Dynamic Tariffs within the World of D365

Tariff management is a critical aspect of pricing strategy, especially for businesses that operate across legal entities, industries, or customer segments. In Microsoft Dynamics 365, the ability to dynamically configure and adjust tariffs grants organizations to respond quickly to market adjustments, customer agreements, or regulatory requirements. This blog explores how D365’s flexible tariff configuration using such functionality as price groups, trade agreements and attribute based pricing, sales charges, and even complete modules—can help dynamically make price updates, lessen manual effort, and maintain consistency across your tariff demands.

Sales Charges

Microsoft Dynamics 365 offers a powerful way to manage tariffs and fluctuations using Sales Charges—this allows organizations to automatically apply additional fees based on criteria such as customer, item, delivery terms, or regions. Sales Charges in D365 enables you to implement and update these tariff cost adjustments dynamically without the need to manually revise base pricing structures.

1. Define Charge Codes
   1. Accounts receivable > Charges setup > Charges code
      1. Click New
      1. Enter a Charge code (e.g., FREIGHT)
      1. Provide a Description
      1. Select the Module: Sales
      1. Choose Item sales tax group (if tax applies)
      1. Under Posting, define how the charge will be accounted (e.g., Ledger account)

• Assign charges
  • Sales and marketing > Sales orders > All sales orders
    • Open a sales order
    • Go to Sell > Charges
    • Select Header or Line
    • Click Add
    • Select Charges code
    • Enter Amount or %
    • Confirm details and click OK

You can also leverage charge groups to automate the process and make configuration easier.

Trade Agreements and Attribute Based Pricing

In Microsoft Dynamics 365, you can combine Attribute-based pricing with Trade Agreements to create flexible, dynamic pricing models tailored to product characteristics. This can be another way to implement tariffs based on agreement and attributes configuration.

1. Define attribute-based pricing details
   1. Procurement and sourcing > Setup > Prices and discounts > Attribute-based pricing
      1. Click New and Add Attribute based pricing ID and name
      1. Define your elements
      1. Create your equation and validate

• Assign Attribute-based pricing ID to Trade Agreements Journal Lines
  • Procurement and sourcing > Prices and discounts > Trade agreement journals
    • Create a new trade agreement journal
    • Add lines and assign attribute-based pricing ID
    • Validate and Post your journal

The journal lines with an associated attribute-based pricing ID should now be using your elements and equations from the attribute-based pricing data (Created in Step 1).

Landed Cost Module

D365 has implemented a brand new module based on global trade and import operations, accurately calculating the true cost of goods is essential. Microsoft Dynamics 365’s Landed Cost module provides a powerful framework to capture all costs associated with getting goods from origin to destination, including freight, insurance, duties, and tariffs.

1. Enabled the landed cost module
   1. Feature management > All features
   1. Search for Landed Cost and enable it
2. Create cost types
   1. Landed cost > Setup > Costing setup > Cost type codes
      1. Click new to define a new cost type
      1. Assign it to a ledger posting account
3. Apply auto costs
   1. Landed cost -> Setup > Costing setup > Auto costs
      1. Click new and set your account code
      1. Choose your port selection
      1. Define if the cost is fixed, percentage, or per unit by creating new lines

• Create a voyage and apply the costs
  • Landed cost > Voyages > All voyages
    • Create a new voyage for a shipment
    • Add your purchase orders or containers
    • Apply auto costs or manually assign our Tariff cost type

D365 provides the dynamic configuration needed to adapt to today’s complex global trade environment. With the right setup, you can ensure tariff accuracy, reduce manual errors, and maintain full visibility into your cost structure, empowering better financial decisions and operational efficiency across your supply chain.

Interested in learning more about Tariffs? Reach out to Ellipse or feel free to look at our blog archive as well! Blog | Ellipse Solutions