> Pricing and Discounts

Pricing and Discounts

Pricing and discounts are inter-linked within the system and therefore should be examined in conjunction with each other.

SYSPRO caters for three different pricing methods that can be used by the Sales Order Entry program, only one of which may be selected:

  • Manual
  • Simple
  • Extended

The Pricing method determines which price the system uses on a sales order line, and which discounts apply on sales order lines and on the total merchandise value. You define the pricing method at company level within the Sales Orders Setup program, and against stock items.

When Manual pricing is in force, the price and pricing unit of measure are requested for each merchandise line on a sales order or quotation. Simple and Extended pricing are both automated pricing methods that rely on the pricing method against the stock code to determine the applicable price to apply.

The pricing method against the stock code can be Coded, Discounted or Quantity discounted. If the pricing method is Coded, then the system locates a price code defined for the stock code in the price code table. If the pricing method is Discounted, then the system locates a discount code that is applied to the list price, cost price or another price code. If the pricing method is Quantity discounted, then the quantity ordered determines the price retrieved.

When the company pricing method is Simple, the automatic price code defined against the customer determines which price code or discount code to apply.

If the pricing method is Extended then a matrix is used to determine which price code or discount code to apply.

The matrix is set up by first defining a pricing category against each stock code. This is a letter from A-Z. Then against the customer, you enter the corresponding price or discount code to apply per pricing category. For example, if you define a pricing category of E against a stock code, then when entering the matrix, the price or discount code that you enter against E in the matrix is the price or discount code that will be applied when selling items with that pricing category to the customer.

Simple pricing allows for one automatic price/discount code per customer, whereas Extended pricing provides for up to twenty-six price/discount codes per customer.

Once SYSPRO has selected the price or discount code to apply, the extended and simple pricing methods function the same way.

You can define terms discounts (offered to those customers who pay their invoices within a specified time period) and sales discounts (an extension of the pricing system you selected to use). You need to decide on the pricing method, sales discounts, contract and buying groups to apply to your company before you can define discount values.

In addition, you should examine the various security features of the system that enable you to allow/disallow an operator from overriding any pre-defined settings.

[Note]

Contract pricing and Trade Promotions pricing can be used in conjunction with the other pricing methods.

Regardless of the pricing method selected, if a contract price is assigned to a customer then the contract price takes precedence. If a valid contract exists, then the contract price always takes precedence over the other pricing methods including any Trade Promotions price. If no contract exists but a valid Trade Promotions price break exists, then the Trade Promotions price over-rides the price retrieved for the stock code.

Implementation

Defining Pricing Methods

This procedure describes how you define the pricing method in Sales Orders.

  1. Navigate to the Sales Orders Setup program.

  2. At the Pricing method option, select one of the following pricing options:

    • Manual for pricing to be determined by the manual entry of a price and unit of measure for each merchandise item entered on a sales order.

      No default price is held against any stock items. The operator always enters the price manually. If alternate units of measure are defined against the stock item, then the stocking and price units of measure must also be entered manually.

    • Simple for pricing to be determined by the automatic price code selection assigned to a customer, together with the pricing method assigned to the stock item.

      Customers are categorized according to the pricing they receive, which can be:

      • a specific price category (multiple prices against each stock item
      • a discount category (single price against stock item, with multiple discount codes)
      • a discount based on quantity bought, depending on the stock code

    • Extended for pricing to be determined by the Pricing category held against the stock item which is used to locate a corresponding Price code in the customer's Price category/code table. Depending on the Pricing method defined against the stock code (see Stock Codes - Sales Details) the price code matched against the table is used to locate the required discount in the discount table, or a price entry in the price code file.

      Therefore this operates in a similar way to simple pricing; the major difference being that the pricing category applied to the customer depends on the stock item the customer buys.

Defining Contract Pricing

You use the Contract Pricing system to enter into a contract with a customer to provide them with inventory items at a specified price for a specified period of time.

You can also use this system when you need to use a pricing method not catered for by the other pricing systems.

You can create pricing contracts for specific customers or buying groups. A buying group is a group of customers who all receive the same pricing. Each customer can belong to more than one buying group.

