Calculating Unit Price for Sales Orders and Service Orders

The unit price is calculated as:

Unit Price = Base + or (-) Dollar Amount or Percent

The system performs several steps when determining the unit price for sales order lines and service order transactions based on List pricing:

  1. Special Pricing Agreements (SPA): Checks to see if the order has a SPA number associated with it. If a SPA is found, the system will use that price established with the applicable customer, item, and vendor combination. See the SPA Pricing Overview for more details.
  2. Customer/Item Pricing: Checks to see if a Customer Item Cross References record exists for that customer and item combination. If a record is found, then the system checks the Customer Item Pricing table to find a record where the order due date is on or after the effective date. If a valid pricing record is found, and the contract price has a value, it uses that contract price. If the contract price is zero, the system determines if any quantity price breaks have been established for the customer and item by checking the Customer Item Pricing record. If quantity price breaks exist, they will be used as the default unit price. If there are no quantity price breaks for the customer, then the system moves on to the next level.
  3. Customer/Product Code Pricing: Checks to see if a Customer Product Code Pricing record exists for that customer and item product code combination. If a record is found, then the system checks the customer product code pricing table to find a record where the order due date is on or after the effective date. If a valid pricing record is found, the system determines if any quantity price breaks have been established for the customer and product code by checking the Customer Product Code Pricing record. If quantity price breaks exist, they will be used as the default unit price. If there are no quantity price breaks for the customer, the system moves on to the next level.
  4. Price Matrix Formula Pricing: Determines if a customer price code is available for the sales order line, as well as an item price code from the Item Pricing record. If either price code is not found, the system moves on to the next step. If both price codes are available, the system uses the Price Matrix table to determine the price. After the system determines that two valid price codes exist, it searches the Price Matrix table to determine if a price code record exists for this combination of codes.

    If a Price Matrix record is located, the corresponding Price Formulas record is used in calculating the item's unit price. The system then cross checks the quantity price breaks:

    • If the quantity price breaks are valid, they are used to calculate the unit price.
    • If the quantity price breaks are not valid, the system uses the price formula to determine the unit price.
  5. Item Pricing: Searches for a current Item Pricing record based on the item pricing's effectivity date and customer's currency code.
    • If any quantity price breaks have been established for the item, and if the quantity price breaks apply, the system uses these quantity price breaks as the default unit price.
    • If no other pricing has been established, then the default unit price will be the value for the Item Price 1 field from the Item Pricing record.
  6. Manual: If no Item Pricing record exists, a message displays, stating that not one item price exists. In this case, you must enter the price manually.
Note: 
  • Multi-currency calculations will first try to locate Price Formulas and Item Pricing records in the customer's currency. If the customer's currency is available, those values are used. If no records are found in the customer's currency, then the system locates records in the domestic currency and converts them to the customer's currency.
  • If any discounts or premiums have been set up by product code and customer type on the Discounts form, the system applies them after pricing has been determined for an item using the stated pricing structure.
  • For non-inventory items, you must manually enter the unit price of the item.