Work with customer contracts, Items or Customer contracts enquiry, Items (DIR86101)

Related topics

• About setting up customer contracts
• About setting up limit dependent pricing
• About unit handling in DC1

Contracts are created for customers who agree to purchase either:

• specified quantities at an agreed-to price
• specified quantities during a specific period of time
• specified quantities at a specified price over a specified time period.

Contracts are updated automatically with the delivered quantity whenever goods are delivered to your customer.

When the contract period expires a verification may be made to determine whether the customer has received the total quantity ordered in the contract.

Via this panel you can add, change, copy or delete contract item details. Contracted items are defined per item code, warehouse, unit and currency combination.

Options

Function keys

Selection fields

Customer

Displays the customer code.

Contract number

Parent level

This field is only displayed if Business partner structure handling is activated. It is set to YES if the contract is for a customer structure. It is set to NO if the contract is for an individual customer.

Pricing parent

This field is only displayed if Business partner structure handling is activated. Displays the pricing parent (e.g., holding company) that this customer belongs to.

Item

This column displays the item code in the contract.

Whs

This column displays the warehouse in which the item is stocked.

Curr

This column displays the currency.

Unit

This column displays the unit for the item.

Valid from date

This column displays the date from which the contract is valid.

Valid to date

This column displays the date to which the contract is valid.

Base

This column displays the code denoting what the terms of the contract are based on, i.e. if it is Time based, Quantity based or both.

Price

This column displays the agreed upon fixed price for the item in the contract.

Work with customer contracts or Customer contracts enquiry (DIR86104)

Related topics

On this panel you define the contract prices.

You can optionally enter a:

• Price (in the Price field) or the means to enter a price (in the Basis, Marg/mark, Fact/per and Value fields)
  and/or
• Discount (using the Discount ID field combined with the Limit type or Limit code fields)
  or
• FOC

This can be done on the following levels:

• Customer (mandatory)
• Item (mandatory)
• Unit (optional depending on what you are entering, e.g., price or discount)
• Warehouse (optional depending on what you are entering, e.g., price or discount)

Note: If you enter only a discount – you can use a Sales Price list with a price on which to base the discount. If you leave the Price list field blank, the base price will be used.

Contracts can be Quantity-based, Time-based or a combination of both.

In Quantity-based contracts you cannot sell more than the quantity contracted, regardless of the period of the contract.

In Time-based contracts a greater quantity than contracted can be sold but only within the time period.

For contracts that are both Quantity and Time-based the contract will expire when either the quantity contracted has been sold or the “To” date has been reached, whichever comes first.

Note: A message is sent to the user if an active quantity-based contract is read in the sales pricing routine that has less quantity left on it than the quantity sent to the calling program.

Function keys

Customer

Displays the customer code.

Contract number

Parent level

This field is set to YES if the contract is for a customer structure. It is set to NO if the contract is for an individual customer.

Description

Enter a description for the item.

Warehouse

Enter the warehouse that the item is stocked in.

From – To date

Enter the starting date and end date during which the contract is valid.

Base

Enter a code indicating the terms of the contract.

Permitted values:

Value	Description
T	The contract is Time based.
Q	The contract is Quantity based.
B	The contract is Both (time based and quantity based).

For example:

• If the terms are based on a quantity contracted (e.g., the sale of 100 cases of a particular item) then the contract would be based on Quantity. The Q value would be selected.
• If the terms are based on the sale of an unlimited amount of goods at a certain price over a specific period of time (e.g., two months) then the contract would be based on Time. The T value would be selected.
• If the terms are based on a contracted quantity (e.g., 200 pallets of a particular item) over a specific time period (e.g., two months), then the contract would be concluded when either the contracted quantity is sold or the contracted time period has lapsed. This type of contract would be based on both time and quantity. The B value would be selected.

Price

A value is only entered in this field if the item is being contracted at a fixed price. Enter the agreed-to price for the item.

Price list

Enter a code from the Sales price list file to indicate the price list that is applicable for this customer contract.

Price unit

Only displayed if the PRCUNIT (Price unit handling) function is activated in the Function control file. Displays the unit in which the price is presented. See About price unit handling for more information.

Basis

Select a code from the Cost bases table to identify to the system how your company wishes to define the basic cost of an item.

FOC

Indicate if the item is free-of-charge.

Marg/Mark

Enter a value indicating the method (i.e. Margin or Mark-up) that you want to use to generate the sales price from, e.g., the cost price or the sales price list, depending on how this is set up.

Permitted values:

Value	Description
1	Margin
2	Mark-up

Note: This field is used in conjunction with the Fact/Per, and Value parameters.

The following formulae are used to calculate a sales price based upon margins and mark-ups:

Margin Base Price / ((100 – %) / 100) = Sales Price Base Price / (1 – Factor) = Sales Price

Mark-up Base Price x ((100 + %) / 100) = Sales Price Base Price x (1 + Factor) = Sales Price

For example:

• If the Cost Basis selected on this panel is ACI Average Cost/Item
• If the average cost of the item value = 10 GBP (defined on panel Item file maintenance, Inventory information panel (DMR00302)
• If the Method selected for calculating the sales price is Mark-up
• If the type of mark-up used in the calculation is a factor and not a percentage (defined in the Fact/Per field)
• And the Value of the mark-up is defined at 1.5
• Then the sales price will be calculated as:
• 10 * (1 + 1.5) = 25

Fact/Per

Enter a value indicating how you want the Marg/Mark (i.e. Margin or Mark-up) to be calculated.