[Note]
  • A valid contract takes precedence over all other pricing systems. If an inventory item is included in more than one buying group or customer contract, the lowest contract price is applied.
  • For a foreign currency customer you can only use the Flat price, Coded price and Quantity discount breaks pricing methods.
  • No automatic line discount is held against a contract pricing customer. However, you will be able to manually enter a discount.

  • Defining a contract

    1. Navigate to the SO Contract Prices program.

    2. Select Include buying groups from the Review Criteria if you want to create or maintain a contract for a buying group.

      Select Include customers from the Review Criteria if you want to create or maintain a contract for a specific customer or customers.

    3. Enter the contract details.

      At the pricing method field:

      • Select Flat price to assign a flat price and unit of measure to the customer or buying group.
      • Select Coded price to assign a specific price code to the contract.
      • Select Quantity discount breaks to assign discounts based on the quantity or value of sales to a contract.
      • Select List price less percentage to use the list code of stock items in a sale, minus a percentage for the contract.
      • Select List price less chain discount to use the list price of stock items in a sale, minus a chained discount for the contract.
      • Select Price code less chain discount to use a specific price code in a sale, minus a chained discount for the contract.
      • Select Mark-up cost by a percentage to use the cost price of an item in a sale, plus a percentage mark-up for the contract. You cannot use this method if FIFO costing is required (defined in the Inventory Setup program).
      • Select Coded less unit discount to use a specific price code in a sale less a unit discount value assigned to that code.

      • Select Mark-up list price to use the list price of a stock item, plus a percentage mark-up for the contract.

Defining Simple Coded Pricing

This procedure describes how to define Simple Coded Pricing.

  1. Navigate to theSales Orders Setup program and select the Simple option at the Pricing method field.

  2. Navigate to the Stock Codes program.

    Against each stock item to which you want to apply this pricing method, navigate to the Sales Details pane and select the Coded option at the Pricing method field.

  3. Determine the pricing levels that you want to create for each inventory item. For example: you might want pricing levels such as Consumer, Dealer and Distributor. The price calculation will be different for each level.

    Navigate to the Pricing for a Stock Code program and create the pricing levels for each of your inventory items. Assign a price code, price and price unit of measure for each level.

  4. Navigate to the Customers program and enter the price code level you want to assign to each customer at the Auto price code selection field. This must be one of the codes created using the Pricing for a Stock Code program.

Defining Simple Discounted Pricing

This procedure describes how you define Simple Discounted Pricing.

  1. Navigate to theSales Orders Setup program and select the Simple option at the Pricing method field.

  2. Navigate to the Stock Codes program.

    Against each stock item to which you want to apply this pricing method, navigate to the Sales Details pane and select the Discounted option at the Pricing method field.

  3. Determine the discounts that you want to apply to the list price, cost price or a specific price code on your inventory items.

    For example: If you sell an item to a dealer, then you can offer them a discount on the list price; if you sell an item to a distributor, then you can offer them a discount on the cost price.

    Navigate to the AR Invoice Discounts program and define the discount codes and discount percentages.

    For each discount you assign a discount code, a chain of discount percentages, and a basis for the discount - being list price, cost price or a specific price code.

  4. Navigate to the Stock Codes program and ensure that a valid price is assigned to the list price code for each stock item.

    Ensure that the costs attached to the inventory items are correct.

    Ensure that the price codes are valid if discounts have been defined with a discount basis of Specific price code.

  5. Navigate to the Customers program and enter the discount code you want to assign to each customer the Auto price code selection field. This must be one of the codes created using the AR Invoice Discounts program.

Defining Quantity Discounted Pricing

This procedure describes how you define Quantity Discounted Pricing.

  1. Navigate to theSales Orders Setup program and select either the Simple or Extended option at the Pricing method field.

  2. Navigate to the Stock Codes program.

    Against each stock item to which you want to apply this pricing method, navigate to the Sales Details pane and select the Quantity discounted option at the Pricing method field.

  3. Determine the price codes you want to apply at each quantity break.

    For example: if a customer orders 0-5 items, use price code A; if the customer orders 6-10 items, use price code B; and if the customer orders more than 11 items, use price code C.

