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    Before you start executing the cost to sales price calculation feature in a price adjustment, a discount agreement or on a sales price list the following parameters need to be setup.

    Price and Margin Management parameters

    Retail > Headquarters setup > Parameters > Price and margin management parameters > Cost / Sales price calculation

    Sales and marking > Setup > Price and margin management parameters > Cost / Sales price calculation

    Field Description
    Cost / Sales price calculation

    Cost simulator version

    V3:

    Contains the features of V2 + it supports the scenario to calculate a sales price based on a purchase price even when cost price determination was set to Cost price only or Alternative cost only.

    When cost price determination was set to Purchase price, if 0 then cost price, there was an issue that when there was no purchase price found the cost price was taken as a base, but still the purchase charges were applied to the cost which is wrong.


    In addition V3 makes it possible to show the cost per price quantity in case cost price determination is set to Cost price only or Alternative cost only. For this purpose a new parameter Multiply cost price by price quantity has been introduced.

     

    V2:

    With this engine it's possible to implement the cost to sales price calculation on other sources than purchase orders. Also the dummy purchase order is not created anymore when Cost price determination is Cost or Alternative cost, which will improve the calculation performance for these scenario's.

    When enabled the new engine is used and two additional parameters will appear:

    • Enable on purchase RFQ
    • Enable on purchase order

    When enabled the tab Price and Margin management is activated on Purchase order / Request for Quotation lines for workers with a Price margin worker group that allows them to see it. Also the Show cost components breakdown overview can be opened and it will show the purchase and cost part of the calculation

    V1:

    Has been removed from of version 10030.54.1800         

     Important

    Its strongly advised to enable Use V3 as in a future release this will be the default engine and the old one will be depreciated.
       

     

    Available cost levels

    This parameter determines the max number of cost levels that can be used within the solution.

    Be careful changing this to a lower maximum after you already have setup data for higher levels. The data will still exist but it will not be presented and used anymore.

    Available coverage levels

    This parameter determines the max number of sales coverage levels that can be used within the solution.

    Be careful changing this to a lower maximum after you already have setup data for higher levels. The data will still exist but it will not be presented and used anymore.

    Enable cost / sales price calculation on enabled offers Enables the cost / sales price calculation even though the offer is enabled (Standard its only possible on disabled offers).

    This means that new prices will become effective immediately when the valid period matches with today.
    Default  to 'Locked' when recalculating Sets the field 'Locked' to true on an order line when recalculating a cost price. This will prevent the update of the cost prices when a different price agreement with linked cost prices information is applied.
    Exclude overridden cost prices from the MRP When the cost price information on order line has been overridden, the assumption is that the purchase order will be created manually from the sales order. This makes it possible to update the cost price information when the purchase amount or charges that influence the cost price of the item changes.
    Skip sales price calculation When the cost to sales price calculation is executed the field sales price is not updated. It overrides the Skip sales price calculation, Skip discount price calculation and Skip discount price calculation parameters on the release products
    Multiply cost price by price quantity

    Multiplies the cost price with the price quantity when performing simulations, if this parameter is turned of, the cost price is expressed per 1.

    This parameter has only effect on those items where the parameter cost determination on the product is not equal to Purchase price, if 0 then cost price. When turned off the cost price is divided by the price quantity and shown per 1.

     Important

    When you have cost component values setup with a fixed value or a sales markup margin based on a fixed value and Multiply cost price by price quantity is enabled, please check the outcome of the calculation as now these fixed values will be applied per price quantity and therefore the value per unit will be lower.
       
    Cost price recalculation V2 Enables a new version of cost price recalculation using extended trigger data, such as sales price dates and purchase dates.
    Use dynamic sales price markup search

    Use the dynamic method to search for sales price markups.

    Dynamics means that there is a fall back mechanism in place to find another sales price markup for an item which could not be found in the sales markup specified on the sales order header, sales quotation header, sales price list or price adjustment. When disabled all products need to be added to one specific sales price markup (by product Id or category). From a maintenance perspective this is cumbersome, if enabled multiple sales price markups will be evaluated. See Sales price markup setup for more information

    Automatic creation
    Automatically create a cost / sales price line Create a cost / sales price line when no reference to a calculation exists. A cost to sales price record can be create automatically if no records has been found based on the applied sales price list, price adjustment or retail discount.
    Default sales markup

    When a cost to sales price records is created automatically, it needs a sales markup. The default sales markup is used when there is no default sales markup set on the customer or it could not have found one based on the price group on the order header.

