How to set-up (cost + margin) as Selling price using trade agreement in AX2012 R3.

(0) Share

Report

Posted on by Community Member

Dear All,

I have a requirement from one of my client who is using AX2012 R3. They want to define a fixed margin to their group companies. This margin is constant irrespective of item. This means, the Selling price will change for Inter company Sale based on my current inventory cost.

Let us say, the cost of the item is $100 and I want to put $75 as margin. So, my selling price is $175.00 When the cost changes to $110.00, my selling price should also changed to $185.00.

I couldn't find any option in Trade Agreement. It has an option of Price Adjustment where you can select cost price and enter a fixed margin. But this will only help you to default the calculated value to the journal lines. This never changes based on my current inventory cost

Your earliest response is highly appreciated.

Thanks

Prabhath

*This post is locked for comments

I have the same question (0)

All responses (6)

Answers (0)

Suggested answer

Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hi,

Probably take a look at the sales price models that can be setup at the product level and check whether this feature helps you. For additional details please see: technet.microsoft.com/.../aa569699.aspx

Hope it helps,

Ludwig

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Hey Ludwig,

Thanks for your prompt reply. I have tried this and stuck in two places:

a) Since it is defined at product level, I do not see any option/way of applying it by customer. Because this is applicable to group companies only.

2. The link you have provided shows 4 options (Qty, Contribution Ratio, Charges Percentage, Charges amount). But, in the system I see only Contribution Ratio, Charges Percentage?? Is there any set-up to enable this?

Was this reply helpful? Yes No
Ludwig Reinhard Microsoft Employee on at

Like (0)

Report

Hello Prabhath,

For a) I see. A possible alternative solution would be using the auto-charge functionality. Maybe try if the auto-charge feature works for you.

For b) The fourth option is not included in the sales price model field but can be setup by specifying a charge at the item level. Yet, as you mentioned this is not something you can go for.

All the best,

Ludwig

Was this reply helpful? Yes No
Abdo Khoury 14,855 on at

Like (0)

Report

Hello Prabhath

i need to setup the same thing, i have you were able to do that? can you please share if you found a way ,

thank you

Was this reply helpful? Yes No
Abdo Khoury 14,855 on at

Like (0)

Report

I need to have my selling price on certain customers to be the Unit Cost of the product + certain percentage , i checked the contribution ratio but that is on all customers since it is at the product level, but even that , i am not sure how to activate it , because the Trade agreement doesn't seem to see this option

any idea how to do it at a customer level

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Hello Silvano,

I have managed this requirement using Auto Charges functionality. I didn't use Trade Agreement journal. I wanted this for a specific group of customers (E.g., Inter-company customers). I have created an Charge Group for this and added the required customers to that.

I have created an Auto Charge code called "Inter-company Margin" with Item Level. For me, it is a fixed amount and not percentage. I chose Category as "Pcs." and specified the amount in Charge value. Pcs means, per unit. System will apply the per unit margin based on the actual quantity entered in the SO.

For inter-company SO, system will take cost. This we have a setup in the parameters. Now every time when a SO is created, system will create this auto charge in the Sales order lines. This will be the margin. I have also defined the Charge account setup to Dr Customer and Cr Ledger.

This has served my purpose... Trust this is clear to you...

Was this reply helpful? Yes No