Business value

The Price and Margin Management product contains several features which extends the standard price and margin management features of Microsoft Dynamics 365 for Finance and Operations .

The product gives you the ability to automatically calculate a base sales price list or discounted sales price list, up from a purchase price through a cost price and generate a commercial cost price with different margin layers.

By linking an employee to a specific margin layer you can control the amount of discount he can give before a margin alert will appear.

In standard Microsoft Dynamics 365 for Finance and Operations margin targets are set on a company level and are applicable to all items. In our product the granularity of margin targets can be controlled by a free definable category hierarchy which even allows you to exclude items from a margin check.

Besides calculating sales prices and a more granular control of margins, our product also offers functionality to use the standard functionality in a more efficient way by introducing an overview of all retail prices and discounts from the perspective of an item, a customer or a channel. 

Especially when you want to setup customer specific retail prices and discounts the setup can become a cumbersome process as you have to create and link customer specific price groups and affiliations. In our product you can do this in just one click per customer.

A complete overview of all features can be found further down in this document.

Prerequisites

The cost to sales price calculation and advanced margin alerts functionality is built on top off Call center sales orders. With this product the prices stored in existing retail price adjustments or discount agreements can be calculated based on purchase prices and charges.

A call center is a channel within the Retail module. There are no modifications made to the other channels (Stores and On-line) within the Retail module to support these features.

From of version 1010.34.610 a new feature Automatically create a cost / sales price line, has been implemented which makes it possible to calculate the cost price levels for order lines even if there is no retail price adjustment found. This makes it also possible to use the multiple margin levels for non-retail orders.

From of version 10017.41.1500 a new feature Sales price lists, had been implemented which makes it possible to use the multiple margin levels for non-retail orders based on trade agreement prices.

The price unit functionality described in this document is supposed to work on both retail and non-retail orders, but has not been implemented for Mpos and On-Line channels.

Also be aware that when using the standard Retail call center orders some legacy features will not work or will have a different behavior in comparison to legacy sales orders.

Pricing management by Microsoft

Price and Margin Management is an enhancement built on top of the legacy Supply Chain and Commerce pricing framework. With version 10.0.43, Microsoft introduced Pricing Management  also known as Unified Pricing Management.

Both Price and Margin Management and Unified Pricing Management provide pricing functionalities, but they are not identical and may conflict when enabled simultaneously. To prevent issues, the system restricts users from creating or opening Sales Orders and Sales Quotations when both features are active.

System restrictions

If both Price and Margin Management and Unified Pricing Management are enabled, users cannot:

• Open the Sales Order or Sales Quotation forms.
• Create new Sales Order/Quotation headers or lines.

To bypass this restriction, one of the following configurations must be adjusted.

How to bypass the validation

To enable Sales Order and Sales Quotation functionality, you can take one of the following actions:

1. Disable Price and Margin Management for all companies
   • Go to System Administration > License Configuration.
   • Disable the configuration keys related to Price and Margin Management:
     • HSO Price and margin management (and all subkeys)
     • HSO Price and margin management - Net purchase price
     • Action discounts subkey of HSO Wholesale distribution
2. Disable Unified Pricing Management in Feature Management for all companies
   • Navigate to Feature Management.
   • Locate the Pricing Management feature and turn it off.
3. Enable the "Disable Pricing Management" parameter per company
   • Go to Pricing management > Setup > Pricing Management parameters.
   • Set the Disable Pricing Management parameter to true.
4. Enable the "Allow enabling of Unified Pricing" parameter per company (⚠ Not recommended for production use)
   • Navigate to  Price and Margin Management > Setup > Price and Margin Management parameters form.
   • Enable the Allow enabling of Unified Pricing parameter.

Features

The features of Price and Margin Management can be grouped into several areas:

Cost to sales price calculation

• Calculate price adjustments prices and discounts prices based on purchase price or cost price
• Calculate cost price levels in order lines even when there is no price adjustment found
• Compare retail price and discount agreements
• Cost to sales price calculation workspace
• Tier templates (auto generation of quantity based discounts)
• Allow setup of Category hierarchy role associations per company
• Process of periodic recalculation of sales price lists and retail price adjustments and discounts.

Trade agreement enhancements

• Find and close
• Default value Find next  
• Adjusted Select all agreement for deletion function on Trade agreement journals
• Gross, Net and net exclusive purchase prices
• Sales price lists 
• Customer object related price and discounts
• Show agreements of selected order lines
• Pricing customer        
• Pricing trace
• Price discount segmentation

Prices expressed in a price unit of measure

• Additional price information expressed in price unit of measure
• Automatic creation of additional unit of measure conversions
• Price unit of measure implemented in Price simulator (Retail)

Advanced margin alerts

• Margin alert settings per category
• Price margin worker groups to control the cost price level per employee
• Express margin in a different value type (percentage, gross margin or factor)
• Allow setup of Category hierarchy role associations per company

Additional pricing related enhancements

• Additional information in the price details form
• Allow zero sales price on released products
• Additional filters in Price adjustments, discount and sales price markup form
• Price unit behavior on order lines
• Multiple is mandatory
• Retail prices and discounts overview
• Show and edit total discount % and net price per unit on order lines
• Open (and edit) price adjustments and discount lines in Excel
• Create customer specific affiliations
• Enable order price control (DYS) for retail orders
• Price source and Pricing change log
• Calculate line auto charges based on volume or weight of the item
• Recalculate price and discount (non-retail)
• Reset price (does not reset multi line discount as this is a manual process to add it)
• Net price rounding
• Show discount %1 and %2 on sales order lines (non-retail)
• Affiliations per delivery mode

Setup

Activate the ALF license

This will enable the Price and Margin Management functionalities.

Specific setup related to the features are described in the topics it self.

Activate price/discount parameters

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

Call center

With the cost to sales price calculation function it is possible to update the prices in Retail price adjustments and discount agreements. In order to activate the retail pricing on a sales order or quotation, the user must be linked to a call center and the price group attached to the agreements needs to be attached to the call center or the price group needs to be linked via an affiliation to the customer.

https://docs.microsoft.com/en-us/dynamics365/unified-operations/retail/price-management 

Release notes