This document emphasizes on the pricing functionality of configured parts and it should be observed that configured parts cannot be included in an agreement.
The main purpose of the pricing functionality is to make the process of maintaining and updating of prices and price lists easy. Price lists are built from sales part base prices (not to be confused with the price entered on the sales part). This means that you must maintain the sales part base prices. When a base price is changed, it is possible to update all price lists containing this base price at the same time. The price lists are defined with different quantity intervals.
The price of a configured sales part can consist of a maximum of three components: (1) the sales configurable part base price, i.e., the price of the unconfigured part, (2) the economic value of the characteristics connected to the sales part, and (3) the economic value of any applicable option connected to the characteristics. When designing the possible configurations for a part configuration revision you decide whether some of the characteristic(s) and/or the option(s) should be mandatory.
The sales part base price is used as a base when calculating prices for different quantity intervals in a price list. This price is used only for the updating of part-based price lists and should not be mistaken for the price entered on the sales part. The base prices can be linked to IFS/Costing or entered manually. This means that, from the standard price, it is possible to add contribution margin and other user-defined variables to calculate the sales part base price. The site has to be defined for every sales part base price, since the costing information for one sales part can exist for many different sites. For configurable parts specifically the base price is the price of the unconfigured part, i.e., the price that will be affected by the characteristics and the options.
Price lists are created for different sales price groups. A sales price group is used to group a number of sales parts with the same characteristics regarding pricing. It is possible to define more than one price list for a sales price group. When defining what price list to use for a specific customer, it will only be possible to define one price list per price group. A sales price group is entered for every sales part. In case the combination of sales part number and sales price group is the same for different sites, then the price unit of measure must also be the same. This is to avoid sales parts with the same price group having different price unit of measure for different sites when it is used on a price list that is valid for several sites.
There are two different types of sales price groups, part-based price groups and unit-based price groups. These types of sales price groups are used to create part-based and unit-based price lists. When creating price lists for configured sales parts, you must use part-based sales price groups.
A price list belongs to a price group. Because the sales price list for configured parts is part based, so too is the corresponding price group.
Part-based sales price lists are based on sales part base prices. You can enter different quantity intervals for a sales part with different prices by using sales part base prices and different offsets for those intervals. The price list does not need to be in the same currency as the entered base prices. If not the prices will be automatically calculated to the applicable currency.
If you use order date when you retrieve prices from price lists, these may be out of date today. They may, however, still be valid for the specific order. You should therefore change price lists, current as well as old ones, only with great care.
Once a configurable sales part has been entered into a sales price list you can add pricing rules and pricing information.
A customer price group is used to group a number of customers with the same characteristics regarding pricing. A customer price group is connected to a number of combinations of sales price groups and sales price lists. A customer can be connected to a customer price group and through this also to different sales price lists. Those price lists can then be used on a customer order line to select the price that will be used.
A customer hierarchy is a graphical method of grouping companies belonging to the same group in a tree structure, which can be reviewed. The parent company will be on the top level with all affiliated companies beneath in the required number of levels.
The hierarchy is used when searching for valid prices and price lists. You can connect a price list to one customer, allowing all affiliated companies on lower levels in the same branch of the hierarchy to benefit from that price list. Any price or discount information can be retrieved from the customer hierarchy if it is lacking in the customer entry itself. The retrieval will follow the priority order below.
During a hierarchy search, the system searches successively higher levels in a single branch of the hierarchy until it either finds a price or reaches the top level. You cannot limit the search to certain parts of the hierarchy. You can override the sales price that is found by entering a sales price or a price list directly on the order line. A manually entered sales price on a customer order line always has the highest priority.
The sales price on customer order line is selected according to the data entered. If the customer is included in a customer hierarchy the system will search for a valid sales price in the following priority order:
If the configurable part price is retrieved from a sales price list, the system will determine whether prices of characteristics and options have been defined for the same sales price list. If so the price combination will be:
If the prices of the characteristics, but not the options, are defined in the above-mentioned sales price list, the system checks to see whether the Stop Price Search check box is selected. If so, the price of the option is set to zero. If the check box is cleared, the price is retrieved from the sales part entry and:
If the price of the characteristics is not defined in the above-mentioned sales price list, the sales price for the characteristic and for the option are both retrieved from the sales part entry. Then:
If no sales price list is available for the sales part, prices of the sales part, the characteristic and the option are all retrieved from the sales part entry:
It could be the case that the price is not defined for an option (in the sales part entry or in price list). There’s no control on this: if a price is defined for the characteristic, the system allows you not to define a price for its options.
Unless you have stated that the price information is mandatory you can define characteristics without adding price, both in the sales part entry and in the price list. It is always possible to define options without adding price, both in the sales part entry and in the price list.
The discount on customer order line is selected depending on the data entered. It is possible to apply either a single discount or multiple discounts and this is decided in the site entry. If single discount has been chosen only one discount will be applied. If multiple discounts has been selected a discount both from the price priority ladder (above) and from the discount priority ladder (2 - below) can be combined. A maximum of two discounts can be applied at the same time.
There are three variants:
(1) If a discount is connected to the price and Single Discount has been chosen this discount will be retrieved. The system will not search for any further discounts.
(2) If a discount is connected to the price and Multiple Discounts has been chosen this discount will be retrieved, i.e. if the price on the order line is retrieved from a Price List the discount connected to that price will always be used. Since the discount is copied directly from the price source the system does not actually search for this discount; it is rather a reflection of the price search. In addition to this discount the system will search for further discounts in the following priority order:
(3) If no discount is connected to the price and Multiple Discounts has been chosen the system will search for discounts in the same priority order as 2 (above).
It is possible to override all the above values by entering a discount directly on the order line.