The Spider Web of Service Agreement Sales Price for Dynamics 365 Made Easier

Get a little confused when thinking about the best way to set up Sales Prices for Service Agreements?  Want to make sure invoices are going out with a high level of first-pass accuracy?  Would like to reduce the number of pricing adjustments and increase customer satisfaction?  Want to make price increase time a little easier?

There are many paths to creating and managing Sales Prices in Dynamics AX.  But before any Sales Price information is entered, thought must be given to the approach to be taken.  An understanding of price strategy is critical to insure Sales price is accurate when invoicing the customer.  Pricing can be very generic or can get very specific down to the transaction type, project, category and worker if required.

Pricing will be applied to transactions based on searching the Sales Price tables, by transaction type using priority logic.  Since the pricing can be conditional, the price applied will be the price found that meets the most conditions or criteria.  Currency is the most powerful criteria or condition.  Currency must be a match.  Effective date is also a condition.  If the price record found is expired, it will be bypassed in the search.  It is a good idea to always set up basic default pricing for each transaction type by entering “All” pricing, to be demonstrated below, so every transaction will have some Sales Price applied.

Where the data is entered, determines the criteria automatically assigned to the Sale Price.  But regardless of where the Sales Prices are entered, the data is stored in one place. The criteria for Sales Price, in addition to date and currency, is Project, Category, and Worker.  Once the criteria are used to select a Sales Price, the Sales Price amounts entered will be interpreted and applied based on the Sales Price Model identified for hours and expenses.

• Quantity (Qty) – Sales Price per quantity
• Contribution Ratio – Contribution Ratio as percentage of Sales Price
• Charges Pct – Cost Price plus Markup percentage
• Charges Amount – Cost Price plus Markup amount

It is not necessary to use a Sales Price Model for Subscription and Fee Sales Prices.

Item Sales Pricing is set up in Inventory Management (i.e. price groups) and/or Sales and Marketing.

The ability to set up Project transaction pricing has been available in AX 2009 and AX 2012.  The functionality has evolved from version to version to account for terminology updates and functionality adds, such as Subscriptions.

Project Management Sales Pricing

Sales Price for the Transaction Types of Hours, Fees and Expenses can be set up in the Project Management and Accounting module.  Navigate to Project Management and Accounting > Setup > Prices to find:

• Sales price (hour)
• Sales price (expense)
• Sales price (fee)
• Sales price (subscription)

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