Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / How is the local price...
Small and medium business | Business Central, N...
Suggested answer

How is the local price in sales invoice calculated?

(0) ShareShare
ReportReport
Posted on by Kein Shah 57

Here is one scenario,

So, we purchase in USD and sell in USD/EUR/GBP etc. For the sake or reporting gross profit and margin in one single currency, LCY ( GBP) how do we do it at line level? 

Currently how we do is, Purchase order, receive and invoice items, create sales order, ship and invoice items. The exchange rates have been set up already in the system. In the purchase invoice the Unit Cost (LCY) is correct as per the exchange rate. However, the same is not reflected in the sales invoice. Please see the below dummy invoices for more clarification.

pastedimage1653561920000v2.png

pastedimage1653562117762v3.png

In the sale invoice statistics as below, note that the amount is adjusted for LCY and also the profit %.

pastedimage1653562314143v5.png

The question is, for reporting purposes, what would be the best way to report Gross Profit at invoice line level preferably? How do we make sure that the Unit Cost LCY in purchase invoice at line level is reflected in the sales invoice Unit Cost LCY? 

Any help to sort this out is much appreciated.

Many thanks. 

  • Suggested answer
    Dallefeld Profile Picture
    Dallefeld 175 User Group Leader on at
    RE: How is the local price in sales invoice calculated?

    If you are expecting to get the unit cost on the sales invoice line to be reflective of the purchase line's unit cost, you will need a customization.

    From an item and general ledger perspective the costs will be actual once purchase invoice is posted and adjust cost - item entries is executed.

  • Kein Shah Profile Picture
    Kein Shah 57 on at
    RE: How is the local price in sales invoice calculated?

    We use FIFO. Sometimes there is stock already in the system and sometimes not. In general, what would be the best option to get the Unit Cost LCY correct all the time?

  • Suggested answer
    Alec Gray Profile Picture
    Alec Gray 30 on at
    RE: How is the local price in sales invoice calculated?

    Hi

    What costing method are you using?

    docs.microsoft.com/.../setup-best-practices-costing-method

    docs.microsoft.com/.../design-details-costing-methods

    If you are using FIFO and there was already stock of those items prior to receipting the items, the system will assume you are selling the original stock, rather than the items just received.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Understanding Microsoft Agents - Introductory Session

Confused about how agents work across the Microsoft ecosystem? Register today!

Jonas ”Jones” Melgaard – Community Spotlight

We are honored to recognize Jonas "Jones" Melgaard as our April 2025…

Kudos to the March Top 10 Community Stars!

Thanks for all your good work in the Community!

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 294,430 Super User 2025 Season 1

#2
Martin Dráb Profile Picture

Martin Dráb 233,043 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,158 Moderator

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans