Microsoft Dynamics 365 Customer Experience Analyst : Configure product catalog settings

In Microsoft Dynamics 365 Sales, the Product Catalog serves as a centralized framework for managing all the products and services a business offers, along with their associated pricing, units of measure, and discount structures. It provides a hierarchical structure that connects Products to Unit Groups, Price Lists, Discount Lists, and even Bundles or Kits, enabling organizations to offer flexible and tailored pricing to customers. By maintaining a well-structured product catalog, businesses can ensure pricing consistency, streamline quote generation, and improve sales team productivity. Additionally, the product catalog supports multiple currencies, targeted price lists for different markets or regions, and automated calculations for discounts—making it a crucial component for scaling sales operations and delivering a consistent customer experience.

1. What is a “Product” in CRM and Dynamics 365 Sales?

In CRM systems (including Microsoft Dynamics 365 Sales), a product is an item or service your business sells. It contains details such as name, description, price, unit of measure, tax, and associated discounts.

In Dynamics 365 Sales:

Products are part of the Product Catalog, which lets you standardize pricing, units, and availability.

Products can be:

• Standalone (sold individually)
• Part of bundles (multiple products sold together)
• As part of kits (grouped products delivered as one package)

2. What is the Product Catalog in Dynamics 365 Sales?

The Product Catalog is a structured repository where you manage your organization’s offerings. It includes:

•  Products (goods or services)
•  Unit groups (measurement standards—hours, pieces, packs, etc.)
•  Price lists (pricing rules for customers, regions, or agreements)
•  Discount lists (discount rules based on quantity or value)
•  Bundles/Kits (grouped products with combined pricing or offers)

3. Benefits & Business Relevance

• Standardization: Consistent product and pricing data across the organization.
• Automation: Preconfigured pricing, discounts, and tax rules reduce manual errors.
• Flexibility: Different price lists for regions, customers, or promotional offers.
• Sales Efficiency: Sales reps can quickly create accurate quotes and orders.
• Analytics: Better sales reporting with accurate product-level data.
• Scalability: Easily adapt when launching new products or entering new markets.

Business Relevance Example:

If your company sells oil and gas spare parts, you can create:

• Unit group: “Pieces” for valves, “Hours” for field service work.
• Price list: “APAC Price List” vs. “EMEA Price List” for regional customers.
• Discount list: 10% discount for bulk orders above 100 units.

 4. Configuring Product Catalog Settings in Dynamics 365 Sales

Step 1 – Enable Product Catalog

1. Go to Settings → Advanced Settings → Product Catalog.

2. Ensure product management features are turned on in System Settings.

 Step 2 – Create Unit Groups

 Navigate to Product Catalog → Unit Groups.

 Define base unit (e.g., Piece) and additional units (e.g., Dozen, Box).

Step 3 – Create Price Lists

Go to Product Catalog → Price Lists.

 Add Price List Items with product, unit, and price details.

Step 4 – Create Products

Navigate to Product Catalog → Products.

 Enter product name, unit group, price list, tax, and active status.

 Step 5 – Add Discount Lists (Optional)

• Go to Product Catalog → Discount Lists.
•  Define quantity/value thresholds and discount percentages.

 Step 6 – Use Bundles or Kits (Optional)

 Create product bundles or kits for packages you sell together.

 Step 7 – Test in Quotes & Orders

Create a Quote and add products from the catalog to verify pricing and discounts.

Summary:

In Microsoft Dynamics 365 Sales, the Product Catalog is a structured framework that organizes all products and services a business offers, enabling accurate and consistent sales transactions. It includes key components such as Products, Unit Groups, Price Lists, Discount Lists, and advanced configurations like Bundles and Kits. This catalog ensures standardized pricing, simplifies quoting and ordering processes, and supports multiple currencies and regions. For businesses, it provides a centralized repository for managing product information, improving sales efficiency, reducing errors, and enabling dynamic pricing strategies—ultimately enhancing the customer buying experience and streamlining revenue management.