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Kathy Barthelt
/ Categories: Infor LN & Baan Tips

Infor LN & Baan Tip: Navigating the Complexities of Surcharges on Phantom Items in Manufacturing

Is it ok to define surcharges on phantom items?

It is advised not to use surcharges on phantom items for the following reasons:

  1. The usage of phantom surcharges makes it, in general, more difficult to understand, verify, and explain the result of the cost price calculation.
  2. Real phantom items do not exist in real life. It is only an efficient way to specify the BOM. It is therefore questionable if surcharges should be defined for these non-existing phantom items.
  3. The usage of phantom surcharges can lead to variances in production orders, depending on the actual usage of the phantom.
  4. When surcharges based on added costs are defined for both the main item and the phantom item, then the surcharge will be applied twice.

Alternatives are:

  • Define the required surcharges on the main item of the phantom.
  • Define the required surcharges on the sub-item of the phantom.
  • Define a (backflush) operation on the phantom to cover the handling costs (if any) of a phantom item.
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Kathy Barthelt

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Tips:  LX | BPCS | M3

In light of the recent tariffs on imports from Canada, Mexico, and China, effective April 2, 2025, adapting your business operations is crucial to your success. Infor ERP LX offers robust solutions for managing these new trade regulations through its advanced tariff processing functionalities. This system ensures accurate duty calculations and compliance with the latest regulations, helping you streamline operations and maintain competitiveness.

For specialized support and to optimize your ERP system, partner with Crossroads RMC. Our expertise in ERP LX will help you navigate these changes efficiently.

Learn how Infor ERP LX and Crossroads RMC can support your business in these evolving times.

You can create new macros in the Infor LX Configurable Enterprise Financials CEA107. 

On the Macro Definition window, you define the source file and the field in which you perform an arithmetic or special operation. For example, you can create a macro to accrue sales commission based on revenue. Your source file and field are the Invoice Line History (SIL) file and the G/L revenue (ILREV) field. 

Select Functions to access the Macro Functions window, on which you define the arithmetic, character, or special operation to process against the defined source field. In the previous example of accrued sales commission, you enter an arithmetic operation of multiply (*) and an operand value for the percentage, such as 0.05 for five percent. 

Note:  Previously created user defined macros will have to be updated to include any expanded field sizes in V84. 

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