Prices File

The Prices File (File 107:PRICES) allows you to specify inventory price levels for each inventory item in each inventory location and each specific currency that you use for processing orders.  If a record exists in the Prices File for the loc, item, currency, and price level being processed, the system uses the Prices record instead of the price level defined in the Inventory record for the item being processed.

The Prices file allows you to have specific foreign currency prices for an item that are not based on the price levels that are defined for the item in the Inventory Master file.  The prices for each item that are stored in the Inventory Master file are maintained in your local or house currency. 

      If an order is entered for an item in a foreign currency and a Prices record does not exist for the item, price level and currency being processed, the system calculates the price level price for the item by converting the local currency price in the Inventory record to the foreign currency, using the most recent exchange rate for the currency.  This can result in a price that varies from day to day based on the movement of the exchange rate for the currency (which is normally maintained by accounting and not sales).

      If a prices record is defined for the item, currency and price level being processed, the system locates the Prices record and it uses the price from the record instead of converting the local currency price level using the exchange rate for the currency. 

The advantages of using the Prices file include.

      The price does not change when the exchange rate for the currency is modified.  This behavior prevents a presentable price such as

      The price can be specified so that the amount is more presentable to the customer (i.e. you can force the price to be GBP 1.50 instead of whatever the local currency price for the price level is adjusted by the exchange rate which may be GBP 1.51).

The disadvantages of using the Prices file include:

      Additional data entry to set the records up.

      The price does not change when the exchange rate for the currency is modified.  If you have a large change in the exchange rate for the currency, the existing Prices records are not updated automatically and they may need to be updated manually in order to ensure that you make acceptable margins on the item.