  4. Navigate to the Pricing for a Stock Code program and indicate the Stock code and Price code for which you want to add price codes.

    Enter the price codes and associated prices for the stock code.

    Select the Quantity Discounts function to enter the quantity breaks required.

    Repeat this step for all stock codes for which you want to apply quantity discount pricing.

Defining Extended Coded Pricing

This procedure describes how you define Extended Coded Pricing.

  1. Navigate to theSales Orders Setup program and select the Extended option at the Pricing method field.

  2. Navigate to the Stock Codes program.

    Against each stock item to which you want to apply this pricing method, navigate to the Sales Details pane and:

    • select the Coded option at the Pricing method field

    • select the applicable Pricing category

  3. Determine the pricing levels you want to create for each inventory item.

    For example, you might want pricing levels such as Consumer, Dealer and Distributor. The price calculation will be different for each level.

  4. Navigate to the Pricing for a Stock Code program and create the pricing levels for each of your inventory items

    Assign a price code, price and price unit of measure for each level.

  5. Navigate to the Customers program.

    Enter the price codes applicable to each pricing category, in the relevant position of the customer Price category/code table.

    Each position in the 26 character table relates to a pricing category code. The first position relates to pricing category code A, the second position to pricing category code B, and so on. For example: if a customer purchased an inventory item with the pricing category code E, the system would use the price code entered in the fifth position of the Price category/code table to retrieve the price from the price code table.

Defining Extended Discounted Pricing

This procedure describes how you define Extended Discounted Pricing

  1. Navigate to theSales Orders Setup program and select the Extended option at the Pricing method field.

  2. Determine the discount levels that you want to apply to the list price, cost price or a specific price code on your inventory items.

    For example: if you sell an item to a dealer you can offer them a discount on the list price; if you sell an item to a distributor you can offer them a discount on the cost price.

    Navigate to the AR Invoice Discounts program and enter the discount codes and discount percentages.

    For each discount you assign a discount code, a chain of discount percentages and a basis for the discount - being list price, cost price or a specific price code.

  3. Navigate to the Stock Codes program.

    Against each stock item to which you want to apply this pricing method, navigate to the Sales tab and: select the Discounted option at the Pricing method field.

    • select the Discounted option at the Pricing method field

    • select the applicable Pricing category

    Ensure that a valid price is assigned to the list price code.

    Ensure that the costs assigned to the inventory items are correct. Check that the price codes are valid if discounts have been defined with a discount basis of Specific price code.

  4. Navigate to the Customers program.

    Enter the discount codes applicable to each pricing category, in the relevant position of the customer Price category/code table.

    Each position in the 26 character table relates to a pricing category code. The first position relates to pricing category code A, the second position to pricing category code B, and so on. For example: if a customer purchased an inventory item with the pricing category code E, the system would use the discount code entered in the fifth position of the Price category/code table to retrieve the price.

Example:

You have three customers who all purchase stock item B100 from you. The following prices and discounts are extended to these customers:

  • Customer 1 pays 200.00 and gets 10% discount
  • Customer 2 pays 300.00 and gets 20% discount
  • Customer 3 pays 100.00 and gets no discount

On the pricing section of the Sales Orders Setup program, you select the Extended option at the Pricing method field.

Against stock item B100, you select Z at the Pricing category field and Discounted at the Pricing method field of the Stock Codes program. The pricing category is used to find the corresponding entry in the customers price category/code table. The pricing method determines whether the located entry in the customers price category/code table should be used to locate a price code in the price code table (when the stock code is coded) or a discount code in the discount table (when the stock code is discounted).

Using the Pricing for a Stock Code program, define the following prices for stock item B100:

  • Price code A = 100.00 (this is also the list price as defined against the item B100.
  • Price code B = 200.00
  • Price code C = 300.00

Using the AR Invoice Discounts program, defined the following discounts:

  • Discount code A = 10% discount linked to Price code B
  • Discount code B = 20% discount linked to Price code C
  • Discount code C = zero discount linked to the List price code and with Price indicator Gross

Using the Customers program, define the discount codes applicable to the pricing category, in the relevant position of the customer Price category/code table for each customer as follows:

  • Customer 1 - against Price category Z enter A, which indicates that Discount code A (10%) linked to Price code B (200.00) must be used for this customer
  • Customer 2 - against Price category Z enter B, which indicates that Discount code B (20%) linked to Price code C (300.00) must be used for this customer
  • Customer 3 - against Price category Z enter C, which indicates that Discount code C (0%) linked to the list price, must be used for this customer

Discounts

The following types of discounts can be defined and applied:

  • Invoice discounts

    You use the AR Invoice Discounts program to define discount codes with up to three chained discount percentages.

