Dynamics 365 for Finance and Operations Sales Agreements, Part 1: Setting up an agreement

With Dynamics AX 2012, Microsoft introduced Sales and Purchase agreements. In previous versions we were only able to work with simple trade agreement (prices and discounts), but we are now able to work with specific contracts based on volume or a financial commitment.

In this three-part series, I will be taking a look at how to work with Sales agreements. The series is divided into three parts:

• Part 1: Setting up agreements (this post).
• Part 2: Working with agreements in the sales order process.
• Part 3: Following-up on agreements.

Setting up a Sales agreement

To set up a new Sales agreement go to Sales and marketing / Sales agreements / Sales agreements. Click on New in the ribbon to create a new agreement.

Firstly, you must select a customer for the agreement and classify the agreement in the Sales agreement classification field. This field is used to group agreements together.

Now, when you open the General fast tab, a number of new fields become available.

In the Customer reference field you can enter the customer’s agreement reference number, if applicable.

The system automatically fills in the Currency field with the default currency associated with the selected customer. However, this can be overridden for the specific agreement.

In the Default validity period you can enter the period in which the contract is active.

You can enter a title for the agreement in the Document title field and a reference to an external document (the contract) in the External document reference field.

In the Default commitment field, you select what the agreement is for. You have the following options:

• Product quantity = The agreement is for a specific quantity of a specific product.
• Product value = The agreement is for a financial value of a specific product.
• Product category value = The agreement is for a financial value of products within a specific category.
• Value = The agreement is for a financial value across all products.

In my example, I create an agreement with a commitment for a specific quantity of a specific product (Product quantity commitment).

Lastly, if the agreement relates to a specific project, you can select the project in the Project ID field.

Once the agreement header has been created, agreement lines can be added by clicking on the

button on the Sales agreement lines fast tab.

As the below example shows, I have now added a line to the agreement for 500 pieces of product number 1000, The Surface Pro 128 GB. In this case, the agreement is set up for Site 1. You can use the inventory dimensions to create specific agreements across, for instance, Site and Warehouse to allow for high granularity in how you manage the supply chain.

In the Line details fast tab, it is possible to add further details to the line. An important option is Max is enforced. This determines whether a user can exceed the agreed volume when creating a sales order. If set, as in the below example, the agreed volume cannot be exceeded.

As you can see from the above screenshot, the agreement is still on hold and cannot be used for transactions until it has been confirmed using the Confirmation option in the ribbon. Once the agreement has been confirmed it changes status to Effective and becomes available for transactions.

In the below example, I have used Value commitment for the agreement instead. As you can see, when a line is added to the agreement, I am only able to enter a Net amount, which represents the financial commitment across all products.

This completes the set up of a Sales agreement in D365FO. In my next post, I will be looking at how to create sales order based on the Sales agreement.

Please note, in this post I have only been showing Sales agreements. The Purchase agreement is a mirror of the Sales agreement, so I will not be showing any Purchase agreement examples.

Microsoft’s documentation for Sales agreements is available here.