The method used to calculate the price level price depends on whether a price level or a cost is specified in the price level for the order being processed. This section describes how the system calculates a price level price when a price levels U,L,N,S, or C are being used for the order being processed. Please Note: When a cost based price level is being used for an order, the discount percentage is used as a markup percentage, and the discounted price level will be higher than the price level price for the item.
The system clears the properties used by the price module and it passes the information from the order being processed to the price module. The information passed to the price module includes the customer being processed, the price level and discount being used for the order, the item and quantity being processed, the item product line and class, and System Parameter information. The system also writes the properties being used by the price module out to a log file that can be used to view the price calculation and determine where the target price for the order was obtained.
The system checks for any Class Exception or Minimum GPM
The system checks for any Rebates (Type R or Rebate special pricing records) that are available for the order line. The system checks for Rebate records for the Company being processed, for any Buying Groups that the company is a member of, and for any General Rebates (General Rebates are available to all customers). The system will only select a rebate if it is in the same currency as the order being processed, and it will automatically return the best available (highest) rebate amount to the price module.
The system determines if a Cost Based Price is being used based on the price level passed to the price module. If a cost based price level is being used for the order being processed, the price module first calculates the price level price.
If the order is being processed in foreign currency, the system checks for Prices records for the item, currency and price level being used and it returns the price from the appropriate Prices record.
If the order is being processed in foreign currency and a Prices record does not exist for the item, currency and price level being used, the system converts the cost in your local currency to the appropriate value based on the most current exchange rate in the system for the foreign currency being used on the order.
If the order being processed is in your local currency, the price module returns the appropriate price level price from the Inventory record for the item.
The system then calculates the basis commission cost for the order line. The basis commission cost is the commission cost from the inventory item being processed, adjusted by the SO Fudge Factor, and converted to the order currency. The SO Fudge Factor is a system parameter that can be used to add a percentage to the actual commission cost that is stored in each item. The fudge factor can be used to ensure your cost covers items like freight and duty that are not included in the commission cost, or it can be used to add a safety margin to the cost you are using for commissions. The SO Fudge factor defaults to 1 if the parameter is not set or it is missing. If the commission cost in the item is 0, the system will take the average cost of the item (adjusted for the currency being used) and use that for the basis commission cost.
The system writes out the Basis Commission Cost and the Price Level Price to the Log file produced by the fvprice object.
The system then adjusts the price level price and the commission cost for the order line based on any general rebates that are available for the order line. If a qualifying rebate is found, the system checks the Instant Display flag in the rebate record. If the Instant Display flag is set to Y, the pl price and the basis commission cost are both adjusted (reduced) by the rebate amount. The price level rebate amount and the price level rebate record number in are also both recorded and written out to the log file produced by the price module. Note: The system will only apply a rebate to a price level price if the rebate is in the same currency as the order being processed.
Calculates a Cost Based Price if sales order price level (PRL) is U,S,L, or N. When cost based pricing is used, the discount in customer master or order is used as a markup percentage instead of a discount percentage.
Records the general rebate amount but does not adjust price or commission cost if instant display is N
Records the general rebate amount and adjusts both price and commission cost if the instant display flag in the rebate record is set = Y
Records the price record number from rebate record if rebate amt is not 0 (to identify the source of the rebate) and loads the price record number from the rebate into the rebate record field of the sales order line.
Applies PQDS discounts if there are any records in the PQDS system for the specific company being processed (only PQDS records with company equal to the Sales Order Company will be used).
Logs the properties from the price object so that the price calculation can be displayed if necessary.
The system then returns the cost based price and it does not check any of the other pricing options for the customer/item combination.
Note: PQDS adjustments are made to cost based pricing if the parameter SOPQDSDS is set to Y and POQDS records exist for the specific company being processed. Class discounts are not applied.
The Cost Based Pricing Option allows you to base the price charged for an item on the Unit, Last, Next, Standard or Commission cost for an item. This option can be useful when you have an agreement to price items at a certain percentage above a defined cost.
When a Customer is assigned an Inventory Cost in the Price Level field in the Customer Master file, the system uses different logic than it does when the customer price level is set to one of the defined price levels (R, 1-9 and A).
If the customer price level is set to U,L,N,S, or C, the system does not go thru the entire target pricing calculation.
Instead, the system first checks for any qualifying Rebates for the item, and then it calculates the PL (price level) price for the item. The Price Level Price is the price from the price level or cost defined for the customer (which can come from the Inventory record or a Prices File record for the item) adjusted by any discount specified for the customer.
The system then calculates the commission cost and the rebate amount to be used for the line. A rebate will only be applied to an order line that is entered in local currency as rebates are only supported in local currency.