The trade agreements in Microsoft Dynamics AX deal with four types of price discounts. These discounts can be set up for different items, customers, or price groups, and can be limited by date. To avoid miscalculations, the price simulation process must take the following trade agreements into account.

The four types of discounts in the trade agreements are:

• Sales price: Separate item sales prices can be specified. The application searches for and transfers the correct item sales prices to the quotation lines when they are created; therefore, this type of trade agreement does not impact the price simulation process. The item sales price that is used in the quotation line accounts for the sales price trade agreement.

• Line discount: Special item discounts are specified depending on the ordered amount. Line amounts are typically reduced by the line discount before a price simulation is run; therefore, this type of trade agreement impacts the price simulation process.

• Multi-line discount: If the combined amounts exceed the limit that you have defined, predefined combinations of ordered items trigger a discount on the entire order. Line amounts typically are reduced by the line discount before a price simulation is run; therefore, this type of trade agreement impacts the price simulation process.

• Total discount: If the combined amounts exceed the limit that you have defined, predefined ordered items trigger a discount on the entire order. The total discount is generated by the quotation lines but applied to the quotation total as a discount, reducing the total quotation amount; therefore, this type of trade agreement impacts the price simulation severely.

• When you create or adjust a quotation line, line discounts are automatically calculated and the relevant sales price for the item is found in accordance with the trade agreement.