I got stuck while creating a Purchase Invoice when I noticed Total and Net total.
The sum of all amount from 3 items is in total but the net total seems to be a little less than total.
I tried to explore and find where that difference is coming from and found this in item details.
I understand Price list rate is the base price or marked price of an item/default rate. The rate is the actual rate offered to a specific PO/customer, etc.
I believe the discount is adjusted to accommodate the change in price list rate and actual rate.
I am not able to understand the use of net rate and how it is calculated.
The net rate in ERPNext is the actual rate of an item after any discounts or markups have been applied. It is calculated by taking the rate of the item and adjusting it based on any discounts or markups applied to that item. The net total is the sum of all net rates for all items in the invoice.
Hope this help’s you.
I had supposed the same. But it is really hard to understand.
Here, price list rate is 138.5. But offered rate is 131.5. which is applied to this transaction.
Now no further discount is applied. But the system has calculated net rate to be 131.41. Where did this 131.41 come from ?