Set up line discounts
Like special purchase prices, a purchase line discount is based on conditions such as the order date or the minimum order quantity.
Before you can start using the Purchase Line Discounts feature, you must first decide how you want the discounts to be posted to the general ledger.
General discount setup information is specified on the Purchases & Payables Setup page. If you want to use the Purchase Line Discounts feature, choose from one of the following options in the Discount Posting field on the General FastTab:
Line Discounts - The program will post line discounts when the invoice is posted. However, the program won't post invoice discounts.
All Discounts - The program will post invoice and line discounts when the invoice is posted.
To set up a line discount for a vendor, select the search for page icon in the top-right corner of the page, enter Vendors, and then select the related link.
Open the relevant vendor card and then select the Line Discounts action. The Vendor No. field is prefilled with the vendor number. Fill in the fields on the line, as necessary. Hover over a field to read a short description. Fill in a line for each combination for which the vendor grants you a purchase line discount.
When a purchase order is created for a specific vendor, Business Central will perform the following tasks:
Check whether line discounts are set up for the vendor.
Determine which line discounts apply, based on whether their conditions are satisfied by the purchase header and line details.
Select the best (highest) discount percentage from the applicable line discounts.
Business Central then copies the best discount percentage to the Line Discount % field on the purchase line and enters the calculated discount price in the Direct Unit Cost Excl./Incl. VAT field.
If no line discounts exist or the conditions for applying at least one discount aren't satisfied, Business Central uses the regular Unit Cost that is specified on the Item Card as the suggested price on the purchase line (unless a special purchase price is set up with the vendor).
Regardless of whether a line discount is automatically applied, the Purchase Line Discounts field in the Purchase Line Details FactBox shows the number of line discounts that are available. Select the link in this field to open the Get Purchase Line Disc. page and view the available line discounts.
The setup and use of purchase line discounts are similar to the setup and use of purchase prices.