The possibility to use discount amount on discounts added on top, such as sales pricing method types C and O, can give rise to a situation where the net price goes negative.
Example:
A negative net line price could occur if discount amounts have been set up for chained discounts (C-type method and O-type method in the Sales pricing methods file) that are greater than your starting price. E.g. Sales price = 1000, O-type discount amount = 5000. This discount amount, when applied on the sales price, will create a negative net line price).
There are a number of situations where a negative net price could occur:
- During normal sales price calculation
- During order summary discount calculation
- When discounts are manually added or changed
- When the sales price is decreased
- When VAT included is added or changed
- When an already negative line is copied to a new line.
Discounts set up with discount amount that brings the price down below zero, or that are created when the net price is below zero still hold their full discount amount.
Discounts set up with a discount percentage that is applied after the net price has gone below zero will have their discount amount set to zero.
This preserves the discounts in the shape that they are applied in the calculation so that the user then can decide which discount/discounts to change or delete. The user might want to keep a discount set up with a discount amount that lies below zero and instead remove a previous discount to adjust the sales price.
When the discounts are adjusted and discounts that are set up with a discount percentage appear above zero again then a correct discount amount will be calculated.
Result during sales order entry:
Should a negative net line price occur the following will take place:
- The line will be put on hold and assigned the reason code 40 (Negative net sales price).
- A warning message is also issued.
- If such a line is printed on an order confirmation then TBA (To be advised) will be printed in the price field for this line.
Fix:
To correct this situation, and thereby automatically release the line you can choose from any of the following:
- Manually change the sales price of the line (i.e. increase the sales price for the line).
- Manually amend the discounts for the line by reducing or deleting the applicable discounts via Work with discounts (accessed via the Function list on sales order line level).
- Change the set-up in Work with Sales pricing methods and perform a re-pricing on the line via the function list. (Tip: First access the Detailed net sales price enquiry to see the breakdown of how a sales price was calculated and what set-up change that is necessary. You may find, e.g., that a chained discount should not have been applied).
Result during quotation order entry and fix:
For quotations only a warning message is issued, as there is no function for holding quotation lines.
Related topics
- About working with pricing on a sales order
- Determine from where the sales price/discount was retrieved
- View all discounts for a sales order
- Manually price a sales order line
- Manually add a discount to a sales order line
- Retain/apply a manually added discount on future sales order lines
- Manually add a discount to a sales order header
- Re-price a sales order line
- Reset order summary discounts and re-run the calculation
- View the total price of a sales order
- Print discounts
- Give FOC items as discount and its effect on any re-pricing
- Set up a chain discount method and define the discounting
- Set up an order line summary discount method and define the discounting