Change journal creation on Delivery Order

[former_member158990]

Current journal create on DELIVRY ORDER:

Cost of Sales - Products 1,700 (DB)

Products 1,700 (CR)

My client request to change the journal become:

Standard COS - Raw materials and supplies 1,000 (DB)

Standard COS - Packaging materials 200 (DB)

Standard COS - Production overhead 500 (DB)

Inventories - Finished products 1,700 (CR)

The purpose is they want to know how much is Gross Margin after and before production overhead.

Current inventory valuation is Moving average (Raw material and Finished Products).

Current inventory GL Determination is By Item Group.

How is it possible.

Thank you very much in advance.

Best regards,

Surya

[Former Member · Accepted solution]

Hi Surya

The Delivery Order, I want to keep as usual with content:

- Posting Date

- Warehouse

- Item No of finished products and Item Description

- Quantity

- Price

- Amount

So, if use Freight instead of Item, Quantity, etc. I think it will disturb the delivery order information which is already used by Warehouse.

Freight charges are additional fields on the document and will not influence the standard columns unless you tick the Update Stock option in the Freight Charges setup, which in this case you must not do. The 3 fields will allow you to post credits and debits that will offset each other and therefore not change the nett value of the delivery note. It will merely manipulate the journal by taking 700 out of one COS account and reposting it to the other 2 accounts with the amounts of 500 and 200 respectively.

I think a good starting point would be to look at the e-learning material on Freight charges to familiarize yourself with how it functions. This feature will resolve your problem and is the best way to achieve it automatically in SAP Business One.

Kind regards

Peter Juby

[Former Member]

Hi Surya

Are you currently using Freight charges (additional expenses) on your marketing documents? If not, you can use them on row level to achieve the posting as follows (You could also do it at header level):

Freight 1 Amount = -700

Freight 1 Account = COS - Raw materials and supplies

Freight 2 Amount = 200

Freight 2 Account = COS - Packaging Materials

Freight 3 Amount = 500

Freight 3 Account = COS - Production Overhead

Change your account determination so the COS posting goes to the first account for the full 1,700 (Raw materials and supplies).

The next step is to create 3 Freight charges called COS Offset, COS Pack and COS Prod. Set all 3 to a zero rated VAT as COS does not have tax and you need the exclusive values to post. Then create 6 queries as follows:

Query 1: SELECT 1 (This is Freight charge 1 COS Offset)

Query 2: SELECT -(Put the field or formula in here to calculate the value of Freight 2 & 3 for the 700)

Query 3: SELECT 2 (This is Freight Charge 2 COS Pack)

Query 4: SELECT (Put the field or formula for the 200 for Packaging costs in here)

Query 5: SELECT 3 (This is Freight Charge 3 COS Prod)

Query 6: SELECT (Put the field or formula for the 500 for Production costs in here)

Make a formatted search on the Freight 1 field and link to query 1 and set to refresh on Document Total. Then go to Freight 1 Amount and set the formatted search to Query 2 and set to refresh on Document Total. Repeat for the other 2.

Let me know if you need further assistance with this.

Kind regards

Peter Juby

[former_member158990]

Dear Peter,

Thanks for your answer.

The Delivery Order, I want to keep as usual with content:

- Posting Date

- Warehouse

- Item No of finished products and Item Description

- Quantity

- Price

- Amount

So, if use Freight instead of Item, Quantity, etc. I think it will disturb the delivery order information which is already used by Warehouse.

Is there any idea ?

Or maybe my understanding is wrong, pls add more explanation.

Best regards,

Surya

[former_member158990]

Dear Peter,

It looks good to me.

Thank your very much for you quick answer.

I will try on your suggession and let you know the result.

Best regards,

Surya