Module 1: SALES ORDER MANAGEMENT
Module 2: SALES PRICES AND DISCOUNTS
Module 3: CUSTOMER SERVICE FEATURES
Module 4: PURCHASE ORDER MANAGEMENT
Module 5: REQUISITION MANAGEMENT
Module 6: ITEM CHARGES
Module 7: ORDER PROMISING
- Lesson 1: Sales Order Promising Key Concepts
- Lesson 2: Sales Order Promising Definitions and Calculations
- Lesson 3: Date Calculation Setup for Sales Orders
- Lesson 4: Promising Sales Order Delivery
- Lesson 5: Purchase Order Promising Definitions and Calculations
- Lesson 6: Date Calculation Setup for Purchase Orders
- Lesson 7: Estimating Purchase Order Receipts
- Lesson 8: Estimate a Transfer Order Receipt & Calendars
Module 8: RETURNS MANAGEMENT
Module 9: ASSEMBLY MANAGEMENT
Module 10: ANALYSIS AND REPORTING
Lesson 4: Purchase and Sales Allowances
Purchase and Sales Allowances
Purchase and Sales Allowances : One of the main functions of item charges is to register changes to transaction costs and price amounts at the item level without affecting inventory quantity. This underlying principle can find many diverse applications within the financial management of purchase and sales transactions.
This lesson shows how to use item charges for purchase and sales allowances. Allowance is a term frequently used for returns. For example, if a customer receives damaged items, the company can offer the customer the opportunity to keep the items at a reduced price instead of returning them. If this offer is accepted, the company issues a sales allowance in the form of a credit memo for the price reduction. The line type for the credit memo is an item charge. Microsoft D365 Support.
Similarly, to correct a wrongly priced delivery without a physical return of the related items, a vendor might issue an allowance to the company. The company can then register this amount as an item charge on a purchase credit memo. To learn more about sales and purchase returns, refer to “Returns Management” in this training material.
Demonstration: Create an Item Charge Sales Credit Memo
Scenario: After the company delivered and invoiced a shipment to customer 10000, Susan, the order processor at CRONUS, discovers that item 1964-W in the shipment is priced incorrectly and includes a 15 percent increase from the agreed price. The shipment number is 102029.
The customer must be compensated for the difference (15 percent of the total order price of 2,920.00 LCY, or 438.00 LCY). Because the items are in perfect condition, they will not be returned to CRONUS.
Cassie, the accountant, must now issue a credit memo by using an item charge. Demonstration Steps
To create the sales credit memo, follow these steps.
- In the Search box, enter “sales credit memos”, and then select the related link.
- On the Home tab, click New and then press Enter.
- On the General FastTab, in the Sell-to Customer No. field, enter “10000”. Accept any messages.
- On the Lines FastTab, in the Type field, select Charge (Item).
- In the field, select S-ALLOWANCE.
- In the Quantity field, type “1”.
- In the Unit Price Excl. VAT field, type “438”.
- On the Lines FastTab, point to Line, and then click Item Charge Assignment.
- On the Actions tab, click Get Shipment Lines.
- Click the line for Document No. 102029 for item 1964-W, and then click OK
- In the to Assign field, type “1” to assign the full amount to the line.