    You specify which price must be used to calculate the discount and within the Customers program these codes are used to define discounts for each sales order entry line, or for the total invoice amount for each customer.

    The discounts defined here can be used when a stock item's pricing method is set to Discounted, if the Simple or Extended pricing method is used.

  • Line discounts

    You can set line discounts per customer that apply if the stocked item in a sales order line has a pricing method of Coded or Quantity discounted. If the inventory item has a pricing method of Discounted, then the system applies the discount as part of the price and not as an additional discount.

    • Manual line discounts.

      You can enter a manual line discount on a sales order line by selecting Discount when you add a line in the Sales Order Entry program. You can enter up to three chained Discount percentages, a Total discount value, or a Unit discount value.

    • Automatic line discounts

      You can enter a single character code at the Line discount code field against each customer. This discount is applied automatically to all sales order lines if the pricing method of the stocked item is Coded or Quantity Discounted.

      You can also manually enter a line discount when you enter or maintain a sales order line.

  • Customer discounts

    You use Customers program to indicate which customers have been assigned contracts, or which customers belong to buying groups that qualify for special discounts. You also set up the sales discounts that apply to your customer.

    • Buying groups

      You use the Buying Groups program to create the buying groups for the various types of customers.

      Select the Contract pricing option for each customer to whom you want to apply contract pricing. Assign each contract customer to a buying group using the Buying Groups function.

    • Customer contracts

      You use the SO Contract Prices program to define contracts for specific customers and/or buying groups where you have negotiated the sale of inventory items at a fixed price over a specific period of time.

      Select the Contract pricing option for each customer to whom you want to apply contract pricing.

    • Invoice and Line Discounts

      You can assign a discount to a sales order line, or to the total merchandise value. You use either a discount code that you defined in the Invoice Discount table, or you can use an order discount break on either the sales order line or the whole invoice, as an alternative way of extending discounts to a customer.

      • If you use discount codes

        1. Enter a discount code (from the Invoice Discount table) at the Invoice discount code field (Customers) to allow a discount on the invoice total for the customer.
        2. Enter a discount code (from the Invoice Discount table) at the Line discount code field to allow a discount on a sales order line for the customer.

      • If you use order discount breaks

        1. Select Calculate order discount based on order value/quantity (Customers) to allow order discount breaks on an invoice total.
        2. Select Calculate order line discounts according to product class sold to allow order discount breaks on each sales order line.

      • Calculating invoice discount after line discount at company level

        From the Customers program:

        1. Select Calculate invoice discount after line discount if you subtract line discounts from the total merchandise value of a sales order before you calculate the invoice discount. This applies to all sales orders.

        2. Deselect Calculate invoice discount after line discount if you calculate line discounts and invoice discounts on the total merchandise value of the sales order. This applies to all sales orders.

  • Stock code discounts

    You use the Stock Codes program to indicate the pricing method you use.

    Against each stock item, you enter the Pricing category to use if your company uses the extended pricing method. The pricing category is used to find the corresponding entry in the customers price category/code table. The pricing category is not used if your company uses the simple pricing method

    Enter a Pricing method to use.

    • If you use the Coded method and the company uses simple pricing, then the system searches for the Automatic price code selection attached to the selected customer. It then searches for the matching price code in the price code file. The price attached to the price code is used in the merchandise line.

      If the company uses extended pricing, then the system retrieves the pricing category and searches for the corresponding entry in the customers price category/code table. It then searches for the matching price code in the price code file. The price attached to the price code is used in the merchandise line.

