SO Line Price Calculation
In order to establish a “base price”, Rootstock goes through the sequence described below. Once Rootstock finds an applicable price, it stops the price search and moves on to discounting.
NOTE If one of the pricing records includes a $0 price, that price is used, except for the 'Sales Price' on the Product Master (as that is the default when the record is first initialized).
NOTE When a Sales Order Line is for a Product flagged as Order Line Credit (so is a negative value), only the Sales Price for the Product record is fetched, using it if non-zero, and no further checks of other price sources take place. Additionally, no price calculation discount options are applied. See Order Line Credit (Negative Price): SO Lines, Sales Invoice / Credit Memo Lines, Configuration Session for further information.
Processing
NOTE For Kit/Configured product, if the 'Price From Components (Kit and Config)' flag is checked in Product Master under the 'Inventory' tab, the SO Line Unit Price is calculated by summing the price of Product Components rather than getting pricing from the below methodology.
First Rootstock ERP looks for a Price Book:
1. Price Book: When a Price Book is in effect and specified in the header of a Sales Order (Advanced > Charges > Price Book) or at the start of a Configuration Session, then that price is used. No “price modification” discounting is used when using a Price Book. No further pricing or discount lookups are performed.
NOTE Only Sales Order Line Discounts apply when using a price book.
NOTE "Always Give Best Price" is not used.
Price Book Key Pricing Options
If no Price Book is specified in the SO Header, Rootstock ERP next checks if a Customer Agreement is referenced on the SO Header (Advanced > Reference > Default Agreement).
2. Customer Agreements: Customer Agreements are used to give specific customers special pricing or discounts and must be specified in the header of a Sales Order (Advanced > Reference > Default Agreement). The Agreements are limited in time (each Agreement has a First Effective and Last Effective Date) and pricing can be based on fixed price (‘Unit Price’), on order quantities (‘Qty Pricing’) or on volume ordered for the life of the agreement (‘Vol Pricing’).
Customer Agreements can be referenced on a given Customer Master as a “default” and will be automatically set on any SO added for that Customer.
If a Customer Agreement is used, no further pricing lookups are performed, (except where “Always Give Best Price” is set for Customer as noted above).
NOTE If Customer is set to “Always Give Best Price”, the agreement price will not necessarily be used if there is better pricing somewhere further in the pricing setup.
NOTE If both a Customer Agreement and Price Book are referenced in the SO Header, Price Book always takes precedence.
Key Pricing Options
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Date Effectivity: All Customer Agreements have a starting (First Effective Date) and ending date (Last Effective Date)
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Unit Pricing: Can merely be the price paid for the given Product per this Agreement.
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Quantity Pricing: Quantity pricing can be used for any Product contained in the Agreement. When using this method, a pricing “schedule” is used with tiered pricing based on quantity ordered on any given SO Line.
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Volume Pricing: Volume pricing differs from Quantity Pricing in that the pricing changes as volume is accumulated, either on a given Sales Order or on multiple Sales Orders referencing the given agreement. When using this method, a pricing “schedule” is used with tiered pricing based on the cumulative quantity ordered against this agreement.
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Price by Date: Same as Quantity Pricing but with Date Effectivity
NOTE Discounts can also be defined in an Agreement (see Discounting section below).
A. Customer Agreements by Product Group (using the same UI as Customer Agreements): Customer Agreements by Product Group are used to give specific customers special pricing or discounts by specific Product Groups. Product Group discounts can be for
B. Customer Class Agreements (using the same UI as Customer Agreements): Customer Class Agreements are used to give customers that fall within a given Customer Class special pricing or discounts and must be specified in the header of a Sales Order (Advanced >Reference > Default Agreement). The agreements are for a limited amount of time (each agreement has a First Effective and Last Effective Date) and pricing can be based on fixed price (‘Unit Price’), on order quantities (‘Qty Pricing’) or on volume ordered for the life of the agreement (‘Vol Pricing’).
- Customer Class Agreements may also be used for 'Agreements by Product Group', just as with Customer Agreements.
- Customer Class Agreements can be referenced on a given Customer Master as a “default” (using Default Customer Agreement field) and will be automatically set on any SO added for that Customer.
- If a Customer Class Agreement is used, no further pricing lookups are performed, (except where “Always Give Best Price” is set for Customer as noted above).
- If no Customer Agreement or Customer Class Agreement is specified in the SO Header, we next look for Customer-Product Pricing.
3. Customer Product (Pricing): Pricing for a given Customer for a Product
Customer Product Price: Pricing can be established for a “fixed” price (regardless of quantity) or by Quantity breaks.
Key Pricing Options
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Price for the given Customer for a given Product (‘Price’ in header portion of record), or…
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Quantity pricing for the given Customer for a given Product (on ‘Customer Product Price’ tab).
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Price by Date for a given Customer and Product
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Quantity Price by Date (quantity “breaks”) for a given Customer and Product by Effectivity Date.
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Always Use Best Price: If checked, the system goes through the entire price search and derives the best price to use. This is an exception to where we ordinarily stop the search once an applicable price is found.
Customer Product Price by Date: Pricing can be established on this same record using Date Effectivity (for promotions, etc.)
If a Customer-Product record is found, no further pricing lookups are performed. If no Customer-Product Pricing is found for the Division/Customer/Product, we next look for a Product price.
4. Product Price: Product pricing can be set directly on the Product record by Sales Division.
Key Pricing Options
If a Product Price is not established on the Product record, no further pricing lookups are performed.
SEE ALSO
Sales Order Price Discount Logic - Overview
Sales Order Price Discount Logic - SO Line Discount Calculations / Logic Hierarchy
Sales Order Price Discount Logic - Price Source Codes and Audit Records
Order Line Credit (Negative Price): SO Lines, Sales Invoice / Credit Memo Lines, Configuration Session
Sales Orders Entry - Overview
Sales Order Control
Price Books
Customer Agreements
Customer Product
Products
Product Master Price Tab
Customer Product Group Discounts
Customers
Customer Class Product Discounts
Customer Class Product Group Discounts
Customer Class
