Discount on Base value - Not on PIT

Hi All,

I am using trade agreements to fetch Sales Price & related Sales Discounts.

Now the price which I am getting is actually Price Inclusive Tax (PIT) value and systems calculates discount on that PIT.

So for example 105 Rs is PIT and 5 % is Tax rate then base value will be 100 which is my sales value.

Now I want to calculate discount of 2% on 100 & not on 105.

Can anyone help me how to set this up.?


Jainal Shah

Hi Jainal,

Go to Trade Agreements > Total discount > Mention 100 in the Amount field and 2%. in the discount field.

Come back to SO > Calculation > Total discount.

If you want to see the Total invoiced amount then click on Inquiries > Totals. it will give you clear picture. Invoice amount will be 98.


Thanks for the reply Sarathy.

These amount is just illustrative numbers.

I want system to Calculate the discount on Basic value & not on PIT.

So I can not insert amounts on every line because it is not practically possible.

So can you come across any such set up, or some work around…?



Did you go through the Indian Localization manuals of AX APTA?

Hi Jainal,

Can you give me detailed requirement of yours’. so that we can help you out.

see the steps of my earlier post, it is not including the PIT (5) it’s excluded. PIT 5 might be misc.charge (i feel) or it can be some other tax. but when discount is going to be calculated then it will consider the Net amount of the SO line but not tax. as i said 100 is your net amount and 2% is discount then it will calculate on 100 only but not on 105. after deducting discount amount, then tax amount will be added to Invoice amount.

EX: Net amount is 100 … Discount is 2% … > 100 * 2/100 = 2

100 - 2 = 98 … Now the tax amount of 5 will be added to 98… Total invoiced amount will be > 98+5 = 103.

If still you’re facing problem, then let me know exact requirement.


Hi Lally,

I have gone through but haven’t found anything in that.

It will be great if you can help me with specific manual.!



Hi Sarathy,

My requirement is like below:

We are selling FMCG products.

One Item is sold at 105 Rs. & 105 is inclusive tax MRP. On this product we are offering 3 % discount to our stockiest. Tax is at 5%.

Another Item is sold at 115 Rs which is inclusive MRP. On the same discount is 5% & tax rate is 15%.

Now I have created Item sales tax group & in the formula designer i have check marked PIT field.

By this system will do reverse calculation & bring the basic value at 100 for both items & tax is Rs 20.

& I want to calculate discount on each 100 which will be Rs 3 & Rs 5 respectively in total 8.

But currently system calculates 3 % on 105 and 5% on 115.

It will be great if you help me with this scenario.

Thanks for your support.

Jainal Shah

Hi Jainal,

I did not find this PIT setups ? where you did this? can i have path please? is it on AX 2009 or AX 2012 ???


Hi Sarathy,

In AX 2012, General Ledger > Set up > Tax > Item Tax Group.

Then create a new tax group with 5% or 15% tax rate and then go to formula designer.

In the Calculation area, you will find Price Incl. tax field which required to be checked yes.

Now use this Item Tax Group in Sales Order to merge tax and discount scenario.

Let me know for further clarification.