how does PO discounts including Multi-line discounts work in AX 2012

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

Hi Patrick,

  1. Multiline Discount – We can specify the discount only for item groups and all items, vendor, vendor group, customer, customer group, all vendors and all customers.

  2. Multiline discount - Similar to Line discounts. The difference is AX takes into account all eligible lines from the any PO/SO. So you can set up discounts for quantity based on the total ordered quantity of several items - you cannot do that with the Line discounts. Example - I sell item A, item B and item C and I want to give discount of 10% to my customer if they buy 3 items (I don’t care if they buy 2 items of item A and 1 item B/C or 3 of item C only, I still give them the discount).

  3. Discount account will be setup in the Item group > Sales order and Purchase order (TABs) > Discount fields. But before that we need to create Chart of Accounts (Discount a/c’s for PO & SO) and assign them in Item group. Select the Discount a/c in chart of accounts > Click on Transactions buttons. It will show all the discounts info.So, 2 discount a/c’s setup 1 for SO & 1 for PO. So, Transactions will be separate in different ledger a/c’s.


Hi Robert,

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).

  1. 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?

  1. In FIFO, is there a way to capture labor/overhead charges and variance?

appreciate your answers.

Hi Patrick,

  1. Yes we need to setup different a/cs for SO and PO. PO discount is different and SO discount is different. PO discount is that discount which your opting from your vendor. SO discount is that discount which your offering to your customers. So, you need to have 2 different GL - Chart of a/cs for both PO and SO.

  2. In parameters of AP and AR, we can select the Discount methods.

  3. Posting profiles - as far i know it controls the Vendor / Customer business transactions to GL. Posting profiles in AP & AR, we can assign to Vendor / Customer (Table) , Vendor / Customer Groups (Group) and All Vendors / All Customers (ALL) and assign the Summary A/C’s. The summary accounts are defined for vendors / customers . Summary accounts are temporary accounts where all invoices are posted to and offset when the vendor is paid and customer pays and we assign these Posting profiles in AP and AR parameters (Ledger & Sales tax (Tab)).

  4. Labor / Over head charges can we setup as Misc. Charges in AP & AR. If I’m wrong please do let me know.


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


Hi Patrick,

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.