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.

In today’s price-sensitive market, a business needs flexibility when setting selling prices for products. A flexible sales price model is important for businesses because it allows them to tailor their pricing strategy to meet the needs of their customers and the market. A flexible sales price model can also help businesses be more competitive in the market. For example, if a business can offer lower prices for larger quantities of an item, it may attract more customers and increase sales. Similarly, if a business can offer customized pricing for different customer groups, it can retain customers and build loyalty.

Microsoft Dynamics 365 Business Central provides several price strategies, allowing a business to offer flexible and competitive pricing strategies. Sales Prices can be for all customers, specific customers, customer price groups, or sales campaigns. These prices may include conditions such as order date, unit of measure, or minimum quantity purchased.

Working with Sales Prices

In Microsoft Dynamics 365 Business Central, the simplest way to set an item’s sales price is on the item card. The unit price on the item card is an item’s price based on its unit of measure. The unit price is manually or calculated automatically based on the cost of the Item and the desired markup or margin by setting the Price/Profit Calculation value.

If a business requires more flexible Sales Price options, such as a price for a specific Customer or Order Date range:

• Open the Sales Prices page from the Item Card by selecting the Sales Prices action from the Prices & Discounts Menu.
• Enter the Sales Type for the price
  • Customer – the price is for a specific Customer
  • Customer Price Group – the price is for Customers assigned to a Price Group.
  • All Customers – the price is for All Customers.
  • Campaign – the price for a Sales Campaign
• Sales Code – enter the value related to the Sales Type value for the Sales Price. 
  •  Sales Type of Customer – Enter the Customer No for the Customer that receives the Sales Price
  • Sales Type of Customer Price Group – Enter the Price Group for the Group that receives the Sales Price
  • Sales Type of All Customers – no value entered
  • Sales Type of Campaign – Enter the Campaign that receives the Sales Price
• Item No. – enter the Item No. for the Sales Price 
• Minimum Quantity – if the Sales Price is applicable for a minimum quantity ordered for the Item, enter the minimum quantity needed to receive the Sales Price.
• Starting Date and Ending Date – If the Sales Price is effective for a specific date range, enter the starting and ending date for the date range the Sales Price is valid
• Unit Price – the Sales Price for the Item, for the Sales Price options.

When working with Sales Prices for a Customer Price Group, a Customer is assigned to a Price Group by setting the Customer Price Group value on the Invoicing Fast Tab on the Customer Card.

When working with Sales Prices for a Campaign, Sales Documents assigned to a specific Campaign will receive a Campaign specific sales price.

Sales Prices are also accessible from the Prices action on the Prices & Discounts menu on the Customer Card. Opening the Sales Prices page from the Customer Card allows setting prices for a specific customer.

Business Central applies the best price principle. This means that the lowest price for an item is used on a sales line, but only if all conditions are met.

You can learn more about Managing Sales 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.

In Microsoft Dynamics 365 Business Central, customer payments can be entered using the Cash Receipt Journal. At the time of entry, customer payments can be applied to one or many open entries, or if you are not ready to apply the payments, you can apply them from the posted entries later.

To enter a customer payment via the Cash Receipt Journal:

1. Search for Cash Receipt Journal using the “Tell Me” search feature in Microsoft Dynamics 365 Business Central
2. Select the desired Cash Receipt Journal Batch to enter the payment Note: The journal batches may be set up for specific scenarios and may have predefined values for items such as the “Balancing Account” and  “No. Series”
3. Fill in the values for the Payment on the Cash Receipt Journal Line.
   1. “Posting Date” is the date that you’ll register the Payment
   2. Because we are entering Customer payment, the “Document Type” would be Payment
   3. Enter the “Document No.” for the Payment if a “No. Series” is not defined for the Cash Receipt Journal Batch. The number may represent the Customer’s “Check No.” or another reference
   4. “Account Type” should be Customer, and the “Account No.” is the Customer’s number defined in Business Central.
   5. Enter the Credit Amount of the Payment
   6. Specify the “Bal. Account Type” and “Bal. Account No.” such as the number of the general ledger or bank account that the balancing entry is posted to, such as a cash account. (This may be predefined in the Cash Receipt Journal Batch)
4. Apply the Payment to open Customer Entries
   1. If the Payment application is for one entry, you can select the “Applies-to Doc. Type” and the “Applies-to Doc. No.” of the posted document that this document or journal line will be applied to when posting.
   2. When applying a payment to one or more entries, select the “Apply Entries” action item to open the “Apply Customer Entries” page.
      1. Select the entries you would like to apply the Payment to, and select the “Set Applies-to ID” action item for each. The “Document No.” value of the journal line will populate the “Applies-to ID” field on the applied entry.
      2. If the applied Payment is not for the entire open amount, you can enter the applied amount in the “Amount to Apply” field on the open entry.
      3. Select Ok to close the “Apply Customer Entries” page.
5. Finalize the Customer Payment by selecting the Post action item on the “Cash Receipt Journal” page

Note: The code and information discussed in this article is for informational and demonstration purposes only. This content was created referencing Microsoft Dynamics 365 Business Central 2022 Wave 2 online.