Record special sales prices and discounts

Business Central supports various pricing strategies, such as:

• One-price-fits-all models where an item is always sold at the same price.

• Special price agreements with specific customers, or groups of customers.

• Campaigns when a sale meets the criteria for a special offer. For example, you might have the following criteria for an order:

  • It meets a minimum quantity
  • It's before a certain date
  • It includes a certain type of item

To use a basic pricing model, you only need to specify a unit price when you set up an item or resource. That price will always be used on sales documents. For more advanced models, for example, when you want to offer special prices for a sales campaign, you can specify criteria on the Sales Prices page. You can offer special prices based on a combination of the following information:

• Customer
• Item
• Unit of measure
• Minimum quantity
• Dates that define the period for which the prices are valid.

After you set up special prices, Business Central can calculate best prices on sales and purchase documents, and on lines on projects and item journals. Learn more at Best Price Calculation.

For sales discounts, you can set up two types:

To set up a sales price for a customer

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update. If the feature update isn't turned on, follow the steps on the Current Experience tab.

Using sales and purchase price lists

Most of the new sales pricing experience is similar to the current experience, but there are a few differences. Those differences are described in the following sections.

The Applies-to Type and Applies-to No. fields let you choose what a price list will apply to, such as customer or customer price group. Using View Columns for, you can show or hide columns relevant for setting prices, discounts, or prices and discounts.

Converting existing prices when you turn on the pricing feature update

When you enable the New sales pricing experience feature update on the Feature Management page, the Feature Data Update guide opens. Use the Use default prices toggle as follows:

• If you want to work with all prices on a single page, turn it on. Existing prices will be converted to one default price list for each of the following documents:

  • Sales
  • Purchases
  • Job sales
  • Job purchases

  You can edit all prices for these areas on the Prices Worksheet page. The default price lists will be set on the Sales & Receivables Setup, Purchases & Payables Setup, and Projects Setup pages.

• To use sales price lists, turn it off. Existing prices will be converted to a new price list for each combination of the following things:

  • Customer
  • Customer group or campaign
  • Starting and ending dates
  • Currencies

If you have many combinations, you'll have many price lists.

If you've already enabled the New Pricing Experience, you can create default price lists manually or specify an existing price list as the default. To set an existing price list as default, turn on the Allow Updating Defaults toggle on the price list. Then, on the Sales & Receivables Setup, Purchase & Payables, or Projects Setup pages, set the price list as the default.

Editing active price lists

To allow people to edit prices on active price lists for items, resources, customers, vendors, or other entities that use pricing, turn on the Allow Editing Active Price toggle on the Sales & Receivables Setup and Purchase & Payables Setup pages.

When the Allow Editing Active Price toggle is turned off, to update prices in a price list you must change the status of the price list to Draft, make your change, and then reactivate the price list.

The Prices Overview page provides an overview of all prices across price lists. You can set filters to narrow down the list of prices you may want to modify or add to. After you modify prices, you must use the Verify Lines action to verify the prices against other price list lines. Verifying prices helps avoid duplicates and ambiguity during price calculation.

To add new prices, on the Prices Overview page, use the Add New Lines action. The Prices Worksheet page opens, and you can add price lines either by suggesting them based on criteria, copying them from other price lists, or manually entering them. Afterward, you can use the Implement Price Change action to compare the new prices with other price lists to avoid duplicates and ambiguity during price calculation.

Create sales price lines based on the unit price

1. On the Prices Worksheet page, choose the Suggest Lines action.
2. On the Price Lines - Create new page, fill in the fields as necessary. Hover over a field to read a short description.
3. On the Product filter field, define filters for the selected Product Type.
4. Choose the Defaults field to specify settings such as:
   • Which entities the price list will be assigned to.
   • Dates when the price is valid.
   • The currency code.
   • The amount type filter that defines the columns shown on the price list lines.
5. Choose OK. New lines will be added to the Price Worksheet page with the selected settings and the unit prices from the item cards.
6. Edit the created lines with the new unit prices or discounts. Hover over a field to read a short description.

Create sales price lines based on existing price lists

1. On the Prices Worksheet page, choose the Copy Lines action.
2. On the Price Lines - Copy existing page, select an existing price list on the From Price List field.
3. On the Price Line filter field, define filters for the products on the selected price list.
4. Choose the Defaults field to specify settings such as:
   • Which entities the price list will be assigned to.
   • Dates when the price is valid.
   • The currency code.
   • The amount type filter that defines the columns shown on the price list lines.
5. Fill in the other fields as necessary. Hover over a field to read a short description.
6. Choose OK. New lines will be added to the Price Worksheet page with the selected settings.
7. Edit the created lines with the new unit prices or discounts. Hover over a field to read a short description.

