HansaWorld - Integrated ERP and CRM

Structure of Price Lists

FirstOffice allows you to assign different Prices to individual Items so that each Price is associated with a particular Price List. For example, many retail outlets have different prices for their retail and trade Customers, or different retail and educational prices. You might then have separate retail, trade and educational Price Lists, each of which is available to the appropriate kind of Customer. When you enter a Customer in an Order or Invoice, the appropriate Price List will be used and so the correct prices will be selected automatically.

In planning such a price structure, follow these steps:

Enter the Items with their Base Prices, using the Item register.
Define Price Formulae, using the Price Formula register in the Sales Ledger. These are the mechanism by which the different prices are calculated. In our example, the retail price might be the same as the Base Price, the trade price might represent a discount of 20% and an educational price might represent a discount of 30%. A Price Formula record would be set up for each.
Define each Price List (in our example, retail, trade and educational) using the Price Lists setting in the Sales Ledger. Attach Items or Item Groups to the Price Lists with an appropriate Price Formula. For example, in the educational Price List, all Items that are likely to be sold to such Customers should be attached, using the 30% discount Price Formula. Effectively, you are defining the relationship between the Items and the Price List here.
For each Price List, calculate the Prices of the Items using the 'Calculate Price Lists' Maintenance function in the Sales Ledger. For each Item on each Price List, this function applies the specified Price Formula and saves the result in a record in the Price register. In our example, for each Item three Price records will be created: one each containing the retail, trade and education prices.

The relationship between the Items, the Price Lists and the Price records makes it of critical importance that you run the 'Calculate Price Lists' function whenever the Base Price of an Item changes or, if you have Price Lists in various Currencies, whenever the Exchange Rate alters. Otherwise, the Price records could soon lose their relationship to the Base Price of their Items, resulting in you quoting out-of-date prices to your Customers. If you specify a Price List in an Order or Invoice, FirstOffice searches in the Price register for the appropriate, and unique, record representing the particular Item for that Price List.
You can now assign a Price List to each Customer and/or Customer Category. When you enter an Order or Invoice for each Customer, prices will be taken from the specified Price List automatically. If you sell an Item that is not on the appropriate Price List, the Base Price will be used.
Once calculated, you can print Price Lists, or export them to disk for incorporation into your company's publicity material. Print Price Lists using the report of the same name, available in the Sales Support module and in the Sales Ledger.

Please follow the links in steps 2-4 for more details.

Price Formulae

When you assign an Item to a Price List, you will do so using a Price Formula. The 'Calculate Price Lists' function will use Price Formulae to calculate the prices of each Item in that Price List, based on the Base or Cost Price of the Items.

To define a new Price Formula, first move into the Sales Ledger using the [Select Module] button in the Master Control panel. Then click the [Price Formulae] button, also in the Master Control panel. When the 'Price Formulae: Browse' window appears, click [New]. Once entered, click [Save] to save the record.

Code: Enter a code by which the Price Formula can be identified.
Name: Specify a name for the Formula.
% Adjustment: Enter a percentage multiplier that the 'Calculate Price Lists' function will use to calculate the price. For example, if you want the price to be 10% more than the Base Price, enter "110" and choose the Base Price option below. To deduct 10% from the Base Price, enter "90".
Add 1: Add or deduct a fixed amount. If used in combination with the field above, the addition or deduction will take place after the percentage adjustment.
Round Off: Paste Special Choices of possible entries; Specify here the number of decimal places you wish to be used in the calculation.
Add 2: Add another fixed amount after the rounding process.
Base Value: Specify here the figure on which the calculation is to be based. The Cost Price, Base Price, Last Purchase Price and Weighted Average Purchase Price are all taken from the Item record, while Default Purchase Item refers to the Cost Price of the Default Purchase Item representing the Item. This final option will only be available if you have the Purchase Orders Value Pack: please click here for full details of Purchase Items.

