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Product pricing methods

Dynamics 365 Sales uses the ProductPriceLevel.PricingMethodCode column to determine prices. The value of this column affects:

  • How the price for the product is determined for each unit of measure that is defined for that product.

  • What columns are required when you create or update a product price level and its associated product.

    You can also use custom pricing for products instead of using the Dynamics 365 system pricing. More information: Use custom pricing for products

    The following table lists the formulas that are used for each value and the columns that are required by each value.

Drop-down list value and equivalent pricing method value Description and required columns
Currency Amount
CurrencyAmount = 1
The price is specified for each unit of measure for each product.
price = amount

For each unit of measure for each product, use the ProductPriceLevel.Amount column. Note: The ProductPriceLevel.Amount column isn’t platform required if you’re not using the pricing methods provided by Dynamics 365 for Customer Engagement. However, if you use the Currency Amount pricing method to determine a price, this column is platform required and you must specify a value for this column.
Percent of List
PercentListPrice = 2
The price is calculated based on the manufacturer's or distributor's list price.
calculated price = list price x percentage

For each unit of measure for each product, you must enter data for the following columns:

- Product.Price column. This is the List Price in the Product form.
- ProductPriceLevel.Percentage column. This is the desired percentage of the list price.
- ProductPriceLevel.RoundingPolicyCode column. This is the policy for rounding the price list.
Percent Markup - Current Cost
MarkupCurrentCost = 3
The price is calculated as a percentage of your current cost for the item.
calculated price = current cost x 100% + percentage

For each unit of measure for each product, you must enter data for the following columns:

- Product.CurrentCost column. You must update this cost every time that you receive a shipment of the item.
- ProductPriceLevel.Percentage column. This is the percent markup.
- ProductPriceLevel.RoundingPolicyCode column.
Percent Margin - Current Cost
MarginCurrentCost =4
The price is based on the profit percentage you want to achieve and your current cost for the item.
calculated price = current cost + [(current cost x percentage)/ (100% - percentage)]

For each unit of measure for each product, you must enter data for the following columns:

- Product.StandardCost column. You must update this cost every time when you receive a shipment of the item.
- ProductPriceLevel.Percentage column. This is the profit percentage you want to achieve.
- ProductPriceLevel.RoundingPolicyCode column.
Percent Markup - Standard Cost
MarkupStandardCost = 5
The price is calculated as a percentage of the standard cost of the item.
calculated price = standard cost x 100% + percentage
Because the standard cost is updated periodically, the standard cost amount in this equation is an average and will not always be the same as the amount you paid most recently for the item.

For each unit of measure for each product, you must enter data for the following columns:

- Product.StandardCost column. Every time that you update the standard cost, the price changes.
- ProductPriceLevel.Percentage column. This is the percent markup.
- ProductPriceLevel.RoundingPolicyCode column.
Percent Margin - Standard Cost
MarginStandardCost = 6
The price is based on the profit percentage you want to achieve and the standard cost of the item.
calculated price = standard cost + [(standard cost x percentage)/(100% - percentage)]
Because the standard cost is updated periodically, the standard cost amount in this equation is an average and will not always be the same as the amount you paid most recently for the item.

For each unit of measure for each product, you must enter data for the following columns:

- Product.StandardCost column. Every time that you update the standard cost, the price changes.
- ProductPriceLevel.Percentage column. This is the profit percentage you want to achieve.
- ProductPriceLevel.RoundingPolicyCode column.

To set the values for the ProductPriceLevel.PricingMethodCode column and the other product price level table columns, use the IOrganizationService.Update method, passing an instance of the ProductPriceLevel class. To set the values for the product columns, use the methods in the Product class.

ProductPriceLevel Table
Product Table
Product Catalog Tables