Foreign customer pricing records

Pricing records must be set up for your foreign customers before conducting business with them, even if no special discounts are warranted. Although procedures exist to convert line item and order totals into foreign currency amounts in Sales Order Entry, there is no special pricing logic in place to convert product prices into the foreign customer’s currency.

Note: A foreign customer is any customer not located in the same country as the company using Distribution SX.e. Distribution SX.e includes features to improve business transactions with foreign customers, such as allowing you to do business with them in their currency and by having certain documents received by your foreign customers display terminology in their native language.

For example, if you were conducting business with a customer whose foreign currency rate was such that one domestic unit equaled ten foreign currency units, you would set up a customer pricing record that incorporated this exchange rate, such as one that used a multiplier of 1000.

This multiplier would then be applied to the price of any products purchased by this foreign customer. If no Customer Pricing records were set up, the order totals for foreign customers would be incorrect, as the foreign exchange rate would be applied to domestic currency amounts that were already in domestic currency when posted to the General Ledger.

To provide special pricing or discounts to your foreign customers, you can set up additional pricing records in PD Pricing Setup, providing that you incorporate the exchange rate in any of the multipliers or discounts used. For example you could set up a Type 1 pricing record for your foreign customer and a specific product that allowed for a 10% discount of the product’s list price. If, for example, this product’s list price was $100 and you used the 1:10 exchange rate noted above, you would want to charge your customer the foreign equivalent of $90. Therefore, you would use a multiplier of 900. The foreign price of the $100 product with a 10% discount would be 900% x 100 or 900 foreign currency units. The posting to the General Ledger would be $90.00 (.10 x 900).

Note: Do not use any Type 7 (Product) or Type 8 (Product Price Type) pricing records if you do business with foreign customers. Promotional pricing is recorded in domestic currency and applies to all customers, foreign and domestic. If applied to foreign customers, the results would be inconsistent with their foreign currency. If you intend to use Type 7 and Type 8 pricing records, instruct customer service representatives not to apply promotional pricing in Sales Order Entry for foreign customers.