Sales pricing methods allow the creation of flexible discount and pricing structures. There are several ways in which a method can be created, controlled by a method type. See Method types below. You can also set a time frame on the validity of the pricing and/or discount that would be offered – thereby providing short term pricing.
Pricing and discounts can be created at a single level, i.e. per item or customer, or at a multiple level by using a combination of up to five key fields.
Note: Any discounts you offer your customer can be claimed back from your supplier/manufacturer via the functionality in the DC1 SMS application. See Process handling in the DC1 Supplier Marketing Support (SMS) application.
Pricing keys are the defining parameters of the sales pricing method. Only the pricing keys that are activated for Pricing in the DIS control keys table will be available as selection criteria on the Work with sales pricing methods panel. By selecting one or more pricing keys, a selection criteria is created. The price or discount would then be applied only to what matches the criteria.
Example:
A special price or discount can be applied to a method that has either/or defined:
only one key field as a criteria:
- Item
Or multiple pricing keys such as:
- Item
- Customer
- Order type
- Country
Note: The special price or discount will only be applied to the records that match all of the requirements specified by the pricing keys.
Per sales pricing method 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 (Unique limit dependent pricing, predefined limit dependent pricing or discounts with no limit restrictions)
or - FOC
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 blank, the base price will be used – retrieved from the customer’s default sales price list or the standard price list in the DIS control file.
Method types
The method type controls each Sales pricing method. The following are available when setting up a sales pricing method. The information to set up depends on the method type you choose:
| Method type | Description |
|---|---|
| N = Normal | This is the main type of pricing method that allows a price and/or discount and/or FOC to be entered for a defined combination of sales pricing keys. The price may be described as a fixed value or calculated from a defined basis (that may be a cost or a purchase price). The price may also be quantity limit dependent or matrix quantity limit dependent (i.e. the accumulated order quantity for all lines with matrix items holding the same segment 1 value). The discount may be a percentage or an amount and may be limit dependent.
The normal methods are applied at line level and are calculated when the order line is entered. The values (i.e. quantity and amount) that are used in the calculation are those held at order/quotation line level. The exception is for matrix quantity limits where an accumulated quantity for all lines in the order with matrix items that holds the same segment 1 value. |
| C = Chain discount | Only valid for use if the pricing policy for Chain discount is set to YES in the DIS control file.
This type of pricing method is used for discounts that are applied on top of the discounts that may have been generated by normal methods, sales price lists and/or customer contracts. You can only define discounts for this type of pricing method. A discount can be based on a percentage or an amount and can be limit dependent. The chain discounts are calculated when the order line is entered. |
| H = Header discount | Only valid for use if the pricing policy for Order summary disc is set to YES in the DIS control file.
This type of pricing method allows a unique discount to be entered for each defined combination of sales pricing keys. The discount may be a percentage and may also be limit dependent. Note: Basket discounting is also defined using this Method type. The H methods are applied at order header level and are calculated when exiting the order OR as a manual action by the user (i.e. you can trigger this calculation within order entry (on the Order lines panel) using Function 38 “Order summary disc calculation” from the Function list). For any quantity dependent discounts, the quantity for each line is added to calculate a total quantity that is used in the calculation. Likewise the values for each line are added to calculate a total value that is used in the calculation. The calculated discount is stored at order header level but the apportioned amount can be seen at line level for every contributing line. Note: Matrix limits are not allowed for this method type. |
| O = Order line summary discount | Only valid for use if the pricing policy for Order summary disc is set to YES in the DIS control file.
This type of pricing method allows a unique discount to be entered for each defined combination of sales pricing keys. The discount may be described as a percentage or an amount and may be limit dependent. Note: Basket discounting is also defined using this Method type. The O methods are applied at order line total level and are calculated when exiting the order OR as a manual action by the user (i.e. you can trigger this calculation within order entry (on the Order lines panel) using Function 38 “Order summary disc calculation” from the Function list). For any quantity dependent discounts, the quantity for each line is added to calculate a total quantity that is used in the calculation. Likewise the values for each line are added to calculate a total value that is used in the calculation. The calculated discount is written back to each order line. Note: Matrix limits are not allowed for this method type. |
| P = Promotion | This type of pricing method can only be created through the Work with sales promotions routine and is similar to a normal method. Chain discounts are allowed on top of a promotion price/discount. Where it differs is that it is used in a different way in the price calculation program. The program will read promotion records after it has read all of the other normal methods. |
Validity dates for sales pricing methods (Short term pricing)
For each of the method types you choose to set up you have the option to limit the time span that the pricing and/or discounting is to be valid. This is done by completing the Valid from/to dates in each method. The following two levels in the Sales pricing methods hold these dates:
- Header level – the validity dates set here are the default values.
- Detail level – the validity dates here are typically used to modify/override default values in an existing method for a short period of time without making extensive changes to the method definition itself.
A prerequisite is that the Short term pricing flag is set to True in the DIS control file (on the Pricing policies panel).
When short term pricing is activated and there are overlapping dates, the system will select the detail with the closest Valid from date prior to the pricing date.
You can run the system with or without short term pricing (flag on the Pricing policies panel in the DIS control file) and utilise the option of overriding the date on the header level with another date on detail level. If you have set a valid date span on header level and you plan on adding validity dates on detail level, you must also be within that span on detail level. If you run with short term pricing switched off you can still override the date defined on the header level with a more narrow date span. The main difference when you switch on short term pricing is that you can have multiple details with the same keys but with different dates that can be overlapping. The system, in such a case, will select the detail with the closest Valid from date prior to the pricing date.
Example – No short term pricing
| From | To | Key 1 – Item | Key 2 – Customer | Curr | Unit | Price (etc…) |
|---|---|---|---|---|---|---|
| 010112 | 150612 | GIPROD1 | GICUST1 | GBP | EACH | 500 |
No more detail records with the keys GIPROD1, GICUST1, GBP, EACH can be added.
Example – With short term pricing
| From | To | Key 1 – Item | Key 2 – Customer | Curr | Unit | Price (etc…) |
|---|---|---|---|---|---|---|
| 010112 | 150612 | GIPROD1 | GICUST1 | GBP | EACH | 500 |
| 010212 | 280212 | GIPROD1 | GICUST1 | GBP | EACH | 475 |
| 150212 | 150212 | GIPROD1 | GICUST1 | GBP | EACH | 300 |
Enquiries and printouts
- Sales pricing methods enquiry
- DIS control keys enquiry
- Sales pricing keys where-used enquiry
- Limit codes enquiry
- Sales price list enquiry
- Sales pricing methods printout
- Limit codes table printout
- Sales price list printout
Related topics
- Set up a normal method and define the pricing/discounting
- Set up a chain discount method and define the discounting
- Set up an order line summary discount method and define the discounting
- Set up a header discount method and define the discounting
- Set up a promotion method and define the pricing/discounting
- Define basket discounting
- Generate a suggested retail price for normal and promotion method types
- Set up a promotion method and define the ceiling control values
- Create an exception for a promotion method
- Set up a pricing method and define FOC
- Setting up the sales pricing functionality