You work as the Procurements Manager for a company.The company uses Microsoft Dynamics 365 Finance for its accounting system.
The company purchases several different products from a vendor.
The vendor has agreed to give you a 10% discount if you purchase more than $10,000 worth of goods in a calendar month.
You need to configure a purchase agreement in Microsoft Dynamics 365 Finance.
Which of the following commitment types should you select in the purchase agreement?
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Topic 4, Manage budgeting and fixed assets.
In this scenario, the company purchases several different products from a vendor, and the vendor has agreed to give a 10% discount if the company purchases more than $10,000 worth of goods in a calendar month. To configure a purchase agreement in Microsoft Dynamics 365 Finance, you need to select the appropriate commitment type.
The commitment type determines the criteria for the purchase agreement, which can be based on the product quantity, product value, product category value, or value. In this case, the discount is based on the total value of the goods purchased in a calendar month, so the commitment type that should be selected in the purchase agreement is "Value".
To set up the purchase agreement, you would need to create a new purchase agreement in Microsoft Dynamics 365 Finance and configure the criteria to match the vendor's offer. Specifically, you would need to set the value threshold to $10,000 and the discount percentage to 10%. Then, when the company purchases goods from the vendor and the total value of those goods exceeds $10,000 in a calendar month, the discount will be automatically applied to the purchase order.