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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Purchase order discoun...
Microsoft Dynamics AX (Archived)

Purchase order discount and item cost

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Posted on by Samkh 6

Hi,

We would like that in some scenarios, when we apply a purchase line discount, the effect will be on the item cost in inventory. So far it seems the item cost in inventory is driver by the unit cost defined at the purchase order line. How is it possible to let the discount affect the item unit cost?

Thanks

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  • Verified answer
    Andrew Xu Profile Picture
    Andrew Xu 3,877 on at
    RE: Purchase order discount and item cost

    Sam,

    Line discount doesn't affect cost. In your case, you might want to use price discount which is set up through price/discount journal.

    https://technet.microsoft.com/en-us/library/aa556469.aspx?f=255&MSPPError=-2147217396

  • Samkh Profile Picture
    Samkh 6 on at
    RE: Purchase order discount and item cost

    Thanks Andrew for the quick reply!

    Using price discount is putting the discount amount in the discount field on the purchase order line. In this case the item cost is not reduced by the discount value. If otherwise, can you please send me screenshots?

  • Guy Terry Profile Picture
    Guy Terry 28,886 Moderator on at
    RE: Purchase order discount and item cost

    Hi Sam,

    If you go to Inventory management -> Setup -> Posting -> Posting -> 'Purchase order' tab, do you have anything defined for the 'Discount' posting?

  • Samkh Profile Picture
    Samkh 6 on at
    RE: Purchase order discount and item cost

    Yes  I have.

    The purpose of the post is that if I have an item A in inventory , with average costing method, qty 10 and unit cost is 5 $ each

    Then I make a purchase order of another 10 items with a unit price of 5 and with a discount of 40%,

    I expect that when the receiving is posted, the cost of the item in inventory per unit should be

    (10*5) + (10*3) = 80/20 = 4$

  • Guy Terry Profile Picture
    Guy Terry 28,886 Moderator on at
    RE: Purchase order discount and item cost

    Hi Sam

    I think that is the cause of your problem. AX is posting the discount to a separate account.

    If You remove the discount from the posting profile, AX will post the discount to the item cost instead. Please test!

  • Verified answer
    Samkh Profile Picture
    Samkh 6 on at
    RE: Purchase order discount and item cost

    It worked. Thanks

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