    • If you use the Discounted method, then the system searches for the code to apply in the same way as for the Coded method, but once retrieved, it is used to locate a discount code in the Invoice discounts table. The discount is then applied to the list price, cost price or another price code.
    • If you use the Quantity discounted method, then the system determines the quantity break range in which the merchandise quantity falls. It then looks up the price code from the Quantity discount breaks table and applies it to the sales order line.

  • Order Discount Breaks

    You use the Order Discount Breaks program to define percentage discount breaks which enable you to vary prices according to the quantity or value of items on a sales order.

    You base an order discount break on the value or the quantity of the stocked and non-stocked items on an order processed within the Sales Order Entry program. Freight and miscellaneous charge lines are excluded when calculating order discount breaks.

  • Quantity Discounts

    You use the Stock Code Quantity Discounts program to maintain the quantity discount breaks that you want to assign to selected stock items.

    The Stock Code Quantity Discounts program can be accessed by selecting the Quantity Discounts option from the Browse on Stock Code Pricing program.

    If, during Sales Order Entry, you enter an order quantity that exceeds the highest quantity break defined, then the price associated with the default price code of the customer is used. If this is not defined then the price defaults to zero.

  • Settlement Discount

    You can assign settlement discounts to a customer which must be applied when that customer makes a payment within a specified time period.

    • Terms Discounts

      Terms discounts allow you to specify which amounts should be included in the merchandise value on which invoice terms are calculated.

      This discount is calculated only when receiving payment from the customer.

      These settings are defined at company level and are applicable to all customers who qualify for invoice term discounts (Accounts Receivable Setup). The values that can be added to the merchandise value before the invoice terms discount is calculated can be defined.

    • Invoice Terms Table

      You use the AR Invoice Terms to define the default settlement discount you want to extend to a customer whose payments are made within a prescribed period of time.

      Each customer is assigned an invoice term code, which is used when a transaction is posted in the AR Invoice Posting program.

      During processing within either the Sales Order Entry or Accounts Receivable Invoice Posting programs, the default terms code for a customer can be overridden by any other valid code held within this table. All invoice terms are calculated according to selections made for terms discounts.

Processing

This section describes how the processing of sales orders is affected by the pricing method selected.

  • Manual Pricing

    If you use the manual pricing system, you will have to enter the price and price unit of measure for each merchandise item entered on a sales order.

    Processing Sequence:

    Most of the order line values are entered by the operator when Manual pricing applies.

    The completion of an order line takes place as follows:

    • Sales Orders Setup

      The system detects that the pricing method is set to Manual.

    • Customers

      The system determines whether the customer is assigned a contract, which takes precedence over manual pricing.

      The system determines if any automatic line and invoice discounts are assigned to the customer.

    • Adding a sales order line (Sales Order Entry):

      The operator enters the following values: Order Quantity, Ship Quantity, Price, Unit of measure and Discount (either a percentage which can be chained, or a value). The manual entry of a discount overrides the automatic line discount.

  • Simple Coded Pricing

    If you use the simple coded pricing method, the system searches for the automatic price code assigned to the customer and matches this to a price code in the price code file. The price assigned to the price code is then applied to the merchandise line.

    Processing Sequence

    Most of the order line values are determined by the system when Simple pricing applies.

    The completion of an order line takes place as follows:

    • Sales Orders Setup

      The system detects that the pricing method is set to Simple.

    • Stock Codes

      The system detects that the pricing method for the stock code is set to Coded.

    • Customers

      The system determines whether the customer is assigned a contract, which takes precedence over simple pricing.

      The system determines the price code assigned to the Automatic price code selection (e.g. price code B).

    • Browse on Stock Code Pricing

      A price code table would be defined per stock code. The system looks up the automatic price code in the table and finds the matching unit price (e.g. Price Code B has a unit price of R50.00).

    • Adding a sales order line (Sales Order Entry):

      The operator enters the following values: Order Quantity, Ship Quantity and Discount (either a percentage which can be chained, or a value).

      The operator can override the following values: Price Code, Price and Unit of measure.

      The system checks for an automatic line discount to be calculated. The discount can be a line discount code or an order line discount (Customers).

