Price simulation examples
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
The following examples use price simulation for quotation headers and single line items.
Price simulation for quotation headers
You create a quotation that has the following lines:
10 units of item BR-12 (cost price per unit USD 9.52 and sales price per unit USD 15.32)
12 units of item BR-14 (cost price per unit USD 7.48 and sales price per unit USD 13.75)
The following table shows the quotation lines.
Calculation |
Result |
|
Sales quantity |
10 units + 12 units |
22 units |
Sales value in USD |
(10*15.32) + (12*13.75) |
318.20 |
Cost value in USD |
(10*9.52) + (12*7.48) |
184.96 |
Contribution margin in USD |
318.20 – 184.96 |
133.24 |
Contribution ratio |
(318.20 – (10*9.52)/318.20) * 100 |
41.87% |
You run a price simulation and apply a 15 percent total discount for the whole quotation, or the quotation header. The following table shows the new totals of the quotation after the price simulation is run.
Calculation |
Result |
|
Sales quantity |
10 units + 12 units |
22 units |
Old sales value in USD |
(10*15.32) + (12*13.75) |
318.20 |
Old cost value in USD |
(10*9.52) + (12*7.48) |
184.96 |
Old contribution margin in USD |
318.20 – 184.96 |
133.24 |
Old contribution ratio |
(318.20 – (10*9.52)/318.20) * 100 |
41.87% |
Price simulation of 15% total discount in USD |
(15*318.2)/100 |
47.73 |
New sales value in USD |
318.20 – 47.73 |
270.47 |
New contribution margin in USD |
270.47 – 184.96 |
85.51 |
New contribution ratio |
((270.47 – 184.96)/270.47) * 100 |
31.61% |
Price simulation for single line items
You create a quotation that has the following lines:
10 units of item BR-12 (cost price per unit USD 9.52 and sales price per unit USD 15.32)
12 units of item BR-14 (cost price per unit USD 7.48 and sales price per unit USD 13.75)
The following table shows the quotation lines.
Result |
Calculation |
|
Sales quantity |
10 units + 12 units |
22 units |
Sales value in USD for BR-12 |
10*15.32 |
153.20 |
Sales value in USD for BR-14 |
12*13.75 |
165.00 |
Cost value in USD for BR-12 |
10*9.52 |
95.20 |
Cost value in USD for BR-14 |
12*7.48 |
89.76 |
Contribution margin in USD for BR-12 |
153.20 – 95.20 |
58.00 |
Contribution margin in USD for BR-14 |
165.00 – 89.76 |
75.24 |
Contribution ratio in USD for BR-12 |
((153.20 – 95.20)/153.20) * 100 |
37.86 |
Contribution ratio in USD for BR-14 |
((165.00 – 89.76)/165.00) * 100 |
45.60 |
Total sales value in USD |
(10*15.32) + (12*13.75) |
318.20 |
Total cost value in USD |
(10*9.52) + (12*7.48) |
184.96 |
Total contribution margin in USD |
318.20 – 184.96 |
133.24 |
Total contribution ratio |
(318.20 – 184.96)/318.20) * 100 |
41.87% |
You run a price simulation and apply a 10 percent total discount to the BR-12 units. The following table shows the new totals of the quotation after the price simulation is run for the single line item.
Calculation |
Result |
|
Sales quantity |
10 units + 12 units |
22 units |
Old sales value in USD for BR-12 |
10*15.32 |
153.20 |
Price simulation of 10% discount for BR-12 |
(10*153.2)/100 |
15.32 |
New sales value in USD for BR-12 |
(10*15.32) – 15.32 |
137.88 |
Sales value in USD for BR-14 |
12*13.75 |
165.00 |
Cost value in USD for BR-12 |
10*9.52 |
95.20 |
Cost value in USD for BR-14 |
12*7.48 |
89.76 |
New contribution margin in USD for BR-12 |
137.88 – 95.20 |
42.68 |
Contribution margin in USD for BR-14 |
165.00 – 89.76 |
75.24 |
New contribution ratio in USD for BR-12 |
((137.88 – 95.20)/137.88) * 100 |
30.95 |
Contribution ratio in USD for BR-14 |
((165.00 – 89.76)/165.00) * 100 |
45.60 |
New total sales value in USD |
(10*15.32 – 15.32) + (12*13.75) |
302.88 |
Total cost value in USD |
(10*9.52) + (12*7.48) |
184.96 |
New total contribution margin in USD |
302.88 – 184.96 |
117.92 |
New total contribution ratio |
((302.88 – 184.96)/302.88) * 100 |
38.91% |
The price simulation affects only the line to which it is applied, reducing the total for that line.