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Product pricing methods

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Applies To: Dynamics 365 (online), Dynamics 365 (on-premises), Dynamics CRM 2016, Dynamics CRM Online

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

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

  • What attributes 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 attributes that are required by each value.

Drop-down list value and equivalent pricing method value

Description and required attributes

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 attribute.

Note

The ProductPriceLevel.Amount attribute isn’t platform required if you’re not using the pricing methods provided by Microsoft Dynamics 365. However, if you use the Currency Amount pricing method to determine a price, this attribute is platform required and you must specify a value for this attribute.

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 attributes:

  • Product.Price attribute. This is the List Price in the Product form.

  • ProductPriceLevel.Percentage attribute. This is the desired percentage of the list price.

  • ProductPriceLevel.RoundingPolicyCode attribute. 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 attributes:

  • Product.CurrentCost attribute. You must update this cost every time that you receive a shipment of the item.

  • ProductPriceLevel.Percentage attribute. This is the percent markup.

  • ProductPriceLevel.RoundingPolicyCode attribute.

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 attributes:

  • Product.StandardCost attribute. You must update this cost every time when you receive a shipment of the item.

  • ProductPriceLevel.Percentage attribute. This is the profit percentage you want to achieve.

  • ProductPriceLevel.RoundingPolicyCode attribute.

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 attributes:

  • Product.StandardCost attribute. Every time that you update the standard cost, the price changes.

  • ProductPriceLevel.Percentage attribute. This is the percent markup.

  • ProductPriceLevel.RoundingPolicyCode attribute.

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 attributes:

  • Product.StandardCost attribute. Every time that you update the standard cost, the price changes.

  • ProductPriceLevel.Percentage attribute. This is the profit percentage you want to achieve.

  • ProductPriceLevel.RoundingPolicyCode attribute.

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

See Also

ProductPriceLevel (price list item) entity messages and methods
Product entity messages and methods
Product catalog entities

Microsoft Dynamics 365

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