Alternate List Pricing

A list pricing schedule is like a regular pricing schedule in many ways, but it has some restrictions on it, and it can be modified by other pricing schedules.

Overview

Beginning with version 4.10, xTuple introduced the concept of alternate list price. This article will explain what need this feature is intended to address, and describe how to use alternate list price in xTuple ERP.

First, let’s review how xTuple pricing works before exploring the alternate list price feature. There are two main types of pricing in xTuple: list price and schedule price.

List Price

List price is used as the default price for all items. xTuple allows you to enter a list price for each item on the item record.

1099info07v2

The list price for YTRUCK1 in the screen above is 19.9900.

For many businesses, list price is all the price information needed. For others, however, additional levels of pricing may be required to account for discounts and deals given to specific groups of customers. These special prices are handled by the pricing schedule system.

Pricing Schedules

The pricing schedule system is much more flexible and sophisticated than the simple list price method. A pricing schedule is a collection of pricing schedule items. Pricing schedules may contain prices for many items. They may be set to be effective forever, or for a specific period of time.

Here is a list of pricing schedules in the demo database:

pricingSchedules

For example, the BASE pricing schedule above is effective forever.

Expanding the BASE pricing schedule we can see that it contains six pricing schedule items.

pricingSchedule

Three of these are for the CLASSIC-METAL product category, where they define quantity break discounts that are available for various quantities of that category of items. The other three pricing schedule items are for the YTRUCK1 item, and they define a new nominal price to be used for YTRUCK1 for specific order quantities.

Pricing Schedule Items

A pricing schedule item can define a price in a variety of ways. It can be nominal (an absolute price), discount (percent or absolute amount deducted from the list price), markup (percent or absolute amount added to the wholesale price), and greight (a way to schedule freight prices for product categories and items).

Pricing schedule items can be created for specific items, or for entire product categories.

Pricing Schedule Assignments

For a price on a pricing schedule to be used, the schedule must be assigned. There are many ways to assign schedules. They can be assigned to

  • Sale type

  • Ship zone

  • Customer type

  • Individual customer

  • Individual ship-to for a customer

The screen below shows pricing schedule assignments in the demo.

pricingScheduleAssignments

The BASE schedule is assigned to all customers of type NORMAL.

How Pricing Schedule Prices are Applied

If a customer of type NORMAL adds 500 YTRUCK1’s to a sales order, the pricing system will find the best possible price for those items.

  • List price: $19.99

  • Schedule price: $16.00 (BASE schedule, 500 qty break)

Therefore, the customer will get the $16.00 price.

Customer Discount

On the customer record there is a field that allows you to assign a discount to that particular customer. For example, in the screen below, customer TTOYS has a discount of 10% assigned.

customerDiscountTerms

This is a percentage discount that will be applied to the list price of an item if list price is the only applicable price for that item. In other words, the customer discount only applies if no pricing schedule price could possibly apply to the order. Let’s say that again: The default customer discount from the customer record only applies to the list price of an item and is not used if a pricing schedule price applies to the item.

What is Alternate List Price and Why Do I Need It?

Sometimes you have different groups of customers who should receive a different list price on the same item. For example, you might have one regular pricing schedule for retail and another for wholesale prices. You could achieve this by creating a regular pricing schedule consisting of nominal prices for all items and assigning it to each customer or customer group. But if you use regular pricing schedules for this, you will not be able to use a pricing schedule to modify the price any further. You would not be able to create another pricing schedule that applies a discount to the nominal price in retail pricing schedule, for example. There is no way for a regular pricing schedule to modify a pricing schedule.

This is why we have created the concept of a list pricing schedule. A list pricing schedule is like a regular pricing schedule in many ways, but it has some restrictions on it, and it can be modified by other pricing schedules.

Limitations of List Price Schedules

  • List pricing schedule items can not have quantity breaks

  • List pricing schedule items must apply to specific items, not product categories

  • List pricing schedule items cannot be defined for freight

If a list pricing schedule price is assigned to a customer for an item, it will be used instead of the list price from the item record. This has a few consequences.

