Price Level Pricing

Price Level pricing is based on the price level that is assigned to the customer that the order is being entered for, and the inventory price levels that have been specified for the inventory item being processed. 

Price Level pricing is the simplest form of customer pricing supported by the system.  Each Inventory Item in each Inventory Location has 11 price levels associated with it.  These consist of Retail, Levels 1-9 and A (A is used instead of 10 to allow using a 1 character code).  There are also 5 costs in each inventory record that can be used for price level prices (to allow you to sell on a cost plus basis).

Each Customer in the system is assigned a default price level during setup.  This price level defines or points to the inventory price level that should be used for the customer during order entry.  The Customer price level can be set to the Retail price for the item, Price levels 1-9 and A that can be maintained for each item, or it can be set to the Last, Unit, Next, Standard or Commission cost for the item being processed to allow cost based pricing.

Each Catalog and Warehouse or Inventory record in the system stores multiple price levels and costs that correspond with the price levels used in the Customer file.  The price levels are normally the same for each inventory record that is created for each Product Catalog record, and the system usually normalizes the price level information for each item so that the information can be maintained from the Product Catalog file (this allows the system to copy any changes to all inventory records for the item automatically and reduces maintenance).  The cost of each item is normally maintained at the inventory level, and is automatically updated by the system.

The Price levels that are stored for each item in the Product Catalog and Inventory files are maintained in your house or local currency.

There is also a Prices File (described in the next section) that can be used to specify the price levels for each item in each foreign currency that you use for processing orders. 

When the system calculates the price level price for an item it takes the item, the customer price level for the customer being processed, and the currency that the order is being entered in.  It then checks for a Prices record for the item and if found it uses the price from the record.

If a prices record is not found, the system displays the prices from the Inventory price levels for the item adjusted based on the currency being processed.  The system also returns the appropriate price (the price level adjusted by the exchange rate for the currency) to the order entry program.

The Price Levels and Prices records in the system can be manually maintained (normally by editing the Catalog record for the item or the Prices records for the item and currency).  The Price based price levels in the inventory file can also be automatically calculated and updated during receiving (based on a GPM percentage that can be stored for each price level and the cost for the item), or they can be updated in batch using the Mass Price Updater or another maintenance program.


Prices File

Price Level Price Calculation Method

Cost Based Price Level Price Calculation Method