Vendor Invoice Discount

(0) Share

Report

Posted on by Community Member

The problem is in the financial impact. If we post a purchase invoice including invoice discount. before we used to use dynamics GP.. the distribution we are getting is like so

Debit: Inventory 100

Credit: AP -95

Credit: Discount income -5

in business central

Debit: Purchase account 100

Credit: AP -95

Credit: Discount income -5

Credit: Direct cost applied -95

Debit: Inventory -95

so how can we get the same result as GP? BTW in Discount Posting in Purchase & Payable Setup screen is set to (All Discounts)

I have the same question (0)

All responses (4)

Answers (1)

Suggested answer

JAngle 133 on at

Like (0)

Report

You can use the other types if you don’t want to track an inventory valuation. Is it a legitimate item you’re selling? The postings are more likely to be similar if you choose a different posting style like with a journal or use a g/l account on the invoice

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

hi josh

actually, the scenario of the discount is for a group of vendors who have a fixed percentage discount of 6% we are expecting the system to calculate the discount automatically with every purchase invoice. if any of your suggested solutions can meet our requirement, can you please explain more...

Was this reply helpful? Yes No
Verified answer

Community Member on at

Like (0)

Report

Mohammed,

Based on your scenario, were you want the Inventory to show the GROSS amount before discount and the AP to show the NET amount after discount. I did a test in my BC version 17.2 and I got the results you want, except that I needed to set my Item with a Standard Cost method (see below).

AP 22300 - CR (98.70) or 105.00 minus 6% discount of 6.30 = 98.70

Inventory 14200 - DB 105.00 (made up of 98.70 + 6.30=105.00)

Direct Cost Applied 54710 - CR (98.70)

Purchase Variance 54703 - CR (6.30)

Purchase 54100 - DB 105.00

Disc. Received 54400 - CR (6.30)

If I use a FIFO method your results occur. The Purchase Discount setup will apply the Discount to reduce the Inventory Account value, in a FIFO method, which is not what you want. I did test another way by adding a G/L Account line for the Discount and that resulted in what you are looking for.

Hope this helps.

Thanks,

Steve

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

thank you, Steven, that's really very helpful

Was this reply helpful? Yes No