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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.

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

Allowance Conditions and Methods

You set up an off-invoice allowance card for each allowance you want to offer. In addition to a code and description, you must also assign a General Ledger account to each allowance. This is the account to which allowance amounts will be posted.

Once you have set up basic off-invoice allowance information, you can 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 gives you the ability to define different allowance conditions for different customers. For example, you can indicate that 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. You can establish the order quantity that a customer's allowance will be based on, 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

You must indicate that off-invoice allowances are permitted for a customer by placing a check mark in the Allow Off-Invoice Allowance field on the Invoicing FastTab of the Customer card. Once this field has been checked, any off-invoice allowances to which the customer has been assigned will be 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. The user can view these pending allowances and determine whether or not 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 that has been assigned to the off-invoice allowance.