Dynamics NAV – Item Charges – Non Inventoriable Costs

In a previous post of Dynamics NAV Essentials, we have shed a light on the item charges functionality in Dynamics NAV, it was precisely about the landed costs associated with the purchase order receiving, such as but not limited to: customs, freight, insurance, physical handling …etc.

On the other hand, the item charges functionality provides further enhanced capabilities in order to track and record any associated costs to the “outbound transactions” such as sales shipments, return shipment, return receipt and transfer receipt. These functions illustrated below are allowed on the “Item Charge Assignment” form in Dynamics NAV.

Item Charges – Non Inventoriable Costs

It’s important to distinguish between the two types of item charges, which are illustrated below:

  1. Inventoriable Cost, which affect the actual cost amount of the item. This post to the inventory GL account.
  2. Non Inventoriable Cost, which doesn’t affect the actual cost amount of the item, it doesn’t post tot the inventory GL account.

In this essence, it is important to take into consideration that the “non Inventoriable cost” represent additional expenses to the item which is not associated with the “purchase order” or Landed Cost as commonly known

In the following example, we will illustrate how we may use the item charges in order to automate the “expenses” associated with the sales order delivery to be included as a value entry on the item level, but doesn’t directly affect the inventory item actual cost.

The following form shows the item charges, we have created a new item for the External Works” to be associated with the sales shipments.

Item Charges – Non Inventoriable Costs

The next step is to record the Purchase Order and invoice the vendor which provides external works services. Although, this expense will be associated with a specific sales order.

On the purchase order line, pick the “Item Charge” as a line type. quantity and direct unit cost are to be filled out before assigning the item charge to the sales shipments,

Item Charges – Non Inventoriable Costs

Click on Line > Item Charge Assignment

Item Charges – Non Inventoriable Costs

On the item charge assignment form, you will have to click on “Actions” tab and then choose “Get Sales Shipment Lines”, then highlight the specific columns which needs to be associated with Non Inventoriable costs.

Item Charges – Non Inventoriable Costs

The next step is to do the “suggest Item Charge Assignment” in order to allocate the total costs over sales shipments lines, there are basically four options for the item charge assignment which are:

  • Equally
  • By Amount
  • By Weight
  • By Volume

Item Costs | Actual versus Non Inventoriable Costs

Posting the above purchase order with item charges assigned to sales shipments lines will affect the non Inventoriable cost of the item, it will record a value entry record on the item ledger entries. Although, inventory accounts will not be revalued.

Item Charges – Non Inventoriable Costs

Best Regards,
Mahmoud M. AlSaadi

How to Use “Record Permissions” in Dynamics NAV

In a previous post on Dynamics NAV Essentials; understanding user setup and security, we have clarified how the security model is built and configured in Dynamics NAV.


The following representation illustrated how users, user groups, permission sets and permission represent a comprehensive security model which allows the client to have full control over the system forms and associated activities ( read, insert, modify and delete )

User Security Assignment

Security Model

In this post, we are going to shed a light on an important feature in Dynamics NAV which is “Record Permissions”, this feature allows System Admins to collect the require permissions of a specific tasks by simply “recording” it.

We will illustrate this feature by creating a new permission set for ( Create and Edit Items ) . In order to create this permission set, we’ll follow the following steps:

  1. Go to Permission Sets, click on “New” and type a name for the permission set, lets say “Create and Edit Items”Permission Set
  2. From the permission set, click on “Permissions”
  3. On the Permissions form, make sure to check the “Add Read Permissions to Related Tables” check box in order to retrieve all required associated permissions required . Once ready to record, click on “Start” to start the record and the system will prompt a message ” Do you want to start Recording Now”, Click on Yes.


    Record Permissions


  4. Now you will have to simulate the same process of creating any item, you do need to consider that anything you do will be recorded.

As you can see from the above permissions retrieved, the recording listed down all the required tables, table data, code unit and pages required for this permission set. After all, you will be the one choosing what to be retrieving as part of the recording process. For instance, you may run a specific report while recording and it will be included in the permissions.


Dynamics NAV – Change Item Base Unit of Measurement

In a recent implementation of Dynamics NAV 2018, the client has requested to upload the master data from their old legacy ERP system.