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