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Service Mgt - service cost setup

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Posted on by October Sky

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When setting up service costs in service mgt in BC, how does it post to the general ledger for the following scenarios:

1. Ship and consume - does it take the unit cost and post to the expense account mapped?

2. Ship and invoice - from this setup below, BC displayed GL entries that posted to expense accs for the unit prices (not unit costs). Is this correct?

Why is unit price used for ship and invoice or is this setup incorrectly?

I have read the microsoft documentation so links to that service mgt info are probably of minor help; it is more practical help sought.

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Dynamics 365 Business Central

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Valentin Castravet 26,674 Super User 2025 Season 1 on at

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Service Mgt - service cost setup

1. When you ship and consume, there's nothing posted to the G/L. So the mapped G/L accounts will not be used. The system will only post to the service ledger entries both the cost and price.

2. When you ship and invoice, the system will post to the G/L the unit price. It will post to the mapped G/L account the price. This account should be an income account in the income statement. There is no cost posted to the G/L. In the service ledger entries, the system will post both the cost and price.

In your example, is the service cost posting to a P&L expense account or a P&L Income acc? The account number is 6810.

Is the service cost posting to an expense or revenue account? That is the confusion for me. The company earns revenue by selling this cost to the customer.

I think you're getting mixed up with the word cost. Its not a cost in the true sense of the word when you look at it from the perspective of your company. Its a cost you invoice to the customer. But to your company its a revenue. So in your G/L the system only posts revenue to a revenue G/L account. It should not be an expense account.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/
October Sky 288 on at

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Service Mgt - service cost setup

@Jainam

Thanks for your reply

In your example, is the service cost posting to a P&L expense account or a P&L Income acc? The account number is 6810.

Is the service cost posting to an expense or revenue account? That is the confusion for me. The company earns revenue by selling this cost to the customer.

Should all service costs have an income/revenue GL account?
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YUN ZHU 78,474 Super User 2025 Season 1 on at

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Service Mgt - service cost setup

Hi, hope the video helps as well.

https://www.youtube.com/watch?v=HTS53xepRhs

Thanks.

ZHU
gdrenteria 14,976 Most Valuable Professional on at

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Service Mgt - service cost setup

Hi, good day
I hope this can help you, and give you some hints.

Posting Groups in Service Management in NAV | Totovic Dynamics 365 Blog

Posting Groups in Service Management with Warranty | Totovic Dynamics 365 Blog

Best Regards
Gerardo
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Jainam M. Kothari 760 on at

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Service Mgt - service cost setup

Hello,

Please find the attached Screenshot that in which in the Service Cost, Unit Cost is 20 and Unit Price is 160.

If i am going to post the with

1. Ship and consume - it will be post the Service Ledger Entry with Unit Cost.

2. Ship and invoice - it will Post the G/l Entry with Unit Price with G/l mapped in Service Cost table and Service Ledger Entry with Unit Cost.