Introduction

Costs arise during the purchase and sale of items. The Trade Management extension allows setting up and assigning these costs to an item. The costs can be assigned to the sales/purchase price, which results in a price increase or decrease, or the costs can be assigned as item charges.

The costs will be set up with a trade plan. These trade plans can be very specific (e.g., a cost is only applied when the sales document is for a specific customer), but in many cases, costs and discounts are set up on a more general level (e.g., for customers of type ‘retail’ a discount of 1% is granted). To support these multiple approaches, you can define trade plans on a specific or a general level, based on a combination of customer groups (called Trade Business groups) and item groups (called Trade Product groups).

Through trade plans, you can indicate whether these costs affect the sales and purchase price. The item charges, called accrual, can be set up as a standard or actual costs/revenues. Standard costs or revenues are posted immediately. Actual costs or revenues will be posted as an expected cost or revenue. Later, it will be reversed and replaced by the actual cost/revenue through an invoice from a trade partner.

You can post an item charge with a trade cost order. These trade cost orders will be automatically created and posted when document trade lines are posted with an accrual type, still it is also possible to create a trade cost order manually to enter extra costs for an item.

Different rates, called trade rates, for calculating the costs, can be linked to a trade plan. These trade rates are retrieved as a document trade line when creating a sales/purchase document line. The costs or price adjustments will be calculated based on the sales/purchase document line and the trade plan rates.

The Trade Management extension is based on the sales/purchase price and setup from the Advanced Pricing extension. It is, therefore, only possible to use the Trade Management extension if the Advanced Pricing extension is installed.

Some new features are turned off when Dynamics 365 Business Central is updated to a newer version. These features are optional until they are automatically enabled for all users in a later software update. The Advanced Pricing extension requires the activation of ‘Feature Update: New sales pricing experience’ to ensure proper execution of functionality. Please activate the feature update if it is still available on the Feature Management page. If the feature is unavailable it is automatically enabled in a software update.