How to set up item purchase prices and discounts in Business Central?
If you have defined specific prices per item, per vendor, it will have effect when you create purchase order lines for that vendor for that item.
This is what happens in the video
If you maintain specific purchase prices and discounts per item and per vendor in Microsoft Dynamics 365 Business Central, they apply automatically when you create purchase order lines. You do not have to look up the right price manually. Business Central picks the correct price or discount based on the vendor, the item, the quantity, and the date on the purchase line.
You can define both fixed purchase prices and line discounts in percent. Business Central can combine them. If a line discount and a special purchase price both apply, you get the discounted price calculated from the special price.
Quantity thresholds and starting dates control which price applies. A price tied to a starting date in the future does not take effect until that date. If the quantity on the line does not meet the minimum defined for a special price, Business Central falls back to the list price from the item card.
How special purchase prices and line discounts are set up per item and vendor
On the item card, you can navigate to special prices and define special purchase prices or special discounts for a given vendor. A price can be set as a fixed amount or, in the case of a discount, as a percentage.
In the overview you can see a mix of both. For item 1120, for example, there is a line discount of 10% from vendor 88,000 in euro, with a minimum of 150 pieces. There are also several purchase prices for the same vendor in euro. One of those prices has a starting date that is not active yet, so it does not apply until that date arrives.
On top of these, the item card still has its own list price, which is used whenever no special price or discount matches the line.
How prices and discounts apply on a purchase order line
Create a purchase order for the vendor and enter the item number on the line. With a quantity of 1, the line uses the list price from the item card. In this example that is 0.2 euro, transferred into euro because the vendor is set up in euro.
When you increase the quantity to 100,000 pieces, which meets one of the criteria, the price changes to 0.112 euro. With that quantity the line sum becomes 11,200, because 0.112 is one of the fixed special prices defined for the vendor.
When you increase the quantity further to 150,000 pieces, the unit price stays at 0.112 euro, but the line discount now kicks in as well. The line total is 0.9 of 0.112 times 150,000, because the 10% line discount applies at that quantity. The discount and the special price work together on the same line.
What you should keep in mind
The whole point is that the right price and discount land on the purchase order line automatically, as long as the prices and discounts are set up correctly per item and vendor. Pay attention to your minimum quantities and starting dates, because they decide whether a special price applies or whether Business Central falls back to the list price.
Q&A
Where do you define special purchase prices and discounts in Business Central?
You define them from the item card by navigating to special prices. There you can set up special purchase prices or special discounts for a specific vendor.
Can you combine a fixed purchase price with a line discount?
Yes. Business Central can apply both at the same time. If a quantity qualifies for a fixed special price and a line discount, you get the line discount calculated on top of the special price. In the example, a unit price of 0.112 euro at 150,000 pieces is reduced by a 10% line discount.
What happens if the quantity does not meet the minimum for a special price?
Business Central uses the list price from the item card. With a quantity of 1 the line used the item card list price of 0.2 euro, because no special price criteria were met.
What controls which special price applies?
The vendor, the item, the quantity on the line, and the starting date all control which price applies. A special price with a future starting date does not take effect until that date, and a price with a minimum quantity only applies once that quantity is reached.
Why is the price shown in euro on the purchase line?
Because the vendor is set up with euro as currency. The list price from the item card is transferred into euro on the line, and the special prices for that vendor are also defined in euro.