Microsoft Dynamics 365 Finance & Operations (D365 F&O) brings unmatched flexibility through its Trade Agreement Framework, allowing retailers to set prices and discounts dynamically, across multiple customer and item dimensions.
What Are Trade Agreements in D365?
Trade Agreements in D365 define pricing and discount rules for sales and purchase transactions. They support a highly flexible setup that allows prices and discounts to be applied based on combinations of:
Customer Options:
- A specific customer
- A customer group
- All customers
Item Options:
- A specific item
- An item group
- All items
This gives rise to nine possible combinations, such as "Specific customer + specific item," "Customer group + item group," and more.
Search Logic for Price and Discount Application
The system follows a hierarchical search logic to determine the best applicable rule—ensuring the most specific price/discount is applied without overriding business intent.
Discount Types Supported
D365 F&O supports three distinct types of sales discounts, each serving unique retail goals:
Retail Use Cases That Matter to CXOs & Directors
Customer-Specific Offers
Reward repeat or VIP customers with exclusive pricing.
Group Promotions
Enable differentiated pricing for franchise stores or regions.
Sell Non-Moving Stock
Use discounts on older SKUs to clear shelf space.
Bundle Promotions
Set multiline discounts to promote upselling.
Cart Value Incentives
Encourage higher spend using total discounts.
Business Value for Retail Leaders
For CXOs, Retail Directors, and Strategy Heads, this flexibility translates into:
- Operational Control: Define pricing rules that align with business goals.
- Faster Go-to-Market: Launch campaigns within hours, not days.
- Inventory Optimization: Shift pricing strategies based on stock age.
- Improved Margins & Loyalty: Better control of discounts = better bottom line.
Final Thought
D365 F&O isn’t just an ERP—it’s a retail growth engine. With smart trade agreements, your business can maximize upselling, clear aged inventory, drive loyalty, and react faster to market changes.
Let’s talk if you're exploring how to strategically use pricing in D365 to unlock retail growth.
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