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 tabSales tabPurchase tabTransfer tab
Matrix Definition Number GroupAttribute Set for Sales PriceAttribute Set for Purchase PriceAttribute Set for Transfer Price
Price Book Number GroupPrice ControlPrice ControlUse Derived from Item
-Default Sales Price BookSupplier Price Book-
Default Service Price BookPurchase Price Date Type
-Sales Price Date TypeRecalculate Prices and Discounts-
-Recalculate Prices and DiscountsUse Derived from Item-
-Use Derived from Item--

 

Step 2. Matrix Definition (tdpcg0610m000)

In the Matrix Definition (tdpcg0610m000) session:

  1. 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.
  2. Define the elements, which are matrix attributes, for which you want to set up a price book.
  3. Define a matrix priority for the matrix definition, which is used as a search priority to find a price.
Step 3. Price Book (tdpcg0611m000)

Define price books in the Price Book (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

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

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