Price simulation examples [AX 2012]

Updated: May 21, 2012

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.

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%

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.


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