Tag Archives: Prices & Discounts

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?