Customer Order Processing CP0901 Help - Elliott Business Software



Price Code File Maintenance

Price Code File Maintenance

Application Overview

 

The pricing system is based on price break tables.  For example, you could set up a table such that when over 100 of an item are ordered, there is a 5% discount, when over 200 are ordered, there is a 10% discount, and when over 300 are ordered, there is a 15% discount, etc.

 

A price code table can be entered for each customer or for each inventory item.  This basically allows you to set up your system in two different ways:

 

a) Each customer gets discounts based on the number of each item he orders

                   

b) The price of each item varies depending on how many of each item is ordered.

 

If you have five types of customers, you may just want to set up a price break table for each customer type and leave it at that.  The pricing system also allows this.

 

If your inventory items are divided into product categories, you may want to set up a price break table for each product category.  This can also be done with the pricing system provided with this package.

 

Now, let us say that you have two types of customers, Wholesale and Retail, and that you have three categories of products:  Desks, Chairs and Sofas.  You could set up six price break tables to cover all possible combinations.

 

One table each for:

 

Wholesale customers buying desks.

Wholesale customers buying chairs.

Wholesale customers buying sofas.

Retail customers buying desks.

Retail customers buying chairs.

Retail customers buying sofas.

 

 

It is also possible to set up the system with combinations of any of the above pricing methods mentioned and also enter exceptions for certain customers or inventory items.  For example, you could set up price breaks for a particular customer or for a particular inventory item, which would be used regardless of customer type or product category.

 

Now, let us look at how to set up the pricing system.

 

First of all, there are eight different price code types:

 

Type   1  ‑    Price breaks based on customer number and item number.

 

Type   2  ‑    Price breaks based on customer number and product category.

 

Type   3  ‑    Price breaks based on customer type and item number.

 

Type   4  ‑    Price breaks based on customer type and product category.

 

Type   5  ‑    Price breaks based on customer number only.

 

Type   6  ‑    Price breaks based on item number only.

 

Type   7  ‑    Price breaks based on customer type only.

 

Type   8  ‑    Price breaks based on product category only.

 

Each time you add a price break table (price code) to the Price Code file, you will be required to specify which type of price code it is.  Then the customer number, type, item number, and/or product category is entered (per the above list of types) and finally the table itself is entered.

 

Any price code types, which you are going to use, must be specified in COP Setup as valid types.  Some companies may be able to select one pricing type and do all pricing using only that type, but most will have to use at least two.  When more than one type is entered in the COP Setup program, they must be entered in order by priority of each type.  For example, if you wish to set up your system so that pricing is normally done by product category but you wish to allow for the possibility of a particular item having special price breaks, then the price code types would need to be entered in this order: 6, 8.  This gives type 6 (item number only) priority over type 8 (product category only).  In other words, the system, when looking up the price for the item, would first look to see if there was a price code on file for that item, and if not then look to see if there was a price code for the item's product category, and if it was found, would never find the code that had been entered for the specific item.  If the system cannot find a price code, which applies to the item or customer being processed, the price for the item in the Inventory file will be used.

 

The best way to set up a pricing system for your company, (also see Price By Whole Order and Contract Pricing) in Global Setup section of this manual), is to start with the most general cases and work back to the most specific.  First, set up the general rules of pricing, and then enter the exceptions to the rules, and then, if needed, enter the exceptions to those exceptions.  Each level of exceptions entered must be expressed as a higher priority pricing code.

 

Here is an example to give you an idea of how you might go about setting up a pricing system.

 

Example:

 

Problem:

 

A company has five customer types ‑ TYPE1, TYPE2, TYPE3, TYPE4, and TYPE5.  It has three product categories PC1, PC2 and PC3.

 

The price breaks given on product categories PC1 and PC2 are always the same, regardless of customer type.

 

Price breaks for items in product category PC3 depend on the customer type, except for three items ITEM1, ITEM2 and ITEM3, which are always the same price, regardless of the quantity ordered.

 

There is one customer, CUST1, who has negotiated special prices on items ITEM1 and ITEM4.

