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In this tutorial episode of the Microsoft ERP beginners series, the focus is on setting up trade agreements in Microsoft Dynamics 365, specifically on the vendor side. The purpose of a trade agreement is to establish a purchase price for a specific item. The tutorial will guide viewers through the necessary steps to create and post a trade agreement. To start, users are directed to the recruitment sourcing module, where they should navigate to the setup section and access the price and discount settings, as well as the trade agreement journal names. This setup is essential to ensure accurate trade agreements based on vendor interactions.