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Still learning AX 2012. I was wondering what kind of benefits there are to using trade agreements. Who would use trade agreements or why would a company use them?
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Any company that is given a price list by a supplier or offers price lists to customers or groups of customers.
In addition you can create price breaks, put automatic discounts, make the prices date based all to add additional flexibility to your pricing and to reflect the pricing offerings of your suppliers.
They're really helpful for price management. We have several customers who consistently get an across the board discount, some who get price breaks on volume orders, etc. Also trade agreements help when "specials" are running as you can setup for ALL applicable to certain items and input the discount or specific price. There is a ton of functionality and versatility with trade agreements.
Trade agreements also help MRP to find a vendor for a planned purchase order. If you want to always buy from the same vendor, then you can set it up as a default vendor on the item master on in item coverage. But if you are working with several vendors for the same item, then you set up a trade agreement with each vendor and let AX pick a vendor based on best price or lead time.
You can also use trade agreements in combination with purchase agreements for even more flexibility in terms of quantity limits and traceability by agreement.
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