 

Solution:

 

First, COP Setup is set up with the following types in the following order: 1, 6, 4, 8.

 


Type 1 (customer number and item number) must come first, because the price breaks that CUST1 has negotiated for ITEM1 and ITEM4 must override any other breaks when this customer orders either of these items.

 

Type 6 (item number only) comes next, because ITEM1, ITEM2, and ITEM3 have prices which must override any price breaks entered for product category PC3 when one of these items is ordered.

 

Type 4 (customer type and product category) and Type 8 (product category only) are last because they cover the most general cases of pricing situations, and there are many exceptions to these rules.

 

Note:  The valid price code types entered in COP Setup start at the most specific (e.g., customer number and item number) and go to the most general (e.g., product category only).  This allows entry of exceptions to the general rules and then exceptions to these rules, etc.

 

Once the valid price code table has been set up, the following price codes would be entered:

 

Type 8 ‑   Product Category = PC1

Type 8 ‑   Product Category = PC2

Type 4 ‑   Product Category = PC3,  Customer Type = Type1

Type 4 ‑   Product Category = PC3,  Customer Type = Type2

Type 4 ‑   Product Category = PC3,  Customer Type = Type3

Type 4 ‑   Product Category = PC3,  Customer Type = Type4

Type 4 ‑   Product Category = PC3,  Customer Type = Type5

 

Type 6 ‑   Item Number = ITEM1

Type 6 ‑   Item Number = ITEM2

Type 6 ‑   Item Number = ITEM3

 

Type 1 ‑   Customer Number = CUST1, Item Number  = ITEM1

Type 1 ‑   Customer Number = CUST1, Item Number  = ITEM4

 

This system translates in English to:

 

Pricing is done by product category, except for product category PC3, which is also broken down by customer types.  An exception to this rule is on items ITEM1, ITEM2 and ITEM3, which have separate prices.  An exception to these rules is that CUST1 gets special prices on ITEM1 and ITEM4.

 

Entry of the actual price break tables will be explained in the Run Instructions.

 

If a user changes a price code, the user ID and date is saved and the next time the price code is changed it will display the this on the screen.

 

Run Instructions

 

Select Price Code File from the pull down COP Maintenance window.

 

The following options are available:

·   Select the desired mode from the Price Code File menu bar

1.   Add new price code

2.   Change price code

3.   Delete price code

4.   List

Reports all Price Codes defined by Price Code Type

5.   Price List

Print Internal Price List

Print Customer Price List

*  Enter the data requested on the screen

 

To return to the Menu Bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the Menu Bar.

 

 

Entry Field Descriptions

 

Name

Type and Description

Code Type

One numeric digit (9).

 

Enter 1, 2, 3, 4, 5, 6, 7, or 8.  These are the price code types, as explained in the Application Over­view for this application.  A submenu will display at the bottom of the screen, showing all price code types that have been selected as valid types in COP Setup.  Only those selected as valid are allowed. They are dis­played in their relative order of priority from left to right, top to bottom.  The types are as follows:

 

1    =  Price breaks are based on customer number and item number.

 

2    =  Price breaks are based on customer number and product category.

 

3    =  Price breaks are based on customer type and item number.

 

4    =  Price breaks are based on customer type and product category.

 

5    =  Price breaks are based on customer number only.

 

6    =  Price breaks are based on item number only.

 

7    =  Price breaks are based on customer type only.

 

8    =  Price breaks are based on product category only.

Pricing Basis

1 alphanumeric character.

 

Enter P for Price, D for Discount or M for Markup.

 

(P for Price only entered for Types 1, 3, and 6)

 

If P is entered, the price break table will be entered in terms of prices, e.g.,

 

Orders of less than 100, Price = $23.

 

Pricing Basis (continued)

Orders of at least 100, Price = $22.

 

Orders of at least 200, Price = $21.

 

If D is entered, the price break table will be entered in terms of discounts, e.g.,

 

Orders of less than 100, Discount = 5%.

 

Orders of at least 100, Discount = 7%.

 

Orders of at least 200, Discount = 9%.

