Managing pricing across multiple sales channels has traditionally been a challenge for businesses. Legacy tools in Dynamics 365 Finance & Operations pricing often created pricing silos, lacked flexibility for attribute-based adjustments, and made it difficult to maintain consistency across B2B, B2C, and retail channels. This typically resulted in manual workarounds, inconsistent margins, and missed opportunities for dynamic pricing.
Unified Pricing Management (UPM) in Dynamics 365 Finance and Operations solves these challenges by offering a centralized, flexible, and intelligent pricing framework. With UPM, businesses can:
Eliminate pricing silos and inconsistencies
Adapt quickly to market changes
Maintain transparency and control across all channels
Simulate and analyze pricing outcomes before execution
This article provides a comprehensive overview of Unified Pricing Management in Dynamics 365, examining the limitations of legacy pricing, the benefits of D365 Unified Pricing Management, and how to configure it for wholesale, trading, and retail scenarios.
What is Unified Pricing Management (UPM)?
To meet the evolving pricing needs of industries such as wholesale, trading, and retail, Microsoft introduced Unified Pricing Management (UPM) in Dynamics 365.
UPM replaces the traditional Pricing and Trade Agreement engines with a centralized, flexible pricing framework. It supports attribute-based pricing strategies through configurable price component codes, enabling businesses to set, adjust, and manage prices consistently across all channels.
Legacy price & discount management vs. Unified Pricing Management
In Dynamics 365 Finance & Operations, pricing and discounts were traditionally managed through Trade Agreements and Discounts (present within Dynamics 365 Commerce). While these features were functional, they presented significant limitations:
Wholesale and trading businesses struggled to manage complex strategies based on product or customer attributes, or bundle discounts.
Retail businesses benefited from richer discount features but lacked flexibility for controlling maximum discount amounts, adjusting prices by brand, or applying discounts to specific product and customer categories.
To address these gaps, Microsoft introduced Unified Pricing Management (UPM) in Dynamics 365 Supply Chain Management. UPM offers a centralized, attribute-based pricing framework that consistently applies complex discount rules across all sales channels.
A comparison of key differences between legacy pricing and D365 Unified Pricing Management is shown in the table below:
Features
Legacy Trade Agreements
Pricing Management (Unified Pricing)
Price Control
Distributed across modules (Sales, Procurement, Retail, and Commerce)
Centralized pricing logic and setup
Pricing Integration
Managed separately in SCM & Commerce modules
Shared pricing logic with SCM and Retail & Commerce
Margin adjustment
No available
Sales price adjustment can be based on attributes
Discount Management
Requires multiple setup forms (line, multi-line, total)
Unified multiple discounts structure with pricing priority and better visibility
Funds control
Not available
Allows funds allocation & control on discounts
Advanced Conditions
Not available
Conditional logic based on product & order attributes
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Managing prices across multiple channels can be complex, especially when dealing with diverse customer types, frequent promotions, and market-driven adjustments. Unified Pricing Management in Dynamics 365 simplifies this by providing a centralized, attribute-based framework that enhances consistency, flexibility, and control.
Centralized price control across sales channels
UPM consolidates sales pricing into a single, unified structure that applies across Supply Chain Management, e-commerce, POS, call centers, and other sales points. This eliminates fragmented setups, ensuring that pricing remains consistent and easy to manage regardless of channel or geography.
Define base price based on product and customer properties
Instead of relying solely on product IDs or customer groups, UPM uses attributes such as product type, material, customer location, or order characteristics. This enables the creation of dynamic pricing models, such as automatically adjusting margins for wholesale customers versus retail buyers, without maintaining separate price lists.
Support complex discounting scenarios in SCM
UPM supports sophisticated discount strategies, including volume-based pricing, mix-and-match offers, and bundled promotions. Businesses can also set rules and priorities for overlapping discounts, ensuring that the most advantageous and compliant offers are applied without manual intervention.
Improved monitoring and control
UPM strengthens pricing governance by controlling who can adjust prices and under what conditions. This minimizes ad-hoc overrides at POS or during sales order entry, ensuring pricing policies remain consistent across all channels.
