Category Archives: Items

How to Record Prices and Discounts for Purchases

You can’t get anywhere as a business if you don’t produce sales through selling your items. But it’s also just as important to keep as much inventory coming in as what’s going out, so it’s good to keep a clean record of your purchases, prices for those purchases, and a clean way to apply discounts and new prices. Business Central provides ways on how to maintain your prices, especially when you need to document a change for the combination of items, quantity, changing dates, vendors, and units of measure.

Although things can already be seen as pretty easy thanks to the app’s features, you’ll still notice that there are only two groups to choose from when applying for discounts, and they include:

Purchase Line Discount: This is the amount discounted from the purchase that shows up on the lines. It’s made thanks to a unique combination of minimum quantity, vendors, items, dates, and unit of measure.

Invoice Discount: These are percentage discounts, which can be subtracted from the total on an invoice if the value amount from the purchase exceeds the minimum in place.

The basics of setting up a special Purchase Price

Purchase prices are the main form of transaction between you and your vendor. After coming to an agreed price, you can apply this into Business Central’s app so that the price is automatically applied to purchases from your vendor. To do this, follow these steps:

  • Press the “Search for Page” icon at the top of the screen and type in “Vendors.”
  • This will take you to the “Vendors” page where you can choose the correct vendor card and click on “Prices.”
  • Here you can fill in the correct fields or read a description of each of the lines.
  • Complete a line for every combination that is accepted by the vendor for a purchase line discount.
  • Tip: The “Purchase Type” line and “Purchase Code” line will be filled in already with your vendor and their number.

Setting up the Line Discount that applies to Vendors

Just like you can give discounts to your customers, a vendor can give you a discount to apply to your purchases. Correctly inserting your invoice discount code to Business Central will allow you to automatically get discounts applied to your purchases before buying. To set them up just follow these steps:

  • Click on the “Search for Page” icon and type in “Vendors” to be taken to the correct page
  • You can select the required vendor card and select the “Line Discounts” action.
  • Next, all you need to do is fill in the lines as you need them, each one will have a small description if you’re unsure.
  • You can fill a field for each of the combinations that the vendor granted you for a purchase line discount.

Creating an Invoice Discount for your Vendor

Discounts for your purchases can also be applied to your invoices as well, after being a discount code by the vendor. This is an excellent way to track and record your purchases and the price/discount that your goods were purchased for. To do this automatically, you can follow these steps in your Business Central account:

  • Search for “Vendors” once you click on the “Search by Page” icon at the top of the screen.
  • Select the correct vendor card that has granted you a code for invoice discount.
  • Once you have selected the “Invoice Discount Code” field, you can type in the code for the appropriate invoice discount codes to use. You can then proceed to set up the invoice discount terms.
  • Once back on the “Vendor Card” page, select the “Invoice Discounts” option. Then, the “Vendor Invoice Discounts” page will open.
  • Located the “Currency Code” field and type in the code for the current currency that aligns with the terms of the invoice discounts being applied.
  • On the “Minimum Amount” field, you can enter the bare minimum amount that will be recognized as a discount.
  • Then in the “Discount Percentage” field, you can type in the invoice discount to show it as a percentage amount.

An invoice discount code that you received that is represented by an already made vendor card. This is so you can assign the terms to vendors that already have the same terms in place. Each invoice discount will be set up and applied to the vendor you chose. This will still apply when you click on the vendor in the “Invoice Discount Code” field.

Recording Prices and Discounted for Sales

As a business, your main source of income is from your sales. Sales are one of the most important aspects for your company, so when you need to record and keep track of all the surrounding aspects. Business Central is there to help you keep things tidy and optimized. It’s always good to be clear on your sales price and how much you’re selling your product for but it also helps to increase sales when the customer knows that price, and they are informed of a discount towards that product.

One way to make this easier for you and your employees is to make a recording of the prices and sales in your account, to reflect customers. Business Central will help optimize this by applying discounts to an item that still gives you a preferred profit range.

