Understanding Line Amount Calculation Methods
Line Amount Calculation in Dynamics 365 Business Central
In Dynamics 365 Business Central, the Line Amount is typically calculated using the following formula:
Line Amount = Unit Price Excl. VAT × Quantity × (1 - Discount %)
This calculation works well when the Sales Price Unit of Measure matches the Sales Unit of Measure. However, if the Sales Price Unit of Measure is defined using the Base Unit of Measure, rounding differences may occur. These discrepancies can become problematic in EDI scenarios where strict consistency checks are enforced.
Example Scenario
Item Setup
- Base Unit of Measure: PCS
- Sales Unit of Measure: BOX
- Conversion: 1 BOX = 9 PCS
- Sales Price: 10 (per PCS)
- Customer Discount: 4.85%
Sales Order Line
A sales order line is created with a quantity of 10 BOX.
| Quantity | Unit of Measure | Unit Price Excl. VAT | Line Discount % | Net Unit Price | Line Amount | Quantity (Base) | Sales Price UoM | Net Unit Price (Sales Price UoM) |
|---|---|---|---|---|---|---|---|---|
| 10 | BOX | 90 | 4.85% | 57.09 | 570.90 | 900 | PCS | 6.343 |
Consistency Check
To verify consistency between Net Unit Price and Line Amount:
6.343 × 900 = 570.87
Expected Line Amount = 570.90
Discrepancy = 0.03
This small difference can trigger validation errors in systems requiring exact matches.
Net Unit Price Calculation Method
To address this issue, Advanced Price Management introduces the Net Unit Price Calculation Method (to be setup in sales & Receivable Setup). This method modifies the standard calculation to ensure consistency when communicating prices to customers.
Adjusted Formula
Line Amount = Net Unit Price (Sales Price UoM) × Quantity × Qty. per Unit
This approach ensures that the Line Amount aligns precisely with the Net Unit Price, especially in scenarios involving Base Unit of Measure pricing.