Permitted values:

Value	Description
1	Factor: The Mark-up or Margin will be multiplied by a factor. Note: The value of the factor will be defined in the Value field.
2	Percentage: The Mark-up, or Margin value will be increased according to a percentage. Note: The value of the percentage will be defined in the Value field.

Value

This field is used in conjunction with the Marg/Mark, and Fact/Per fields.

• If the value of Marg/Mark is 1 and the value of Fact/Per is 1, enter the margin factor.
• If the value of Marg/Mark is 1 and the value of Fact/Per is 2, enter the margin percentage.
• If the value of Marg/Mark is 2 and the value of Fact/Per is 1, enter the mark-up factor.
• If the value of Marg/Mark is 2 and the value of Fact/Per is 2, enter the mark-up percentage.

Discount ID

A value can only be entered in this field if you are planning to define specific limit dependent discounts for this contract (done by completing the Limit type field and then pressing F8). Enter a code from the Sales discount ID table identifying the reason for the discount being offered to your customer. Only discount ID’s defined on line level are valid for contracts.

Limit type

A value is only entered in this field if you wish to offer your customer limit dependent discounts that are specific to this contract. The limits are based upon the amount or quantity of the order or quotation line. Enter the code that your company uses for Amount or Quantity depending upon whether the limit values are to be described as amounts or quantities. Note: If you enter a code in this field then a mandatory Sales discount ID must be entered that identifies the reason for the discount. See About setting up limit dependent pricing for more information.

Limit code

By using this field a pre-defined limit dependent discount can be applied depending on the quantity or amount entered on the sales order or quotation line. Enter a code from the Limit codes table, which carries the limit discounts (based on quantity or amount) that you want to apply. See About setting up limit dependent pricing for more information.

VAT based

Indicate if this is a VAT based item. This field can only be set to YES if either a price is entered or calculated using basis (except basis=”RET”) on the contract.

VAT included

Indicate if VAT is included in the sales price of the item. This can only be set to YES if either a price is entered or calculated using basis (except basis=”RET”) on the contract. This code is defaulted to the sales order line, where it can be changed.

Incl VAT% code

Enter the VAT handling code for the VAT percentage, if any, which is included in the sales price. If the VAT included field is set to NO, this field must be blank. If you are maintaining an existing entry, the information can be changed or deleted.

Ret method

This field is used to generate the retail price from the sales price. Enter a value indicating the method that you want to use to generate the retail price from the sales price. The retail price is a recommended value that will be printed on the invoice.

Permitted values:

Value	Description
1	Margin
2	Mark-up
3	Value

Note: This field is used in conjunction with the entries in Retail value, and Retail factor/perc.

Note: The mark-up factor is multiplied by the sales price of an item to yeild the recommended retail price that will be printed on the invoice.

The following formulae are used to calculate a retail price based upon margins and mark-ups:

Margin Base Price / ((100 – %) / 100) = Retail Price Base Price / (1 – Factor) = Retail Price

Mark-up Base Price x ((100 + %) / 100) = Retail Price Base Price x (1 + Factor) = Retail Price

For example:

• If the Cost Basis selected on this panel is ACI Average Cost/Item
• If the average cost of the item value = 10 GBP (defined on the Item file maintenance, Inventory information panel (DMR00302)
• If the method selected for calculating the retail price is Mark-up
• If the type of mark-up used in the calculation is a factor and not a percentage (defined in the Retail factor/perc field)
• And the Value of the mark-up is defined at 1.5
• Then the retail price will be calculated as:
• 10 * (1 + 1.5) = 25

Ret fact/per

This field is used to determine the recommended retail price that will be printed on the invoice sent to the customer.

Note: The method used to generate the retail price is the same as the one used to calculate the sales price.

Enter a value indicating how you want the Retail Method (e.g., Mark-up, Margin) to be calculated.

Note: This field is used in conjunction with the entries in Retail method, and Retail value.

Permitted values:

Value	Description
1	Factor. The Mark-up or Margin will be multiplied by a factor. Note: You enter the value of the factor in the Retail value field.
2	Percentage. The Mark-up or Margin value will be increased according to a percentage. Note: You enter the value of the percentage in Retail value field.

Ret value

This field is used to generate the retail price from the sales price. The retail price is a recommended value that will be printed on the invoice.

Note: This field is used in conjunction with the entries in Retail method, and Retail factor/perc.

• If the value of Retail method is 1 and the value of Retail factor/perc is 1:
  Enter the margin factor.
• If the value of Retail method is 1 and the value of Retail factor/perc is 2:
  Enter the margin percentage.
• If the value of Retail method is 2 and the value of Retail factor/perc is 1:
  Enter the mark-up factor.
• If the value of Retail method is 2 and the value of Retail factor/perc is 2:
  Enter the mark-up percentage.
• If the value of Retail method is 3:
  Enter the fixed retail price.

Quantity contracted

A value is entered in this field only if your customer has agreed to purchase a certain amount of goods over a specified period of time. Enter the contracted quantity.

Quantity dispatched

Displays the quantity that has been dispatched to your customer. The value in this field will be automatically updated with the dispatched quantity whenever goods are dispatched to your customer. Note: If the order type has Update stock on hand set to NO, then the value in this field will not be updated.

Work with customer contracts, Copy (DIR86105)

Related topics

All of the customer contracts that you selected to copy are listed on this panel.

Customer

Displays the customer code.

Contract number

Parent level

This field is set to YES if the contract is for a customer structure. It is set to NO if the contract is for an individual customer.

New item

Enter the code of the new item you are copying to.

New unit

Enter the code of the new item unit.

New curr

Enter the currency that you will be using for defining the prices of new item.

Work with customer contracts, Deletion (DIR86108)

Related topics