Dynamics Community Forum Thread Details

Exploring pricing management

Hello Experts

Business requirement - The system should maintain the MRP, discount percentage and margin (commission) percentage for the applicable items. When a user creates a sales order line for one of these items, the system should calculate the Billing Value automatically using the logic below and populate the unit price on the line without manual intervention. Items not set up for this logic should continue to use standard pricing.

Calculation Logic :-

Step	Particulars	Calculation	Example
1	MRP	Maintained per item	4,049
2	Discount	MRP × Discount % (55%)	2,227
3	Discounted MRP (DMRP)	MRP − Discount	1,822
4	Output GST (included in DMRP)	If DMRP ≥ 2,625: DMRP ÷ 1.18 × 18%; otherwise DMRP ÷ 1.05 × 5%	87
5	Commission / Margin	DMRP × Commission % (see rule below)	638
6	Base Billing Value	DMRP − Output GST − Commission	1,098
7	Billing Tax	If Base Billing ≥ 2,500: 18%; otherwise 5%	55
8	Billing Value	Base Billing + Billing Tax	1,152

Commission rule: 35% if DMRP is below 1,049; 40.95% otherwise.

Expected Outcome - The Base Billing Value (Step 6) is to be populated on the sales order line.

I am currently exploring pricing management in D365 F&O for this requirement, I am thinking to define Discount, Output GST (included in DMRP) & Commission / Margin as Margin component for price adjustments.

Here i am seeking guidance if any one have seen this king of requirement, as this is a common requirement when a business is selling to a distributer, If yes so how you catered the same?

Regards

Aayush Tiwari

Categories:

Dynamics 365 Finance

Hi Aayush,

Standard Trade agreements / margin components won't handle this, they can't do conditional, multi-step formulas like your GST bracket (18%/5%) and tiered commission (35%/40.95%).

Suggested approach

Store MRP, Discount %, and commission tiers in a custom table keyed by ItemId.

Build a custom pricing calculation class implementing your exact step-by-step logic.

Hook it via an event handler on SalesLine (on ItemId/Qty change) to override SalesPrice with the computed Base Billing Value.

If the item isn't in your custom setup table, skip the override and let standard pricing apply covers your fallback requirement.

This pattern (custom table + calc class + event handler) is common for distributor/MRP-based pricing in this kind of GST-threshold scenario, since trade agreements alone can't express conditional formulas like this.

Thanks

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