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Calculating Prices for Sales/Quote Orders, Order Shipments, and Postbilling Documents
Calculating Prices for Sales/Quote Orders, Order Shipments, and Postbilling Documents
The pricing method is determined by price codes. You can enter a price code manually in the sales order maintenance, quote order maintenance, shipping/billing, and postbilling conversations. It can also default from the ship-to customer or be automatically determined by the system. Regardless of how the price code is determined, the system follows the same pricing procedure for prioritizing the pricing methods—which may or may not change the original price code.
Pricing Priority
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Step 1:
Checks for Contract
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When pricing a line, the system first searched for a contract record. If a contract is found for the line and it is effective on the line pricing date contract pricing is used and the system will update the price code associated with the line to be 9.
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Step 2:
Checks for Price List
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If a contract is not found, the system checks for a price list. If a price list is found, price list pricing will be attempted. When a price list is found, it is checked to see if the price list specifies a base price for the line item that is effective on the line pricing date. If a base price is found, it is used and the system automatically changes the price code for the line to be A.
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Note: When a price list is retrieved or defaulted onto an order line, it must exist in the Price List Master file with an active status and the same currency as the selling company/location.
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Step 3:
Uses Warehouse Balance Pricing
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If neither a contract or a price list was found, the pricing method for that line defaults to the standard warehouse balance pricing method. When this happens, the price is computed based on the price code on the order line (whether it was manually entered or defaulted).
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Firming Prices
Prices are recalculated if changes made to the order header (i.e., volume discounts, header discounts) or the order line (i.e., pricing method, units of measure, or quantity) effect pricing. These changes can be manual or automatically performed by the system.
Order line prices can change throughout the order life cycle until either a release is created for the sales order or they are manually firmed. An order line is automatically firmed whenever an order release is created. In this case, the value of the Firm Price flag will be set to Y- yes at the time the release is created. An order line is manually firmed when two conditions are met. First, the Firm Price flag on the order line must be set to Y - yes. Second, the Firm Volume Discount flag on the order header must be set to Y-yes. If the value of either of these flags is set to N-no, the line price could change.