Setting up a Sales Price

A sales price is the documented price for a product that will be sold to a customer. This is the initial price of the sale and if you want to keep it this way without a discount, all you have to do is leave the discount fields empty and don’t select the product on the line discount setup. To begin setting up the sales price:

  1. Click on the “Search for Page” icon and type in “Customers” so the related page will pop up.
  2. Once on that page, you can select the correct customer card and click on the “Prices” button.
  3. Each field has a description of what it means, so fill out the required fields. Filling out the combinations will provide a unique sales price to its customer.
  4. Tip: Located on the “Sales Prices” page, each “Sales Type” field will be filled with the option “Customer“, and the “Sales Code” line will be filled out with the number of the customer.

Setting up a Line Discount for Items

Having a sales price set up for items is basic for selling, but creating discounts for those items is another business requirement. To begin setting up discounts:

  1. Click on the “Search for Page” icon at the top of the screen and type in “Customers” to get to the correct page.
  2. Select the right customer card and click on “Line Discounts” to continue.
  3. Here, you can fill in the related fields on each line that is required. Each field will provide a description after hovering over them.

Setting up an Invoice Discount

An invoice discount is a discount applied to an invoice (as opposed to Line Discounts that are applied to one line only). They are represented by customer cards. Typing in the invoice discount code to the appropriate customer cards will provide that group of customers a discount on the invoice. To begin this, start with these steps:

  1. Select the “Search by Page” icon at the top of the page and type in “Customers.”
  2. This will bring you to the page where you can select the customer card for someone that will be allowed the invoice discount.
  3. Next, the “Invoice Discount Code” field will have codes for different discounts, select the one for the correct invoice discount so the terms from that discount will apply to the invoice. The default value is the number of the customer.

After creating an invoice discount, you can also set up new terms when it comes to the sales invoice discount. To do this, begin here:

  1. Select the “Customer Card” page, where you can click on the “Invoice Discounts” button.
  2. On the following page, click on the “Currency Code” field, so you can enter the correct code associated with that currency. Leaving the field blank will automatically set up the terms for local currency (as is setup in general ledger setup).
  3. On the “Minimum Amount” area, you can insert the minimum amount for an item, so it can be eligible for a discount.
  4. Last but not least, on the “Discount Percentage” field, you can choose the discount to pop up as a percentage of an invoiced amount.

The “Best Calculation” process for Prices

Along with all of this, Business Central includes a handy tool that allows you to calculate the best price and discounts for your items. The highest line discount and the lowest price are automatically calculated together when the line is inserted. Key factors that it takes from are (but there are many other factors taken into account):

  • Does a customer belong to a discounted group or do they provide a price/discount agreement?
  • Does the product in question have a group associated discount groups or discount agreements?
  • Does the date on which the item will be purchased fall between the dates of the selected sale or discount?

Item Transfers and Stock Adjustment

Inventory management is a long and sometimes painful process, that’s why with Business Central’s inventory management tools there is always an easy way to mark, map, and transfer your physical and digital products around. Although there are a lot of tools involved, some of the major ones involve the transfer orders where your items can be moved between locations and your warehouse activities can be managed. Physical inventory orders that count your physical product, and warehouse configurations that adjust and count the number of items.

Transferring physical items with transfer orders

Digital transfer orders are what make it easy to move your physical goods from one location to another. By definition, this tool allows you to receive inbound transfers and send an outbound transfer with ease and to track where they go and where they came from. Not only does it make it easier to move your items, but it also tracks the activities going on in your storage facility or warehouse and updates the number of your items more precisely.

  1. Once you choose the “Search for Page” icon, type in the phrase “Transfer Orders” to get to the desired page
  2. Once on the page, locate the header and fill in the required fields. Each field will give a short description of its function or will be automatically filled in if you already specified them on the Transfer Route Spec.
  3. You can then enter the option you desire manually.
  4. Click on the “Post” button, select “Ship“, then press “OK” This will ensure the products are transitioning between the locations you chose.
  5. If you’re a worker at a warehouse and preparing to receive items, you’ll have to go in and select the “Post” action, where you can choose to “Receive” the item and then press “OK” to finish.

How to perform with a physical inventory

With every business comes a product that needs to be stored in a physical inventory. You receive goods that are placed in the physical inventory and take things from it to sell or move to another warehouse. Sometimes mistakes happen, and you can’t track how much inventory you have by just how much you sold and received. That’s why you need to physically count each product, usually at the end of that fiscal year. Physically counting each item is part of the task, but it also includes other steps such as calculating how much inventory you expect to have, printing reports while counting and updating the actual amount of stock in the physical inventory.