    Calculate sales price If enabled, the calculated sales price by the cost to sales price engine will be put in the unit price field when no sales price was found in a trade agreement, price adjustment or on the item
    Cost price recalculation triggers
    Default Supplier When the default vendor is modified on the released product AND and active sales price list, price adjustment or retail discount record exist in a list with Trace enabled. a record for this item/sales price list is inserted in the trigger table. These triggers can be used in the process of periodic recalculation of sales price lists, price adjustments or retail discounts.
    Alternative cost When the alternative cost on the released product is modified AND and active sales price list, price adjustment or retail discount record exist in a list with Trace enabled. a record for this item/sales price list is inserted in the trigger table. These triggers can be used in the process of periodic recalculation of sales price lists, price adjustments or retail discounts.
    Ignored agreement validations
    Exclude

    Exclude validations when enabling or posting prices and discounts

    When an agreement has lines with calculation error types that have been specified here, it will be possible to enable the agreement or post the trade agreement.

    Skip creation

    When enabled, errors of this type are never created but ignored.

    Number sequences
    Sales price markup Number sequence that can be used for creating new Sales price markup records.
    Temporary purchase Id

    Unique key for temporary purchase orders. The key is used for generating temporary purchase orders in when the cost to sales price calculation is executed.

    Choose the prefix smart, so they will not appear when opening the purchase order list page as they will appear during the calculation.

    Sales price list Number sequence that can be used for creating new Sales price list records.
    Data upgrade
    Run APC Data upgrade When you have used the cost to sales price calculation feature in an environment older than 10014.38.1400 and have installed a newer version that enables this button, you have to execute this data upgrade.

    Procurement and sourcing parameters

    Procurement and sourcing > Setup > Procurement and sourcing parameters > tab Prices

    Field Description
    Find auto charges for line Enable this parameter. If this parameter is disabled the cost charges from the cost value setup will not be applied to the purchase order and will not be part of the cost to sales calculation.
    Automatically recalculate FactBoxes on purchase order update

    Select this check box to automatically recalculate FactBoxes when a purchase order line is added or changed. The recalculation process can slow system performance. If you do not select this check box, you must press F5 to refresh the FactBoxes after purchase order lines are added or changed.

     Important

    The cost to sales price calculation engine is using standard Microsoft Dynamics 365 for Finance and Operations code which is also influenced by this parameter. Turning on this parameter will slow down the cost to sales price calculation engine
       

    Accounts receivable parameters

    Accounts receivable > Setup > Accounts receivable parameters > Prices > Price details

    Field Description
    Enable price details Select this option to let users view price details for sales order lines. To access the Price details page, in the Sales order page, on the Sales order lines FastTab, click Sales order line, and then click Price details. The Price details page displays detailed information about the prices, agreements, and trade agreements that are associated with the selected product, and calculates discounts, rebates, margins, and royalties for the order line.

    See Additions to the price details form for more information about the additions that have been added to this form in the Dynamics Price and Margin Management solution.

    Activate (purchase) price/discount

    In order to use the trade agreement purchase prices, the user has to activate the price and discount settings in the Procurement and Sourcing > Setup > Prices and discounts > Activate price/discount parameters.

     

    Released product

    On the released product form (Product information management > Released products > fast tab: Sell) two parameters have been added which will prevent the updating the discount price when executing the Cost / sales price calculation function on the Price adjustments or Discounts form.

    Field Description
    Trade agreement: skip sales price calculation Discount price is not updated when the function Cost to sales price is executed for a trade agreement
    Price adjustment: skip discount price calculation  Discount price is not updated when the function Cost to sales price is executed for a price adjustment
    Discount: skip discount price calculation  Discount price is not updated when the function Cost to sales price is executed for a discount
    Vendor In order to be able to execute the cost to sales price calculation a primary vendor needs to be setup or a vendor needs to be setup in the coverage settings of the item.
    Cost price determination

    If you look at the schema you will see that the Cost to sales price calculation engine by default will start searching for a purchase price trade agreement and line discounts and on top of it it will add the charges defined in the cost value setup. If nothing found it will fall back to the Microsoft Dynamics 365 for Finance and Operations logic of cost price determination (based on the model group of the item). On top of that it will add the sales markup and maring values to calculate the sales price. With this parameter you can control whether it should use the default logic or a different cost:

    • Purchase price, if 0 then cost price (Default)
    • Cost only (it will not fall back to purchase price)
    • Cost, if 0 then Purchase price
    • Alternative cost only (it will look at the field Alternative cost on the released product)
    Alternative cost The value thaty will be used as input for the cost to sales price calculation when Cost price determination is set to Alternative cost only
    Price unit Price quantity for alternative cost

    Via the menu item Item coverage markup groups on the ribbon tab Sell it is possible to setup a link between a (coverage) charge code and a Sales coverage charges group. This will allow you to setup item specific coverage overrides on the Sales price markup.

