Following are the rules used by the software to calculate the Pricing used for a customer:
- Check the customer file for the Price Group they are on (Sell 1 – 8 etc)
- Once the Price Group has been identified check if Quantity Breaks are active for that level for the Product Code
- If Quantity Breaks are active then work out the correct price for the quantity. Also calculate discount as below
- If Quantity Breaks are NOT active then does the item have a special Promotional price and is the date of the Invoice between the dates of the Promotion?
- If the answer to the Promotional checks is Yes then this rate will be used. No further discounts are calculated.
- If the answer to the Promotional checks is No then the rate for the set Price Group will apply. Also calculate discount as below.
- Is there a Contract Rate for this Product Code and this customer?
- Is there a Contact Rate for this Product Group?
- If so - is the date of the Invoice between any dates for the Contract Rates?
- If the answer to both is yes, the best rate will always be the Customer’s Contract Rate (by whatever calculation means – see below)
- Check to see if Discounts are active for the Product and the Discount column is active on the invoice
- Is the Customer and Product on a Discount matrix?
- If so then find the Discount Percentage from the matrix
- If not then apply the Default Customer Discount from the Customer master file
CONTRACT RATE CALCULATIONS
There are three calculation methods. A Fixed Amount (rate), a Fixed Percentage Above Latest Cost and a Percentage Discount below the normal Selling Price. The Customer would gain from the normal best price rules (ie a special discount for this Product)
- In the Fixed Amount (rate) case, the rate is simply used and no discount is applied.
- If the Fixed Percentage Above Latest Cost is used, the percentage is added to the latest cost price (at the time of the line being added to the Invoice) and this rate is used, no discount is applied.
- In the case of a Percentage off Selling Price discount then the second part of the normal best price rules are applied except when it comes to the calculation for discount the amount applied is the rate stored in the Contract Rate. No other discounts are applied.