Off-invoice allowances

There may be certain arrangements with customers that lead to a discount on sales invoices. For example, you might offer a discount to customers who regularly travel to your warehouses and pick up ordered items themselves.

Set up records called off-invoice allowances to represent these different types of discounts. Unlike sales line discounts, which apply to individual sales lines, off-invoice allowances are discounts based on an entire sales document.

Allowance conditions and methods

Set up an off-invoice allowance card for each allowance you want to offer. In addition to a code and description, assign a general ledger account to each allowance. This is the account to which allowance amounts are posted.

Once basic off-invoice allowance information is set up, assign customers to the allowance along with the conditions that must be met for the allowance to apply to each customer's sales orders. This lets you define different allowance conditions for different customers. For example, Customer A must have a sales order for 100 units before an allowance is granted, but Customer B must order only 50 units to receive the same allowance.

An off-invoice allowance's calculation methods can also differ from customer to customer. Establish the order quantity on which a customer's allowance is based, such as the total value or weight of an order. An off-invoice allowance can be calculated as either an amount (such as a dollar per unit of weight) or as a percentage (such as a percentage of an order's total value).

Enabling off-invoice allowances

Indicate that off-invoice allowances are permitted for a customer by selecting the Allow Off-Invoice Allowance field on the Invoicing FastTab of the customer card. Once this field is selected, any off-invoice allowances to which the customer has been assigned are applied to sales orders that meet the conditions established on the allowance lines.

Off-invoice allowance assignment

As items are entered on a sales document, Microsoft Dynamics NAV calculates any off-invoice allowance amounts that will be applied to the sales document when it is posted. You can view these pending allowances and determine whether they should be included.

When a sales document is posted, the program creates a new sales line for each calculated allowance amount. The line is created for the G/L account assigned to the off-invoice allowance.