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76Hi everyone,
I am working on a scenario in Microsoft Dynamics 365 Business Central where the company is using the Microsoft Dynamics 365 Business Central with the FIFO costing method.
Current Setup
- The Item Costing Method = FIFO (First In, First Out).
- Items are purchased from vendors at varying costs.
- Salespeople earn commission based on profit (Sales Price – Cost).
- On the Sales Line, there is a Unit Cost field which is used in profit calculations.
Business Requirement
The client wants the costing behavior to follow this logic:
- Normally, FIFO should apply, meaning the oldest inventory cost should be used when items are sold.
- However, when a Sales Order line is reserved from a specific Purchase Receipt, the system should:
- Take the exact purchase cost from that Purchase Order / Purchase Receipt
- Populate that value in the Sales Line Unit Cost
- Use that value for profit calculation and salesperson commission
Problem
Currently, when we reserve a Sales Line against a Purchase Receipt:
- The Unit Cost on the Sales Line does not update with the Purchase cost.
- It seems to use:
- Either the Item Card Unit Cost
- Or a cost adjusted value after cost adjustment
- Because of this, profit calculations vary, which directly impacts salesperson commissions.
What We Are Trying to Achieve
When a Sales Line is reserved against a specific Purchase Receipt, we want:
Purchase Cost (from that receipt) → Sales Line Unit Cost
So the profit is calculated based on the actual cost of that specific inventory unit.
Questions
- Is there any standard configuration in Business Central that allows the purchase cost to flow to the Sales Line when reservation is made?
- Does the FIFO costing method inherently prevent this behavior?
- Would changing the costing method to something like Specific costing better support this requirement?
- Is this typically solved through customization or extensions in Business Central?
- Is the Unit Cost on the Sales Line expected to behave independently from reservations, with the actual cost only determined during Item Ledger Entry costing and cost adjustment?
Main Concern
The client's primary concern is accurate profit calculation for commission purposes. If the cost used on the sales order does not reflect the actual purchase cost of the reserved item, it causes incorrect commission calculations.
Has anyone handled a similar requirement or found a recommended approach?
Thanks in advance!
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