Adding charges after posting a vendor invoice in D365FO

What if you don't use the Landed cost module but occasionally you have charge values that you want to add on already posted vendor invoice values because of the impact of the inventory valuation? In this article I describe the way of how you can add charge values to posted vendor invoices in this situation. Also I show the effect on the inventory value related to these additional postings.

Accounts payable invoice journal

In the Accounts payable 'Invoice journal' Inquiry form (not the journal for creating vendor invoice postings) you can find back the posted vendor invoices. In this form you can select invoices and see the already posted charges on them:

If a charge is posted on the selected invoice, these charges will be presented. But In this form the button 'New' or 'Delete' is greyed out because the invoice is posted already:

in the previous form 'Invoice journal' for the selected posted vendor invoice you have also the option to click on 'Adjustment':

This is the form where you can still do some actions in relation to add charges on the invoice because here you are able to add charge lines as adjustment on this posted vendor invoice. As example I enter a line for a freight charge of USD 100:

This means that even if the vendor invoice is posted already, you can still add charges to it via this way. The charges you can add in this 'Adjustment' form are the charges with setup of posting the value Debit via the Item and Credit via the Ledger:

This is because you are basically adjusting because of getting a correct inventory value. And charges related to inventory valuation always are posted Debit via 'Item'. And because the invoice is already posted the offset account can only be 'Ledger' (not able to select Customer/Vendor).

When it comes to impact of the inventory valuation of the items related to the invoice, there is need to allocate the charge to the related lines. You have several options to do this:

• You van use the 'Allocate charges to lines' with value 'All lines', only positive lines or only negative lines:

• You can select the variant whether this allocation should be on all lines related to the selected allocation option, or only to Stocked lines:

• In case the charge adjustment is only related to some specific invoice lines, you van select the option 'Show selections and clear specific lines'. In that case the options to allocate charges to lines (stocked or stocked and non stocked) are greyed out and you can select manually the line(s) where the charge adjustment needs to be related to:

What is the effect of adding the charges via this Adjustment option?

Basically it effects the inventory valuation of the related purchase order invoice lines. In my Microsoft Contoso demo environment company USMF I have an inventory transaction for item A0001, purchase order 00000584. Based on the posted vendor invoice the cost amount of this item transaction is USD 12,-:

Because of the invoice posting the 'Financial date' of the inventory transaction is already entered. On the related vendor invoice via the steps described earlier in this article I add a charge adjustment of USD 1,50 related to this purchase transaction:

When this charge adjustment is confirmed, the charge amount is posted. In the same Invoice journal form on the invoice line, the adjusted charge amount is visible now:

Based on this adjustment also the cost amount of the inventory transaction is changed into USD 13.50 (USD 12,00 existing value + USD 1,50 charge adjustment value):

In the Transaction details of this inventory transaction you can see that this USD 1,50 is posted as an Adjustment to this inventory transaction:

Even when the inventory close has already been run for inventory transactions, this charge adjustment can be applied on the vendor invoice. It can not be posted on a date where the inventory closing has already run because no new inventory (value) transactions are allowed in a closed period. But when you post the adjustment on a later date, the related closed inventory transactions will be put open again and after running the next inventory closing the charge value will still be applied on the related transactions.

For moving average transactions it means that the added charges will be posted to the 'Price difference for moving average' posting type. This is because when using moving average issued item transaction value will not change anymore, even if on the invoice of purchase order 00000126 I have added a charge adjustment of USD 10,-:

This is because when using the moving average inventory valuation method the cost value of issued transactions will not change anymore. Therefore later changes in relation to issued transactions will be posted on the related price difference accounts:

So basically by using the adjustment option to add charges after posting the vendor invoice you are still able to change the inventory values related to the purchase invoiced lines. In case of adding these charges on posted vendor invoices on a common basis or having additional landed cost processes as well, you can check the Landed Cost module for more sufficient options.