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Item Charges in Business Central


When an order document has been created, released, or shipped, a situation may occur in which a charge needs to be added to the sales or purchase document. This can be added as a new line on an order, invoice or credit memo document in Business Central with the type of item charge. Item charges are added to ensure correct valuation and can be used for the following tasks as identified by Microsoft:

  • Identify the landed cost of an item for making more accurate decisions on how to optimise the distribution network.
  • Break down the unit cost or unit price of an item for analysis purposes.
  • Include purchase allowances into the unit cost and sales allowances into the unit price.

Examples of added costs, referred to as Charges in Business Central, which may need be incurred when purchasing or selling items:

  • Physical handling
  • Freight
  • Insurance
  • transportation
How Item Charges Work in Dynamics 365 Business Central

Item charges can be assigned in two different ways for both sales and purchase documents in Business Central:

  • For documents which are not fully posted, you can add item charges where the items are listed relating to the item charges.
  • By creating a separate invoice and linking the item charge to a posted receipt or shipment where the items are listed relating to the item charges.
Additional Information & Useful Links

For additional information from Microsoft about Item Charges, please see the following links:

Assign Item Charges to Sales and Purchases (contains video) – Business Central | Microsoft Learn