Lab 4 - Set up the product catalog

Last month, a rep in the West region quoted a hotel chain $350 per month to lease a commercial espresso machine. Two weeks later, a rep in the Northeast quoted a different hotel chain $290 per month for the same model. When the first client found out, they were furious — and the West region rep had to go back and renegotiate.

Priya's response: "No more quoting from memory." Contoso Coffee needs a centralized product catalog where every product has a defined price and every rep quotes from the same source of truth.

In this lab, you'll build that catalog. You'll create unit groups, define Contoso Coffee's core products, build a standard price list, and set up a volume discount tier so that larger deals get the right pricing automatically.

This lab should take approximately 40 minutes to complete.

Before you start

You need to be signed in to Sales Hub with the App Settings area accessible. You should also have admin or system customizer permissions in your environment.

Task 1: Create a unit group

Dynamics 365 Sales uses unit groups to define how products are measured and sold. Contoso Coffee sells equipment as outright purchases and as monthly leases, and service contracts as flat-rate annual agreements. You'll create a unit group for equipment first.

  1. In Sales Hub, select App Settings from the bottom of the left navigation.

  2. Under the Product Catalog section, select Unit groups.

  3. Select + New on the command bar.

  4. Fill in the unit group details:

    • Name: Equipment Units
    • Primary Unit: Unit

  5. Select OK.

  6. On the Equipment Units record, select Related and then select Units.

  7. Select + New Unit.

  8. Add the following unit:

    • Name: Month (lease)
    • Quantity: 1
    • Base Unit: Unit

  9. Select Save and Close.

  10. Add another unit with the following details:

    • Name: Year (lease)
    • Quantity: 12
    • Base Unit: Month (lease)

  11. Select Save and Close.

  12. Return to the Active Unit Groups view and select + New again to create a second unit group for service contracts.

  13. Fill in the following details:

    • Name: Service Units
    • Primary Unit: Visit

  14. Select OK.

  15. On the Service Units record, select Related, then select Units. Add the following units and select Save and Close after each one:

    • Name: Month (flat rate) — Quantity: 1, Base Unit: Visit
    • Name: Year (flat rate) — Quantity: 12, Base Unit: Month (flat rate)

  16. Select Save & Close.

Task 2: Create products

Now you'll add Contoso Coffee's four core offerings to the product catalog.

  1. In App Settings, under Product Catalog, select Families and products.

  2. Select Add Product on the command bar.

  3. Fill in the first product:

    • Name: Espresso Machine - Standard
    • Product ID: ESP-STD
    • Valid From: Today's date
    • Description: Commercial single-group espresso machine suitable for cafés, small restaurants, and hotel lobby bars serving up to 80 drinks per day.
    • Unit Group: Equipment Units
    • Default Unit: Unit
    • Decimals Supported: 0

  4. Select Save.

  5. Confirm the Status shows Active. Products are saved as active immediately in this environment.

  6. Select the back button to return to the All Products, Families, & Bundles view. Repeat steps 2–5 to create three more products:

    Product 2:

    • Name: Espresso Machine - Pro
    • Product ID: ESP-PRO
    • Valid From: Today's date
    • Description: Commercial dual-group espresso machine for high-volume environments such as hotel restaurants, corporate cafeterias, and conference centers serving up to 300 drinks per day.
    • Unit Group: Equipment Units
    • Default Unit: Unit
    • Decimals Supported: 0

    Product 3:

    • Name: Batch Brew Coffee Maker
    • Product ID: BREW-STD
    • Valid From: Today's date
    • Description: High-capacity batch brew coffee maker for offices, conference rooms, and break rooms. Brews up to 3 gallons per hour.
    • Unit Group: Equipment Units
    • Default Unit: Unit
    • Decimals Supported: 0

    Product 4:

    • Name: Equipment Service Contract
    • Product ID: SVC-CONTRACT
    • Valid From: Today's date
    • Description: Monthly service and maintenance contract covering two scheduled preventive maintenance visits per year and unlimited on-call repair support during business hours.
    • Unit Group: Service Units
    • Default Unit: Month (flat rate)
    • Decimals Supported: 0

  7. Return to the Products, Families, and Bundles list and confirm all four products show an Active status.

Task 3: Create a price list

A price list connects your products to specific prices. Contoso Coffee has one standard price list for North American clients billed in USD. You'll build it now.

