Create New Prices

June 27, 2018 in Inventory Control

Purpose

This function can be used to create a working copy or ‘draft’ of Future Pricing based on existing pricing details. With this tool you can ‘copy’ part or all of the existing current pricing, applying inflation factors to create new pricing.

This new set of prices are basically held in a ‘work in progress’ area as future pricing. These future prices are not used in the system until they are ‘applied’. Future pricing is applied using the Manually Apply New Prices or when an overnight End Of Day (EOD) detects that it needs applying on (or after) the ‘Date to Apply’ New Prices.

An alternative method to using this function is the Upload New Prices tool.

Data Input

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Step 1 – Product

Price List

You must specify which Price List you want to work on from the list of existing Price Lists.
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Step 2 – Price Details

Apply Date

Enter a valid ‘Apply Date’ indicating when you wish this set of new prices to become effective from. The End Of Day routine automatically applies these prices on that date, for use throughout the Sales Order Management system. Pricing can also be applied using the Manually Apply New Prices function.

Rounding Factor (Cents)

Enter an optional ‘Rounding Factor’ in cents at this prompt. This causes the create function to automatically round all generated prices up or down to the nearest multiple of the rounding factor. Therefore you can use it to round to the nearest 5 cents, 10 cents, 50 cents etc.
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Step 3 – Default Inflation Factors

You can optionally set a ‘Default’ method of creating New Prices. You can select the ‘Price Method’ (inflation factor) to apply to ALL Product/Size items under the selected Price List. If you would like to update ALL Product/Sizes EXCEPT FOR specific Product Groups, you can enter the product group exceptions at the next step.

The ‘Default’ method is optional. If you make no selections here, then the system assumes that you wish to create a new price list for ‘Selected Product Groups Only’ at the next step.

Price Method

Select the default inflation factor method from the list of available methods. Note that if a starting cost/price does not exist in the system already and you choose a method that requires one i.e. a factor applied to ‘cost’ – NO change to the existing pricing will take place if the system does not find a ‘source’ to use for the calculation.

It should also be noted that for products with no existing pricing, a starting quantity of “1” is set for any future prices calculated.

  • Selected Product Groups Only – this method requires no other entries and the system assumes you will proceed to enter a list of Product Group ‘exceptions’
  • Multiplication factor applied to each price level – this method inflates each individual price levels by individual factors. For example:
    • New Price1 = Price1 x Factor1
    • New Price2 = Price2 x Factor2
    • etc.
  • Multiplication factor applied to price level (1) – this method inflates the base price (price level 1) by individual factors. For example:
    • New Price1 = Price1 x Factor1
    • New Price2 = Price1 x Factor2
    • etc.
  • Multiplication factor applied to replacement cost -this method inflates the replacement cost by individual factors. For example:
    • New Price1 = Replacement Cost x Factor1
    • New Price2 = Replacement Cost x Factor2
    • etc.
  • Multiplication factor applied to standard cost – this method inflates the standard cost by individual factors. For example:
    • New Price1 = Standard Cost x Factor1
    • New Price2 = Standard Cost x Factor2
    • etc.
  • Divide factors are the same concept as above, except using division and not multiplication
Price Levels

You can set up an inflation factor for each price level you have set up in the system as follows:

No Change – tick this option if you don’t want to change prices for this price level. Un-tick here to enable the factor prompt

Clear – tick this question if you want to clear the prices at this price level for the ‘New Pricing’

Factor – enter a multiplication/division factor e.g. a ‘1.1’ multiplication inflates prices by 10%

Some simple examples of ‘factor’ calculations below:

  • A ‘1.1’ multiplication would inflate a base cost/price of $100 to $110 (10% inflation)
  • A ‘0.9’ multiplication would deflate a base cost/price of $100 to $90 (10% deflation)
  • A ‘1.1’ division would deflate a base cost/price of $100 to $90.9

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Step 4 – Exceptions

Product Group based exception rules can be included here in the form of a list. Each exception being entered individually with their own ‘Price Method’ and Price Level factors. This exceptions list might be in addition to a ‘Default’ set if rules, or it might be the that you only want to create ‘New Prices’ for the specified Product Groups.

The details associated with the calculations, methods and factors for ‘Exceptions’ are all exactly the same as the ‘Default’ settings previously explained.
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