Margin Adjustment

The Margin Adjustment process enables you to update, by a specified percentage, the price or cost of selected products in advance of a specified date. These are added to the Forward Price file and applied automatically on the specified Effective Date. There are three basic options:

• The Sell option enables you to increase or decrease the product's 'sell price' on any Price Band from 1 to 12 by a specified percentage.

• The Cost option enables you to increase or decrease the product's Supplier Base Costs (for the Main Supplier, Alternate 1/2 Suppliers or a selected Supplier) by a specified percentage.

• The Revision option enables you to use the product's existing (a) Supplier Base Cost, (b) Standard Cost or (c) 'sell price' on a selected Price Band as a base value, and update the Standard Cost, Supplier Base Cost and/or 'sell price' on any or all remaining Price Bands by a percentage increase or decrease on the base value. For example, you might select Selling Band 1 as the 'Base Standard Band' and enter +5% against Selling Band 2. Therefore the new Selling Band 2 price for the product will be the Selling Band 1 price plus 5%.

Note: This process adds the new product prices/costs to the Forward Price file - see Understanding Price Changes And Unapplied Prices. The Apply Forward Prices process must then be run to apply the new prices/costs to the product records.

To run the Margin Adjustment process:

1.      Either:

• From the Home tab: under links, select Processes.

  

   

• Or: From the Toolbar - Main Menu: select Tools > Show Processes.

   

  

   

• OR: Click the appropriate module on the Mega Menu then - under processes - select the required Process.

The Processes record opens in a new tab, listing all Processes by Name and Category.

2.      Use your mouse or [Tab] key to select the Margin Adjustment process:

3.      In the area to the right you must enter the criteria for the process.

Note: You may use your [Tab] key to move from one field to the next.

First, select one of the following Sequence options:

• Product: to run the process on a range of products based on their Product Code; or

• Section Order: to run the process on a range of products based on their Section Order code.

4.      In the From and To fields below, enter the first and last Product code or Section Order code in the sequence of products you wish to apply the changes to.

If you enter nothing in the From / To fields, the process will be run on your whole Product list.

Note: A Product Code is a unique code comprising up to eleven characters. For example: 0502GRA0005. Product Codes are entered on the Product Code field of the Product record (Main tab). For further details see Defining Product Codes And Descriptions.

Note: The Section Order code represents a sequence of up to ten alphanumeric characters or spaces, sometimes shown divided by a '/' (e.g. PAINT/00001). The first five characters represent the Section Name, which is entered on the Section Name field of the Product record (Main tab). The following five characters represent the Section Order Code which is entered on the Section Order Code field of the Product record (Main tab). If either is fewer than five characters in length, enter a space for each missing character.

If you don't know the Product Code you may enter it automatically using the Finder. To do this:

• place your cursor in the From/To field;

• click [F3] to make Products active in the Finder;

• in the Finder, locate the product you wish to add (see Finding Products); then

• double-click on the product line in the Finder to add the Product Code.

5.      Enter a date in the Effective Date field. The process will add margin changes up to the date entered in this field. Today's date is selected by default, but you may select an alternative date if necessary.

6.      Select one of the following Sell Cost Revision options:

• Sell: If you wish to increase or decrease the 'sell price' on any Price Band from 1 to 12 by a specified percentage.

• Cost: If you wish to increase or decrease the Supplier Base Costs for the Main Supplier, Alternate 1/2 Suppliers or a selected Supplier by a specified percentage.

• Revision: If you wish to increase or decrease the (a) Supplier Base Cost, (b) Standard Cost, and/or (c) 'sell price' on any Price Band from 1 to 12, by a specified percentage, based on the existing (a) Standard Cost value, (b) Supplier Base Cost value, or (c) 'sell price' value from a selected Price Band.

7.      Enter values in the remaining fields as follows, based on what you selected in the Sell Cost Revision field.

Sell Options

If you selected 'Sell' above, you have the following options:

Cost Options

If you selected 'Cost' above, you have the following options:

Revision Options

If you selected 'Revision' above, you have the following options:

8.      Click Start on the Toolbar - Sub Menu to begin running the process.

9.      When the process has finished running, a Status message will be shown. Click OK to close this message. You may now close the Processes tab if you wish.

Applying The New Prices / Costs

At this point the new product prices/costs have been added to the Forward Price file but have not yet been applied to the product records.

To apply the price/cost updates you will need to run the Apply Forward Prices Process. The Forward Prices will then be applied to each product record on the appropriate Effective Date.

Note: To view unapplied prices - i.e. prices/costs which have been added to the Forward Price Record but not yet applied to the product record - see Viewing Unapplied Prices For A Product.

NEXT: Price Book Period End