  1. In App Settings, under Product Catalog, select Price Lists.

  2. Select + New on the command bar.

  3. Fill in the price list details:

    • Name: Contoso Coffee North America - USD
    • Start date: Today's date
    • End date: Leave blank (this is Contoso Coffee's permanent standard list)
    • Currency: US Dollar

  4. Select Save.

  5. On the price list record, select the Price List Items tab, then select + New Price List Item on the command bar.

  6. On the General tab, fill in:

    • Product: Espresso Machine - Standard
    • Unit: Unit

  7. Select the Pricing information tab and enter:

    • Amount: 3200.00

  8. Select Save & Close, then select + New Price List Item. On the General tab, fill in:

    • Product: Espresso Machine - Standard
    • Unit: Month (lease)

  9. Select the Pricing Information tab and enter:

    • Amount: 145.00

  10. Select Save & Close, then select + New Price List Item. On the General tab, fill in:

    • Product: Espresso Machine - Pro
    • Unit: Unit

  11. Select the Pricing Information tab and enter:

    • Amount: 5800.00

  12. Select Save & Close, then select + New Price List Item. On the General tab, fill in:

    • Product: Espresso Machine - Pro
    • Unit: Year (lease)

  13. Select the Pricing Information tab and enter:

    • Amount: 3180.00

  14. Select Save & Close, then select + New Price List Item. On the General tab, fill in:

    • Product: Batch Brew Coffee Maker
    • Unit: Unit

  15. Select the Pricing Information tab and enter:

    • Amount: 1400.00

  16. Select Save & Close, then select + New Price List Item. On the General tab, fill in:

    • Product: Batch Brew Coffee Maker
    • Unit: Month (lease)

  17. Select the Pricing Information tab and enter:

    • Amount: 65.00

  18. Select Save & Close, then select + New Price List Item. On the General tab, fill in:

    • Product: Equipment Service Contract
    • Unit: Year (flat rate)

  19. Select the Pricing Information tab and enter:

    • Amount: 1068.00

  20. Select Save & Close.

  21. Confirm that all seven price list items appear on the Price List Items tab of the Contoso Coffee North America - USD record.

Task 4: Create a volume discount list

Contoso Coffee offers volume discounts on equipment leases when a customer leases five or more units. Five to nine units get a 5% discount; ten or more units get a 10% discount.

  1. In App Settings, under Product Catalog, select Discount Lists.

  2. Select + New on the command bar.

  3. Fill in the discount list details:

    • Name: Equipment Lease Volume Discounts
    • Type: Percentage

  4. Select Save, or press Ctrl+S if the Save button is not available.

  5. Select Related > Discounts.

  6. In the Discounts section, select + New Discount.

  7. Add the first discount tier with the following details:

    • Begin quantity: 1
    • End quantity: 4
    • Percentage: 0

  8. Select Save & Close, then select + New Discount. Add the second discount with the following details:

    • Begin quantity: 5
    • End quantity: 9
    • Percentage: 5

  9. Select Save & Close, then select + New Discount. Add the third discount with the following details:

    • Begin quantity: 10
    • End quantity: 9999
    • Percentage: 10

  10. Select Save.

  11. Select Price Lists from the left menu.

  12. Return to the Contoso Coffee North America - USD price list and select Price List Items.

  13. Find the Espresso Machine - Standard (Month (lease)) price list item and open it. Select the Open record icon (the pop-out at the far right of the row) to open it. Do not select the product name, as this opens the Product record instead of the Price List Item record.

  14. In the Discount list field, select Equipment Lease Volume Discounts.

  15. Select Save.

  16. Repeat steps 13–15 for the Espresso Machine - Pro (Year (lease)) and Batch Brew Coffee Maker (Month (lease)) price list items.

    Now when a rep adds leased equipment to an opportunity and the quantity reaches five or more units, the discount applies automatically.

Task 5: Configure product catalog settings

Before reps start using the catalog, you'll make a few global settings to streamline the experience.

  1. In App Settings, under Product Catalog, select Product Catalog Settings.

  2. Configure the following settings:

    • Enhanced experience for adding products: Toggle On — reps will see a grid where they can select and set the quantity for multiple products at once, rather than adding them one at a time.
    • Create product in active state: Toggle On — new products will be immediately available without needing to be manually published each time.
    • Allow selection of default pricelist: Toggle On — Dynamics 365 will automatically suggest the right price list based on the territory.
    • Discount calculation method: Set to Line item — the discount is applied to the total line amount after multiplying unit price × quantity.

  3. If you changed any settings, select Save. If the settings were already in the required state, the Save button stays greyed out — this is expected, and you can continue.

Summary

The product catalog you've created will be used in Lab 05 when you add products to an opportunity.

If you'd like to review your work, go to App Settings > Families and products to see your four published products, and Price lists to see the Contoso Coffee North America - USD list with its discount tiers applied.

Contoso Coffee now has a centralized, consistent product catalog. Every rep who opens an opportunity and selects a product will see the same prices — and the system will automatically apply volume discounts when the deal qualifies. Requirement five: complete.