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Buying Group or Co-Op

Posted on by 8
I am hoping someone can help.  We are transitioning to BC Dynamics 365.  We have what we call a Buy Group (Buying Group) with several, individual companies underneath this group.  These customers have special benefits by being a member of this group, but are still considered individual entities.  It could be considered akin to a co-op.  The Buy Group collects from the individual customers and then remits to us.  It is important that we bill the Buy Group, but it is not as simple as listing them as the bill to.  The bill to is still the individual customer.  It is more of a parent / child relationship.  
 
Does anyone have a similar situation / set up?  If so, can you advise how you handled this in BC Dynamics 365?
 
Thank you, 
 
Dianna
Hoyt Archery Credit and Collections Manager
 
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  • Verified answer
    Valentin Castravet Profile Picture
    Valentin Castravet 7,264 Super User on at
    Buying Group or Co-Op
    Thanks for the explanation. Out of the box i see this working two ways:
     
    1. Because the payment and the aging comes from the Buy Group - it still makes me lean towards making them the Bill-to on all documents. The reason being that when you receive the payment in Business Central it will be booked against the buy group customer. But if the individual companies are booked as the bill-to, then you have a discrepancy where the payment comes in against the guy group but it needs to be applied to the different individual customers. And with this case with the buy group as the bill-to, the individual companies will be the sell-to and you will still have some information on the posted invoices that you can use for manual analysis for incentives, price levers, and commission calculations; you will have to do the analysis based on the sell-to field. 
     
    2. Alternatively, you can group the individual customers as subs into the master buy group by using the customer numbers. You would have separate customer cards for the buy group and for each individual company, and you would number your customers to group them that way. For example, the buy group no. would be buygroup, and each individual company would be buygroup-001, buygroup-002, etc., something along those lines. This way when you run your aging or any other report/analysis, you would filter to include all customers that have 'buygroup' in their number. The problem I see with this solution is that the payment will be booked against the buy group customer, but then it must be applied to invoices booked against the individual companies. 
     
    You can use other fields on the customer card to do this grouping as well. For example, create a separate unique customer posting group for this buy group, and assign it to all subs/master. When you run any reporting, you can filter to run it for that specific customer posting group only. This can work with the Gen. Business Posting Group as well.
     
    If you have access to a developer you can also quickly add a new custom master parent field to the customer card. In this field you would select the master buy group customer on all your subs and then use this field for your grouping.
     
     
  • DD-07061716-0 Profile Picture
    DD-07061716-0 8 on at
    Buying Group or Co-Op
    I will try to describe it as best I know.  Each individual customer has to qualify for incentives, price levels and programs individually as well as credit limits.  Also, we have different sales reps for different regions and commissions are based off these individual customers.  If we combine into one bill to, the only qualifier would be the buy group.  I hope this makes sense, Valentin.  
     
    I truly appreciate your input on this issue. 
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 7,264 Super User on at
    Buying Group or Co-Op
    Can you confirm why the Buy Group can't be the bill-to if they are the ones paying you and the aging needs to be against them too?
  • DD-07061716-0 Profile Picture
    DD-07061716-0 8 on at
    Buying Group or Co-Op
    We need the Bill To and Ship To as our customer, but the aging needs to roll up to the Buy Group.  Is there a way to group these individual customers into the Master as Subs?
     
    Thank you, 
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 7,264 Super User on at
    Buying Group or Co-Op
    In Business Central sales documents you can have a different Sell-to and Bill-to. Typically these are used in parent/child relationships. In your sales document the Bill-to is the Buy Group, the Sell-to is the individual companies. 
     
     
  • S_black Profile Picture
    S_black 22 on at
    Buying Group or Co-Op
    You can bill the Buy Group and have the individual customers as the sales person in the document.
     
     
  • Martin Dráb Profile Picture
    Martin Dráb 225,610 Super User on at
    Buying Group or Co-Op
    Moved from D365 general forum to Business Central forum.

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