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Finance | Project Operations, Human Resources, ...
Suggested Answer

RE: Item price with a value of zero

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Posted on by 151

Hi Ludwig, 

Procurement: Our client sometimes receive free of cost sample items from vendors, there is no cost associated with these items as they are totally free. Client is using weighted average costing method for inventory. They required to record these items at zero cost which means, no cost amount should be posted. Item weighted average cost should not affect with free sample items.

Sales: They also used to give free sample items to customers as their promotional activity. If these items are purchased at zero cost (as explained above), sale and COGS accounts should be posted at zero amount. However, if they are giving sample items to customers which are purchased on some cost then average cost amount should be posted.   

So, I would like to know if we achieve this requirement by standard functionality or any workaround on D365.

I have the same question (0)
  • Suggested answer
    Ludwig Reinhard Profile Picture
    Microsoft Employee on at

    Hi Zeeshan,

    You ended up in the wrong forum.

    For D365FO we have new community forums.

    Moved your thread here.

    About your issue:

    I would recommend creating a new item that you call sample or something alike then there should be no issue in regards to costing, valuation and alike.

    Best regards,

    Ludwig

  • Suggested answer
    André Arnaud de Calavon Profile Picture
    303,706 Super User 2026 Season 1 on at

    Hi Zeeshan,

    How would the system know if you give a free sample to customers that this item was a sample from a vendor or not? For that reason, I do agree with Ludwig to create a new item.

    You can also use inventory dimensions and enable financial tracking for this dimension. It can have then e.g. a cost-price per warehouse. However, one day, there will be an incorrect posting in a "sample" warehouse which will cause incorrect cost prices. A separate sample-item can prevent this.

  • Suggested answer
    saurabh bharti Profile Picture
    15,045 Moderator on at

    Hi Zeeshan,

    As suggested , one way is to have different item created.

    Another way will be creating different warehouse for Zero value and make sure your storage dimension are enabled for warehouse level costing. So that all costing will be managed in the warehouse with Zero cost

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