Customer price levels
Each pricing record has up to nine repricing levels, which are user-defined according to industry, products, and customers. For example, you can assign a level based on the amount of time your customer has purchased from you. In which case, you could assign all new customers a pricing level of 9 and long-term customers a level of 1. Other time frames fit somewhere in between. You can also use level pricing to rank customers based on these factors:
- Type of industry
- Size of the operation
- Amount of business they generate
When you set up pricing records, specify whether the repricing levels are based on the actual price, a percentage of the actual price, or a percentage of a pricing sheet.
You can use the base price, list price, cost, margin, rebated cost, or rebated margin as the basis in calculating the new price for each pricing level. Or, if the pricing calculation is based on a percentage of a price sheet, you can select from 25 different fields to use as the basis.
To implement level repricing, assign price and discount levels in Customer Setup to control the price that defaults when you enter an order. You can also associate price and discount levels to a customer’s ship-to record for a specific pricing structure.
There are three fields in the Pricing section of Customer Setup-Ordering that control the customer’s price level, line discount level, and the whole order discount level. You can also associate price records to a specific Customer Ship To Setup record for a specific pricing structure.
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Price Level
The value specified in the Price Level field determines the default price in Sales Order Entry. The customer is not restricted to this level. There are nine price levels available within a pricing record. If you use quantity break pricing, the price level is used only if the quantity break is based on discount. Specify 0 and Pricing and Discounting pricing is not allowed for this customer. The price is taken from the base or list price in the Product Warehouse Product Setup record.
See Repricing
Order Discount
The order discount level relates to the discount level set up in PD Whole Order Discount Setup. The order discount level does not apply if the record is based on quantity breaks. The discounts can be based on a customer total order quantity or total order amount. Whole order discounts are calculated at the end of the order based on the customer, total order quantity, or total order amount less addons. When you run the Sales Entry Invoice Processing Report, the whole order discount prorates back to each line item. Specify 0 and the customer does not qualify for whole order discounts.-
Line Discount
The line discount level determines which discount within a pricing record is used in Sales Order Entry. There are nine discount levels available within a pricing record. If you are using quantity break pricing, the line discount levels are only used if the quantity break is based on price. Specify 0 and line discounts are not allowed for this customer.
| PD Pricing Setup Break On | Customer Setup | |||
|---|---|---|---|---|
| Price
Level = 0 Line Discount = 0 |
Price
Level is greater than 0 Line Discount = 0 |
Price
Level = 0 Line Discount is greater than 0 |
Price
Level is greater than 0 Line Discount is greater than 0 |
|
| Price | Default price is determined by pricing multiplier in Product Setup. | Price is determined by the quantity ordered. | Default price is determined by pricing multiplier in Product Setup. | Price is determined by the quantity ordered. |
| Discount | Default price is determined by pricing multiplier in Product Setup. | Default price reflects pricing multiplier setting in Product Setup. | Default price is determined by pricing multiplier in Product Setup. Line discount is based on the quantity ordered. | Default price is determined by pricing multiplier in Product Setup. Line discount is based on the quantity ordered. |
| Price Break with Discount Levels | Default price is determined by pricing multiplier in Product Setup. | Price is determined by the quantity ordered. | Default price is determined by pricing multiplier in Product Setup. Line discount is based on the discount level assigned in Customer Setup. | Price is based on the quantity ordered. Line discount is based on the discount level assigned in Customer Setup. |
| Discount Break with Price Levels | Default price is determined by pricing multiplier in Product Setup. | Price is based on the price level defined in Customer Setup. | Default price is determined by pricing multiplier in Product Setup. Line discount is based on the quantity ordered. | Price is based on the price level defined in Customer Setup. Line discount is based on the quantity ordered. |
When the price is initially calculated in Sales Order Entry, the pricing hierarchy is used to determine which price is used for a line.
If the price is calculated based on a Pricing and Discounting record, the PD Pricing Setup record number is stored for each line to be recalled later.
Multiple level price types
When price types for customers and ship tos are set up in Customer Price Type Setup, the system price is compared to the multiple level price. By default, the lowest price is then used as the product price, but you can use settings in SA Administrator Options-Products-Multiple Level to prioritize multiple level pricing.
Repricing
The customer service representative can change the price, depending on security. Price changes can be made in Sales Order Entry or Sales Customer Pricing Inquiry.
These repricing levels are available:
Quantity Break
When you offer a discount based on the quantity of product purchased, the pricing style is referred to as quantity break pricing.
Level Repricing
You can assign pricing levels to customers based several different scenarios. For example, you can assign a pricing level based these factors:
- Type of industry
- Length of time they have been your customer
- Amount of business they generate
When you enter an order, you can use level repricing to give the customer a new price from a different level on the same Pricing and Discounting record. If you select level repricing on the Pricing section, the pricing record number is used to find the original pricing record.
Cost Plus Pricing
Mark Up From field in SA Administration Options-Product-Costs to calculate the price. For example, you want to charge the customer 25% above cost. The cost at which you obtained the product is multiplied by 125% to calculate the price. If the product is a kit and the Order Entry Kit Rollup field in Product Setup is set to Both or Cost, the component costs are added and the cost plus pricing percentage is applied to the sum of the component costs. If the line contains a nonstock product, you can enter cost plus pricing. When you enter the information for the nonstock, the price on the line is changed accordingly.
Quote Repricing
When the price and discount are calculated from a quoted price, you can accept the quoted price and discount, or click and perform quote repricing. The price default hierarchy is used to determine the new price and discount, but all quote records are ignored. If you have manually overridden the price, quote repricing is not allowed.Margin Repricing
In Sales Order Entry, you can recalculate a price based on a percentage margin of the price over the cost of the product. The price is recalculated using this formula: Cost/[1-(Margin/100)] = Price.
After you reprice the product, the line item price is changed. The line discount is cleared and you must re-enter it to apply a discount to the line.
Restore Pricing
Any changes you have made to the price can be undone and you can reset it to the original price. Click to display the original price for this line item. This is true even if you manually override the price.
Previous Pricing
Use this pricing style to charge the customer the same price and discount you previously charged for the product, unit, and customer. Returns, correction lines, and credit orders are not considered when the previous price is determined. These do not accurately reflect the current price for the customer. If the last order with the same product has a different unit, you cannot use previous pricing.
Ignore Quote, Use Level Pricing
You can ignore a quote price record and display the level prices from the customer’s PD Pricing Setup customer record in Sales Order Entry, unless a non-quote record does not exist for the customer or product.
Manual override
Unless you are using the Hard System Price control, you can manually override it on the Sales Order Entry line if you have the correct security. If Price Override Limits are defined for the pricing record in PD Pricing Setup, you can change the price on the line provided they are within the tolerance levels, either up or down. Verify your Entry Overrides settings in SA Operator Setup-Entry Options.
After you manually override the price, you cannot reprice again using level or quote repricing, but you can use cost plus, margin, previous pricing or restore the pricing.
Highest price paid
If you have contractual price records in place for Price Level 1, the Highest Price Paid does not replace the price with the Highest Price found. Select Exclude Level 2 in SA Administrator Options-Documents-Sales Orders to also exclude level 1 and level 2 prices from Highest Price replacement.