Sales Invoice Discount Codes in Business Central

Sales invoice discount codes in Business Central define a percentage discount subtracted from a sales document's total amount when that total exceeds a specified minimum.

With these codes, organisations can offer volume-based incentives to customers, applying a single discount across an entire sales invoice rather than individual lines.

Sales Invoice Discount Codes vs Sales Line Discounts

Sales invoice discounts differ from sales line discounts, which apply to individual lines on sales documents which are maintained on sales price lists. For a complete overview of sales price lists in Business Central check my other post: Manage Sales Prices in Business Central: The complete Guide.

In contrast, invoice discounts consider the aggregated value of all eligible lines on a sales document. While Business Central introduced a New sales pricing experience in 2020 release wave 2 for managing prices and line discounts, the core functionality and setup process for invoice discounts remained unchenged as of version 28.

How to Configure Automatic Invoice Discount Calculation in Business Central?

Business Central can automatically calculate invoice discounts on sales documents when the Calc. Inv. Discount toggle is enabled. This setting is found on the Sales & Receivables Setup page.

When this checkbox is selected, Business Central automatically applies the invoice discount amount based on sales lines where the Allow Invoice Disc. field is enabled.

If the Calc. Inv. Discount toggle is not enabled, Business Central does not automatically calculate invoice discounts. In this scenario, users must manually trigger the calculation by selecting the Calculate Invoice Discount action from the sales document's related menu.

How to Define Sales Invoice Discount Terms in Business Central?

To define sales invoice discount terms in Business Central, navigate to the Cust. Invoice Discounts page for a specific customer. First, use the Search function (Alt+Q) to find and open Customers, then select the relevant customer card.

On the Customer Card, choose the Invoice Discounts action to open the Cust. Invoice Discounts page

On the Cust. Invoice Discounts page, configure the specific conditions for the invoice discount:

• The Currency Code field specifies the currency to which the invoice discount terms on that line apply. Leaving this field blank sets up terms for the local currency.

• The Minimum Amount field defines the threshold an invoice total must meet to qualify for the discount.

• The Discount % field specifies the percentage of the invoice amount to be applied as a discount.

• The Service Charge field can be used to link a service charge amount to a specific invoice total, either in addition to or instead of a discount percentage. This service charge is also applied based on a minimum invoice amount.

Assign Sales Invoice Discount Codes to Customers in Business Central

After defining invoice discount terms, assign them to customers by selecting an Invoice Disc. Code on the customer card. Open the relevant customer card by searching for Customers (Alt+Q). On the Invoicing FastTab, locate the Invoice Disc. Code field and select the code corresponding to the desired invoice discount terms.

Invoice discount codes are reusable settings for discount terms. You can quickly assign the same invoice discount terms to multiple customers by selecting an existing code on their respective customer cards.

How does Sales Invoice Discount Calculation Work in Business Central?

Business Central calculates sales invoice discounts by evaluating the total value of all eligible lines on a sales document against the defined discount terms.

The system sums the values of all lines on the document and checks if this total exceeds the Minimum Amount specified for the assigned Invoice Disc. Code. If the minimum amount is met, Business Central applies the Discount % to the document total.

The calculation does not includes all sales document lines; certain types are excluded.

Item charges are typically excluded from the calculation of sales invoice discounts. By default, invoice discounts are allowed for all items, but the Allow Invoice Disc. field on individual item cards can control whether an item's value contributes to the invoice discount base.

Through this field, administrators can control which items contribute to the total amount eligible for an invoice discount.

How to Update Sales Invoice Discount Terms in Business Central?

You can update sales invoice discount terms in Business Central by modifying the existing entries on the Cust. Invoice Discounts page. To do this, open the customer card linked to the invoice discount code, and then select the Invoice Discounts action 1.

On the Cust. Invoice Discounts page, you can adjust the fields for any existing discount term. Changes made to these terms automatically apply to all customers assigned that specific Invoice Disc. Code

Summary and Next Steps

Enquire about our employee training programmes or contract consulting services to optimize your Dynamics 365 Business Central sales pricing and discount strategies.