Hi, how does the multi-line discount work for PO or SO? normally I set up a trade agreement and select price check box. So when I create a PO, the rate default from the trade agreement. I notice that I can select multi-line discounts in TA as well as at PO lines. Can some one explain how does this work. How the PO discounts are handled in AX and also from accounting standpoint, where does this discount tracked. From what I can see in the parameters and posting profile that I can also choose to capture that in a separate ledger account.
many thanks for your time
Multiline discount is all about, Quantity based Discount.
Example: If Customer buy Item A, Quantity of 10, then he will be eligible for Discount of 6 per item.
unit price is 75 and Qty is 10… then he/she will be eligible for 6 discount per item.
10 * 75 = 750 net amount.
10 * 6 = 60 discount (discount will be per item)
So, when you do multiline discount calculation net amount will be = 690
Hi Sarathy, thanks for clarifying that. Appreciate it. 1) regarding the discount account, is it a must to set up a separate discount account (or rather a good practice).
- I believe, I need to specify this in the parameters for AX to post all discounts in a separate GL account?
Similarly for charges, I believe we can post it to a separate GL accounts that can be set up in PO posting profile. Is that correct? But when I tried that, I had AX warn me that ‘stock variation’ account is not set up which I believe is not used in North america?
- In FIFO, is there a way to capture labor/overhead charges and variance?
appreciate your answers.
Hi Sarathy, could you tell me where to select in AR parameters that tell AX to post the discount in a seperate account as per item posting profile
the calculate total discount option may probably override what the user has applied a special discount in the SO lines
You need to setup the discount accounts in Item group form. not here in the above mentioned form.
In above form, you will be able to setup the discount type (Example: Line, Multiline, Line + Multiline etc) , currency and exchange rates but not the discount a/cs.
You please go to Product information management > Setup > Inventory > Item groups and select the Sales order and Purchase orders and you will find the Discount a/c… here you need to setup the Discount a/cs for Sales and Purchases differently.