Microsoft partner of the year Norway - Dynamics 365 Supply Chain Management & Finance

Axdata Shipment Cost

Actual Item Cost

Does the value of your goods reflect the actual cost?

If the goods are transported together with several different goods, it is usually a challenge to distribute the transport costs. The solution will distribute the costs according to different principles e.g. weight or volume.


The purchased goods are stocked with the actual cost prices with transport costs. For long transport times, you can receive the item at a transfer’s warehouse and again automatically upon receipt at the final warehouse.

The solution contains 3 main areas

  • #1 Real value of inventory
    • With the solution, you avoid extensive workflow with accounting, cost distribution and inventory adjustments if you If you want the value of the inventory to reflect all these 4 above invoices.
  • #2 Cost allocation
    • The solution ensures that you can allocate costs from shipping, handling and customs to one or more purchase orders, so that the value of the goods reflects the actual costs – quickly and easily. The distribution can take place according to different distribution keys, e.g. by weight or volume.
  • #3 Automatic change of storage location from transfer to receipt in stock
    • When the supplier hands over the item – it is automatically received at the transit warehouse. When the item has been transported to the final warehouse, the item is automatically moved to the final warehouse.

This can be illustrated with the following example

Items are ordered in Brazil and must be sent to Norway. The goods are shipped by ship and you pay for the goods when they are on board the ship. After e.g. 40 days the item arrives in Norway and they are placed at the final warehouse. When the goods are unloaded on the ship, the company takes over the ownership of the goods and in principle receives the goods at the warehouse “ship’s shipment”. At the same time, an invoice is received, invoices are received and paid. When the item is received at the final warehouse, the system automatically changes warehouse to the final warehouse and retains its original warehouse entries. The module ensures that the storage location is changed without having to make stock transfers.

The item is now paid for and after a few days an invoice arrives for shipping, another invoice for handling costs and a third for shipping costs. If now all costs came on one invoice from the same supplier, you could use surcharges, but in this case it is from 4 different suppliers.

If you in standard AX want the value of the inventory to reflect all these 4 invoices, you will need a comprehensive workflow with accounting, cost distribution and inventory adjustments to ensure this.

« In a world where goods are transported over long distances, this means economic and logistical challenges. The value of the goods is not just the real cost price, but freight, handling and customs costs must also be added. In addition, the goods are sent together with goods from different purchases and it is a challenge to maintain the actual cost price of the goods.»

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Dynamics 365

Dynamics 365 Finance

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