Quantum VS Help: File Maintenance

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Pricing Criteria

Description

Where Is This Defined In Quantum VS?

How Is This Pricing Criteria Updated?

Price Bands / Gross Prices

The Product's Gross Price is defined on the Price Bands available within the Product record. A Product may have from 1 to a maximum of 12 Price Bands (and hence Gross Prices) defined.

You may use Standard Pricing, Date Driven Pricing, or a Combination of both.

If a product is defined as Price Driven (i.e. Standard Pricing), its price is determined by the Gross Price entered on the default Price Band your system is using.

If you are using Date Driven pricing, the product's price is determined by the dates set up against the Price Bands.

When a user is creating a sales document (i.e. a Sales Order, Quote, Sales Contract or Credit Note) for a customer, they have the option of selecting Line Pricing (Negotiation View) or Manual Pricing view. This allows the user to manipulate prices and discounts, perhaps as an incentive for the customer to purchase.

Price Bands are one of many variables users can manipulate in Line Pricing (Negotiation) view or Manual Pricing view. For example, the user may be dealing with a long standing customer who tends to place large orders. As an incentive to order this product the sales person may wish to offer the customer a lower price by using a different price band.

Price Bands, Gross Prices and any applicable dates and Regulator discount (see below) are set in the Product Record under the Main tab. Up to 12 Price Bands may be created. See Recording Price Details.

The System Administrator may specify which price band will represent the 'default' List Price Band for each product. This is defined in the List Price Band field in the Other tab of the Price Book General control record. Typically, Price Band 1 is used as the 'default' List Price Band, but the 'default' may be any Price Band from 1 - 12. The setting in this field is important, as Promotional Prices (see below) are based on the List Price band specified here.

Whether you wish to use Date Pricing, (Standard) Pricing or a Combination of both depends on the setting in the Pricing Type field in the Other tab of the Price Book Flags control record.

The new Gross Price held on a Product's Price Bands must be entered using Manual Pricing, Quantum VS Price Importer or one of the pricing-related Processes. It is then applied to the Product record on the appropriate date by running the Apply Forward Prices Process. See Updating Product Prices And Costs.

Regulator

The Regulator is the first discount that can be made against the Gross Prices held in the (maximum) 12 price bands - see above.

Regulator discounts are commonly used with products whose prices are constantly changing (e.g. copper wire). The figure entered refers to a percentage discount which will be applied at the appropriate point in the price/discount calculation. For example: 25 = 25% discount.

The Regulator discount is another variable users can manipulate in Manual Pricing view when creating a sales document (i.e. a Sales Order, Quote, Sales Contract or Credit Note) for a customer, which may be used as an incentive for the customer to make a purchase.

Regulator discount values are entered alongside the Gross Price in the Product Record under the Main tab, for each Price Band you will use. Up to 12 Price Bands may be created. See Recording Price Details.

A Regulator discount can also be specified within Special Price records and Customer Product Break records.

The new Regulator discount value held on a Product's Price Bands must be entered using Manual Pricing, Quantum VS Price Importer or one of the pricing-related Processes. It is then applied to the Product record on the appropriate date by running the Apply Forward Prices Process. See Updating Product Prices And Costs.

Break Discount (Discount 1)

The Break Discount is an additional discount that can be taken off the Sale Price if the quantity, weight or value of the product being purchased is greater than a certain amount.

The amount of discount offered depends on the values held in the Break Table. The Break Table holds up to 12 quantity, weight or value bands (or 'breaks'). Depending on the quantity, weight or value of the product being purchased, the Break Table determines the amount of Break Discount which will apply. Alternatively the breaks table may point a Customer to different Price Bands.

The Break Discount is another variable users can manipulate in Manual Pricing view when creating a sales document (i.e. a Sales Order, Quote, Sales Contract or Credit Note) for a customer, which may be used as an incentive for the customer to make a purchase.

The main Product Break Table, which holds a maximum of 12 quantity, weight or value bands, is defined under the Quantity Breaks tab in the Product Record. (The Break Table can be viewed under the Extra Information tab when the Product Record is open.) See Creating Quantity Breaks.

Note: Although the tab is labelled Quantity Breaks, the Break Table contains data which can apply discounts based on weight, value and profit margin as well as quantity.

