web
You’re offline. This is a read only version of the page.
close
Skip to main content

Announcements

🚀 Season of Sharing Community Challenge Launch!
Ask A Community Pro
Introducing our New Video Series: Community Spotlight
News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Trade agreements
Microsoft Dynamics AX (Archived)

Trade agreements

(0) ShareShare
ReportReport
Posted on by Sahar Saqeb Microsoft Employee

Does anyone know of any good white papers that have been written (apart from the microsoft manuals) on trade agreements, and how these are used and set up in AX v4.0?

 

I have read the manual on trade agreements - however am finding it difficult to understand how these are set up. There seems to be more than one way for each method.

*Price discounts

*Line Discounts

*Multi line discounts

*Total Discounts

The fact that there are so many methods in creating these is confusing me. Can someone help point me in the right direction for a better manual please? or better still inform me in the standard practice for trade agreements and how these can be set up in the easiest way possible?

Ta

Sahar

*This post is locked for comments

I have the same question (0)
  • GeorgeC Profile Picture
    GeorgeC 1,865 on at

    Hello Sahar,

    Let me try to give you an overview.

    Price discounts - not actually discounts. You can specify a price but not a discount (neither a percentage discount, nor an amount discount). Use Price agreemens to enter any prices you may have on price lists for individual customers, groups of customers or all customers. You can set up different prices depending on quantity ordered as well. DAX puts the price from this type of agreement into the Unit price field on the Sales order. This is the starting point for calculating the final price for the customer.

    Line discounts - here you specify discounts as percentage or as an amount. The discount is applied to the Unit price, i.e. the price from the Price agreement above. You can also set up different discounts depending on quantity ordered. With this type of trade agreement DAX only takes into account the quantity ordered on a single sales order line. Example - I sell Coke, Sprite and Fanta and I want to give my customer a 10% discount if they buy 3 bottles of one product(I give athe discount when they buy 3 bottles of Sprite or 3 bottles of Fanta but I won't give the discount when they buy  2 bottles of Sprite and 1 Fanta).

    Multi line discount - similar to Line discounts. The difference is DAX takes into account all eligible lines from the ame sales order. So you can set up discounts for quantity based on the total ordered quantity of several items - you cannot do that with the Line discounts. Example - I sell Coke, Sprite and Fanta and I want to give my customer a 10% discount if they buy 3 bottles (I don't care if they buy 2 bottles of Sprite and 1 Fanta or 3 bottles of Sprite only, I still give them the discount).

    You can combine Line and Multiline discounts - look at the Discount setting in Account receivable -> Setup -. Parameters -> Prices tab.

    Total discount - use it to specify one discount for the whole sales order. It is applied to the total amount of the sales order. Use it when you want to give a discount depending on the amount of the sales order and not on the quantity of items ordered. Line and Multiline discount take into account the quantity, Total discounts take into account the amount (the criteria for applying a discount). Another important difference is that with Line and Multiline discounts you can callculate the margin for each sales order line. The total discount can be used to calculate the margin on the sales order header only, it cannnot be broken down into the lines.

    Pay attention to currency issues as well. Trade agreements are always tied to a certain currency. So if you set up a trade agreement in USD for a customer usually placing orders in USD you will get a problem if the customer tries to place a sales order in EUR - they will not get the price/discount from the trade agreement.

    Good luck, 

    George

     

     

  • Sahar Saqeb Profile Picture
    Sahar Saqeb Microsoft Employee on at

    Hi George

     Thanks for the overview. I appreciate the time to explain the different trade agreements.

     My only concern here is that the microsoft manual doesnt go into detail in explaining how the trade agreements work - and setting them up for different scenarios. Would you know of a manual or white paper that has been written purely to explain how trade agreements work in more detail?

     I understand how the different types of trade agreements work in terms of high level definitions but not sure how they can be implemented in AX.

     

    Your help greatly apprecaited

     Regards

    Sahar

  • Christopher Ironmonger Profile Picture
    Christopher Ironmonger 110 on at

    They are implemented automatically by PO/SO's and/or master planning.

    If you have a qualityfing trade agreement the PO or SO should prompt you to accept the trade agreement being auto-inputted into your PO/SO line. Or if your AP/AR paramters aren't setup for prompts it will simply enter it on the line.

    Master scheduling if selected to look at trade agreements within the setup will look for the best trade agreement based on price or lead time again dependant on setup.

    One point to note however is that in 4.0 (i'm not sure if this has changed in later versions) only uses trade agreements for items that have a default vendor supplied on their item record. Thus is vendor 0001 was selected master planning would only look at trade agreements for this vendor which renders it pretty useless IMHO.

  • mdl Profile Picture
    mdl 5 on at

    Dear all

    Does anyone know how trade agreement can run on PR in AX 2009.

    Cause i already setup trade aggreement and can well done in PO but when i try to create PR trade agreement doesnt work

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

News and Announcements

🚀 Season of Sharing Community Challenge Launch!
Ask A Community Pro
Introducing our New Video Series: Community Spotlight

Quick Links

Season of Sharing Community Challenge Launch!

Jump in, show your community spirit, and win prizes!

Women in Power Builds Momentum

Expanding mentorship, skilling, and AI innovation

Congratulations to the April Top 10 Community Leaders

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics AX (Archived)

#1
CP04-islander Profile Picture

CP04-islander 21

#2
dekion Profile Picture

dekion 4

#2
Virginia99 Profile Picture

Virginia99 4

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans