Stepped Pricing

Background

This document describes how to enable a pricing method that lets the rate decrease as the rental period increases (a sliding price scale). The program 'Rental Rates. Enter Stepped Price' (STS123) can manage the stepped price model.

(STS123) can be reached by using the new option 11-'Stepped Pricing' from 'Serv Price List. Enter Rental Rates' (STS120). The stepped price model can be configured for each item number that is defined in a price list.

Limitations

Exchange handling

Stepped pricing does not work with exchange handling, since a new line with 0 days used is created when an exchange is made.

Discount handling

It is not possible to use a discount model or set a manual discount when stepped price is used.

Best price

It is not possible to use rate type 9 (best price) in combination with stepped price.

Package handling

It is not possible to use line type 4 (package ID) in combination with stepped price, since there is no price list support for packages.

Follow these steps

Creating stepped pricing from (STS120)

  1. From 'Serv Price List. Enter Rental Rates' (STS120) use related option 11=Stepped Pricing. The B panel of 'Rental Rates. Enter Stepped Price' (STS123) shows all stepped price matrices configured for a specific item and price list. It is possible to create, change, delete or view existing matrices from the B panel.

    (key fields within brackets):

    • Company (CONO)
    • Division (DIVI)
    • Price list (PPRF)
    • Currency (CUCD)
    • Customer (CUNO)
    • Start date (STDT)
    • Item group (ITGR)
    • tem number (ITNO)
    • Rental rate type (CCAP)
    • Days/week (ADPW)
    • Limit value (LIMT)
    • Shift price 1, 2, 3, 0 (4 PPCA fields)
  2. Enter a new stepped price model for a specific item number by selecting a rate type and days/week. Click option 1 – Create to open the E panel.

  3. On the E panel, define limit values and rates for the selected rate type. The unit of the limit value is defined by the rate type. For example, if rate type 2 (week) is selected, and the price break value is set to 4, the price entered on the line will be used when the rental period equals or exceeds 4 weeks.

  4. Click Next to return to the B panel. The stepped price model is now configured for the rate type, which will be reflected in the list. It is now possible change, display or delete the created matrix by marking the record and selecting the appropriate option.

Agreement line entry

Creating or editing stepped price lines

If stepped price is enabled when creating the agreement line, a check will be made if a stepped price matrix exists for the item, rate type and price list used on the specific line. If such a matrix does not exist for the specific item, rate type and price list used, an error message is displayed, "Stepped price does not exist for item &1 with rate type &2."

The program 'Rental Agreement Line. Stepped Pricing' (STS202) is used to display or edit the content of the stepped price matrix for a specific agreement line. This program is reachable by using action F19 – Stepped price in 'Rental Agreement. Open Lines' (STS201/F).

It is only possible to reach (STS202) if the agreement line uses stepped pricing.

When a stepped price agreement line is created, the appropriate stepped price matrix is copied from the stepped price model connected to the price list (STPRSP), and saved in a new table, STSPLN, which represents the stepped price matrix connected to the agreement line. (STS202) updates the STSPLN values, so changes will have impact on the current agreement line only.

Moreover, the matrix will only be editable if the agreement line is viewed in change mode. The STSPLN table contains the following fields (key fields within parenthesis):

In (STS201/F), the stepped price that is currently reached will be displayed in the fields 'Stepped period rate' (SPCA) and 'Stepped daily rate' (SDAN). These fields are calculated from today’s date each time the user enters the F panel. As these fields only display information from STSPLN, they are write protected.

Note: The values in these fields do not necessarily match the rate that will later be used on the invoice. Before first limit value is reached the stepped rate fields will display values from the regular price list.

If a change is made to the line that invalidates the currently used stepped price matrix (e.g. rate type or days/week change), an attempt will be made to find a new valid stepped price matrix in the price list. If such a matrix is found, the current STSPLN record is deleted and a new one is retrieved from the price list. If no valid matrix is found, the user will get an error message and may not perform the change.

Copying stepped price lines from (STS100)

When copying an agreement in 'Rental Agreement. Open' (STS100/C) or line in 'Rental Agreement. Copy Line' (STS126) with stepped price, the following rules apply:

Outcome

A stepped pricing model is associated with the selected agreement lines. The stepped price matrix for the rental agreement line is included in the stream of the quotation and agreement documents.

When calculating accrued revenue for'Revenue Accruals. Update' (STS380) and 'Daily Flash Report' (STS390), the stepped price is calculated for the period in question, using the invoice interval end date from the rental agreement line. At invoice proposal creation (STS801), the rate is retrieved from the stepped price matrix, based on the number of days in the invoice period. If there has been a stand down period during the invoice period, the number of stand down days in the period will be deducted from the total invoice amount at the stepped rate that is used on the rental line.

Setup

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