Stock – Price Matrix Overview

Product Pricing & Discount Schemes (Price Matrix etc.)

PRICING SCHEMES
The system offers a variety of schemes to fit your preferred product pricing structure.
These are described in this table in the order in which they are applied – e.g.:
When a product is selected in a sales transaction, the Standard Selling Price is first taken.
Then, if the customer is configured to receive a Special Selling Price, this price is taken – superseding the standard selling price.
Then, if the Quantity Break Price exists in the product definition, this price is taken – superseding the special selling price.
And so on, through the different schemes as described below, taking the relevant price if it applies to the product, customer and quantity.
This describes how the system identifies the price it assigns to the product in the transaction. In practice, only one of these schemes will be defined for any product and the above process will identify the price correctly. Ultimately, this can always be overtyped manually at transaction time.

Standard Selling Price:
Use this for a single simple selling price per Product – see Product Maintenance – Page 1.

Special Selling Prices:
Use this scheme to maintain up to 10 different extra selling prices for a product – identified 1 to 10. Customers can be assigned a Special Selling Price number in Customer Account – Financial Page and this price is then the default selling price to that customer for that product – e.g. trade price bands – see Product Maintenance – Page 2.

Quantity Break Prices:
Use this scheme to offer a product at one price up to a specific quantity and at a different price beyond that specific quantity – e.g. 3 for the price of 2 discounts – see Product Maintenance – Page 1.

Price Matrix:
Use this scheme to offer specific customers specific prices for specific products including volume discounts. The Price Matrix must be activated in Stock Control Parameters – General Page before it can be configured and used – see Create & Edit Customer Specific Pricing (Price Matrices).

Promotion Price:
Use this scheme to offer a specific price for a particular product for a fixed period only – i.e. a special offer. Enter the Promotion Price and the promotion start and end dates to automatically populate the price field for this product in all sales and sales order transactions for all customers while the accountingdate is within the promotion period – see Product Maintenance – Page 2.

Split-Pack Surcharge:
Use this scheme for products normally sold in packs or fixed quantities to charge a premium for sales of a split pack or below the fixed quantity – see Product Maintenance – Page 1.

Apply line discounts:
After the price is determined from the above, any line discounts are applied to that price. These are explained in the next table.

DISCOUNT SCHEMES
Similarly the system offers different discount schemes which operate in parallel with the above pricing schemes. In a sales transaction, a product price is identified as described above and then a Band Discount or Category Discount is applied to that price. For example, if both Discount Bands and Category Discounts are activated for a product and a sales transaction is entered for this product to a customer for which both would apply, the Discount Band would take precedent. Overall and Prompt Payment discounts apply to the whole transaction amount.

Discount Bands:
Use this scheme to maintain up to 5 different Discount Bands for a product – identified A to E. Customers can be assigned any one – see Sales Parameters – General Page (Use line discounts with special prices).

Category Discounts:
Use this scheme to offer discounts across a range of products identified by Stock Category. Enhanced categories must first be activated in Stock Control – Options Page. Category Discounts (and Descriptions) can then be maintained in the Category Maintenance Form.

Overall Discounts & Prompt Payment Discounts:
Use this to offer default overall transaction discounts to customers. These are applied to the whole transaction and therefore after, and independent of, all the above prices and discounts have been applied – see Customer Account – Financial Page.

Use Price Matrices :

Purpose:
Use a price matrix as a tool to support decisions by displaying the effect of a change in product prices on margins when creating sales transactions.

Preparation:
For first time use only; On the main menu click View > Parameters > Stock Control > General Form > Use Price Matrix = Yes
For first time use only; On the main menu Click View > Parameters > Stock Control > General Form > Cost for Margin
Calculations = Last or Standard or Average
As required; On the main menu click; View > Parameters > Stock Control > General Form >Use Line Discounts with Matrix Prices = Yes or No
Ensure that price matrices have been created/amended as required – see Create & Edit Customer Specific Pricing (Price Matrices)
Set minimum target margins for products and circulate to staff as required

Processing:
To produce Sales Orders – see Sales Order Entry – Customer Specific Pricing.
To produce Sales Invoices – see Invoice – Customer Specific Pricing.