     

    Vendor

    Field Description
    Delivery terms

    The delivery terms is used as carrier for the cost component structure. Without a delivery terms it's not possible to execute a cost to sales price calculation.

    If you only have one structure, but you do want to use multiple delivery terms without having to duplicate the cost component templates, you can set a specific delivery term as Default in the Cost component value.

    Delivery term for direct deliveries

    When a direct delivery purchase order is created from a sales order, it will use this Terms of delivery to put on the header of the purchase order.

    This makes it possible to calculate / add different cost markup charges to the purchase order.

    Commerce Product Hierarchy

    In the Retail and Commerce > Products and Categories > Commerce Product Hierarchy form on the tab sell the default behavoir of how the cost is determined can be setup:

    Field Description
    Cost price determination

    The category can be used to update the field Cost price determination on the released product.

    Category hierarchy (Role association)

    In the Cost value setup and the Sales markup it is possible to setup values per category. In order to be able to select a category, first the Role association Cost markup and Sales price markup needs to be linked to a new or an existing category hierarchy.

    This can be done via Product information management > Setup > Categories and attributes > Category hierarchies / Category hierarchy role associations

    Cost Markup Hierarchy

    In conjunction with Cost simulator version V3 the tab Fetch purchase price has been introduced on the cost markup hierarchy. This parameter has only effect when Cost simulator version is set to V3

    Field Description
    Fetch Purchase price

    Determines if or when the purchase price is fetched during cost price calculation for items where cost price determination has been set not equal to Purchase price, if 0 then cost:

    Never (advised setting when there is no need for a purchase price to be shown on the price and margin tab, the calculations will be faster)

    Automatic (purchase prices will be fetched only if in the sales price markup the base for  the sales price calculation needs a purchase price)

    Always (even though the cost of the item is not calculated based on a purcahse price, purchase prices are alwasy shown in the price and margin tab, be aware this has a performance impact)

    (Cost) Charge code

    Accounts payable > Setup > Charges code

    Charge codes used for the item cost part of cost to sales calculation need to have a Debit typeItem in order to be taken into account of the financial value of the item.

    In order to get the charges assigned to the purchase order the Dynamics Price and Margin Management solution is not using the Auto Charges setup tables of standard Microsoft Dynamics 365 for Finance and Operations, but a new setup table called Cost component values.

    However, the Procurement and sourcing prices parameter “Find auto charges for line” still needs to be enabled. Also the Date type is relevant in this context as it will be used to find to correct Cost component values based on Today’s date or the delivery date of the purchase order line.

     

    Commercial cost markup charge code

    Accounts payable > Setup > Charges Setup > Commercial cost setup > Commercial Cost markup charge code

    Field Description
    Commercial cost markup charge code Identification of a Commercial cost markup charge code. These codes can be used in the cost component template
    Description Description of a Commercial cost markup charge code 

     

    Cost component template

    Accounts payable > Setup > Charges Setup > Commercial cost setup > Cost component template

    Per delivery term a calculation structure can be setup. In this structure the order of calculation and the different components of the calculation can be defined.

    This structure is copied on insert of the Cost component value records. It’s only a template and can be changed whenever you want. This will not affect the existing setup of cost component value records.

    The order of the charges is important:

    It’s only possible to calculate your charges of type percentage over the previous charges. Moving a charges up or down will remove setup of “Calculate charge over” setup and need to be setup again.

    The include in base amount check box (only active for category = percent) will include purchase line amount for charge type Cost.

    In case of charge type Commercial, the include will sum up line amount + all cost charges and use that as a base for the percentage calculation.

    In case of charge type Commercial1, the include will sum up line amount + all cost charges + commercial charges and use that as a base for the percentage calculation.

    In case of charge type Commercial2, the include will sum up line amount + all cost charges + commercial charges + commercial 1 charges and use that as a base for the percentage calculation.

    etc.

