Define Pricing by Item

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Expand/Collapse item  Overview

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

  1. Select Inventory Management Main menu > Item Maintenance.

  2. In the Item Code field, enter the item code. For more information, see Item Maintenance - Fields.

  3. At the Vendors button, click the drop-down button and click Pricing.  

  4. In the Item Pricing Maintenance window, in the Pricing Option field, select Item Pricing. For more information, see Item Pricing Maintenance - Fields.

  5. Enter the price level, pricing method, and discount/markup rate for each quantity break.

  6. Click Accept.

You have set up pricing information by item.

 

Expand/Collapse 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).