
And click on ‘Match freight bills and …’:
Now I’m selecting a vendor invoice line, and a freight bill line and ‘Match’, and repeat on the second line. I’ve got one line over and one line under.
The ‘under’ line shows up as an Unmatched freight bill line, I need to ‘Discard’ the un-matched Amount remaining:
When I click ‘Discard’ the system displays the Freight bill reconciliation form:
The Reconciliation reason code will tell the system which accounts to Debit/Credit (Transportation management > Setup > Freight reconciliation > Reconciliation reasons):
When you click OK on the Freight bill reconciliation form the Freight bill line disappears from the Unmatched freight bills list grid.
The ‘over’ line is reconciled when you click on ‘Submit for approval’:
Now we get a Reconcile invoice form (with the same Reconciliation reason codes). In this case you’ll probably choose a code which has ‘Pay the vendor’ ticked, and then you click OK.
As before, because I have no workflow setup, although the message says ‘The invoice has been submitted successfully’ – the system’s actually created two Accounts payable Invoice journals. First there’s the amount I ‘discarded’ from the Freight bill line:
And then there’s the Invoice journal for the Vendor Invoice I entered and matched to the Freight bill lines:
It may seem a bit un-wieldy at first glance but there’s a lot of useful functionality here just waiting to be deployed.