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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Cost of Sales override
Finance | Project Operations, Human Resources, ...
Suggested Answer

Cost of Sales override

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Posted on by Florian1 5

I need to apologize for what is maybe a basic question as I am completely new to MS Dynamics AX 2009.
We have goods on stock at average CoS. Our Product Management agrees that we will receive rebates on products when we sell those. Rebates may be conditional and/or limited.
As an example, the vendor/supplier will agree to grant us extra 20.- rebate per unit for a certain period (say from May 1st to May 30th) for max 1 000 units of SKU 123
In the standard process when we sell SKU 123 the system will book average CoS.
This triggers all kind of issues: a) the system margin is incorrect b) admin will have to manually record sales with such rebates and then charge those to the vendor/supplier.
Is there any process / flags that can be used / set to automatically trigger the CoS override at order level?

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  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 301,171 Super User 2025 Season 2 on at

    Hi Florian,

    What is the exact costing valuation setup on the item model group? What exactly do you want to achieve? Do you want to directly relate sales margins to fully reduce the vendor rebate?

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hi Florian1,

    What you describe sounds related to the vendor rebate feature that was introduced in AX2012.

    Please see: mbs.microsoft.com/.../Vendor_rebates.pdf

    Can you tell us more about the nature of this rebate and whether it really impacts your COGS that you can assign to a specific product?

    As an example, if you sell a specific product in June, will you still get the $20 rebate if you bought the product in May from the vendor?

    How can you vendor control how much he owes you if he does not have insights into your sales?

    Best regards,

    Ludwig

  • Florian1 Profile Picture
    Florian1 5 on at

    Hi Ludwig,

    thank you for yor answer.

    The nature of the rebate:

    The rebate will always be applied after we have the goods on stock.

    The rebate may be limited by the following dimensions (and / or conditions):

    Maximum quantity in units

    Maximum total rebate amount

    Customer group

    Indvidual customer

    Timeframe

    As an example the Vendor grant you the following (highest complexity level):

    I will grant you $20 on SKU 1234 sold to Customer Group XYZ in the period from May 1st to June 30th with a total maximum amount allowed of $ 20.000  

    To answer your questions:

    Indeed COGS are impated (lowered) on a sepcific SKU (product)

    We will receive (claim) $ 20 in June when we bought (and received) the product in May

    The Vendor will receive Sales Out Reports as a proof that we send with the claim / debit note

    Best regards,

    Florian

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Hello Florian,

    Many thanks for the feedback.

    I don't see a standard functionality in the 'old' AX2009 system that could handle your requirement.

    In the newer AX2012 / D365FO systems there are some standard functionalities - such as the vendor rebate feature - that can handle a part of your requirement. What will, however, also be a challenge there is the adjustment of the COGS.

    If you need this process fully automated, I only see the way of making a system modification.

    Best regards,

    Ludwig

  • Florian1 Profile Picture
    Florian1 5 on at

    Hi Ludwig,

    thank you for your answer

    I take that we need to make system adjustments

    I will o and see my IT boys

    Best regards

    Florian

  • Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at

    Good morning Florian,

    Thanks for the update.

    Please let us know if there is something else the community can do for you or whether we can verify and complete this thread.

    Many thanks and best regards,

    Ludwig

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