  • Physical Inventory Journal: Found in the inventory menu, this page helps in physical counting if your location doesn’t have a direct put-away and pick procedure.
  • Whse. Physical Inventory Journal: This option is perfect if your location is using a pick and put-away procedures and provides tools like the “item journal” and the “Calculate Whse. adjustment.”

Enter and post counted inventory in warehouse configurations

  1. After you find the “Quantity (physical inventory)” field on the “Physical Inventory Journal” page, enter the correct inventory stock on hand, as figured out by a physical count that is different from the calculated quantity.
  2. When you want to adjust each calculated quantity to match the counted quantity, select the “Post” button. After this, the Item Ledger Entriesand Physical Inventory Ledger Entries will be created, so you will be able to open each item card and view and results.
  3. Select the “Search the Page” icon and enter the term “Items” to bring you to the related page.
  4. You can verify the inventory that was counted by opening an item card and choosing the “Physical Inventory Ledger Entries” option (or find the page using “Search for Page” icon.

Adjusting the inventory quantity for multiple items

If you need help adjusting the inventory quantity, you can find options on the “Item journal” page where you can adjust items with sales, purchases, and negative or positive adjustments.

  1. Locate the “Search the Page” icon and type in “Item Journals” to get to the related page.
  2. Select and enter all required fields. You can select each field and read a description of each.
  3. You can then click “Post” to make the correct changes to the inventory.

Creating and Managing Items With Business Central

When it comes to owning a business, a key part of owning it includes selling a product, or keeping up with the stock of selling and receiving goods. Each item in your business can be managed to assign to an item card to make it easier to track and manage. An item card is a type of service, non-inventory, or inventory to determine if the product in question is a labor time item, physical inventory item, or a physical item that’s not connected to an inventory.

Creating, saving templates, managing inventories, and setting up a cross-reference to vendors is the main key to running a successful business in Microsoft’s Business Central.

Creating a new item card for products

Item cards are valuable as they allow you to digitally identify the item and track them whether they are sitting in stock, being received, or being sold. It’s essential that each product has its’ own item card and to make one goes like this:

  1. Locate the “Search the Page” icon and enter in “Items” to get to the appropriate page.
  2. Once there, you can select the “New” action that will bring you to the “Select a Template For New Item” page, where you’ll be able to choose which template that you want for the new item card.
  3. After selecting, just hit “OK” and a net item card will open with some fields filled out from the chosen template.
  4. Here you can fill in some fields or change others, hovering over each field will provide a description of it.

After this, you’ll have created your new item card, which can be used on sale documents and purchases. Once it’s created, you can go back and edit information like special prices, discounts for customers or vendors, and prices for an entire until. You can also save it as a template.

Saving new item cards as templates

  1. Located on the “Item card” page, clicking the “Save as Template” button will open up the item template page and show the item card as the saved template.
  2. Any empty or incorrect fields can be changed here as required, or be left as they were depending on what you need.
  3. Dimensions in templates can be reused after clicking on the “Dimensions” button. This will be shown on the opened page called “Dimension Templates“, which will show any dimension codes that are used for the new item card.
  4. You’ll then be able to edit or type in new dimensions codes that apple to your selected item card that was created using this template.
  5. Once all of this is completed, all you have to do is select the “OK” button and the item template will be added to the list.

How to delete an item card

Although it may be a hassle, item cards can not just be deleted simply. If a transaction was posted for an item, you will not be able to delete that card due to the ledger entries being needed. This is so your inventory isn’t disrupted and that the inventory valuation and auditing won’t be messed up if an incorrect item card is deleted. To be able to delete these item cards, you will need to connect with a Microsoft partner to get the code to do so.

Cross-referencing to the vendor’s product description

Other companies also have item cards, so to create a cross-reference will be best when you’re working with others such as sellers and vendors. The item cross-reference is set up between the item description for your products and the descriptions for vendor products as well, so it will automatically be inserted on purchase documents. So to set up one with your vendor, you should follow these steps:

  1. Click on the “Search the Page” icon, type in “Items” and click on that required link.
  2. Here you can open the correct item card that’s in need of a cross-reference.
  3. Select “Cross References” and on new lines, you can fill in all the required fields on the “Items Cross-References Entries” page. If you’re unable to locate the “Cross References“, you can select to view more options and then locate it under “Related > Item.”