Transportation management freight invoices example in AX 2012 R3

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.


4 thoughts on “Transportation management freight invoices example in AX 2012 R3

  1. Hi Tim. Many thanks for the great blog posts. Apologies if I missed a point, but will this functionality update my original charge costs against the inventory postings? For example, I estimated $200 on my PO order lines and the actual freight charge was $250. Would the additional $50 charge be allocated to the financial cost of the stock, once the freight invoice is posted?


    • Hi Karen, a colleague was working in this area the other week and he assured me that an adjustment like that would get posted – but unfortunately I’ve been busy on another project and I haven’t had a chance to get back to the Transportation module and figure out exactly how that works.


  2. On this very last screenshot of the invoice journal, there are two separate invoice lines created for the same invoice (1234_1.00 and 1234_2.00). These lines actually represent 2 lines of the same vendor invoice. Is there a way to post this as one invoice (1234) on the invoice journal instead of 2?


    • Hi Steve, sorry I don’t know the answer, and one of my colleagues has recently told me that there are some changes in the this functionality – he says that actual freight charges are posted back on to the purchase order, but I’ve not had a chance yet to get back to the system and investigate them.


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