Explanation:
Box 1: Product
Current environment. Items
Product numbering
All items are numbered by using a smart numbering format: [Product
SKU+Size+Color+Style]. For reporting, items are queried for sales and inventory reports by
using the first six digits of the item number or until the first dash is encountered.
• A t-shirt could be 01001-S-Red for item 1001 in a size small with the color red.
• A single energy drink could be 02001-12oz or 02001-20oz for the different sizes that
product 02001 is sold in.
Product attributes • All clothing shares the same set of product attributes.
• Supplements may share the same Product SKU but can have different attributes for the
different size, color, or style variations of the product.
• Product attributes that are unnecessary for an item should be excluded from the item.
Box 2: Product variant
Product masters and product variants
In an agile world, where products must be quickly adapted to customer requirements,
product definitions specify a set of products instead of distinct products. In Supply Chain
Management, those generic products are known as product masters. Product masters hold
the definition and rules that specify how distinct products are described and behave in
business processes. Based on these definitions, distinct products can be generated. These distinct products are known as product variants.
A product master is associated with a product dimension group and a configuration
technology to specify the business rules. The product dimensions (Color, Size, Style, and
Configuration) are a specific set of attributes that can be used throughout the application to
define and track specific behaviors of the related products. These dimensions also help
users search for and identify the products.

3

One process the inbound processes from manufacturing.
Two outbound processed, one for nutritional supplements and one energy drinks.
Note: Creation of any quality processes for products inbound to the warehouse, from the
production line, or outbound from the warehouse to consumers should be automatically
created to facilitate execution.
• Testing requirements:
Requirement 1: 100 percent of all nutritional supplements and 50 percent of all energy
drinks must be tested when production orders are completed. After a product is in testing,
100 percent of all tests must be completed.
Requirement 2: 75 percent of all nutritional supplements and energy drinks should be
tested against their required tests during an outbound process.

Box 1: Price Group
Note: Requirements. White labeling
• Trey Research will provide and maintain a 'Compare to' price for customers to use to
compare the white-labeled products. This Compare to price will also be the default item
price for the customer if the customer accidentally lets a contract price expire.
Price Group
In Microsoft Dynamics AX, price groups can be used to specify a set of prices that you
want apply to a group of customers, vendors, or items.
* For item transactions, prices are derived from price groups that are referenced in trade
agreements in the Sales and marketing module.
Box 2: Trade allowance
Note: Customers are categorized into four pricing tiers (A, B, C, and D) based on sales
volume over the past 12 months.
Promotional fund and Trade allowance agreement
A trade allowance agreement is an incentive program where pay-for-performance monetary
rewards are offered to customers that achieve specific volume targets and/or behavioral
goals. Promotional funds are budgeted expenditures. In that way, the promotional
campaigns can be captured.

Box 3: Price Group

Check cost prices.

Explanation:

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Explanation:

Graphical user interface, text, application, email
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Explanation:
Box 1: Standard
Standard conversions – Set up standard conversion rules for all products.
Box 2: Intra-class
Crayons are stored as separate item numbers depending on whether they are in a box or a
case. This creates issues when counting inventory to determine the total number of
crayons in stock.
Intra-class conversions – Set up product-specific conversion rules for units in the same unit
class. For example, you can set up a conversion rule for a product that converts a box to
the number of pieces in a box. Pieces and boxes are both assigned to the Quantity unit
class.
Incorrect:
Inter-class conversions – Set up product-specific conversion rules for units across unit
classes. For example, you can set up a conversion rule for a product that converts
kilograms to liters. Kilograms are assigned to the Mass unit class and liters are assigned to
the Liquid volume unit class.

Table
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Box 1: Price group
A school that is part of the special paint program reports that a sale price on canvas last
month was a better price than its paint program price. The school requests a price
adjustment.
Trade Agreement Logic
Before we go and set up a trade agreement let’s first discuss how the system evaluates
trade agreements. When Dynamics 365 Finance and Operations evaluates trade
agreements it tries to find the most specific pricing that falls within the validity dates. What I
mean by “most specific” pricing is, the system checks the “Party type code” as well as the
“Product code type” to see if there is a valid price specific to that customer or vendor for the
specific product selected on the sales order or purchase order line respectively. Then if it cannot find that most specific combinations it looks for the next level up which are the price
groups and then finally if it can’t find prices at the group level it looks for prices that may
apply to all vendors or customers.
Box 2: Find next on trade agreement line for select customers only
The next trade agreement type is a line discount. As the name suggests a line discount will
appear on the sales order line as a percentage discount or a per unit discount depending
on how the trade agreement is set up.

Explanation:

Graphical user interface, text, application, email
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Quality orders

Inventory status

variant

Explanation:

Graphical user interface, text, application, chat or text message
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