  • Simple Discounted Pricing

    If you use the simple discounted method, then the system searches for the automatic price code assigned to the customer in the Invoice Discounts table and applies that percentage to the discount basis defined (Browse on AR Invoice Discounts) as follows:

    • the item's list price when the discount basis is List Price
    • the inventory cost of the item when the discount basis is Cost
    • the price code when the discount basis is Specific Price Code

    Price calculation

    [Note]

    The list price/cost price and the discount amount can be shown separately on the order line if the price indicator is Gross (Browse on AR Invoice Discounts).

    Only the net price is shown for the line by setting the price indicator to Net (AR Invoice Discounts).

    You cannot have foreign currency prices using the Simple discounted method, unless the discount basis is Specific price and the price code is assigned to a foreign currency code within the Foreign Price Codes table (Inventory Foreign Price Codes).

    • List price

      If the discount basis is List price, then the system calculates the price of the item by multiplying the list price of the item by the quantity and then deducting the discount percentage (if the price indicator is Gross). If the price indicator is Net, then the price is calculated by deducting the discount percentage from the list price and then multiplying the result by the quantity.

    • Cost

      If the discount basis is Cost, then the system calculates the price of an item by multiplying the inventory cost of the item by the quantity and then adding the discount percentage (if the price indicator is Gross ). If the price indicator is Net, the discount percentage is added to the inventory cost and this result is then multiplied by the quantity.

    • Specific Price Code

      If the discount basis is Specific Price Code, then the system calculates the price of an item by multiplying the price (attached to the price code) by the quantity and then deducting the discount percentage.

    Processing Sequence

    Most of the order line values are determined by the system when Simple pricing applies.

    The completion of an order line takes place as follows:

    • Sales Orders Setup

      The system detects that the pricing method is set to Simple.

    • Stock Codes

      The system detects that the pricing method for the stock code is set to Discounted.

      The system determines the price code assigned to the List price code (e.g. price code C).

    • Customers

      The system determines whether the customer is assigned a contract, which takes precedence over simple pricing.

      The system determines the discount code assigned to the Automatic price code selection (e.g. discount code 1).

    • Browse on AR Invoice Discounts

      The system looks up the discount code (Automatic price code selection) in the Invoice Discounts table and finds the matching discount percentage.

      The discount is either calculated on the List price, the Cost price, or on a Specific price code (e.g. G).

    • Browse on Stock Code Pricing

      The system looks up the List price code or Specific price code in the Price code table and finds the matching unit price (e.g. Price Code B has a unit price of R50.00).

    • Adding a sales order line (Sales Order Entry):

      The system displays the Price and Unit of measure.

      The operator enters the following values: Order Quantity and Ship Quantity.

      The operator can override the following values: Price Code, Price, Unit of measure and Discount (either a percentage which can be chained, or a value). The system calculates the line discount according to the discount codes and price codes previously selected.

  • Quantity Discounted Pricing

    If you use the simple quantity discounted pricing method, then the system searches the quantity discounts table for the quantity break corresponding to the entry. The price code attached to that quantity break is used to select the price from the Price code table. The price code is maintained using the Pricing for a Stock Code program.

    If the order quantity exceeds all the quantity breaks in the table, then the system reverts to retrieving the price according to the pricing method in force (i.e. simple or extended pricing).

    Processing Sequence

    Quantity discounts reflect lower unit prices per quantities sold, rather than discount values calculated per line item.

    The completion of an order line works as follows:

    • Sales Orders Setup

      The system detects that the pricing method is set to Simple or Extended.

    • Stock Codes

      The system detects that the pricing method for the stock code is set to Quantity discounted.

    • Customers

      The system determines whether the customer is assigned a contract, which takes precedence over the other pricing methods.

    • Adding a sales order line (Sales Order Entry):

      The operator enters the following values: Order Quantity, Ship Quantity and Discount (either a percentage which can be chained, or a value). Manual and automatic line discounts are additional to the quantity discount on an item.

      The operator can override the following values: Price Code, Price and Unit of measure.

      The system determines the price of a quantity for the stock code from the price code table. Quantity breaks can be assigned to individual stock items (Pricing for a Stock Code). The system compares the order quantity with the quantity break values and finds the matching unit price and price code.

      The system checks against the customer (Customers) for an automatic line discount to be calculated, which could be a line discount code or an order line discount.

