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Trade Agreements – Threshold pricing


A threshold discount, also referred o an amount-based discount is a discount that is given to customers when the total for a transaction reaches one or more specified amounts. For example, you can create a discount that gives a 10 percent discount for purchases over 100.00 or you can specify a fixed discount amount and a flat 25.00 discount for totals over 200.00.


Threshold pricing can be used as a great marketing tool as customers are always looking for the best discounts on their favorite products. It can also help to increase the volume of sales and make way for new inventory.


Company A sells office equipment to its customers and decides to apply a threshold discount to customer group Y.

  • For sales > 5000.00 – 2% discount of total sales

Consequently, for every sale above 5000.00 for customers in that customer group, a 2% discount will apply.

In Dynamics 365

To create a Threshold discount in D365 F&SCM, go to Retail and Commerce > Pricing and discounts > Threshold discounts.

Click New and enter a discount name.

In the Action Pane, click Price groups and select one or more price groups that the discount applies to.

On the General FastTab, enable or disable the discount in the Status field. The ‘Discount concurrency mode’ determines which discounts compete on a transaction, and which discounts are compounded together. Select one of the following options: Exclusive, Best price, Compounded, Always Apply.


In this mode, the discount cannot be used in conjunction with another discount.

Best price

In this mode, the best price will be determined and used as a discount.


In this mode, the discount will be applied on top of other discounts.

On the Threshold discount tiers FastTab, create thresholds to trigger the discount. Specify an Amount, select a Discount method, either a discount percentage or a discount amount and enter a Discount value. On the validation Period FastTab, define the period during which a discount is valid. On the Line FastTab, click ‘Add’ to add a single category, product or variant to the discount or click ‘Add products’ to add multiple products.