"How Total Discount % Works in D365 Sales Orders | Setup + Posting Explained"

Total Discount % in D365 Sales Orders

In Microsoft Dynamics 365 Finance & Operations (D365 F&O), the Total Discount % is a manual percentage-based discount that applies to the entire sales order amount, not just to individual lines. It reduces the total value of the sales order based on the percentage you specify and is automatically distributed proportionally to each sales line.

Setup for Total Discount % in D365 F&O

Accounts receivable > Setup > Accounts receivable parameters > Prices tab

Enable Total Discount

• Go to Accounts receivable parameters.
• Under the Prices tab, ensure:  Enable total discount is checked.  Optionally, you can also configure discount posting settings if needed for GL impact.

 Process to Apply Total Discount %

Step-by-Step:

1. Create a Sales Order Go to: Accounts receivable > Orders > All sales orders Click New, choose a customer, and click OK. Add sales order lines (items, quantity, prices).
2. Go to Totals Switch to the Header view of the sales order. Navigate to the Sales order tab > Setup group. Click on the Totals button.
3. Apply Total Discount % In the Totals form, you’ll see the Total discount % field. Enter the desired percentage (e.g., 5 for 5%). D365 will automatically: Calculate the discount value. Deduct it from the order total. Allocate it proportionally across all order lines.
4. Click OK The total discount % is now applied. Line amounts are updated accordingly.

 Example

Let’s say you create a sales order with the following lines:

Key Features of Total Discount %

• Applied at header level, not per line.
• Works with or without line-level discounts.
• Manual entry — not part of automatic trade agreements.
• Discount is visible and can be audited.
• Can be changed until invoice is posted.

Notes :

• Use Total Discount % when offering overall order-level discounts (e.g., for loyal customers or promotions).
• Combine with line discounts if needed — D365 handles both.
• Keep an eye on financial dimensions or reasons for better reporting and traceability.

 View the Total Discount

In D365 Finance & Operations, when you apply a Total Discount % or a Total Discount amount at the sales order header, the system automatically distributes that discount proportionally across the sales order lines.

Steps to View Total Discount

From the Totals Form, you can also estimate the distributed discount using:

1. Click the “Totals” button at the header level.
2. Note the Total discount amount.

Notes

• Total Discount per line is not shown in the main grid by default.
• You can personalize the form or add the field using "Personalize this form" to make Total discount visible in the line grid.
• Total Discount % and amount are always stored and posted, and are visible in invoices and reports too.

Does Total Discount Require a Main Account?

Yes — if you are posting the total discount separately, you need to configure a ledger account for it.

Where to Set It Up

Path: Accounts receivable > Setup > Posting > Posting profiles

1. Open Customer posting profiles.
2. Select or create a profile.
3. Go to the "Set up" or "Sales order" tab.
4. Check for these fields:

Revenue                         Main account for sales revenue.

Customer balance         Receivables control account.

Discount (Total discount)  Optional: Separate account to post total discount (if not netting against revenue).