Cost Plus Pricing in Microsoft Dynamics 365
Dynamics 365 Finance and Supply Chain can allow for certain cost plus pricing with vendors and customers via trade agreements. Trade agreements is the most common method in Dynamics to apply pricing discounts or markups and can be used in multiple ways. This blog will discuss using the cost price as the basis for trade agreements.
First, lets make sure the setup is correct first.
Product Information Management > Products > Released Products
Select an item and expand the managed cost fast tab. Set the latest cost price to yes. This will enable the cost price to change based on the latest receipt of the item.
Next, let’s go create a PO, receive and invoice it, since this is the trigger for using the latest cost price.
Now, go back to the Trade agreement setup on the Item.
Product Information Management > Products > Released Products
Expand the manage costs fast tab and hit refresh. The price will change to the price and date of the PO that you just invoiced.
Navigate to the Sell tab and select View Trade agreements.
View trade agreements, edit the journal line and select adjustment cost price amount, OK
(You can also adjust the cost price by a percentage amount as well).
POST Journal and note that the trade agreement journal is now adjusted.
Create a sales order for the same item it will use the newly adjusted pricing that includes the cost price and the amount adjusted in the trade agreement journal.
This is how you can accomplish cost plus pricing using trade agreements in Dynamics. It is possible to do this for several items at once and using a more custom markup calculation and we can show you how! Click on the link below to contact an expert at Ellipse Solutions today to get your project started.