    It is possible to setup max 5 different commercial costs. The max number of commercial cost levels can be setup in the Price and margin management parameters.

    When the category is set to percentage, it is possible to include the charges into the base of the calculation.

    E.g. when you have setup Duty and Freight as a cost charge and you would like to calculate the Insurance charge as a percentage over the line amount including the duty and Freight you have to enter these charges in the Calculate charge over tab.

     

    It's even possible to calculate a percentage over a single previous charge without including the line amount. In that case you have to disable the Include base checkbox.

    Cost component value

    Accounts payable > Setup > Charges Setup > Commercial cost setup > Cost component value

    In Cost component values the values which are used for calculation the cost and commercial cost levels can be setup per:

    By marking one record as default the system will apply that one if it searches for a specific delivery term that not has been setup.

    The search order is from most specific to more generic, and if found it will stop searching. The search order is:

    Ordered by delivery terms by mode of delivery.

    Within the search logic of the dimensions the system will search in this order (Dimension loop A):

    1. Site / Warehouse / Product dimensions
    2. Site / Warehouse
    3. Site / Product dimensions
    4. Product dimensions
    5. All blank

    When searching for product dimensions the system will search for a full match or empty.

     Note

    If Sub nodes excluded is enabled, the system will not search for parent category values. Starting at the lowest level.
       

    The currency in the setup grid is used for finding the record to be applied to the purchase order based on the currency of the purchase order. The currency in the charges grid is the currency that will be applied for the charges on the purchase order. For charges that do not have type Customer/Vendor this could differ from the purchase order currency (= standard Microsoft Dynamics 365 for Finance and Operations functionality, see auto line charges setup).

    By assigning the Category hierarchy role association Cost markup to a category hierarchy, it will be possible to setup the cost component values for a specific category.

    When the charge category type is set to Pcs, Net line weight, Gross line weight or line volume it's possible to define overrides on the tab overrides.

    In case of category type Fixed or Pcs you get the possibility to setup a specific charge value per unit per price quantity per from quantity. Instead of defining overrides per unit/from quantity it's also possible to enable the checkbox allow unit conversions. Based on the purchase quantity and inventory unit and the unit conversions the system will calculate the corresponding charge value.

    In case of category type Percent you get the possibility to setup a specific charge percentage per unit per from quantity.

    In case of category type Net line weight, Gross line weight or line volume a specific charge value per volume /weight per price quantity per from quantity can be setup. This can be handy when you have a lower charge value on a higher volume/weight. When the check box fixed amount is enabled, that value will be applied instead of volume multiplied by the charge value.

     

    (Coverage) Charge code

    Accounts receivable > Charges Setup > Charge codes

    When you want use the cost to sales price calculation feature to add charges to the sales order that will post coverage values to the ledger you need to setup charges with posting type ledger for both debit and credit. .

    The system allows you to setup charges with posting type customer/vendor. If you do that we advise you to put them in a coverage level that will not be included in the sales price calculation as you are then adding the value twice: once in the calculation and once when the charge is added to the sales order line as it will make the sales totals higher.

     

    Price group

    Sales and marking > Prices and discounts> Customer price/discount groups

    Retail > Pricing and discounts > Price groups > All price groups

    A price list in Microsoft Dynamics 365 for Finance and Operations is linked to the sales order via price groups. Either the price group on the channel or the price group on the customer or the price group linked to the affiliation on the customer. The price group is linked to a Price adjustment in which we setup the base sales prices.

    The price group is also linked to the Sales markup template and used as a filter for selecting the correct sales markup on the price adjustment.

    Sales markup template

    Sales and marking > Setup > Prices and discounts > Sales markup template

    Retail > Pricing and discounts > Sales markup template

    In the Sales price template you can setup:

    The sales markup template is used for the structure of calculating the sales coverage values and is used for defaulting the values in the lines which are setup in the Sales price markup.

    In this template the you can structure the order of calculation and the different components of the calculation. It’s only a template and can be changed whenever you want. This will not affect the existing setup of sales markup coverage line records.

    The order of the charges is important: It’s only possible to calculate your charges of type percentage over the previous charges. Moving a charges up or down will remove setup of “Calculate charge over” setup and need to be setup again.

    The include in base amount check box (only active for category = percent) will include the value based on the parameter Coverage Calculation input in the top of the form. In this way it will be possible to calculate a coverage percentage over Purchase line amount or one of the commercial cost levels.

