Recapitulación

In addition to the base sales price, which you can enter directly in the released product form, trade agreements provide the option to manage multiple price lists and discount agreements.

4.3.2.1 Base Sales Prices

The base sales price shows on the tab Sell of the released product form.

Dynamics AX can automatically update this price based upon the purchase price or the cost price. The field group Price update of the tab Sell contains settings for this price calculation, including the lookup field Base price which provides two options:

 Purchase price – Sales price based on the base purchase price (tab Purchase)

 Cost – Sales price based on the base cost price (tab Manage costs)

The Sales price model specifies, if the price calculation refers to the field Contribution ratio or to the field Charges percentage. The Sales price model “None” means that there is no automatic calculation of the base sales price.

The other settings related to the base sales price (including price unit and price charges) are similar to the base purchase price settings (see section 3.3.3).

In addition to the base sales price on the tab Sell of the released product form, base prices are available at site level in the item price form. In order to access the item price form, click the button MANAGE COSTS/Set up/Item price in the released

product. For manufactured items you can run a calculation of sales prices in the item price form based upon the bill of materials and the route (See section 7.3.3).

4.3.2.2 Discount Groups

Apart from the Base sales price, the tab Sell in the released product form also contains item discount groups for line discount and multiline discount.

Another kind of discounts are total discounts (invoice discounts), which are specified independently from items at order header level. In the released product form, you can exclude particular products from the basis of total discount calculation by setting the slider Total discount on the tab Sell to “No”.

In the customer form, the tab Sales order defaults contains the price groups and discount groups (line discount, multiline discount).

4.3.2.3 Structure of Trade Agreements

Trade agreements in sales determine prices and discounts depending on customers and items (released products). Dynamics AX includes the following types of trade agreements for this purpose:

 Sales prices

 Line discounts

 Multiline discounts

 Total discounts (Invoice discounts)

Section 3.3.3 contains a description of price trade agreements on the example of purchase prices. In addition to the options available in purchasing, the sales trade agreements include the option to apply a Generic currency and an Exchange rate type specified in the accounts receivable parameters (Accounts receivable> Setup>

Accounts receivable parameters, tab Prices). If a generic currency is specified, prices in trade agreements in this currency (if the slider Include in generic currency in the agreement line is set to “Yes”) are automatically converted to other currencies if there is no other applicable trade agreement when entering a sales order line.

In the order management, you can assign discounts to the header and to the lines:

 Line and multiline discounts – Assigned to order lines

 Total discounts – Assigned to order headers

Discount and price trade agreements can refer to different pricing levels. You can for example enter a price agreement for an individual customer, for a customer discount group, or for all customers.

Line discount agreements can – in addition to the customer dimension – refer to the item dimension: Individual item, item discount group, or all items. Table 4-1 shows the different levels of line discount agreements in the dimension item and customer.

Table 4-1: Discount specification levels for line discounts

Item number Item discount group All items

Customer number X X X

Customer discount group X X X

All customers X X X

As a result, you can enter a line discount agreement for a particular item and a particular customer, and another agreement for an item discount group and all customers.

For multiline discounts, the same principle applies except that you can’t enter a multiline discount for an item number.

Trade agreements for prices and trade agreements for total discounts have only got one dimension. Prices are specified per item, which restricts the item dimension to

“Item number”. Total discounts apply at order header level, which restricts the item dimension to “All items”.

4.3.2.4 Managing Line Discount Agreements

In order to view sales line discounts, you can access the line discounts from different menu items depending on the basis of the discount:

 For an item (including the line discount group of the item) – In the released product form, click the button SELL/View/Line discount

 For a customer (including the line discount group of the customer) – In the customer form, click the button SELL/Trade agreements/Discounts/Line discount

 For an item discount group – In the item discount group form (Sales and marketing> Prices and discounts> Item discount groups), click the button TRADE AGREEMENTS/Sales/View line discount

 For a customer discount group – In the customer price/discount group form (Sales and marketing> Prices and discounts> Customer price/discount groups), select the option “Line discount group” in the lookup Show and click the button TRADE AGREEMENTS/Sales/View line discount

When working in line discount agreements, be aware that the column Discount shows a discount amount. The discount percentage 1 shows in a separate column and in the footer pane of the form. The discount percentage 2 only shows in the footer pane.