The System Administrator may specify a maximum available percentage of Break Discount in the Max Quantity Break Disc field in the Other tab of the Price Book General control record. This prevents unreasonably high discounts being applied in error.

Additional Break Tables may be maintained in Customer Product Break records and applied to a Customer (or group of Customers) when buying a certain Product (or group of Products). See Creating A Customer Product Break Record.

The new Break Discount criteria must be applied to a product or product range using the Add Quantity Break Forward Price process. It is then applied to the Product record on the appropriate date by running the Apply Forward Prices Process. See Updating Product Prices And Costs.

Discount Matrix 1 and 2 (Discount Surcharge 2 and 3)

Matrix Discounts 1 and 2 are two further percentage discounts that can be taken off the Sale Price.

These can be manipulated in Manual Pricing view when creating a sales document (i.e. a Sales Order, Quote, Sales Contract or Credit Note) for a customer, which may be used as an incentive for the customer to make a purchase.

Matrix Discounts 1 and 2 may be applied to the relevant Customer Class/Price Group record in the Discount Matrix. See Discount Matrix Maintenance.

Matrix Discounts 1 and 2 may be edited for the relevant Customer Class/Price Group record in the Discount Matrix. See Discount Matrix Maintenance.

Customer Classes

The Customer Class forms half of the Discount Matrix (with Price Groups and Product Groups forming the other half - see below). When a customer wishes to purchase goods, the Discount Matrix will refer to the customer’s Class and look up the pricing rules that apply to that Class for the Price (or Product) Group(s) of the goods that are being sold.  

Each Customer is assigned to a Customer Class depending upon the terms of business that have been negotiated. The Customer Class represents a series of customers who have been grouped together for the purposes of providing them with the same pricing structure across a range of products. The Class controls the discounts that the customer will enjoy across the product range that it is anticipated they will be purchasing.

For example: large building firms may be offered different terms to small building firms and general trade customers.

You may set up pricing criteria for Customer Class/Price Group combinations using Discount Matrix Maintenance.

The Customer Classes themselves must be set up and maintained in the table file CLA using Table File Maintenance.

A Customer is assigned a Customer Class in their Customer record > General Details tab.

You may edit pricing criteria for Customer Class/Price Group combinations using Discount Matrix Maintenance.

You may edit/create/delete Customer Classes in the table file CLA using Table File Maintenance.

You may amend a Customer's Customer Class in their Customer record > General Details tab.

Price Groups

The Price Group - along with Product Groups below - represents the other half of the Discount Matrix (the Customer Class forms the first half - see above). When a customer wishes to purchase goods, the Discount Matrix will refer to the customer’s Class and look up the pricing rules that apply to that Class for the Price Group(s) of the goods that are being sold.

Price Groups are used to group together different products which have similar pricing, discount and quantity break structures.

For Example: in a range of power tools, Black and Decker drills might have two available prices (retail and trade), while Bosch drills may have four prices (retail and trade A, B and C). The Black and Decker drills should therefore be in a separate price group to Bosch drills. A particular customer might therefore be pointed to the trade price for Black and Decker drills and, if required, price band 3 or 4 for Bosch drills.

You may set up pricing criteria for Customer Class/Price (and Product)Group combinations using Discount Matrix Maintenance.

The Price Groups themselves must be set up and maintained in the table file PRI using Table File Maintenance.

A Product is assigned a Price Group in their Product record. See Product Maintenance.

You may edit pricing criteria for Customer Class/Price Group combinations using Discount Matrix Maintenance.

You may edit/create/delete Price Groups in the table file PRI using Table File Maintenance.

You may amend a Product's Price Group in their Product record. See Editing A Product Record.

Product Groups

The Product Group - along with Price Groups above - represents the other half of the Discount Matrix (the Customer Class forms the first half - see above). When a customer wishes to purchase goods, the Discount Matrix will refer to the customer’s Class and look up the pricing rules that apply to that Class for the Product Group(s) of the goods that are being sold.

Product Groups are set up to group together products of a similar 'type'. The product group can be used to group together similar types of product. It may also be used to group together 'top sellers'.

For example, all tiling-related products might be assigned to a Product Group called 'Tiling', all fencing-related products assigned to a Product Group called 'Fencing', and so on.

You may set up pricing criteria for Customer Class/Price (and Product) Group combinations using Discount Matrix Maintenance.

The Product Groups themselves must be set up and maintained in the table file P using Table File Maintenance.