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The Unified Pricing Management (UPM) engine in Dynamics 365 determines prices and discounts in real time based on four key components:
Attribute groups
Price attribute groups
Price component codes
Price tree
These elements work together to create a flexible, rules-based pricing structure. Understanding how they connect is essential for accurate configuration and effective pricing management. Here is each concept and its role in the pricing process.
1: Attribute groups
Attributes is an extensible framework in D365FO that allows capturing extra information for products, Customers, and orders themselves. Attributes can be any additional property, for example, a Product has a property named Material (e.g., Fiber, Plastic, Wood, etc.), a customer has a region (e.g., “USA”, “UK”, etc.), and an Order has a delivery mode (e.g., “Air”, “Truck”, etc.).
Businesses can define unlimited attributes in the PIM module (detailed steps provided in the section named “Configuring Unified price management”), which will then be used by Unified Pricing management to determine pricing & discounts in a sales order.
Path:Product information management > Setup > Categories and attributes > Attribute groups/Attributes
Figure 1: Showing “Attribute group” defined for Products
2: Price Attributes group
Although businesses can define a great number of attributes with Product, Customers, and stores for sales performance analysis or other reasons.
However, businesses need to select specific attributes for “Product, Customer, and Orders” and define “Price attribute groups” that UPM will use to determine prices or discounts in sales orders. This enables UPM to determine the prices defined based on Product attributes, customer attributes, and order attributes rather than relying only on individual item codes or customer groups (we will demonstrate this in the section named “Configuring Unified Pricing Management”).
We will set up price attribute groups for Order Header & Line.
Header: Price attribute group will represent Customer attributes like customer account, group, region, and sales table (like mode of payment or mode of delivery)
Line: Price attribute groups for Line will represent Product attributes, such as Material, Brand, Type, Category, etc.
Path:Pricing management > Setup > Price> Price attribute groups > Price attribute groups
Figure 2: Showing “Pricing attribute groups” for Products, in which we have picked selective attributes for pricing
3: Price component codes
A sales price comprises different components like “Price”, “margin”, “discount”, “charges”, and “rebate”, which are called “price components”. These components are independently managed and composed into the final price calculation. You can check out the Price component code details at the Microsoft learn website.
The “Price component codes” in UPM combine “Price attribute groups” together with “Price components”. So, depending on requirements, the business will define “Price component codes” for base price, discount, charges, and rebates using the “Price attributes groups”.
Note: You can have a maximum of one “price component code” record for each of the following price components:
Base price – Inventory price
Base price – Purchase price
Base price – Sales price
Sales trade agreement
On the other hand, you can have any number of price component code records for each of the remaining price components.
Figure 3: Showing the list of “Pricing component types” available for pricing in UPM
4: Price tee
In UPM, “Price tree” defines the “pricing sequence” in which the pricing engine evaluates each type of “price component (e.g., base price, adjustment, discounts, charges, etc.)” to calculate the final sales price in the sales order.
A price tree may have multiple discounts with priority and date ranges to manage seasonal adjustments, which are evaluated using “pricing sequence”. Additionally, the price tree enables businesses to define how each price component is posted to the general ledger, which is managed through the “Posting profile” option available with the price tree.
The “pricing sequence” can be a number from 0 to N; the lower the number, the higher the priority. The “price tree” information is part of each order attribute, allowing the pricing engine to select the price components according to the pricing sequence. For details, you can check out the Pricing structure overview on the Microsoft learn website.
Figure 4: Showing the use of Price component codes in “Price tree” with pricing sequence in UPM
Now that you have understood the working model of the unified pricing engine, let’s start configuring the Unified Pricing Management module according to your business needs and verify its functionality using a few pricing scenarios.
Conclusion
Implementing Unified Pricing Management in Dynamics 365 Finance & Operations transforms the way organizations manage pricing by centralizing control, simplifying complex configurations, and ensuring consistent pricing across all channels. This flexible, attribute-based framework not only improves pricing accuracy but also enhances operational efficiency and governance.
At Confiz, we help businesses unlock the full potential of D365 Unified Pricing Management by delivering scalable, secure, and business-aligned pricing solutions that drive growth. From initial setup to advanced configuration, our experts ensure a seamless deployment tailored to your unique pricing strategies.
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