Price Lists

To define a new Price List, first ensure you are in the Sales Ledger using the [Select Module] button in the Master Control panel. Then click the [Settings] button, also in the Master Control panel or select 'Settings' from the File menu. Finally, double-click 'Price Lists' in the subsequent list. When the 'Price Lists: Browse' window appears, click [New].

Code

Enter a unique code here, by which this Price List will be identified elsewhere in FirstOffice.

Description

Name the Price List here.

Currency

Paste Special Currency register, System module

Indicate here the Currency in which the prices in the Price List are quoted. When you use the 'Calculate Price Lists' function to calculate prices, the Currency conversion (using the most recent applicable Exchange Rate) will take place before any Formula is applied.

!	If, for whatever reason, you change the Currency of a Price List, run the 'Calculate Price Lists' function immediately. Otherwise, prices used in Orders and Invoices will not be as expected.

VAT

Choose the Exclusive option if the prices calculated by the 'Calculate Price Lists' function are to exclude VAT, and the Inclusive option if they are to include VAT. In the case of 'Inclusive' and 'Exclusive' Price Lists using the same Price Formulae, the resulting prices will numerically be the same but in the former case the figures will include VAT.

If you use an 'Inclusive' Price List in an Invoice or an Order, the Unit Price, Sum and Total figures will all include VAT, but if you use an 'Exclusive' Price List, the Unit Price and Sum figures will exclude VAT. In both cases, VAT will be calculated using, in order of preference, the VAT Code specified for the Item, the Item Group or on the 'VAT' card of the Account Usage S/L setting.

If you use 'Inclusive' Price Lists and you have Customers in the Inside EU and/or Outside EU Zones, it is recommended that you create separate Price Lists for those Customers. In most cases, these Customers should be charged prices that exclude VAT. If you use a common 'Inclusive' Price List for every Zone, VAT usually will not be deducted from the 'Inclusive' prices because it is likely that the VAT Codes that you use for the Inside EU and Outside EU Zones will be zero-rated.

Use the table to determine the Items that will appear in the Price List, and at what price. Use each row to include an Item or a whole Item Group in the Price List. If you enter a whole Item Group in a row, every Item in the Item Group will appear in the Price List.

Item/Item Group

Paste Special Item Groups setting, Sales Ledger, or Item register

Specify the Item or Item Group to which the Price Formula is to be applied. If you enter an Item, set the Row Type to "Item". If you enter an Item Group, set the Row Type to "Item". If you set the Row Type before entering an Item or Item Group, this will determine what will be listed by the 'Paste Special' function. If you wish this Price List to apply to all Items in the Item register, leave the field blank.

Price Formula

Paste Special Price Formula register, Sales Ledger

Specify here the code of a Price Formula, defined as described in the previous section. The 'Calculate Price Lists' function will use this Formula to calculate the prices of the Item or Item Group for this Price List. Specifying a Formula on each row means that, in a particular Price List, different Items can have their Prices calculated using different Formulae.

!	You must specify a Price Formula in each row in the grid. Otherwise, when the Price List is built, the Item or Item Group will be given a zero price.

Row Type

Paste Special Choices of possible entries

This field can contain one of two entries: "Item" or "Item Group". It indicates whether the Item/Item Group (the left-hand column) refers to an Item or an Item Group. Use 'Paste Special' to increase input speed.

The Price Register

You can have several different Prices for each Item. Enter each Price as a separate record in the Price register, one record for each Price for each Item.

You can enter these Price records to the Price register yourself, but in most cases, you will create them automatically using the 'Calculate Price Lists' Maintenance function in the Sales Ledger. If any factor influencing your Prices changes (e.g. there is a change in exchange rates, or you have changed the Base Prices in your Item records), you can run the 'Calculate Price Lists' again to update the Prices in the Price register.

