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Use Price Simulations On Quotations To Calculate Discounts And Margins

Posted by Author, Curator, Visually Impared Squirrel Literacy Advocate & Dynamics AX Technical Solution Professional (TSP) at Microsoft on

If you are a little flexible with your pricing that you give to your customers and negotiate prices at the time of quoting your orders then you may want to take advantage of the Price Simulation feature that is built into Dynamics AX. It allows you to model a number of different pricing and discounting scenarios directly within the Quotation and also calculate the expected discounts and margins and their effect on the final pricing.

Be careful, this may make you feel like you a boiler room wheeler and dealer.

How To Do It…

  1. Start off by creating your quotation with all of the default pricing and discounting in place.
  2. To test pricing models on the order lines, click on the Price menu item within the Simulate group of the Sales Quotation Lines menu within the Lines tab.
  3. This will open up the Run Price Simulation maintenance form. To create a simulation, just click on the New button within the menu bar.
  4. Give your simulation a Description, and you will notice that all the current price values are also populated.
  5. If you switch to the Simulated Pricing tab then you will be able to see a lot more detail about the pricing.
  6. You can change the Discount on this form and see the resulting Margin and Sales Price changes that would be used.
  7. The nifty thing about the Price Simulation is that you don’t have to stop there – you can model as many different Scenarios as you like and see what the resulting margins would be on the order line.
  8. If you want to be super clever then you can also just adjust the price to a flat amount and that will calculate the discount and margin for you.
  9. Once you have modeled all of your Price Simulations if you want to use one of them and apply it to your Quotation Line then all you need to do is click on the Apply Price Simulation button in the menu bar.
  10. This will update the line for you and you can start wheeling and dealing on the next line.
  11. If you want to simulate the pricing at the header level rather than on the lines, then you can do that as well by clicking on the Price Simulation button within the Analysis group of the Quotation ribbon bar.
  12. Note: you can only simulate the prices at the header or the line level, so if you have already ran simulations at the line level then you may get a warning message.
  13. This will open up the same Run Price Simulation maintenance form as with the lines and you can add a new simulation record.
  14. When you switch to the Simulated Prices tab though you will get a few less options to tweak.
  15. You can enter whole order discounts here though and it will calculate the margins for you.
  16. Additionally, if you want to be clever you can just adjust the Margin so that you can set your quotation to be a fixed amount, and it will calculate the discount for you.
  17. Once you have modeled your order discounts and margins, all you need to do is click on the Apply Price Simulation button on the menu bar.
  18. The system will then apply the discount that you calculated to the header.

And now you can firm up the quotation.

How easy is that?

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