Pricing

The term price refers to the amount charged to your customer. Cost refers to the amount paid to your supplier and/or the current unit value of an item in your inventory.

Standard (Regular) Pricing â€“ The pricing that relates to a customer's default price list number. These prices are entered into the Item Master and/or Price files. A customer's default price list number is entered on the Billto File Profile screen.
Customer Exception Pricing â€“ Uses a standard established price list number, but not the normal or default price list for the customer. These exceptions are entered in the Billto File Price Exceptions Screen.
Manufacturer Based Promotional Pricing â€“ Consists of prices established with or by the manufacturer, possibly including rebates. These prices are entered into the Promotional Pricing File, and usually have an effective date and ending date.
In-House Promotional Pricing â€“ Consists of sale prices determined entirely in-house and entered into the Promotional Pricing File. These prices usually have an effective date and ending date.
Fixed Pricing â€“ Consists of prices with type code F entered in the Promotional Pricing File. These prices override all other prices and are always used when applicable. These prices are used by national accounts programs, employee pricing schemes, and other pricing that is not subject to other available promotions or exceptions.
Special Pricing â€“ Consists of special prices assigned to specific customers for specific items, ranges of items, quantities, jobs and/or date spans. This type of pricing is set up in the Customer Special Price File. Many functions in the Promotional Pricing File overlap with functions in the Customer Special Price File.
Override Pricing â€“ Consists of prices overridden and entered directly into the Price field on the Order Entry screen either at the time of entry or using the Change Orders or Invoicing programs. An overridden price overrides all other prices when used. All overridden prices are highlighted on the Detailed Order Register and Detailed Invoice Register and on the Order and Invoice Exception Reports. Overridden prices cause pricing method code X to appear on the Order Entry, Order Inquiry, and Invoice Inquiry screens.
Quotation Pricing â€“ Consists of prices entered on quotations via the Order Entry program. These prices can be types such as standard, special, or override, and saved as quotations. Quotations are printed by pressing F2 on the Order Print Selection Screen, or by using the Print Quotations option on the Order Desk or Customer Orders menus. Quotations are not posted orders. They are entered via order entry with type Q and remain accessible via the Order Entry system, to be recalled at later if they become orders. When they become orders, prices can be left as originally entered or they can be updated. The quotation can then be printed as an order. Many types of quotation pricing can also be accomplished using Special Pricing and Promotional Pricing.

Order Entry Pricing

The Order Entry system prices each line of an order according to the following logic:

If an operator enters a price in the Price field, the program accepts the price but marks it as an overridden price using pricing method code X.

If an operator presses Enter without entering a price, the program prices the order as follows:

The program retrieves standard price for this item or customer. The program takes the customer's price list code as entered in the Billto File (or order header, if overridden) and looks up the entry for that price list code in the pricing files for that item. It also checks the quantity entered by the operator against any quantity breaks that are entered in the pricing files. It checks restriction codes, such as for roll and cut, truckload, or less than a truckload, and transaction types such as inventory, direct or special order.
The program checks for any customer pricing exceptions that override the price list number for the requested item number. It checks first for general exceptions for the item class, then for exceptions for the manufacturer, product line, price class, and finally, item. The program checks in order of least specific to most specific. For example, an exception by item number overrides an exception by product line. The price list code that the program retains is the price list code from the above paragraph, or the most specific exception found, if any.
The program checks all applicable promotional prices for the lowest promotional price, if any.
The program compares the price retrieved from item 2 above with the price from item 3 above and chooses the best (lowest) price, unless a fixed price is found, which overrides other prices. A fixed price is a promotional price with type F.
The program then retrieves additional special pricing for the customer, if any has been entered in the Customer Special Price File. The program reads the special pricing file exactly as entered in the Customer Special Price File Program. If an entry that matches the item, quantity, or particulars of the order is found, it supersedes or alters the price from item 4 above. The first matching entry is used; therefore, special prices should be entered in a most specific to least specific sequence. The Customer Special Price File allows you to determine and control the hierarchy of the special prices. Once a matching/applicable special price file entry is found, the program exits the Customer Special Price File.

You can set up some prices as percentages above costs. The current base cost, average cost, or last cost, whichever is specified in the pricing files, is used.

At the same time the program finds the most applicable price, it also finds the most applicable cost, the best (largest) rebate, if any, and the most applicable fund contribution (overbill) if applicable.

Analyzing Gross Profit Percentage

The gross profit percentage that results from the prices charged can be analyzed using the following reports:

Detail Order Register â€“ Shows the gross profit percentage for each line item on each order processed. You can generate it for either today's or yesterday's orders.
Order Exception Report â€“ Shows the gross profit percentage of each line item that has either an overridden price, or an exceptionally high or low price, cost or gross profit percentage. You can generate it for either today's or yesterday's orders.
Detail Invoice Register â€“ Shows the gross profit percentage for each line item on each invoice processed. You can generate it for either today's, yesterday's, or any date span or number span of invoices. You can also generate it for selected groups, such as customers, branches, and salespeople.
Invoice Exception Report â€“ Shows the gross profit percentage of each line item that has either an overridden price, or an exceptionally high or low price, cost or gross profit percentage. You can generate it for either today's or yesterday's orders.
Summary Order or Invoice Registers â€“ Show a single overall gross profit percentage for each order or invoice.
Management Price List â€“ Shows the gross profit percentage for each price entered into each item's pricing files. You can generate it for all or selected groups, such as manufacturers or product lines. You can use this report to measure gross profit percentage of all prices before you have even entered an order.
X by Y GP Analysis Report â€“ Lists gross profit dollars and gross profit percentage for a nearly unlimited range of options. It sorts and selects records from the Invoice History File.
Other X by Y Reports â€“ Most of the X by Y reports include options to analyze gross profit percentages and dollars.

All gross profit percentage is measured using the average cost of the specific item, shade, lot, slab, or serial number ordered, at the specified warehouse. Direct shipments, back orders, and special orders use the cost assigned on the order. When invoiced, all lines that are for inventory items are adjusted in order to ensure that the most recent and, therefore, accurate cost is used.