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Discount being Separately posted when using Pricing and Discount Module

I would like to enquire about a solution to an issue we are currently experiencing at business regarding the way promotional discounts are posted in the system. At present, whenever we run promotions, we make use of the Pricing and Discount module. However, the challenge we face with this module is that the gross sale is posted and discount amount configured in the promotion is posted separately from the sale. From a regulatory and VAT compliance perspective, this creates a significant concern for us. Ideally, the discount should be netted off against the sale so that only the net sales amount is posted in the system.

This is important because posting the discount separately could expose us to regulatory scrutiny. In such cases, the VAT authorities may interpret the gross sale value as the taxable amount and treat the discount separately, which may result in VAT being assessed on amounts that were never actually realized as revenue. This creates a risk of queries, adjustments, or potential penalties during regulatory reviews or audits. For this reason, it is essential for us that the system reflects the actual net sales value after discount.

One possible approach we considered was using trade agreements for the specific promotional period and then reverting to the original price afterward. Under this approach, we would adjust the selling price to reflect the intended discount and set the net selling price in advance. This would ensure that whenever the product is sold, the transaction is posted directly at the net sales value.

However, this approach presents another challenge, as it restricts our ability to run combination promotions. For example, in a promotion such as “Buy one Jameson Whisky and get a Ginger Ale free,” the trade agreement mechanism does not easily allow us to configure such combo offers. If we set the selling price of the Ginger Ale to zero to facilitate the promotion, it would also mean that customers purchasing the Ginger Ale individually would receive it at no cost. This example represents only one of several similar promotional scenarios we encounter and is not exhaustive.

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Dynamics 365 Finance

Hi,

I wil, try to reply to your (many) questions:

1) the challenge we face with this module is that the gross sale is posted and discount amount configured in the promotion is posted separately from the sale: this is true only if you put also the discount posting. If yiou don't, the system will deduct the discount from the sales revenue. Of course this will mean that all the discounts are not booked into separate accounts, not just the promotional one:

2) the VAT authorities may interpret the gross sale value as the taxable amount and treat the discount separately, which may result in VAT being assessed on amounts that were never actually realized as revenue: I don't really get it, usually to authorities you send the VAT amounts alrady calculted on the net. They (usually) don't go to delve into the single accounts behind, but maybe in your case is diffderent;

3) A third approach you can consider is using the line charges and auto-charges (negative), given that the revenue accounts that you use can be set as auto-charges groups according to the different item groups.

Lastly, I did not experienced fully the Unified pricing module, do not know if it can help in your case

Hope it helps

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