Pricing Examples

The following example shows the calculated price that is the result of applying a customer-level pricing method to a sales order.

The calculated price of the item in this example is 13.00. To calculate the price, the system goes through the following steps:

1. The calculated price is set to the Base Price in the Item Locations record. In this example the base price of the item at this location is 20.00 for each item.

   There are no quantity breaks for this transaction, so the next check is to look for customer-level pricing.

   

2. In this example an item at a specific location has a customer-level pricing item ID set up to take a 35 percent discount whenever the Customer Level ID is 'Best Disc'. When detail lines are entered, the system checks to see whether a customer-level price should be calculated.

   

   NOTE: The Customer Level ID defaults from the Customer Bill-To record; you can change it if you have selected 'Yes' to the business rule to 'Allow Customer Level Change During Trans Entry'.

   

3. When the detail line is entered, the system checks to see whether the customer level ID applies to the item. If it does, a calculation is applied to the price of the line item. In this example the system takes off 35 percent from 20.00 to produce the 13.00 unit price.

   

No other promotions or price structures for this example exist, so this is the final calculated price for this item on the sales order.

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The following example is the result of a Sales Order transaction that uses Promotional Pricing.

The Bill-To tab of the transaction is using a Customer Level ID of Best Disc.

The finished calculated price for this line Item is 16.60. To calculate the price, the system goes through the following steps:

1. The calculated price for the item is set to the Base Price in the Item Locations record. In this example the base price of the item at this location is 20.00 for each item before any calculations are made.

   

2. There are no quantity breaks for this transaction, so the next check is to look for customer-level pricing. A customer level ID is entered on the Bill To tab of the transaction, so the system tries to find that customer level ID in Customer Pricing. This example has 'Best Disc' set up for a 5 percent discount. Since the Promo box is checked, the system checks to see whether any promotional price ID situations apply.

   

3. In this example a promotional price ID is set up for the item.

   

4. The system calculates the promotional price and compares it to the customer-level calculated price. The lower of the two prices is used. The lower of the two prices is the promotional price which is 17% off the base price of $20.00 for a calculated promotional price of $16.60.

   

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The following example is the result of a Sales Order transaction that uses a Price Structure method.

The Bill-To tab of this Sales Order transaction example is using the customer level ID of 'Best Disc'.

On the Defaults tab of the Item Detail area, the price ID selected is 'Structure1'.

 

The finished calculated price for this line item is 18.00. To calculate the price, the system goes through the following steps:

1. The calculated price is set to the base price in the Item Locations record. In this example the base price of the item at this location is set to 20.00, before any calculations.

   

2. There are no quantity breaks for this transaction, so the next check is to look for customer-level pricing. This example has no customer level pricing set up.
3. The system looks for price structures that may be set up. This transaction is using a price ID called 'Structure1'. Because a customer level is specified on the Bill-To tab of the Sales Order transaction, the system checks the price structure to see whether any customer levels exist in the price ID. In this example a customer level exists, and the system uses a 10 percent discount to calculate the price.

   

   If no customer level is found, the system uses the Default section of the Price Structure screen.

4. The system checks for promotional price IDs. This example does not use promotional pricing.
5. In this example the system deducted 10 percent from the base price of 20.00 to end up with 18.00.

   

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