Record Special Sales Prices and Discounts

Note

In 2020 release wave 2 we released streamlined processes for setting up and managing prices and discounts. If you're a new customer using that version, you're using the new experience. If you're an existing customer, whether you are using the new experience depends on whether your administrator has enabled the New sales pricing experience feature update in Feature Management. For more information, see Enabling Upcoming Features Ahead of Time.

The price and discount agreements that apply when selling to customers must be defined so that the agreed rules and values are applied to sales documents.

When you have recorded special prices and line discounts for sales and purchases, Business Central ensures that your profit on item trade is always optimal by automatically calculating the best price on sales and purchase documents and on job and item journal lines. For more information, see Best Price Calculation.

Concerning prices, you can have a special sales price inserted on sales lines if a certain combination of customer, item, minimum quantity, unit of measure, or starting/ending date exists. For more information, see the To set up a sales price for a customer and Best Price Calculation sections.

Concerning discounts, you can set up and use two types of sales discounts:

Discount Type Description
Sales Line Discount An amount discount that is inserted on sales lines if a certain combination of customer, item, minimum quantity, unit of measure, or starting/ending date exists. This works in the same way as for sales prices.
Invoice Discount A discount percentage that is subtracted from the sales document total if the sum of all lines on the document exceeds a certain minimum.

Because sales prices and sales line discounts are based on a combination of item and customer, you can also perform this configuration from the item page of the item where the rules and values apply.

Tip

If an item should never be sold with a discount, leave the discount fields on the item page empty, and do not include the item in any line discount setups.

The Applies-to Type and Applies-to No. fields let you choose what this price list will apply to, such as customer or customer price group. Using View Columns for, you can show or hide columns relevant for setting prices, discounts or prices and discounts.

You can set up price list lines manually or you can use, for example, the Suggest Lines action to create new prices for selected items, item discount groups, resources, and other product types. If you choose Suggest Lines, the Price Lines - Create New page allows you to set filters to select products for which you want to create new price list lines. You can also specify whether to consider a minimum quantity when calculating prices, the adjustment factor to apply for new price list lines, and the rounding method to apply for prices. The Copy Lines action allows you to copy existing price list lines between price lists.

By default, the status of new price lists is Draft. When you're done adding lines and want the price calculation engine to include it, you can change the status to Active.

To review price lists and prices that apply for specific customers or vendors, on the Customer page, choose Sales Price Lists or, on the Vendor page, choose Purchase Price Lists. You can view price list lines in various price lists by choosing Sales Prices or Purchase Prices from the Item and Resource pages.

To set up a sales price for a customer

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Customers, and then choose the related link.
  2. Choose the customer, and then choose the Prices action.
  3. Fill in the fields on the line as necessary. Hover over a field to read a short description. Fill a line for each combination that will grant a special sales price to the customer.

Sales Invoice Discounts and Service Charges

When you use invoice discounts the total amount on the invoice determines the size of the discount that is granted. On the Cust. Invoice Discounts page, you can also add a service charge to invoices over a certain amount.

Before you can use invoice discounts with sales, you must specify certain information. You must decide the following:

  • Which customers will be granted this type of discount
  • Which discount percentages you will use

If you want invoice discounts to be calculated automatically, you can specify this on the Sales & Receivables Setup page.

For each customer, you can specify whether you will grant invoice discounts if the requirement is satisfied (that is, if the invoice amount is large enough). You can define the terms of the invoice discount in local currency for domestic customers and in foreign currency for foreign customers.

You link discount percentages to specific invoice amounts in the Cust. Invoice Discounts page for each customer. You can enter any number of percentages. Each customer can have its own page, or you can link several customers to the same page.

In addition to (or instead of) a discount percentage, you can link a service charge amount to a specific invoice amount.

Tip

Before you start entering this information, it is a good idea to prepare an outline of the discount structure that you want to use. This makes it easier to see which customers can be linked to the same invoice discount page. The fewer pages you have to set up, the faster you can enter the basic information.

For training in discounts in sales, see Set up discounts for your customers at Microsoft Learn.

Calculating Invoice Discounts on Sales

When all the items have been entered as lines, you can calculate the invoice discount for the entire sales document by choosing the Calculate Invoice Discount action.

The discount is calculated based on all the lines in the sales document for items where the Allow Invoice Disc. field on the sales order line contains Yes. This is the default setting for items. Lines with item charges, for example, are not included in the calculation of the invoice discount. If you want to apply a discount to such lines, you must set the Line Discount % field on the relevant lines.

Tip

If the Calc. Inv. Discount field is selected in the Sales and Receivables Setup page, then the invoice discount is calculated automatically when you do either of the following on a sales document:

  • View statistics
  • View a test report
  • Print
  • Post

The invoice discount terms for a customer are defined in the Cust. Invoice Discounts page for the customer. The currency code on the sales document is used to find the invoice discount terms in the corresponding currency.

If invoice discounts have not been defined for foreign currencies, then the invoice discount terms defined in the Cust. Invoice Discounts page with amounts in your local currency and the exchange rate on the posting date on the sales document are used to calculate the invoice discount in the foreign currency.

To set up a sales line discount for a customer

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Customers, and then choose the related link.
  2. Open the relevant customer card, and then choose the Line Discounts action.
  3. Fill in the fields on the line as necessary. Hover over a field to read a short description. Fill a line for each combination that will grant a sales line discount to the customer.
Note

When you open the Sales Prices and Sales Line Discounts pages from a specific customer, the Sales Type Filter and Sales Code Filter fields are set for the customer and cannot be changed or removed.

