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Trade Agreements – Multiple Line Discount


Trade agreements are the primary means by which pricing and discounts are set up and applied in Dynamics 365 Finance and Operations. Users must define under which circumstances trade agreements should be activated prior to the configuration of the system. These reflect the different prices (Sales prices, purchase prices) and discounts (Line discounts, Multiline discounts and Total discounts) that are agreed for purchases over a period of time. 

A Multiple Line discount is a discount given when a customer buys a certain total quantity of a single product or multiple products accumulated over multiple order lines. Qualifying items are defined using a multi-line discount group.

Multiple Line Discount in D365

To create a Multiple Line discount, create a journal and select a journal name with the “Default relation” of “Multiline disc. (Sales)”. This will default the “Relation” field to “Multiline disc. (Sales)”.

Next, instead of selecting “Table” on the “Product code type” field, select “Group”. This will allow for the selection of a multi-line discount group. Items that are associated with this multi-line discount group will be used to evaluate whether or not the system should consider that item when evaluating the multi-line discount and whether or not the multi-line discount should be applied.

The multi-line discount group can be associated with the item on the released product form by navigating to Product information management > Products > Released products. Select item and view/update released product details.

Back on the trade agreement journal, enter the quantity ranges in the “From” and “To” fields and set the per unit discount in the “Amount in currency” field or the discount percentage. With a multi-line discount, the system will use the quantities from all products on the sales order that are associated with the multi-line discount group to determine if the lines qualify for the multi-line discount. For example, a 0.52 per unit multi-line discount if the total quantity for all the items on the order that are assigned the “01” multi-line discount group are greater than or equal to 700.

Next post the journal to make the multi-line discount active.