Understanding Purchase & trade agreements in D365 – Part 3

Introduction

In Purchase & trade agreements in D365 – Part 1 & 2 blog we have gone through overview of Purchase & trade agreements in D365 & how to setup different types of Purchase agreements in D365.

In this blog will go through how to setup Trade agreement for Purchase price & how to setup different types of Trade agreement of line discount in D365. i.e. Fixed amount, percentage discount or for quantity range.

Problem statement –

In this scenario we need to setup different types of trade agreements for vendor.

Solution steps –

1 – Will setup trade agreement for purchase price

1.1 Create Trade agreement journal names – Go to Procurement & Sourcing -> Setup -> Prices & discounts -> Trade agreement journal names

1.2 New -> Name -> Pur Price -> Description -> Purchase price Trade agreement -> Relation -> Price (purch.) -> Save.

1.3 Enable parameters – Go to Procurement & sourcing -> Setup -> Prices & discounts -> Activate price/discount

1.4 Enable all parameters for Price. Item parameter Yes for Vendor means It is to enable price for specific vendor for specific Item. Item parameter Yes for Vendor group means if price is same for item for group of suppliers (based on vendor group) then need to enable this parameter. Item parameter Yes for All vendors means if item has same prices for all suppliers then need to enable this parameter.

1.5 Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals

1.6 Create new journal – Name -> Pur price (Created in step 1.2) -> click on Lines to add details

1.7 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000009 -> Unit -> Pcs -> Amount in currency -> 3000 -> Save.

1.8 Validate -> Validate all lines

1.9 Post.

1.10 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000009). Purchase price will be reflected as per set in Trade agreement.

2 – Will setup trade agreement for Line discount for Fixed amount

2.1 Create Trade agreement journal names – Go to Procurement & Sourcing -> Setup -> Prices & discounts -> Trade agreement journal names

2.2 New -> Name -> Pur Disc -> Description -> Purchase discount -> Relation -> Line disc. (purch.) -> Save.

2.3 Enable parameters – Go to Procurement & sourcing -> Setup -> Prices & discounts -> Activate price/discount

Enable all parameters for Price. Item parameter Yes for Vendor means It is to enable price for specific vendor for specific Item. Item parameter Yes for Vendor group means if price is same for item for group of suppliers (based on vendor group) then need to enable this parameter. Item parameter Yes for All vendors means if item has same prices for all suppliers, then need to enable this parameter.

2.4 Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals

Create new journal – Name -> Pur Disc (Created in step 2.2) -> click on Lines to add details

2.5 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000009 -> Unit -> Pcs -> Amount in currency -> 100 -> Save.

2.6 Then validate & post the journal.

2.7 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000009) discount will be reflected as defined in Trade agreement.

3 – Will setup trade agreement for Line discount for discount %

3.1 As we have created already journal name & enabled parameters in solution 2, we can directly create journal.

Create trade agreement journal. Go to Procurement & Sourcing -> Prices & discounts -> Trade agreement journals

Create new journal – Name -> Pur Disc (Created in step 2.2) -> click on Lines to add details

3.2 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000010 -> Unit -> Pcs -> Discount percentage 1 -> 10 -> Save. Then validate & post.

3.3 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000010) discount % will be reflected as defined in Trade agreement.

3.4 There is one more field available at Trade journal Discount percentage 2. Define Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000011 -> Unit -> Pcs -> Discount percentage 1 -> 10 -> Discount percentage 2 -> 5 -> Save. Then validate & post.

If both Discount percentage 1 & 2 is defined, then on Purchase value 1st discount in field 1 is applied & then on that value % of field 2 is applied. i.e. if amount 100 & disc 1 -10 & disc 2 – 5 then final % will be 100*.1=90*.05=85.5 so total discount will be 14.5%)

3.5 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000011) discount will be reflected as defined in Trade agreement.

In this blog we completed how to setup Trade agreement for Purchase price & line discount fixed amount & discount percentage. In next blog (Part 4) will cover setup of trade agreement line discount for quantity range & next flag.

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