How to apply discounts in RFQ so they flow to Purchase Order and Vendor Invoice?

Finance and Operations/AX
1

Question:

Hi everyone,

I have a question regarding how discounts should be applied in the purchasing process in Dynamics 365 Finance & Operations, specifically during the RFQ (Request for Quotation) stage.

Scenario:
We create and respond to RFQs, and after supplier selection, the process continues to Purchase Order and then Vendor Invoice.

Main question:
What is the correct way to apply discounts during the RFQ so that they are correctly carried over to the Purchase Order and later to the Vendor Invoice?

Additional doubts:

  1. Should discounts be applied at the line level or header level during the RFQ?

  2. Are discounts automatically transferred from RFQ → Purchase Order → Vendor Invoice?

  3. Are there any configurations or parameters required to ensure this behavior?

  4. Is it better to use trade agreements instead of manually applying discounts?

  5. What are the best practices to avoid discrepancies between PO and Invoice values?

Goal:
Ensure that the discount applied during the quotation process is consistently reflected throughout the entire purchasing cycle.

Any guidance or best practices would be greatly appreciated.

Thank you!

2

Hi @Naomi_Miyazaki

Great question! Discounts in D365 F&O work best when applied at the line level on the RFQ reply, not the header. When you accept the RFQ reply through the standard flow, line discounts carry over automatically to the PO, and then to the Vendor Invoice during matching. No special config needed for this.

A few things to keep in mind:

  • Don’t skip steps or manually recreate the PO, that’s where discounts get lost

  • If you have recurring suppliers, trade agreements are much cleaner than manual discounts

  • Always use 2-way or 3-way invoice matching to catch any discrepancies early

Most mismatches happen when someone manually edits the PO after RFQ acceptance, so restrict that where you can.

We’ve worked on quite a few D365 F&O procurement implementations, and this specific area, RFQ to PO to Invoice flows, is something we’ve dealt with hands-on. If your team is running into issues or needs support getting this right, feel free to reach out. I’d be happy to help!