Understanding Purchase & trade agreements in D365 – Part 4

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 Part 3 blog we have covered setup of Trade agreement for purchase price & line discount.

In this blog will go through how to setup Trade agreement line discount for quantity range & find next functionality in trade agreement.

Problem statement –

In this scenario we need to setup trade agreements for quantity range & Find next functionality.

Solution steps –

1 – Will setup trade agreement for Line discount for Quantity range

1.1 As discussed in previous blog (Part 3) point no. 2.1, 2.2 & 2.3 we have already created Trade agreement journal names & enabled parameters hence we can use same for this blog.

For those who have not gone through blog part 3 can follow below steps

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

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

& 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 supplier (based on vendor group) then need to enable this parameter. Item parameter Yes for All vendors means if item has same price for all suppliers then need to enable this parameter.

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

Create new journal – Name -> Pur Disc (Created in step 1.1) -> click on Lines to add details

1.3 Enter line details.  Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000012 -> From -> 1 -> To -> 101 -> Unit -> Pcs -> Discount percentage 1 -> 5. Kindly note that, discount will be applicable to range excluding last number. In this case it will be excluding 101.

1.4 Then add lines as per range required Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000012 -> From -> 101 -> To -> 501 -> Unit -> Pcs -> Discount percentage 1 -> 10.

Party code type -> Table -> Account selection -> VEN-000001 -> Product code type -> Table -> Item relation -> P-000012 -> From -> 501 -> To -> 1001 -> Unit -> Pcs -> Discount percentage 1 -> 15

Then validate & post.

1.5 Then create new purchase order with respective vendor (In this case VEN-000001) for respective item (In this case P-000012) discount % will be reflected as defined in Trade agreement. As per above Trade agreement, if quantity is within 1-100 then discount will be 5%.

As per above Trade agreement, if quantity is within 101-500 then discount will be 10%.

2 – Will setup trade agreement for Line discount with Next flag enabled

2.1 When we have trade journal with multiple scenarios for same item, “Find next” flag checks the all the applicable scenarios defined in trade agreement. When “Find next” flag is disabled then system checks & use discount with highest level of details.

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

Create new journal – Name -> Pur Disc (Created in step 1.1) -> click on Lines to add details

2.2 Enter line details.  Party code type -> Table -> Account selection -> VEN-000002 -> Product code type -> Table -> Item relation -> P-000009 -> Unit -> Pcs -> Discount percentage 1 -> 5 -> Find next -> Yes

Party code type -> Table -> Account selection -> VEN-000002 -> Product code type -> Table -> Item relation -> P-000009 -> From -> 101 -> To -> 501 -> Unit -> Pcs -> Discount percentage 1 -> 10 -> Find next -> Yes

Party code type -> Table -> Account selection -> VEN-000002 -> Product code type -> Table -> Item relation -> P-000009 -> From -> 501 -> To -> 1001 -> Unit -> Pcs -> Discount percentage 1 -> 15 -> Find next -> Yes

2.3 Now if Find next parameter is Disable & then if we create PO with quantity 50 then disc will be 5%, quantity 150 then also discount 5% (even though we have given disc of 10% for 101-501) It is because Find next parameter is turned off, so system search for best fit price. Since in 1st line, quantity is not mentioned it is best fit line for all quantities & hence only applies 5% disc.

2.4 Now if we enable Find next parameters in all 3 lines & then if we create PO with quantity 50 then discount will be 5%, quantity 150 then discount 15% (as we have defined discount of 10% for 101-501 & 5% for all quantity) So system finds 2 best possible discounts hence added the same. If quantity 700 then discount 20% & If quantity 1050 then Discount 5%, as we have defined additional discount till quantity 1000.

In this blog we completed how to setup of trade agreement line discount for quantity range & next flag. In next blog (Part 5) will cover Multiline discount & Total discount.

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