My setup is not posting purchase invoices to AP properly, and I cannot find a suitable setting that affects this. I hope that someone will be able to suggest settings that I am overlooking. Here is the scenario, and why I think it is a setting.
Version: Current US Business Central (13.3) in US East 2 region (as of March 13, 2019)
1. Create a purchase invoice for any vendor and add a product to the purchase lines.2. Select any quantity, then select a line discount amount (I am using 50% for my testing, but the error was found in production when using 100% discount).3. Confirm that the line totals and invoice total are as they should be "IRL" - that is, if I have qty 1 of $100 item, I expect the Direct Cost to be $100, Line Amt. Excl. Tax to be $50, and the Total Incl. Tax to be $50 (non-taxable item, wholesale trade). Good so far...4. Select Preview Posting and review entries. Expect that the AP account would show -$50 due. However, it shows the full amount due, -$100. Note that the Purchase Discounts account shows -$50, as I would expect.5. Thinking that perhaps the reconcilation on payment-due calculations would sort this out, go ahead and post the purchase invoice. Nope, it shows the full amount due - which is not consistent with the information presented on the un-posted purchase invoice just prior to posting.
I tested this setup in stock Cronus company on the same tenant, and it works as expected, not as above (except Cronus includes tax calculations).
I have cross checked my implementation vs. Cronus in the following areas and see consistency between them:
- General Posting Setup: Inventory, Purchase, and Purchase Discount GL accounts are same function, but different numbers.- Inventory, Purchase Discounts, and AP GL accounts are configured the same- Vendor Posting Setup is the same- Purchasing & Payables Setup -> Discount Posting is "All Discounts" and other settings are the same, except "Check Prepayments" (which I anticipate no effect)- None of these setups have vendor- or item-specific discounts applied
Is there a setting I have missed somewhere?
Thank you in advance!
What kind of taxes do you talk about? Sales tax or VAT?
In regards to purchase invoices they are the same, if taxes are included on the purchase invoice and shows a full amount of USD100, then that is the amount you owe that vendor and the amount you should register in AP. USD 100 is credited the vendor account and 50 is debited to purchase and 50 to tax.
So it behaves correctly.
Or have you misunderstood what discount is? It has (generally) nothing to do with tax.
Thank you Erik. As far as I can tell, it has nothing to do with tax, evidenced by running it again without the tax, with the same effect. I understand what a discount is and hoped to have explained that in my example through the "expected result", but here is a clarification without bringing NAV/BC into the description:
If I buy something at a discount (say, list price is $100 and the vendor offers 50% off), I expect to pay the net amount, or the remaining $50. If I record the transaction in my accounting system, I expect that the AP account will show only the net amount.
Bringing this back to BC, I am recording the transaction in my system as I received it from the vendor - with a line-level discount applied. So I enter the transaction with the Direct Unit Cost equal to the list price, and enter a discount in the Line Discount Column. When I look at the screen, I am happy because I see the following Purchase Line:
And I see Total Incl. Tax (USD) = 50.00. As a user, I proceed to post the Purchase Invoice because it looks like it reflects the reality of the transaction. At this point, I expect the AP account to increase in magnitude by $50.
When I look at my AP account, I see that its magnitude increased by $100! When I go to pay the vendor So I dig a little further...
I repeat the transaction and before I post, I examine "Preview Posting -> G/L Entry" and find:
At this point, I suspected something in the configuration, so I tested the Cronus company in the same tenant:
Notably, the Direct Cost lines are calculating differently: Cronus deducts the discount, New Company does not.
Here is the database line (Table 39, Purchase Line) from New Company:
So after looking at this, it appears that the posting routine is taking the amount from the Direct Unit Cost field, not the Amount field or the Outstanding Amount field (which even shows $50!).
That indeed looks very strange.
How does the vendor (+detailed) ledger entries look? And what does the posted purchase invoice say?
Great question, and reveals something, but I don't know what. Here is each ledger, showing the full, non-discounted amount for each one (I expected the discounted amount). Here is Vendor Ledger Entry (Preview Posting) from the bad configuration:
And the Detailed Vendor Ledger Entry:
And the Vendor Ledger Entry for the base Cronus configuration:
Running an actual posting of each document mirrors the Preview Posting above. The amounts flow through the various registers and result in the following suggested payment in Payment Jourals -> Suggest Vendor Payments:
I am really at a loss here and hoping that someone has seen this effect. Again, this is happening in the US implementation after selecting the "Production Data - Setup Data Only" option during company setup. The Cronus is the standard Evaluation setup on the same tenant.