An off-invoice feature in Microsoft Dynamics AX

An off-invoice deduction is one of the simplest and easiest-to-understand types of trade-channel promotions.

The customer takes an agreed amount off of the invoice. Thus encourage the customer to buy more by saving money on the total sales, thereby increase company profit by selling more. This is often in combination with sale of a certain number of items.

For instance, if a product has a regular cost of $12 per unit, the customer may take $3 per unit off if the customer buys a case of 24 products.

At the time of sales order entry – discounts is taken.

Let’s walking through the common scenario of processing off-invoice.

Let’s look at this process in AX (AX 7 Update 2).

First off, create a new fund for the off-invoice

Sales and marketing > Trade allowances > Funds > Funds

Click ‘New’ button

Specify the following fields:

Fund ID – enter the key name for the fund

Description – enter the description for the fund

Type – check that type is ‘Discretionary’

Status – check that type is ‘Planning’

Fund budgeted – enter the fund budgeted amount

Expand Customers fast tab and chose Customers for the fund

Expand Items fast tab and chose Items for the fund

Scroll back up to the general fast tab and change the status from ‘Planning’ to ‘Approved’.

The next step is creation trade allowance.

Sales and marketing > Trade allowances > Trade allowance agreement

Click ‘New’ button

Specify the following fields:

Description – enter he description of the agreement, just to keep track of the agreement

Order from, Order to – date range of the agreement

Unit – unit, what item is processed in

Base units – amount of units

Expand Customers fast tab and select customers for the agreement

Expand Items fast tab and select products for the agreement

Expand Funds fast tab and select created fund

Switch to the Line view and create a merchandising event with off-invoice type.

Switch to the Amounts tab

Specify the following fields:

Quantity from, Quantity to – range of items when discounts is applied

Discount amount – specify discount amount field in case if you want set specific amount

Discount percentage – specify discount percentage field in case if you want to calculate based on percentage rather than a dollar amount.

Confirm trade allowance agreement to start applying discounts to a sales order

Once trade allowance is in status confirmed, create sales order

Sales and marketing > Sales orders > All sales orders

Create new sales order with customer and item that were user on the trade agreement

If you enter Qty between 20 pieces and 100 pieces’ discount will be applied

Check the following cases:

1. User enter 15 pieces; discount percentage is 0
2. User enter 20 pieces; discount percentage is 15
3. User enter 50 pieces; discount percentage is 15
4. User enter 105 pieces; discount percentage is 0