 

If M is entered, the price break table will be entered in terms of markup, e.g.,

 

Orders of less than 100, Markup = 29%.

 

Orders of at least 100, Markup = 25%.

 

Orders of at least 200, Markup = 20%.

 

The item price will be calculated by marking up the item cost from the Inventory Item file, as selected by entering a price code cost type in COP Setup, by the specified amount.

Customer No

 

6 alphanumeric characters.

 

(Only entered for Types 1, 2 and 5)

 

Enter the customer number of the customer to which the price code applied.

 

Press the F7 key for customer search by number or press the F8 key for customer search by name.

Customer Type

5 alphanumeric characters.

 

(Only entered for types 3, 4 and 7)

 

Enter the customer type to which the price code applies.  The cus­tomer type field is a field in the A/R Customer file (see A/R).

 

Item No

15 alphanumeric characters.

 

(Only entered for types 1, 3 and 6)

 

Enter the item number of the item to which the price code applies.

 

Press F7 to search for the item by number or press F8 to search for the item by name.

Prod Category

3 alphanumeric characters.

 

(Only entered for types 2, 4 and 8)

 

Enter the product category to which the price code applies.  The product category field is a field in the Inventory Item file (see I/M).

    

Press the F7 key to search for Product Category.

Ignore Cust Disc

Y or N.

 

Enter Y if you want the discount in the customer’s record to be ignored when calculating the price using this price code.

    

The default is blank.

Level‑XX Minimum Qty

A standard quantity format.

 

Enter the minimum quantity, which must be ordered before the customer is eligible for the level's price break.  The Level 1 minimum quantity is always zero (the package enters this one auto­matically).  For example, if a customer must order at least 100 to get any discount, the level 2 minimum quantity would be 100.  If by ordering at least 200 he could get a 10% discount, the level 3 minimum quantity would be 200.

Level‑XX Discount % 

4 numeric digits with optional decimal point and minus sign. Two (2) digits to the right of the decimal point decimal point (99.99‑).

 

(For types 1, 3 and 6, this field is only entered if the pricing basis is D.)

 

Enter the percentage that the item price in the Inventory Item file is discounted when it is found that the customer is eligible for the level's price break.

Level‑XX Price

10 numeric digits with optional decimal point. Four (4) digits to the right of the decimal point (999,999.9999).

 

(This field is only entered when the type is 1, 3 or 6 and when the pricing basis is P.)

 

Level‑XX Price (continued)

Enter the price that the customer pays for the item when it is determined that he is eligible for the level's price break.

Level‑XX Markup %

4 numeric digits with optional decimal point and minus sign. Two (2) digits to the right of the decimal point (999.99‑).

 

(For types 1, 3 and 6, this field is only entered if the pricing basis is M.)

 

Enter the percentage that the item cost in the Inventory Item file is marked up when it is found that the customer is eligible for the level's price break.

 

 

 

 

 

P R I C E   C O D E   L I S T

                                                                                                                                   

Price Code Type 1: Discount, Markup Or Set Item Price Based On Qty Ordered By Customer                                             

Range: For Customer Numbers 000100 Thru 000100                                                                                     

                                                                                                                                    

 Cust   Name                            Item-No          Description                     Pricing                                   

  No                                                                                      Basis                                    

                                                                                                                                   

000100  Williams John Q. Company        PC               Parent Item (Mother Board)      Disc %                                    

                                                         Personal Computer                                                          

                                                                                                                                   

             Level-1/Level-2        Level-3/Level-4        Level-5/Level-6        Level-7/Level-8        Level-9/Level-10          

             Min-Qty  Disc %        Min-Qty  Disc %        Min-Qty  Disc %        Min-Qty  Disc %        Min-Qty  Disc %           

                                                                                                                                    

             Zero       .00          .00       .00          .00       .00          .00       .00          .00       .00            

             5.00     10.00          .00       .00          .00       .00          .00       .00          .00       .00            

                                                                                                                                   

  1 Type 1 Price Codes

 

 

 

 

List Price Codes:  Sample Report for Price Code 1 for Customer 100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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