AX2012 R2 - Intercompany Sales Invoice Margin

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Posted on by Danish Ali

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Hi All

While create Intercompany Sales order (Sales Order in UAE and Purchase Order in Qatar) I am getting the margin for some item at the time of invoicing the sales order. I already setup the intercompany transactions will have no margin (unit cost will be my sales price as well as purchase for QTR)

The issue here is system still getting margin for the items at the time of invoicing.

Attached is the screen shot.

Looking forward for your kind advise. My requirement is 0 margin at the time of sales invoice.

5282.Untitled.jpg

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Guy Terry 28,924 Moderator on at

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Hi Ali,

Did I understand right that Qatar buy from UAE. And it's the margin on the invoice of the Sales order in the UAE company that you are interested in?

So surely the fact that UAE is selling on an intercompany sales order is irrelevant. The margin reported on the invoice in the UAE company will be based on the sales price on the sales order and the cost of the item in the UAE company.

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Danish Ali 884 on at

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Hi mate

No I am not interested in margin. It’s Intercompany sales, it shall be cost to cost.

UAE is selling to Qatar at 0 margin. Take it like this it’s just transfer of goods from one warehouse in UAE to other in Qatar. My issues is the margin I don’t need any margin for this.

Regards

Ali Danish

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Guy Terry 28,924 Moderator on at

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The margin field on the Lines tab of the Invoice journal form is a calculation made by AX based on the cost on the inventory transactions of the related sales order. If you want the margin to be zero, you have to sell the items for the same price as they cost you.

Where does UAE get these items from (Purchase order, production order)? And what is the Inventory model on the Item model group of these items?

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Danish Ali 884 on at

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- I already check marked (cost price equal to sales price) for Inter-company sales(in inter-company setup.

- UAE getting these items from Purchase order

- Item model group is weighted average

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Guy Terry 28,924 Moderator on at

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Hi Ali,

I see this blog post in relation to that parameter:

blogs.msdn.com/.../inter-company-goods-trading-sales-price-equal-to-cost-price-microsoft-dynamics-ax-2012.aspx

I think it says that AX will set the sales/purchases prices based on the cost price when the order is created. Since your item is costed using weighted average, the cost can change when you run inventory close. The blog post says the price on the sales and purchase orders will be updated, unless the intercompany sales order is invoiced - in which case neither price will be updated.

That doesn't make complete sense to me, since inventory close normally ignores sales orders unless they are invoiced!

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