Effects of using List Price Schedule

  • First, on the sales order, the system will use the price from the list pricing schedule for the list price of the item, instead of using the list price from the item record.

  • Second, when defining a regular pricing schedule price, if you select discount, the system will take the discount off any applicable list pricing schedule price rather than from the list price on the item record.

In practice, it is expected that list pricing schedule prices will be set and changed infrequently, whereas pricing schedule prices will be changed more frequently.

How to Set Up List Pricing Schedules

To enable list pricing schedules in your database, go to Sales > Setup. Click on the pricing tab.

pricingConfiguration

In the price controls section, click the checkbox for “Use List Price Schedules”.

Then restart the desktop client.

 

Now that you’ve enabled list pricing schedules, you’ll see some new items in the Sales > Pricing menu that will allow you to create, update and assign list pricing schedules.

listPricingSchedulesMenu

List pricing schedules are created, updated, and assigned just like regular pricing schedules. To create a list pricing schedule, go to Sales > Pricing > List Pricing Schedule.

listPricingSchedules

Click NEW to create a new list pricing schedule.

listPricingSchedule

You can give the list pricing schedule a name and description, and set effectivity dates. To add an item to the list pricing schedule, click NEW.

listPricingScheduleItem

List price schedule items can be nominal, discount or markup.

  • A nominal price is an absolute price. On a sales order, a nominal price will replace the list price from the item record.

  • A discount price is a discount off of the list price from the item record. On a sales order, the discounted list price (from the item record) will replace the list price from the item record.

  • A markup price is a markup on the wholesale price from the item record. On a sales order, the marked up wholesale price will replace the list price from the item record.

For example, if the item record has a list price of $10.00 and a wholesale price of $5.00, this is how the different kinds of list pricing schedule items would override the item list price on a sales order:

  • A nominal price of $9.00 would override the item list price of $10.00, so the effective list price would be $9.00

  • A discount of 20% would be applied to the item list price of $10.00, so the effective list price would be $8.00

  • A arkup of 50% would be applied to the wholesale price of $5.00, so the effective list price would be $7.50

List Pricing Schedule Assignment

Like a regular pricing schedule, a list pricing schedule must be assigned to some customers or items to be effective.

listPricingScheduleAssignments

To assign a schedule go to Sales > Pricing > List Pricing Schedule Assignments.

Click NEW to open the list pricing schedule assignment screen.

listPricingScheduleAssignment

List pricing schedules can be assigned in the same way as regular pricing schedules, except that they cannot be assigned to shipping zones or sale types.

If multiple list pricing schedules could apply to a particular order (customer/item combination), then the most specific price is selected. Customer ship-to is the most specific level of assignment and customer type is the least specific.

How List Pricing Schedules Apply on Sales Orders

On the sales order item screen there is a field to display list price.

salesOrderItem-1

The list price, discount, customer price, discount, and net unit price fields will be empty until the user enters a number in the "Qty. Ordered" field. This is to allow for calculating any quantity breaks that may be applied to the price.

Once a user enters the quantity, these fields will populate as follows:

The list price field will display either:

  1. The list price from the item record

  2. An alternate list price from an applicable list pricing schedule

The list price discount field will display either:

  1. The customer discount from the customer record (if no pricing schedule is applied)

  2. The percentage difference between the alternate list price and the net unit price

The customer price field will display:

  • The best applicable price from all available pricing schedules

The customer price discount field will display:

  • The percentage difference between the customer price and the net unit price

The net unit price field will display either:

  1. The list price minus the customer discount

  2. The price from any applicable sale or price schedule

Remember, as discussed above, the customer discount from the customer record ONLY applies to list price, not to alternate list price.

View All Price List Info

Click the ellipses next to the net unit price field to open the price list screen. This screen shows all possible applicable prices for the item, and allows you to select a different price if desired.

salesOrderPriceList

 

Detail Tab

The detail tab on the sales order item screen also provides additional information about the prices that are displayed.

salesOrderItemDetailTab

The Detail tab shows information about the pricing schedule that is populating the customer price field.