A Product is assigned a Product Group in their Product record. See Product Maintenance.

You may edit pricing criteria for Customer Class/Price (and Product) Group combinations using Discount Matrix Maintenance.

You may edit/create/delete Product Groups in the table file P using Table File Maintenance.

You may amend a Product's Product Group in their Product record. See Editing A Product Record.

Special Prices

A Special Price is a one-off price that has been negotiated for a particular product or range of products that only applies to one particular customer or customer site. The Special Price, if defined, will override other price/discount settings for the product/customer.

When adding product lines to a sales document (i.e. a Sales Order, Quote, Sales Contract or Credit Note) users can check whether any Special Prices have been set up against a product by checking the Special Prices tab in Line Pricing (Negotiation View).

Special Prices are defined in Special Price records. See Special Price Maintenance.

Special Prices are amended in Special Price records. See Special Price Maintenance.

Promotional Prices

A Promotional Price (or Discount) is a price / discount that is set for a limited period of time on a product. This fixed price or discount is independent of any of the discounts previously described.

When creating a new Product record, general pricing criteria for a Product - including its Promotional Price - is recorded in the Prices section of the Main tab of the Product record. See Recording Price Details.

Promotional Prices and Discounts, and the dates on which they will apply, are set up against Products using the Add Promotional Forward Prices or Semi Automatic Forward Pricing process. Then you must run the Apply Forward Prices Process to apply the promotional prices/discounts to the Product record.

The specified product promotion may either be a fixed price promotion or a promotional discount.

This information can be viewed under the Main tab when the Product Record is open - see Main Tab: Promotional Prices.

Aggregate Pricing/Discount

Aggregate Pricing (or Aggregation) is where products are grouped together into Aggregate Groups for the purposes of applying an Aggregation Discount.

When a Sales Order is raised for a customer that has permission to use aggregation, and the order is for a combination of products that falls within an Aggregate Group, Quantum VS will reprice the order based on the amount of Aggregation Discount applicable to that Aggregate Group.

Quantum VS uses the Aggregate Pricing Break Table to determine the Aggregation Discount. The Break Table holds up to 12 quantity, weight or value bands (or 'breaks'). The amount of discount depends on the quantity, weight, value or profit margin of the products being purchased.

Aggregate Product records are used to define (a) the products which comprise the Aggregate Group and (b) the Aggregate Pricing Break Table and other criteria, which controls the amount of discount applied according to the quantity, weight, value or profit margin of the Aggregate Products being purchased. See Aggregation Product Maintenance.

In order for the customer to be eligible for an Aggregation Discount, the Aggregation Discount field must be checked in their Customer record > General Details tab.

Aggregate Code values - i.e. each group of products eligible for Aggregation Discount - must be set up and maintained in the table file AGG using Table File Maintenance.

Criteria for Aggregate Pricing may be amended within the appropriate Aggregation Product record. See Editing Aggregation Product Records.

You may amend a Customer's Aggregation Discount setting in their Customer record > General Details tab.

Aggregate Code values - i.e. each group of products eligible for Aggregation Discount - may be edited/added/deleted in the table file AGG using Table File Maintenance.

Collection Discount

Collection Discount is a discount which may be applied to a line price if the order is a Collected sale, providing both the product and the customer are eligible for Collection Discount.

Collection Discount is added on top of any other discounts which might apply.

For full details on applying Collection Discount to a Sales Order see Applying A Collection Discount.

For the customer to be eligible for Collection Discount, the Collection Discount field must be checked in their Customer record > General Details tab.

The default percentage of Collection Discount to be applied for each Product line for a Collected sale is defined in the Product record (in the Collection Discount field under the Main tab of the Product Record). See Main Tab: General Details.

A maximum applicable amount of Collection Discount may be specified (in the Max Collection Disc field, in the Other tab of the Price Book General control record). This prevents unreasonably high Collection Discounts being applied in error.

When a sales document is open the User/Sales Clerk may view - and potentially edit - the amount of Collection Discount applied by clicking the Nett Price hyperlink on the Product line (or Unit Price or Gross Price, depending on the selected Lines View Mode) to open the Line Pricing Window (Negotiation View). For further details see Line Pricing (Negotiation View).

The amount of Collection Discount which applies for a Product may be viewed/amended in the Product record. See Editing A Product Record.