To set up prices or line discounts for all customers, a customer price group, or a campaign, you must open the pages from an item card. Alternatively, for sales prices, use the Sales Price Worksheet page. For more information, see To bulk update item prices.

To set up an invoice discount for a customer

When you have decided which customers are eligible for invoice discounts, enter the invoice discount code on the customer cards and set up the terms for each code.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Customers, and then choose the related link.
  2. Open the customer page for a customer that will be eligible for invoice discounts.
  3. In the Invoice Disc. Code field, select a code for the relevant invoice discount terms to use to calculate invoice discounts for the customer.
Note

Invoice discount codes are represented by existing customer cards. This enables you to quickly assign invoice discount terms to customers by picking the name of another customer who will have the same terms.

Proceed to set up new the sales invoice discount terms.

  1. On the Customers page, choose the Invoice Discounts action. The Cust. Invoice Discounts page opens.
  2. In the Currency Code field, enter the code for a currency that the invoice discount terms on the line applies to. Leave the field blank to set up invoice discount terms in USD.
  3. In the Minimum Amount field, enter the minimum amount that an invoice must have to be eligible for the discount.
  4. In the Discount % field, enter the invoice discount as a percentage of the invoice amount.
  5. Repeat steps 5 through 7 for each currency that the customer will receive a different invoice discount for.

To copy sales prices

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update.

If you want to copy sales prices, such as an individual customer's sales prices to use for a customer price group, you must run the Suggest Sales Price on Wksh. batch job on the Sales Price Worksheet page.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Sales Price Worksheet, and then choose the related link.

  2. Choose the Suggest Sales Price on Wksh. action.

  3. On the Sales Prices FastTab, fill in the Sales Type and Sales Code fields with the original sales prices you want to copy.

  4. In the top section of the request page, fill in the Sales Type and Sales Code fields with the type and name you want the sales prices copied to.

  5. If you want the batch job to create new prices, select the Create New Prices check box.

  6. Choose the OK button to fill in the lines on the Sales Price Worksheet page with the suggested new prices, indicating that they are valid for the selected sales type.

    Note

    This batch job only creates suggestions and it does not implement the suggested changes. If you are satisfied with the suggestions and want to implement them, that is insert them on the Sales Prices page, choose the Implement Price Changes action on the Sales Price Worksheet page.

To bulk update item prices

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update.

If you want to bulk update item prices, such as increase all item prices by some percentage, you must run the Suggest Item Price on Wksh. batch job. You can find a link to the batch job on the Sales Price Worksheet page.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Sales Price Worksheet, and then choose the related link.
  2. Choose the Suggest Item Price on Wksh. action.
  3. On the Item FastTab, fill in the No. or Inventory Posting Group or other fields with the original item prices you want to update.
  4. In the top section of the request page, fill in the Sales Type and Sales Code with the type and name you want the sales prices copied to.
  5. If you want the batch job to automatically adjust suggested item prices, enter adjustment in Adjustment Factor field. For example, you would enter 1.15 in Adjustment Factor for 15% increase in item price.
  6. If you want the batch job to create new prices, select the Create New Prices field.
  7. Choose the OK button to fill in the lines on the Sales Price Worksheet page with the suggested new prices, indicating that they are valid for the selected Item.
Note

This batch job only creates suggestions and it does not implement the suggested changes. If you are satisfied with the suggestions and want to implement them, that is insert them in the Sales Prices table, you can use the Implement Price Changes batch job, which is found on the Actions tab, in the Functions group, on the Sales Price Worksheet page.

Best Price Calculation

When you have recorded special prices and line discounts for sales and purchases, Business Central ensures that your profit on item trade is always optimal by automatically calculating the best price on sales and purchase documents and on job and item journal lines.

The best price is the lowest permissible price with the highest permissible line discount on a given date. Business Central automatically calculates this when it inserts the unit price and the line discount percentage for items on new document and journal lines.

Note

The following describes how the best price is calculated for sales. The calculation is the same for purchases.

  1. Business Central checks the combination of the bill-to customer and the item and then calculates the applicable unit price and line discount percentage, using the following criteria:

    • Does the customer have a price/discount agreement, or does the customer belong to a group that does?
    • Is the item or the item discount group on the line included in any of these price/discount agreements?
    • Is the order date (or the posting date for the invoice and credit memo) within the starting and ending date of the price/discount agreement?
    • Is a unit of measure code specified? If so, Business Central checks for prices/discounts with the same unit of measure code, and prices/discounts with no unit of measure code.

  2. Business Central checks whether any price/discount agreements apply to information on the document or journal line, and then inserts the applicable unit price and line discount percentage using the following criteria:

    • Is there a minimum quantity requirement in the price/discount agreement that is fulfilled?
    • Is there a currency requirement in the price/discount agreement that is fulfilled? If so, the lowest price and the highest line discount for that currency are inserted, even if local currency would provide a better price. If there is no price/discount agreement for the specified currency code, Business Central inserts the lowest price and the highest line discount in your local currency.

If no special price can be calculated for the item on the line, then either the last direct cost or the unit price from the item card is inserted.

See Also

Setting Up Sales
Sales
Working with Business Central

Note

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