To copy sales prices

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update. If the feature update isn't turned on, follow the steps on the Current Experience tab.

To bulk update item prices

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update. If the feature update isn't turned on, follow the steps on the Current Experience tab.

Best price calculation

After you record special prices and line discounts for sales and purchases, Business Central calculates the best price on sales and purchase documents, and on project and item journal lines.

The best price is the lowest price with the highest line discount allowed on a given date. Business Central calculates best prices when it adds unit prices and the line discount percentages on document and journal lines.

1. Business Central checks the combination of the bill-to customer and the item and then calculates the applicable unit price and line discount percentage, using the following criteria:

   • Does the customer have a price/discount agreement, or does the customer belong to a group that does?
   • Is the item or the item discount group on the line included in any of these price/discount agreements?
   • Is the date within the starting and ending date of the price/discount agreement? For invoices and credit memos, this is the date in the Posting Date field on the document header. For all other documents, it's the date in the Order Date field on their headers.
   • Is a unit of measure code specified? If so, Business Central checks for prices/discounts with the same unit of measure code, and prices/discounts with no unit of measure code.

2. Business Central checks whether any price/discount agreements apply to information on the document or journal line. It then inserts the applicable unit price and line discount percentage using the following criteria:

   • Is there a minimum quantity requirement in the price/discount agreement that is fulfilled?
   • Is there a currency requirement in the price/discount agreement that is fulfilled? If so, the lowest price and the highest line discount for that currency are inserted, even if local currency would provide a better price. If there's no price/discount agreement for the specified currency code, Business Central inserts the lowest price and the highest line discount in your local currency.

If no special price can be calculated for the item on the line, then either the last direct cost or the unit price from the item card is inserted.

Sales invoice discounts and service charges

When you use invoice discounts, the total amount on the invoice determines the size of the discount that is granted. On the Cust. Invoice Discounts page, you can also add a service charge to invoices over a certain amount.

Before you can use invoice discounts with sales, you must specify certain information. You must make the following decisions:

• Which customers will be granted this type of discount?
• Which discount percentages you'll use?

If you want invoice discounts to be calculated automatically, on the Sales & Receivables Setup page, turn on the Calc Inv. Discount toggle.

You can specify whether you'll grant invoice discounts when an invoice meets certain criteria for each customer. For example, when the invoice amount is large enough. Invoice discounts can be in local currency for domestic customers, or in foreign currency for foreign customers.

You link discount percentages to specific invoice amounts on the Cust. Invoice Discounts page for each customer. You can enter any number of percentages. Each customer can have their own page, or you can link several customers to the same page.

In addition to, or instead of, a discount percentage, you can link a service charge amount to a specific invoice amount.

For training in discounts in sales, see Set up discounts for your customers.

Calculating invoice discounts on sales

After you've added all the items on lines you can calculate the invoice discount for the entire sales document by choosing the Calculate Invoice Discount action.

The discount is calculated based on all lines on the sales document where the Allow Invoice Disc. checkbox is chosen. By default, invoice discounts are allowed. However, lines with item charges, for example, are not included in the calculation of the invoice discount. To apply a discount to such lines, enter a value in the Line Discount Amount field on the lines.

You define invoice discount terms for a customer on the Cust. Invoice Discounts page. The currency code on the sales document is used to find the invoice discount terms in the corresponding currency.

If you haven't defined invoice discounts for foreign currencies, the discount terms on the Cust. Invoice Discounts page are used to calculate the discount. The calculation uses your local currency and the exchange rate that was valid on the document's posting date.

To set up a sales line discount for a customer

These steps differ, depending on whether your administrator has turned on the New sales pricing experience feature update. If the feature update isn't turned on, follow the steps on the Current Experience tab.

To set up an invoice discount for a customer

After you decide which customers are eligible for invoice discounts, enter the invoice discount code on the Customer Card pages. Then set up the terms for each code.

1. Choose the icon, enter Customers, and then choose the related link.
2. Open the customer page for a customer that will be eligible for invoice discounts.
3. In the Invoice Disc. Code field, select a code for the relevant invoice discount terms to use to calculate invoice discounts for the customer.

Proceed to set up the new sales invoice discount terms.

1. On the Customers page, choose the Invoice Discounts action. The Cust. Invoice Discounts page opens.
2. In the Currency Code field, enter the code for a currency that the invoice discount terms on the line apply to. Leave the field blank to set up invoice discount terms in USD.
3. In the Minimum Amount field, enter the minimum amount that an invoice must have to be eligible for the discount.
4. In the Discount % field, enter the invoice discount as a percentage of the invoice amount.
5. Repeat steps 5 through 7 for each currency that the customer will receive a different invoice discount for.

See also

Setting Up Sales
Sales
Setting Up Customer Price Groups
Setting Up Customer Discount Groups
Working with Business Central

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