  • Extended Coded Pricing

    If you use the extended coded pricing method, then the system searches for the price code corresponding to the pricing category position in the customers Price category/code table (Customers).

    Processing Sequence

    Most of the order line values are determined by the system when extended pricing applies.

    The completion of an order line works as follows:

    • Sales Orders Setup

      The system detects that the pricing method is set to Extended.

    • Stock Codes

      The system detects that the pricing method for the stock code is set to Coded and retrieves the stock code's pricing category.

    • Customers

      The system determines whether the customer is assigned a contract, which takes precedence over extended pricing.

      The system determines the price code assigned to the Price category/code table (e.g. category F is associated with the price code in position 6 in the table).

    • Browse on Stock Code Pricing

      A price code table is set up per stock code (Pricing for a Stock Code).

      The system looks up the price code in the table and finds the matching unit price (e.g. Price Code B has a unit price of R50.00).

    • Adding a sales order line (Sales Order Entry):

      The operator enters the following values: Order Quantity, Ship Quantity and Discount (either a percentage which can be chained, or a value).

      The operator can override the following values: Price Code, Price and Unit of measure.

      The system checks against the customer (Customers) for an automatic line discount to be calculated, which could be a line discount code or an order line discount.

  • Extended Discounted Pricing

    If you use the extended discounted pricing method, then the system searches for the discount code corresponding to the pricing category position in the customers Price category/code table (Customers).

    Processing Sequence

    Most of the order line values are determined by the system when extended pricing applies.

    The completion of an order line works as follows:

    • Sales Orders Setup

      The system detects that the pricing method is set to Extended.

    • Stock Codes

      The system detects that the pricing method for the stock code is set to Discounted and retrieves the stock code's pricing category.

      The system determines the price code assigned to the List price code (e.g. price code C).

    • Customers

      The system determines whether the customer is assigned a contract, which takes precedence over extended pricing.

      The system determines the discount code assigned to the Price category/code table (e.g. category F is associated with the discount code in position 6 in the table).

    • Browse on AR Invoice Discounts

      The system looks up the discount code (Price category/code table) in the Invoice Discounts table and finds the matching discount percentage. The discount is calculated on the List price, the Cost price or on a Specific price code (e.g. G).

    • Browse on Stock Code Pricing

      The system looks up the List price code or Specific price code in the price code table () and finds the matching unit price (e.g. Price Code B has a unit price of R50.00).

    • Adding a sales order line (Sales Order Entry):

      The system displays the Price and Unit of measure.

      The operator enters the following values: Order Quantity and Ship Quantity.

      The operator can override the following values: Price Code, Price, Unit of measure and Discount (either a percentage which can be chained, or a value).

      The system calculates the line discount according to the discount codes and price codes previously selected.

Security Measures

You can use the Password Definition, Operator Browse and Operator Groups programs to prevent operators, or groups of operators, from changing predefined discounts without the proper authorization.

  • Passwords

    The Password Definition program enables you to prevent the changing of sales order discounts, prices, and the use of expired contracts during Sales Order Entry by assigning passwords to the Sales Orders functions.

  • Operators

    The Operators program enables you to specify an operator's access to Standard menus and User menus, as well as Warehouses. Accounts Receivable branches, Accounts Payable branches, Banks, Activities and Master fields (such as Credit limits and Credit terms).

    You can restrict an operator from editing data, as well as viewing data.

  • Groups

    The Groups program enables you to deny groups of operators access to processing functions that affect discounts in Sales Orders.

    These restrictions mean that the operators within a group can view settings, but cannot make changes to the values.

Module Dependencies for Pricing

Pricing extends across the following modules:

  • Accounts Receivable

  • Inventory

  • Sales Orders

  • Trade Promotions

  • Counter Sales

  • Quotations

The following modules are required for Global base pricing:

  • Accounts Receivable

  • Inventory

  • Sales Orders

The following modules are required for Contract pricing:

  • Accounts Receivable

  • Inventory

  • Sales Orders

The following modules are required for Trade Promotions pricing

  • Accounts Receivable

  • Inventory

  • Sales Orders

  • Trade Promotions

Other recommended modules for pricing are:

  • Counter Sales

  • Quotations