Quotation Pricing

Quotations help buyers in recording price data, comparing part prices among possible vendors and retrieving prices during purchase order line creation.  Multiple quotations may be defined for an item/vendor relationship depending on other data such as:

·     Quotation type

·     Validity period

·     Delivery leadtime

·     FOB code

·     Packing type

A price code is used to define multiple pricing methods.  The values of this code are not purchasable, standard pricing, quantity price break and quantity percent discount.

·     Not purchasable indicates that the part cannot be purchased.  This feature allows control over new supply sources or temporarily obsolete quotations.

·     Standard pricing determines purchase order line item prices using only the base price.

·     Quantity price breaks allow part prices to be determined based on the order quantity.  Up to five quantity breaks may be established for a quotation.  These quantity breaks are used in addition to the quotation base price.

·     Quantity percent discounts are applied to the quotation base price, depending on the ordered quantity.  Up to five different percent discounts may be established for a quotation.

Prices are expressed in the currency defined within the quotation.  The currency of the quotation must be the same as the currency of the purchase order.  During Quotation Search (called during Purchase Order Maintenance by pressing a command key on the Line Detail screen), only quotations with the same currency code as the purchase order are displayed.

Quantities are expressed in the quotation price unit of measure (QPU) defined within the quotation.  During Quotation Search, quantities and prices on the quotation are expressed in the price unit of measure of the purchase order line.

Quotations may be used during purchase order creation to determine automatically the purchase order line item price.  The following example illustrates how a quotation may be used to determine unit price.

Example 1:  Quantity Break Pricing

The following quotation is being used to price a purchase order line using the quantity break pricing method:

Quotation

P.O. Line

Calculation

1.   First, the number of stockkeeping units of measure is determined for the purchase order line by multiplying the line target quantity by the PU/SKU conversion factor:

600 BX times 2 = 1200

2.   This quantity is then converted to the quotation price unit of measure by dividing by the QPU/SKU conversion factor:

1200 divided by 1 = 1200

3.   The system then looks at the quotation quantity breaks to determine where this quantity falls.  1200 is greater than 1000 (quantity break 2) but less than 5000 (quantity break 3), so quantity break 2 is chosen.

4.   The corresponding price is used as the quotation unit price, in this case 95.

5.   The quotation unit price is then converted to stockkeeping unit price - by dividing by the QPU/SKU conversion factor:

95 divided by 1 = 95

6.   The stockkeeping unit price can then be converted to purchasing unit price for display on the purchase order by multiplying by the PU/SKU conversion factor:

95 times 2 = 190

Example 2:  Quantity Break Discount Pricing

The following quotation is being used to price a purchase order line using the quantity break discount pricing method:

Quotation

P.O. Line

Calculation

1.   The number of stockkeeping units of measure is determined for the purchase order line by multiplying the line target quantity by the PU/SKU conversion factor:

50 Gross times 144 = 7200

2.   This quantity is then converted to the quotation price unit of measure by dividing by the QPU/SKU conversion factor:

7200 divided by 12 = 600

3.   The system chooses quantity break 1, because 600 is greater than 500 (quantity break 1), but is less than 1000 (quantity break 2).

4.   The quotation unit price is calculated by multiplying the base price by 100 minus discount/break 1 divided by 100:

(100 - 5)/100 times 3.50 = 3.325

5.   The quotation unit price is then converted to stockkeeping unit price by dividing by the QPU/SKU conversion factor:

3.325 divided by 12 = .277

6.   The stockkeeping unit price can than be converted to purchasing unit price for display on the purchase order by multiplying by the PU/SKU conversion factor:

.277 times 144 = 39.888