    It is possible to setup max 5 different Sales coverage types. The max number of coverage levels can be setup in the Price and margin management parameters.

    The default values, Charge percentage, Base Price and Apply smart rounding  from the template will be inherited to the values on the sales price markup lines (not to the header).

     

    Sales coverage charge group

    Sales and marking > Setup > Prices and discounts > Sales coverage charge group

    Retail > Pricing and discounts > Sales coverage charge group

    Sales coverage charges groups can be used to specify a released product specific override of the values in the Sales price markup.

    On the Sell tab of the Released product it is possible to link a (Coverage) Charge code to a Sales coverage charge group. In the Sales price markup lines it is possible to setup an override for the given Charge code by specifying a value for a specific Sales coverage charge group.

     

    Sales price markup

    Sales and marking > Setup > Prices and discounts > Sales markup

    Retail > Pricing and discounts > Sales price markup

    In the Sales price markup you can setup:

    First action (before you select the price type) is adding the price groups via the button price groups to determine for which price groups this setup is valid.

    The values in the Sales price markup table determine how the sales price is calculated:

    When there is no Sales markup template selected on the line, the values are inherited from the default settings tab instead of from the Sales markup template.

    When there is a Sales markup template selected on the lines an additional fast tab Coverage lines becomes visible. These lines contain the charge codes that will be added to the financial charges on the order lines (based on the price adjustment that is applied).

    The values in these lines are defined in monetary standard and applied per inventory unit.

    When on a released product a Sales coverage charge group has been defined for a certain charge code and on the Sales markup a matching override has been defined, value from the override settings is applied. If no override found, the values from the coverage lines are applied.

     Note

    When you setup a line for a category be aware not to mix items with different inventory units
       

    The field Exclude can be used to include the value in the sales price calculation but it will not be added to the markup on the sales / quotation lines.

    Use dynamic Sales price markup search

    When the parameter Dynamic Sales price markup search is enabled new way of determining the sales price markup is enabled which gives a lot of flexibility is created and less maintenance. Instead of using just one sales price markup for an entire calculation for a given sales order, sales price list or price adjustment, the sales price markup is now determined per line. The new algorithm works as follows when performing a calculation for a sales– order or quotation:

    1. Evaluate if the item being calculated exists in the sales price markup defined on order header level
    2. If not found and the order uses a customer object, see if the item exists in the sales price markup defined on the customer
    3. If not found, see if the item is specified in one of the sales price markups attached to the price group of the order header. The sales price markups are evaluated by an ascending order on the new field Priority, and by order of its Name
    4. If no match is found and the order is a retail order, the default sales price markup on the retail channel is evaluated.
    5. If no match is found, the default sales price markup as defined in the  parameters.
    6. All evaluation only take enabled sales price markups within a valid date range into account.

    This dynamics sales price markup search is also used when Automatically create a cost / sales price line is enabled.

    Customers

    Accounts receivable > Customers > All customers > Tab: Sales order defaults

    The sales markup used as fallback when creating cost price records without an agreement can be setup on the customer.

    If there is nothing setup on the customer the default sales markup from the price and margin management parameters is set to the header of the sales order or quotation.

    When a prospect is converted into a customer, the sales markup of the quotation header is set on the customer when it differs from the default sales price markup setup in the price and management parameters.

    Price margin worker groups

    Sales and marking > Setup > Prices and discounts > Price margin worker groups

    Retail > Pricing and discounts > Price margin worker groups

    Price margin worker groups control whether you can see the Cost price calculation tab in the price adjustment and discount form and the Price and margin management tab on the order lines.

     

    Pricing worker groups

    Sales and marking > Setup > Prices and discounts > Pricing worker groups

    Retail > Pricing and discounts > Pricing worker groups

    In organizations where multiple employees are responsible for maintaining price lists, the Pricing worker group can be used to assign price and discount lists to a specific employee.

    In the Cost to sales price calculation workspace the Pricing worker group is used as a filter in order to show only those price and discount lists that are assigned to him.

    It is possible to assign multiple employees to a Pricing worker group and it's also possible to assign one employee to multiple Pricing worker groups.

    Only one Pricing worker group can be set as Default for an employee. This group will be assigned on creation on a new price or discount list and is applied as default filter in the work space.

    Pricing worker groups can be set on:

     

    Accounts payable > Setup > Charges Setup > Commercial cost setup > Cost simulation

    With the Cost simulation function you are able to validate the setup.