The Price Register - The 'Calculate Price Lists' Function

You can run this function can be run after you have defined your Items, Price Formulae and Price Lists. For each Item on each Price List, this function will calculate a new price using the Formula specified and save it in a Price record. This will result in there being a single, unique, Price record for each Item/Price List combination, making the use of Price Lists in Orders and Invoices extremely fast. As a consequence, each time you change a price that is used as a base price by a Formula, you should run the function again to update the Price records. You should also run the function regularly if you have Price Lists in foreign Currencies with exchange rates that change frequently.

To use this function, ensure you are in the Sales Ledger using the [Select Module] button in the Master Control panel and select 'Maintenance' from the File menu. Double-click 'Calculate Price Lists' in the subsequent list. The following dialogue box appears:

Leave all fields blank and click [Run] to calculate all prices. To restrict the calculation process, use the fields as described below before clicking [Run].

Price List: Paste Special Price Lists setting, Sales Ledger; Enter the code identifying the Price List you want to update. Leave the field blank to recalculate all Price Lists.
Item Group
Error in Link (FOP0106SETTINGS_Item_Groups,Item Groups, Sales Ledger: Limit the calculation to a single Item Group. Prices will only be recalculated if the Item Group is explicitly included in the grid of the Price List specified in the field above. If you do not specify a Price List, prices will be recalculated for all Price Lists in which the Item Group is included.
Item: Paste Special Itemregister; Limit the calculation to a single Item. The Item does not have to be explicitly included in the grid of the specified Price List: its Price will also be recalculated if its Item Group is in the grid or if the first column of the grid is blank (i.e. if the Price List includes all Items).
Supplier: Paste Special Suppliers in Customer register; Enter a Supplier Number to limit the Price recalculation to Items that have a Default Purchase Item in the name of that Supplier. This field will only be visible if you have the Purchase Orders Value Pack.

When you click [Run], the function may take a few minutes to run, depending on how many prices you are updating.
The Price Register - Entering Price Records Manually
As well as creating records in the Price register using the 'Calculate Price Lists' function, you can also Price records manually. You might want to do this to assign a particular price to an Item, rather than one that is calculated using a formula. FirstOffice will prevent you entering a Price record for an Item/Price List combination if one already exists by displaying the error message "Already Registered".

To enter a new Price record, open the Price register using the [Prices] button in the Master Control panel and click [New]. Enter the Item Number of an existing Item, using 'Paste Special' if necessary to select from a list of Items, and press Return. The Item Name from the Item register is shown. Enter the required Price and specify a Price List, again using 'Paste Special'. Finally, if appropriate, specify a Sales Account. Click [Save] to save the record.

Specifying a Price List in a Price record has the following effects:

It will be included when the Price List is printed, using the report in the Sales Support module and in the Sales Ledger.

When you create an Order or Invoice, you can specify a Price List that will determine the Prices and, if specified, the Sales Accounts used. The Price List can be specified on two levels: for each Customer; or for Customer Categories. Prices from the appropriate Price List will be offered as a default whenever the Customer places an Order or receives an Invoice.

If you have entered a Currency code in the Price List record, the Prices in the Price List will be in that Currency. If you created the Price records using the 'Calculate Price Lists' function, they will have been converted from the home Currency to that specified using the most recent Exchange Rate. They may be converted again to another Currency at invoicing, depending on the Currency code of the Customer or Invoice. If you do not specify a Currency in an Order or Invoice, but the Customer has a Price List that is not in the home Currency, the Prices will be re-converted back to the home Currency.
If you specify a Sales Account in a Price record, that Account will be offered as a default in Invoices where pricing is determined by that Price (i.e. by the unique Price record for the Item/Price List combination). This Account will take priority over those for the Item and Item Group and that in the Account Usage S/L setting.

!

If, for whatever reason, you change the Currency of a Price List, run the 'Calculate Price Lists' function immediately. Otherwise, prices used in Orders and Invoices will not be as expected.

!

You must specify a Price Formula in each row in the grid. Otherwise, when the Price List is built, the Item or Item Group will be given a zero price.