Product pricing

Product price is determined by a pricing hierarchy. Only one price type is used at a time for any customer, product, vendor, or rebate. You can manually override a price or a discount unless Hard System Price is selected on the pricing record.

See Overriding the price.

When you enter a product on a sales order line, the line type is reviewed. If the product is a nonstock, the price, cost, and discount from the Nonstock window are used.

For kit products, rollup pricing is applicable. The price of the components that are used to create the kit are added together to determine the price of the finished kit. If you manually override a price or discount and then add a component to the kit, the kit price is not rolled again to include the price of the additional component.

After nonstocks and kits are ruled out, the pricing logic searches for promotional pricing records. If promotional pricing is in effect, the promotional price is considered before any other price.

See Promotional pricing.

If an applicable promotional price record is found, the search continues for the next applicable record within the hierarchy. If one exists, the two records are compared and the lowest price is used. This comparison is only performed with promotional records.

If no promotional records are found, the price is determined by the customer making the purchase, the product being purchased, or various combinations of the two. Pricing records are reviewed by the pricing logic in accordance with the hierarchy. When a valid record is found, the price from the record is applied to the product. The remaining records within the hierarchy are not considered, even if the price on a subsequent pricing record is lower that the price on the first valid record. If multiple active pricing records of the same type exist, the record with the most recent beginning date is used.

If you have set up multiple level customer price or rebate types in Customer Price Type Setup and Customer Rebate Type Setup, and enabled the use of these records in SA Administrator Options-Products-Multiple Level, the system price is compared to any existing multi-level customer or rebate types to determine the lowest actual price and largest rebate available for your customer. The multi-level customer price type records apply to Type 3, 4 and 6 levels only. These include Customer Type/Product (Level 3), Customer type/Product Price Type (Level 4), Customer Type/Product Rebate Type (Level 4), or Customer Type (Level 6).

If no valid price is found, the base or list price in Product Warehouse Product Setup defaults to the line item. Similarly, when the Price Level field in Customer Setup-Ordering is set to 0, then the PD Pricing Setup record is not accessed for pricing purposes and the customer receives the base or list pricing.

Highest Price Paid

If you use pricing level Type 1 for a select customer and product (contractual pricing), the Highest Price Paid value cannot replace the price for this customer and product in Sales Order Entry. If you use pricing level Type 2, and you have selected Exclude Level 2 in SA Administrator Options-Documents-Sales Orders, then Highest Price Paid cannot replace the Type 2 price.

Overriding the price

You can override a product's price, unless the Hard System Price option is selected in PD Pricing Setup. If this option is selected, you can override the price, discount, and discount type only if Yes is selected for Allow Override of Hard System Price in SA Operator Setup-Entry Options.Override tolerance percentages for the system price can be set on the PD Pricing Setup record. The override tolerances are controlled by the Allow Overrides of Pricing Tolerances setting in SA Operator Setup-Entry Options. The tolerance limits apply only to the Price field, not to the discount.

A Price Override Type is stored on the Sales Order line record when the Price Override logic is applied. This internal field is updated with a single character value to indicate whether the price was accepted, in limits, or outside limits. The highest tolerance price and lowest tolerance price allowed on the line is also store on the order line record (OEEL).

A single pricing record cannot have both hard system price and override tolerances.

Setup

Before you can set up pricing records, you must establish your system control records. In SA Administrator Options-Products-Pricing, select the price types and options that you plan to use for customers and vendors. If you select Use Rebate Pricing Records Before Price Type, you override the standard pricing hierarchy to prioritize Level 4 rebate records over Level 4 Product Price Type records.

If you select a Level 2 Override Hierarchy, the new order you specify replaces the default pricing hierarchy for these pricing record types:
  • Customer/Product Price Type
  • Customer/Rebate Type
  • Customer/Product Line
  • Customer/Product Category

When you set up pricing records in PD Pricing Setup, specify whether the pricing 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.

A pricing matrix bases pricing records on groups of customers and products.

See Matrix pricing.

Customer and product price types are used to group similar items to minimize record-keeping maintenance.

A pricing record can be converted from a quote in Sales Order Entry to a type 1 pricing record. You can set up eight different price type levels.

When you offer quantity breaks, you are giving your customer an incentive to purchase a greater quantity for a better price. You can define special prices and discounts for merchandise you purchase from vendors. Only those products given special prices and discounts beyond the costs contained on the Product Warehouse Product Setup record require a vendor pricing record. These records control the outgoing costs that default to all orders created through Purchase Order Entry. Rebate pricing records track both vendor and customer rebates. Rebates promote products with an apparent price change, but statistically, only a small percentage of the rebates are ever claimed.

See Rebates.

If you are pricing by a group of customers or products or using rebate types, set up the appropriate table value and indicate the group on the customer or product record, so the price is applied.

After you set up your pricing records or pricing sheets, you can use PD Mass Maintenance Entry to change several records at a time to update the pricing records, or manually update a record. You can also transfer pricing data between the Pricing and Discounting module and Microsoft Excel to set up scenarios and change prices on a spreadsheet.

Special price-type rebates and price-type discounts require additional administrator options.

See Setting up a special price/cost rebate.

Special price type discounts are set up in PD Special Price Type Discount Setup. Discounts are determined by the customer price level, order quantity, or order amount.

See Whole order discounts.

The discount is calculated at the end of the order and is not prorated back to the line items until the Sales Entry Invoice Processing Report is generated. Each time a line item changes and affects the discount, it is recalculated. If you manually enter the whole order discount, it is not recalculated when a line item changes. Whole order discount records are set up in PD Whole Order Discount Setup. If you price by warehouse, you must set up these records for each warehouse that uses them. Because costs, list prices, base prices, and price types are stored at the warehouse level on Product Warehouse Product Setup records, the PD Pricing Setup records are not always required.