Price in D365 Commerce

Updated: Feb 24

Below written article will provide you great insight of Price in D365 Commerce/Retail and other important definition required to known to have better work capability in Dynamics 365



What is Price?


Price is amount of money charged for product or service by customer. Price in D365 Commerce means single amount that a product sells for a in point of sales (POS) client or on a sales order. In this article, the term Price means Sales Price, not the inventory price or cost price.





Important Terminology Regarding Price in D365


Base Price is the price that is set in the price field on a released product


Trade Agreement Price is the price that set on a product or variants by using a trade agreement of the price (Sales) type


Best Price is the price when more than one price or discount can be applied on a product, the smallest price amount or the largest discount amount that produces the lowest possible net amount that the customer pays.



Price Group

Price group are at the heart of price and discount management in commerce. Price group are used to assign prices and discount to commerce entities which are as Channel, Catalogs, affiliation, and loyalty program. By Itself price group is just a name, description and optionally a pricing priority. The primary objective of price group is managing the many to many relationships that discount and prices have with commerce entities





Types of Prices


In Microsoft Dynamics 365 user can set price of product through four places


  1. Directly on the Product (Base Price)

  2. Sales Price Trade Agreement

  3. Price Adjustment

  4. Category Price Rules

Points to Remember for Interview Question


Base Price and Trade agreement price are part of D365 whereas Price adjustment functionality is available only in Commerce.


Setting of Price


1) Directly on Product (Base Price)


Base Price is the price that is set in the price field on a released product. User can set the base price in the Price field on the Sell tab of the Release product details. The Entered value will be accepted as company currency


Path: - Product Information management>All Release Product>Select Product>Sell Tab


By Default, the Price is for quantity of 1 of the UOM that is set in the unit field on the sell tab. The actual price per unit of product is based on the UoM, the price quantity and the currency.


Points to Remember for Interview Question


1. If the Price unit is set to value other than zero (0), Price Per Unit = Price/ Price Qty (Unit). For Example



Pricing Engine will support above scenario also


2. If channel currency differs from company currency, the base price in the channel is determined by using currency conversion on the price that is set on the product


3. Even Trade agreement also used to set prices, then also base price is required to set on price, so if in case user haven’t use all trade agreement or trade agreement is it not in use for any reason then system will take base sales price.




2) Sales Price Trade Agreement


Sales Price Trade agreement can be created with the help of trade agreement journal for each product. In D365 there are three customer scope for sales price trade agreement






Points to Remember for Interview Question


A trade agreement is having high priority than base price


3) Price Adjustment


Price adjustment is used to modify the price that was either set directly on the product or set by using a trade agreement. A price adjustment can be used to lower the price, not raise it. A price adjustment is the recommended way to retailer to create track and manager price markdown over time.


There are 3 types of price adjustment available in D365 which are as follows:-

  • Percentage Off

  • Amount Off

  • Price

Points to Remember for Interview Question


A Price Adjustment of the percentage off Or Amount Off type is applied to sales transaction. However, a price adjustment of price type is applied only if the adjusted price is less than the price that was set by using base price or trade agreement price. Therefore, if the price that is set a price adjustment is more than the unadjusted price, the price adjustment isn’t used.




How System will determine the price for a product in a transaction?


Points to Remember for Interview Question


The Calculation of the price and discount on a transaction uses the principle of the finding the best price for the customer. As per this principle, if more than one price is found, the lowest price is used.


Additionally, the combination of discount that produces the largest discount amount for the whole transaction is used. In some cases, a smaller discount must be used on a single product, so that additional discount can be applied to other product in transaction


Exception of Best Price

The Only exception to the principle of the finding the best price for customer is an option for mix and match least expensive discount. This option enables least expensive discount that favor the retailer when product is selected and grouped, Therefore, when a transaction includes more products than are required to qualify for the least-expensive discount, the pricing engine selects the products that produce the smallest possible discount amount for the customer.


Price engine return three prices for every product: the base price, the trade agreement price, and the active price.


Base price is a property on the product and is the same for everyone everywhere


In Sales Price trade agreement, if the find next option is set to yes, the lowest price that is found for applicable sales price trade agreement is used as the trade agreement price. Trade agreement can be found by using price group or All account code or can be assigned directly on customer. If the find option is set to No, the first trade agreement price is found is used. If no sales price trade agreement are found, then the price trade agreement is set to the base price.


The Active Price is calculating by taking the trade agreement price and applying the largest price adjustment that applies to the product. If no price adjustments are found, or if the calculated active price is more than the trade agreement price, the active price is set to the trade agreement price. Remember that you can’t raise the price of product by using a price adjustment. The applicable price adjustment can be found only by using price groups that are assigned to channel, catalog, affiliation, or loyalty program.


4) Category Price Rules


Category price rules features in commerce gives you an easy way to create new trade agreements for all the product in category. This feature also let you automatically find existing trade agreement for the product in category and expire them.

When user select the option to expire existing trade agreement, the system create new trade agreement journal for the product in the category that have an active trade agreement. However, the journal must be manually posted. It will also help to find the existing trade agreement only if you are using the same price rule that was before. If you aren’t using the same price rule, the existing trade agreement won’t we expired


Path :- Product and Information Management > Pricing and Discount> Category Price Rules


  • Select the Category prices rules line and click on Generate Trade agreement




User will select the option whether to select All Items or Item Without Prices and click on Next.




Now user will select the option as required, whether to expire the old trade agreement or not or Find Next option required to be set to Yes or not.


Now system will show below screen and ask for confirmation to proceed.



After that trade agreement journal lines will be created, and user can proceed to post the journal manual after verifying the records.


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What is Price Rule and Price Basis fields in Category Price rules ?


The prices can be increased or decreased by using the price rules and price basis fields of the category price rules

In the price rule fields, select the type of of price change to use


In the Price basis fields, select the type of Price to modify




User can easily update the prices of various products from different product categories, user can use the supplemental product categories with the category price rules


How to set prices that include Tax vs Price that exclude tax?


In D365, when user set the sales price, he will not specify whether the price value that include or exclude the tax. The value is just the price. Price Include sales tax setting on channel lets you configure channels so that they either include or exclude tax from prices.



That's All for this article.




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