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Understanding Purchase & trade agreements in D365 – Part 1

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Dynamics 365 Supply Chain Management

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Oct 15, 2024

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  • Purchase and trade agreements are important features in Dynamics 365 for the purchase department.
  • Purchase agreements in D365 can be of different types, such as Product quantity commitment and Product value commitment.
  • Purchase agreements can be used for blanket orders to buy a fixed quantity of items from a specific vendor within a specified time.
  • Trade agreements in D365 can be used to create discounts for a short period for a specific vendor or vendor group.
  • Different types of Purchase agreements in D365 include Product quantity commitment, Product value commitment, Product category value commitment, and Value commitment.
  • Different types of Trade agreements in D365 include Purchase price, Line discount for purchase, Multiline discount for purchase, and Total discount for purchase.
  • When both purchase agreement and trade agreement are defined for the same combination of vendor and item, the purchase agreement takes precedence.
  • The solution steps for setting up Product quantity commitment and Product value commitment type of purchase agreements for a vendor involve creating the agreements and linking them to purchase orders.

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