Trade in Microsoft Dynamics NAV-2017 - Locus IT Services

Trade in Microsoft Dynamics NAV

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Lesson 5: Invoice and Line Discounts

Invoice and Line Discounts

Invoice and Line Discounts : There are several ways to reflect the agreed upon discounts that will apply when you buy goods from different vendors. The most basic discount type is an invoice discount. This is a percentage discount that is granted when the total invoice amount exceeds a certain minimum.

A purchase line discount is a more complex discount. The discount percent calculates for each purchase line if the line satisfies certain conditions. Invoice and line discounts, and the methods by which they are applied, are described in this lesson.

General Discount Setup

General discount setup information is specified on the Purchases & Payables Setup page.

Before a company uses the discount functionality, it must decide how it wants discounts posted to the general ledger. The Discount Posting field on the General FastTab offers four options for defining the way the invoice and line discounts post:

Option

 

Description

 

No Discounts The program will not post discounts but instead will subtract them from the invoice amounts before posting.

 

Invoice Discounts

 

The program will post invoice discounts when the invoice is posted. However, the program will not post line discounts.

 

Line Discounts

 

The program will post line discounts when the invoice is posted. However, the program will not post invoice discounts.

 

All Discounts The program will post both invoice and line discounts when the invoice is posted.

 

For a detailed definition of each option, refer to the online Help for the field.

If any option other than No Discounts is selected, this means that at least one type of discount will be posted, and you must make sure of the following:

  • A dedicated account(s) is created in the chart of accounts (for example, a “Purchase Line Discount” account).
  • The appropriate discount options are set up in the General Posting Setup

When you post purchase documents, the program uses the general business posting group of the vendor and the general product posting group of the item to retrieve the account that is set up in the General Posting Setup page.

If discounts are not set up to post separately, they become part of the purchase amount that is posted to the Purchase account.

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