Define Pricing by Item

The Pricing by Item option is a unique price schedule created for a specific item. These price schedules can be based on the standard price level, or the customer price level assigned to each customer in the Accounts Receivable Customer file. You can enter price schedule information for any number of customer price levels. The setup procedure is similar to price code setup, except that it is established individually (by item) in Item Maintenance.

To set up pricing by item

Select Inventory Management Main menu > Item Maintenance.
In the Item Code field, enter the item code. For more information, see Item Maintenance - Fields.
At the Vendors button, click the drop-down button and click Pricing.
In the Item Pricing Maintenance window, in the Pricing Option field, select Item Pricing. For more information, see Item Pricing Maintenance - Fields.
Enter the price level, pricing method, and discount/markup rate for each quantity break.
Click Accept.

You have set up pricing information by item.

Example - Item Pricing

The following table illustrates the effect of item pricing on item Widget-30 if Widget-30 has a standard price of $10.00 and a standard cost of $5.00.

Price Code	Price Level	Method	Quantity Break	Rate
CCCC	Standard	Markup %	From 1 to 4	70%
			From 5 to 19	65%
			From 20 and Over	50%
	A	Markup %	From 1 to 4	50%
			From 5 to 19	40%
			From 20 and Over	30%
	C	Markup %	From 1 and Over	80%

If 10 units of Widget-30 are sold to a customer with price level A, the sale price is 40 percent over the standard cost or $7.00 per unit ($5.00 + 40% * $5.00 = $7.00).

If 10 units of Widget-30 are sold to a customer with price level C, the sale price is 80 percent over the standard cost or $9.00 per unit ($5.00 + 80% * $5.00 = $9.00).

If 10 unit of Widget-30 are sold to a customer without an assigned price level, the standard price level schedule for the item is used, and the sale price is 65 percent over the standard cost or $8.25 per unit ($5.00 + 65% * $5.00 = $8.25).