In Dynamics 365 Field Service, pricing rules play a critical role in determining how much a customer is charged for products and services added to a work order. Here’s a detailed explanation of how pricing rules impact the final applied price for a product on a work order:
1. Price Lists
Each work order is linked to a price list, which contains the base prices for all products and services. Price lists define:
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Unit price of each product
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Price per unit of service
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Currency and effective date range
Only products on the selected price list are eligible for pricing when added to the work order.
2. Price List Items
These are individual entries in a price list and define how the price is calculated. Key elements include:
3. Pricing Methods
The pricing method defined in the price list item determines how the system calculates the product price:
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Standard: Uses a fixed price defined in the price list.
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Percent Markup over Cost: Applies a markup percentage to the product’s cost.
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Percent Margin: Adjusts the price to achieve a defined margin over cost.
4. Work Order Configuration
Each work order inherits the price list from its service account, but this can be manually overridden.
Also, the work order type can influence pricing if specific rules are set for different types of services (e.g., emergency vs. routine maintenance).
5. Billing Account and Agreement Settings
If the work is part of an agreement, the agreement may specify a price list and override the default one.
The billing account might have negotiated rates, which also affect pricing.
6. Tax and Discount Considerations
The total price can be affected by:
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Tax codes applied at the account or work order level
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Discount lists (global or customer-specific)
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Promotions or entitlements
7. Manual Overrides
Field agents or back-office staff can manually override prices on work order products if permissions allow. This provides flexibility but must be used carefully to avoid revenue leakage.
8. Entitlements and Service Coverage
If entitlements (prepaid hours or service calls) are configured, the system will apply those first, potentially reducing the price to $0. Any additional usage beyond the entitlement will be billed according to the price list.
Summary
The final price of a product on a work order is the result of multiple layers: price lists, pricing methods, agreements, tax rules, and any manual adjustments. Understanding and configuring these pricing rules properly ensures accurate billing, customer satisfaction, and consistent revenue.