Another important setting for discount calculation is the column Find next in the discounts form. The checkbox there should only be selected for discounts, which apply in addition to discounts entered at another level. In the example of trade agreements shown in Figure 4-7, the discount in a sales order line with a quantity of 100 units (or more) would be 17 percent, if the checkbox Find next was marked for the 12 percent discount line and if the item is assigned to the item discount group with a discount of 5 percent in the other agreement line.

Figure 4-7: Viewing line discounts for a customer discount group

Like registering a new price agreement (see section 3.3.3), registering a new sales line discount agreement requires to enter and to post a trade agreement journal (Sales and marketing> Prices and discounts> Trade agreement journals). After creating a journal by clicking the button New in the agreement journal header, click the button Lines in the action pane to access the journal lines.

When registering a sales line discount in an agreement journal line, make sure to select “Line discount (Sales)” in the column Relation. Line discount agreements (similar to price agreements) include following fields:

 Period of validity – From date and To date, referring to order entry or delivery (controlled by the Date type on the tab Prices in accounts receivable parameters)

 Quantity – Column From and To (for quantity-dependent discounts)

 Unit of measure – Column Unit

 Currency – Currency, for which the discount applies

 Customer dimension – Column Account code and Account selection (Individual customer, customer group, or all customers)

 Item dimension – Column Item code and Item relation – Individual item, item discount group, or all items

When entering line discounts, you have to keep in mind that discount percentages show in the footer pane of the journal lines.

If you want to enter line discounts at inventory dimension level (e.g. per site or color) and the appropriate dimension column does not show, click the button Inventory/Display dimensions in the action pane and select the appropriate dimension. As a prerequisite, the dimension group of the particular item has to include the selected dimension in the price search.

Once you have finished entering the line discounts in the agreement journal, click the button Post to activate the agreement.

If you want to update or to delete an active trade agreement, access the trade agreement inquiry form and select the agreement before clicking the button Edit selected lines. Like when updating purchase prices (see section 3.3.3), the update or deletion is posted through a new journal which is linked to the selected agreement.

4.3.2.5 Managing Multiline Discounts and Total Discounts

Whereas the line discount calculation is based upon individual order lines, multiline discount calculation includes all lines of a sales order with items which contain the same multiline discount group. You can use multiline discounts, if you want to grant a discount based upon the total quantity of different items. Multiline discount administration works similar to line discount administration.

Unlike line discounts, total discounts (invoice discounts) are not based upon items or item groups. Total discounts refer to a complete invoice and provide the option to enter a discount based upon the invoice total.

4.3.2.6 Required Setup for Prices and Discounts

As a prerequisite for creating trade agreements, set up at least one trade agreement journal name (Procurement and sourcing> Setup> Prices and discounts> Trade agreement journal names, also containing purchase trade agreement journal names).

If you want to use trade agreements at group level, you have to create appropriate price and discount groups and assign them to customers and/or released products.

Trade agreements are only used in price and discount calculation, if appropriate combinations in the price/discount activation (Sales and marketing> Setup> Prices and discounts> Activate price/discount) are selected.

Within the activated elements, discount calculation searches from the specific definition to the general – first the customer and item number level, then the group level, and finally the general discount level. Depending on the setting in the checkbox Find next of the selected trade agreements, only one discount or the total of discounts at multiple levels applies to a particular order line.

If line discount and multiline discount apply to a particular sales order line in parallel, a setting in the accounts receivable parameters (field Discount on the tab Prices) controls how to calculate the total of line and multiline discount.

4.3.2.7 Ledger Integration

Since discounts have an impact on finance, Dynamics AX includes discount posting in ledger transactions. Relating to ledger transactions and sales revenue calculation, you have to distinguish between line and multiline discounts on the one hand and total discounts on the other hand.

Line and multiline discounts are included in item revenue calculation, therefore reducing revenue and gross margin. Settings for the ledger integration of line and multiline discounts provide the option to either reduce the amount posted to

revenue accounts, or to post the discount to separate accounts. Dynamics AX posts to separate accounts, if the inventory posting setup (see section 9.4.2) contains appropriate main accounts (Inventory management> Setup> Posting> Posting, tab Sales order, option Discount).

Unlike line and multiline discounts, total discounts do not reduce the revenue at item level. In addition, it is not possible to post total discounts to different main accounts. The account number for total discount transactions is specified in the accounts for automatic transaction (General ledger> Posting setup> Accounts for automatic transactions), where a line for the posting type “Customer invoice discount” contains the appropriate main account.

4.3.3 Case Study Exercises