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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Sales quotation Margin...
Supply chain | Supply Chain Management, Commerce
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Sales quotation Margin, incorrectly reflecting as 100 % when Financial inventory is enabled for Batch

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Posted on by Vignesh Rajendran 15

Hello Community,

Please find the below mentioned scenario

I have an item tagged to tracking dimension group that has "Financial inventory" selected for the batch

pastedimage1637859105985v1.png

I purchased 4 products under 2 batches respectively & I can see batch-specific costing when I go to Inventory On hand and Inventory transactions.

Batch 1 - 2 Qty 1000 EUR ea.  (Below value was post conversion to USD as the demo legal entity currency is USD)

pastedimage1637859489502v4.png

Batch 2 - 2 Qty 1500 EUR ea.

pastedimage1637859442161v3.png

During Sales quotations, when I am trying to sell the item at 2000 EUR, I see the system is considering the entire 2000 EUR as my Margin

pastedimage1637860336946v5.png

However, if I do a sales order and then the Invoice. The system is properly showing up the margin on the posted Invoice

pastedimage1637861450161v6.png

Question?

In sales quotations, do we have any way to get the system to consider either batch-specific cost or an average cost of the item and show up an indicative margin instead of showing up that as 100% margin?

Regards

Vignesh R

I have the same question (0)
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 299,386 Super User 2025 Season 2 on at
    RE: Sales quotation Margin, incorrectly reflecting as 100 % when Financial inventory is enabled for Batch

    Hi Vignesh,

    To be able to answer your question, we need more information. What inventory model group are you using and did you enable the include physical cost option here?

    Based on your settings, the cost will be corrected afterwards with the Inventory closing and recalculation job.

  • Santosh Durgam Profile Picture
    Santosh Durgam 444 on at
    RE: Sales quotation Margin, incorrectly reflecting as 100 % when Financial inventory is enabled for Batch

    Hi Andre,

    Thanks for your response. I am from Vignesh team. We're using a model group that has FIFO costing method and "include physical cost"  enabled.

    To simplify the question, lets take the example where we have all the quantity financially posted. As you can see in below image, we have two batches in the Onhand batch1 and batch 2 with 2 different costs. Please also note that we have "Financial Inventory" check box selected for the Batch number in the "Tracking dimension group". Because, we want the cost to be maintained per batch.

    pastedimage1638079494269v1.png

    When we create a Sales order and process the Invoice for the batch1, the cost is properly reflecting for the Inventory issue transaction(After Inventory recalculation is run). Problem is with the margin not showing up in the sales quotation and Sales order forms while we are giving a quote or taking an order from customer.

    As you can see in the below screen shot, when the item is added in the Sales quotation, it shows that the Estimated Margin is 100% which is not true. If system at least considers the running average of all batches or may be specific cost of a batch, we would see an indicate margin. (we didn't select the batch in the Quotation line, because logically during the quote which batch we sell is not known. Regardless we also tried by selecting the batch in the quote line but still it shows 100% margin).

    If the financial inventory is tagged only for Site or Warehouse and not to the batch, system is considering the running average and we see the indicative margin.

    pastedimage1638080245516v2.png

    Appreciate if you can provide your insights Andre. Let me know if you need any additional information.

  • Santosh Durgam Profile Picture
    Santosh Durgam 444 on at
    RE: Sales quotation Margin, incorrectly reflecting as 100 % when Financial inventory is enabled for Batch

    Hello,

    Trying to see if we can get any thoughts around this one.

    Andre Arnaud de Calavon  - Andre, any thoughts please?

  • Suggested answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 299,386 Super User 2025 Season 2 on at
    RE: Sales quotation Margin, incorrectly reflecting as 100 % when Financial inventory is enabled for Batch

    Hi Santosh, Vignesh,

    The current behavior is per design. If there is no batch number, then it can't find the cost price as it will have a cost per batch number. You can try to set an average value in the Cost price field on the Item master. On the released product, you can also enable the option 'Latest cost price'. It will then update this price based on the last cost posting.

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