Discount

Hi,

User created the Purchase order and given the Discount % in the purchase header and post the PO.

Example: POrder value - $10000

Disc % - 8

When posts the Purchase order system posting the 1000/- purchase , Inventory Receipt account.

But it should posts the $ 9200 only to purchase , inventory receipt account.(Inventory account )

Could i know what is the issue in Ax 2012 R2.

Do you have a purchase,discount account set in the posting groups? I cannot remember which way around it is, I think if specified it posts the full value to the receipt, with a separate discount posting and then offsets to AP Summary. Also cannot remember if this is relieved only at invoice, so invoice your order and see the financial postings. Then check the posting discount account.

Thanks Steven ,

It is posting the $ 9200 to AP/ Vendor account and $ 800 to the Vendor invoice discount ( which is setup in the automatic postings in Finance module 0

But my question is why it is posting the $ 10000 to Inventory account , it has to post $ 9200 only.

Is it bug in Ax 2012 R2 ?

It posts that to inventory because that is the cost of the product at the point of receipt. I have not got any total discount setup, but it is applied to all lines, it is not however a line discount because you do not see it on the line. At the time of receipt financially the cost is $10000 and then when the invoice comes in I cannot remember what it does to the inventory value, but presumably adjusts to the confirmed discount at an item level - which is why I asked you to invoice it and look at the transactions. However I also recall the total discount is accounted for separately and therefore it will do nothing. Whichever it is it has been like that since the system began, it is not a bug when it works as designed.

Thanks Steven ,

In this case my product cost is wrong and sales profit also will show wrong .

In the above example after discount 10 pcs @9200 so actual pcs cost is $92 , client can sold this piece $95 , profit - $3 .

But if Ax posts as $10000, then profit will show wrongly.

what do you say ?

I say you are misunderstanding total discount and item discount. If you want the scenario you describe the discount must be item specific, otherwise how do you apportion the 10% “Total” across multiple purchase lines of differing quantity and value?

Only item specific discount will do what you want - I suggest you use that to get the margin and inventory cost as required.

On the Purchase fast tab of the Released Product do you have “Total Discounts” ticked?

(Might have to open AX soon [:D])