How to use price multiiplication factor in trade agreement ax 2012 R2

Finance and Operations/AX User Forum
1

Dear All,

I have a scenario in which ItemA has price say USD 10. And i want to set vendor trade agreement such that it stores a price multiplication factor of (1.5) for Vendor X supplying ItemA. So that when PO for Item A is created for Vendor X, po line shall show item price 10 * 1.5 = 15 USD.

Can i achieve this using trade agreement or any other possible way.

Thanks in advance.

2

Hi Faisal,

Put this price 15 USD in the ‘Amount in Currency’ feild of Trade Agreement to achieve this calculation of Multiplication Factor. Now if you raise a PO for 5 items then it will come as 5*15 USD=75 USD which is according to your needed expectation.

Thanks & Regards,

Parashar Banerjee

3

Thanks Parashar for your quick response.

The method you said will essential set price to USD 15 in trade agreement.
But i want to set multiplication factor as a variable in trade agreement and NOT HARD CODED price. Do u think it is possible? if yes, how?

4

No that is not possible as the trade agreement (price) holds the price.

5

Thanks…

6

I have some suggestions that you might wish to consider, but it also depends ‘if’ the unit price (cost price) from the supplier is fixed for a period or fluctuates

Fluctuating unit / cost price – Trade agreements at line discount level

[1] To use trade agreements it would require you to enter a negative discount percentage that represents the uplift factor. Standard AX2012, does not allow for negative discounts within the trade agreement journal … however … as per a previous blog I found, this can be achieved with help from a developer by changing the extendable data type DiscPct to allow negatives. (Its an option, but not necessary the correct option)

Fixed unit / cost price for a defined period

[2] Create a purchase agreement for the supplier … ‘if’ the cost of the item is fixed for a defined period, then this cost (unit price) can be entered and within the purchase agreement a negative discount percent can also be entered that represents your uplift factor. You can then use this purchase agreement when creating purchase orders.

7

Thanks Martin for your valuable suggestion, In my case unit price is fluctuating and i considered to use Line disc (purch) to set negative discount and gives me msg “Negative value are not allowed”. As per your suggestion, I will consider changing data type of discount field to allow negative and i think it is workable.

Can you please give me URL of the blog thread you mentioned in your post, so that i checkout the discussion.

Regards,

Faisal

8

Hi …

I found this in reference to negative discounts

http://kurthatlevik.wordpress.com/2012/09/12/ax-2012-negative-discountscharges-for-split-box-delivery/

It’s not exactly your issue, but does open up possiblilties

Thanks

Martin

9

Thanks martin for providing link requested, i appreciate.

Regards,

Faisal

10

Thanks Martin… your idea worked… i set Allow Negative = True for Discount percentage field (i.e. DiscPct). Next i created a trade agreement for itemX supplied by vendor Y and set -10% as percentage discount. Now when i create PO, AX automatically calculate item unit price using base price X multiplication factor (i.e. (100 X -10% = -10 )= 100 -10 = 110).

Thanking you all.

Regards, Faisal