Sales process – Part 2 – Quoting

(It is highly recommended to read the first part of this article before proceed.)

In Microsoft Dyanmics CRM, Quote products are the line items under the Quote. Each Quote Product represents quantity, price and etc. of a product which is of interest, in given quotation.

When creating a Quote there are few required fields such as Name, Potential Customer, Price List and Currency. Since I am going to explain the pricing of Quoting, I would urge the importance of assigning the Price List for a Quoting while all other fields are quite self-explainable.

Quote Product Units

Now we will pay attention to Quote Product and see how it works together with other components we learned in first Part of this article.

When creating Quote Products, it is required to populate Product, Unit and Quantity.

Now I am adding the Product Called “My Product 001” and Unit lookup pop-up shows all the Units under Unit Group of Primary Unit (Each). This is because, when we create this product in product entity we have specified that Unit Group. If we use a product which got Weight Unit Group, we might see all the Units associated to Weight such as 5kg Pack, 3Kg Pack and so on.

Quote Product Price Calculation

Now I save the Quote product with my values. Quantity is 7 and Unit is Each. Now we get auto calculated total for the Quote Product as below.

Price per Unit is the amount we mentioned in the Price List for “My Product 001” for “Each” unit. below is the calculation for Amount.

Amount = (Price per Unit – Volume Discount) x Quantity

In this case, Amount is also equal to Extended Amount too.

Now what is Volume Discount? If you read the first part of this article, it was explained about a lookup to set Discount List when creating Price List items. In this case, I have assigned a Discount List for the Pricelist Item of this product for Each Unit. Particular Discount List contains a Discount as below;

This simply tells to give $ 3 discount if quantity >= 6 and quantity <= 10.

Note: Since Discount List has to be assigned to Pricelist Items, it has to be assigned to all the Unit records for same product. In other terms, this same discount will not be applicable for the same product comes as Dozen or Cartoon unless it’s assigned for relevant PriceList Item records.

Apart from them, there are two more editable fields which I filling now. I put Manual Discount 50 and Tax 100 then save the record again. Below is the result.

In fact below is the equation of Extended Amount.

Extended Amount = Amount – Manual Discount + Tax

Dependencies you may note in Quote products

1) There are more products in the product entity, but I see fewer products in product lookup from the Quote Product form.

Explanation: You see only the products associated with the relevant Price List. In other terms, there should be at least one PriceList Item with the product to be seen here.

2) After populating a product to Quote Product, when try to set the Unit, I don’t see all the Units come under relevant Unit Group.

Explanation: Though this product is associated with relevant PriceList, it hasn’t got PriceList Item for all three Units, but only for the shown Units. In this example, PriceList got only one PriceList Item for this product and it is for Dozen Unit. (Need records for Each and Cartoon)

Quote Price Calculation

Once you complete play around with Quote Product, you are required to click the Recalculate button to get correct Quote totals. I got below sample totals for a Quote with a couple of Quote Products.

In fact, below are a couple of important formulas;

Detail Amount = Sum of Quote Products (Extended Amount – Tax)

Total Tax = Sum of Quote Products (Tax)

Quote total pane also got a couple of editable fields. I put my own values and recalculated to get new totals.

I have below formulas now;

Pre-Freight Amount = ( Detail Amount  x (100 - Quote Discount % ) / 100 ) – Quote Discount $

Total Amount = Pre-Freight Amount + Freight Amount + Total Tax

You will notice there are two kinds of Discount fields in the pane. One is percentage and other one is dollar amount. I have filled both fields to present a universal formula, but in practical world it’s advised to use one of those to keep it simple. These values are one time discounts that applied to the Quote total.

1st part of this article: Sales process – Part 1 – Product Catalog
3rd part of this article: Sales process – Part 3 – Modifying calculation of quote product
4th part of this article: Sales process – Part 4 – Modifying calculation of quote