Setting up a price matrix

In Pricing, a price matrix is a pricing structure that offers flexible criteria to define and retrieve prices and discounts.

Essentially, a price matrix consists of the following elements:

If the properties of, for example, the sales order match the properties of the sales price matrix, the price from the price book that is linked to the sales price matrix is applied to the sales order.

To set up a price matrix, complete the following steps:

Step 1. Pricing Parameters (tdpcg0100m000)

Define the following fields in the Pricing Parameters (tdpcg0100m000) session:

General tab	Sales tab	Purchase tab	Transfer tab
Matrix Definition Number Group	Attribute Set for Sales Price	Attribute Set for Purchase Price	Attribute Set for Transfer Price
Price Book Number Group	Price Control	Price Control	Use Derived from Item
-	Default Sales Price Book	Supplier Price Book	-
	Default Service Price Book	Price Date Type
-	Price Date Type	Recalculate Prices and Discounts	-
-	Recalculate Prices and Discounts	Use Derived from Item	-
-	Use Derived from Item	-	-

Step 2. Matrix Definition - Priorities (tdpcg0610m000)

In the Matrix Definition - Priorities (tdpcg0610m000) session:

Define a matrix definition of the following matrix types:
- Sales Price
  To define matrix attributes for sales prices.
- Purchase Price
  To define matrix attributes for purchase prices.
- Transfer Price
  To define matrix attributes for transfer prices.
Define the elements, which are matrix attributes, for which you want to set up a price book.
Define a matrix priority for the matrix definition, which is used as a search priority to find a price.

Step 3. Price Books - Lines (tdpcg0611m000)

Define price books in the Price Books - Lines (tdpcg0611m000) session. In price books, you link item prices and you define price ranges by means of break types and break values. You can also link a discount schedule to the price book.

For more information, refer to Setting up a price book.

Step 4. Price Matrices

Define sales, purchase, and transfer price matrices in these sessions:

In these sessions, you must link a matrix definition to a price book and specify values for the matrix attributes. As a result, matrix attributes are linked to price books.

Example

For matrix type Sales Price, specify the matrix definition MD1. Add the attributes sold-to, invoice-to, order origin, delivery terms, currency, and item to the matrix definition.

Specify price book SLS1 for a group of manufactured items with the following characteristics:

Sold in USD
A minimum break of 2,500 pieces
A valid period from 1 September to 1 December
A price of $25 each
An additional discount schedule

Specify a Sales Price matrix and select matrix definition MD1 and price book SLS1. Enter values for the matrix attributes, such as the following:

Sold-to: Tradex
Invoice-to: Tradex
Order origin: Sales
Delivery terms: CoD (Cash on Delivery)
Currency: USD
Item: Laptop computer A1