Modules»Inventory Control»Automatic Price Calculations f…
  • RSS Feed

Last modified on 2/25/2016 4:41 PM by User.

Automatic Price Calculations for New Items

When a new item number is entered through the Inventory, Order Processing or Purchase Order modules the system can automatically calculate the 9 price levels based on calculation rules set up, in advance, for any item-prefix, report class or product code.

 

For example, when entering a new item through Order Processing, a screen appears and prompts, in part:

                                                           

Description:      _______________                            

Product code:   3                                                    

Report class:     27

G/L account#: 121-100

Labels flag:       0

Vendor#:         21573                                                      

Our cost:         10.00                                                      

Mfg list $:       25.00

 

Net priced?:         N

Serialized?:          N

Dimensional?:    N                                                   

                                              

 

The system will first look to the program: "Maintain Price Calculation Rules for New Items".  Go to:

  • Inventory (Module 5) 
    • Adjust Prices/Costs (Task 4)
      • Maintain Price Calculation Rules for New Items (Sub-task 14)
        • Enter the Item Prefix, Report Class and/or Product Code that the rules will apply to.  Each of the 3 fields has a TAB look-up.
          1. Item Prefix:                 (setup in 5/32/17/8) If not a "valid" Item Prefix, a warning message will appear.
          2. Report Class:             (setup in 5/32/17/2)
          3. Product Code:             (setup in 5/32/17/3)
          4. **Note:  enter zeros into fields 1, 2 or 3 where ALL is the appropriate response. 
          5. Price Calculations

----REGULAR PRICE----

The MARKUP column is a rate that will be multiplied by the figure indicted in the FROM column to get the price for a price level (the FROM can be the Cost or Mfg List).  Anything greater than 1 is a "markup", anything less than 1 is a "markdown".  If decimals are required, they MUST be keyed in. 

 

----MINIMUM PRICE----

The Minimum Price rules prevent the price from going too low.  That price takes the rate in the MARKUP column multiplied by the figure indicated in the FROM column (FROM can be Cost or Mfg List)

 

Price    ----REGULAR PRICE----- ----MINIMUM PRICE-----

Level                Markup   From              Markup   From

-----                 -------  -------------       -------  -------------

    1                  1.1.... L Manuf. list      1.0     C Dealer cost

    2                  1.2     L Manuf. list      1.0     C Dealer cost

    3                  1.5     L Manuf. list      1.0     C Dealer cost

    4                  1.7     L Manuf. list      1.0     C Dealer cost

    5                  1.9     L Manuf. list      1.0     C Dealer cost

    6                  2.0     L Manuf. list      1.5     C Dealer cost

    7                  2.3     L Manuf. list      1.5     C Dealer cost

    8                  2.5     L Manuf. list      1.5     C Dealer cost

    9                  0.9     L Manuf. list      1.0     C Dealer cost

 

In the example above:  For Price Level 1 - the Regular Price will be 1.1 times the List Price and the Minimum Price can not be lower than the 1 times the Cost.

 

NOTE:  A COPY function can be used to copy the 9 price level information to another record (either a new or "change existing" record).  At the prompt:  "Any Change?", enter 4 (Price Calculation).  Use F3 to Copy the record, go to the record that the information will be copied to, and once again go to field 4 (Price Calculation) and press F4 to Paste the information.

 

 

If the system can't find a specific pricing rule, as explained above, for a particular item-prefix, report class or product code, it will then look at "Prices 1 - 9 Formulas for New Items"  Go to:

  • Inventory (Module 5)
    • System Management Functions (Task 32)
      • Modify Application Tables (Sub-task 17)
        • Prices 1 - 9 Formulas for New Items (Option 9)

 

Below is an example of a default price formula table:

  A     B      C     D    E

  -      -    ------   -  ------

"1" , "R,1.0000/C,1.5000"

"2" , "L,1.0000/C,1.3333"

"3" , "L,0.9000/C,1.3333"

"4" , "L,0.8000/C,1.3333"

"5" , "C,1.3333/C,1.0000"

"6" , "C,1.2000/C,1.0000"

"7" , "L,0.0000/C,0.0000"

"8" , "L,0.0000/C,0.0000"

"9" , "L,0.0000/C,0.0000"

 

There is one formula for each of the nine price levels.

Column A:  the price level from the Item Master (fields 11 - 19)

 

Column B:  the basis for Price Calculation.

            R = Retail.                    Calculated price using PRICES table

C = Cost                      Dealer cost

L = Manuf. List            Manufacturers list price

 

Column C:  the Factor to multiply by 'B' to get a regular price

 

Column D:  the Basis for minimum price calculation  

R = Retail 

C = Cost 

L = Manuf. list

 

Column E:  the Factor to multiply by 'D' to get minimum price

 

Note: If the minimum price (D*E) is higher than the regular calculated price (B*C), then the minimum price will be used.

 

Using "3" , "L,0.9000/C,1.3333" as an example, the formula means:  for Price Level 3, the price is calculated at 90% of the Manufacturer's List Price and the minimum price that can be charged is calculated at 133% of the Dealer's Cost.