In Microsoft Dynamics 365 Business Central, the purchase price is the price at which a business purchases goods or services from a vendor. The purchase price is used to track the cost of goods or services that a business acquires.
The purchase price in Microsoft Dynamics 365 Business Central is important for determining the business’s profitability and calculating the gross margin for each product or service.
The purchase price may be a fixed price agreed upon between the business and the vendor or based on market conditions or other factors. It may also vary based on the number of goods or services purchased, with larger quantities often receiving a lower purchase price.
Working with Purchase Prices
In Microsoft Dynamics 365 Business Central, the simplest way to see the purchase price of an item is on the item card. When an item is entered on a purchase document, the value in the Last Direct Cost field determines the purchase price. The Last Direct Cost specifies the item’s most recent direct unit cost. The Last Direct Cost value is updated as purchase documents for the item are posted.
If you need more complex purchase pricing you can setup Purchase Prices for Items and Vendors.
Setup Purchase Prices
- Open the Purchase Prices page from the Item Card by selecting the Purchases Prices action from the Prices & Discounts Menu.
- On the Purchase Prices page, enter the Vendor specific pricing information
- Vendor No. – Specifies the number of the Vendor to which the purchase price applies.
- Item No. – Specifies the number of the item to which the purchase price applies.
- Unit of Measure Code – Specifies the purchase unit of the item to which the purchase price applies.
- Minimum Quantity – Specifies the minimum purchase quantity of the item you must buy from the Vendor to get the purchase price.
- Direct Unit Cost – Specifies the purchase price (cost) of one unit of the selected item to which the purchase price applies.
- Starting Date – Specifies the date from which the purchase price is valid.
- Ending Date – Specifies the date to which the purchase price is valid.
You can learn more about Managing Purchase prices in Dynamics 365 Business Central here.
Note: The code and information discussed in this article are for informational and demonstration purposes only. This content was created referencing Microsoft Dynamics 365 Business Central 2022 Wave 2 online.