| Adding suggested cost/price information | Deleting suggested cost/price information |
This entry program allows you to specify and/or maintain suggested cost and/or prices by unit of measure for individual inventory items. The entry screen consists of four sections:
Header, where you specify the item number, effective date, list price, and manual cost
A browser that displays suggested cost and/or price lines by unit of measure for:
IC Static Control record Require Descending Prices Flag
If the Require Descending Prices setting (in the IC Static record) is set to Y, all price breaks must be the same type (basis/multipliers or fixed amounts). Furthermore, if basis/multiplier is used, all price breaks must either use the same basis or they must be based on another price break. For example, if manual cost is the basis for break 1, the bases for breaks 2 through 6 must be either manual cost or one of the previous price breaks. The basis for levels 2 - 6 may not be set to list price or standard price.
If the require descending prices flag is set to Y, the prices for breaks 1 through 6 must be entered in a descending order. For example, if price break 1's price is $5.00 then the price for price break 2 must be less than or equal to $5.00.
Access this program by clicking Inventory Control >Costing & Pricing >Suggested Cost/Price Entry.
Click field descriptions for information on each field.
The Suggested Cost/Price Entry program allows you to set up manual cost, list price, standard price, level prices and quantity break level prices for an item or range of items.
Suggested Cost Price Entry allows the manual cost basis to default to the current manual cost basis when entering a new item. This way if the manual cost is based on list price and the multiplier is to be changed, you only have to specify the new multiplier and not also change the basis from fixed price to list price.
Basing Manual Cost and All Prices Off of List Price
Note that if the manual cost or a price is based on another price, changing the price that they are based on will automatically cause the cost or prices that are based on it to change. In that case, there is no need to step through all of the costs and prices for them to be updated.
For example, if your manual cost and all prices are based on list price, entering the new list price in Suggested Cost/Price Entry is all that is needed for the manual cost and all the other prices to be updated. There is no need to go through the manual cost fields or any of the other price fields in Suggested Cost/Price Entry to make them get the new values. When Update Suggested Costs/Prices is run, all of the values that are based on List Price will automatically be calculated using the new list price.
For further clarification, when, for example, manual cost is based on list price, no actual value for manual cost is stored anywhere in FACTS; instead, the manual cost is calculated whenever it is needed by getting the current list price and applying the multiplier.
There are three methods for creating suggested costs and prices:
1. Using a basis and multiplier
This method uses another existing cost or price as the basis of the new cost/price and a multiplier is applied against the existing one.
If for example, the basis price was $100.00 and the multiplier was .9400, the new calculated price would be $94.00 ($100.00 x .9400). Taking this example further, in terms of setting up level prices, you can determine that each one is based on some percentage of the list price. If the list price is $100.00 and the levels are 1) $95.00, 2) $94.00, 3) $93.00, 4) $92.00, 5) $91.00 and 6) $90.00 the level prices may be set up using a basis, list price, and multipliers: 1) .9500, 2) .9400, 3) .9300, 4) .9200, 5) .9100, 6) .9000.
When entering costs/prices using the basis and multiplier method, the actual price is not calculated and stored in the pricing files. Rather, the basis and multiplier are stored in the pricing files and the price is calculated at the time the item is sold in the sales order entry programs. The advantage of using the basis and multiplier method is that when the basis price changes, that is the only price you have to change; the multipliers fix the rest of the price levels for you.
For example, if the standard price is always a multiplier of manual cost, then the standard price will automatically be changed if the manual cost is changed.
2. Using a dollar amount
Using this method, you only specify the actual dollar amount of the costs and prices. No calculations are necessary. The price entered is the price that is stored in the pricing files and is what the system presents when the item is sold in the Sales Order Entry programs.
3. Using a change % (percent)
Costs/prices may be entered by entering a change % (percent) from the existing cost/price. For example, if a standard price of $100.00 is increasing by 3% then you specify a change percent of 3.000. The system then calculates and displays the new calculated price of $103.00. When entering a change percent, the system calculates and stores the actual dollar amount in the pricing files. In this example, the system would store $103.00 the pricing files and this is the amount that would appear in Sales Order Entry programs.
4. Commissions
In addition to these three options for setting up the standard price, price levels and quantity breaks, you may also specify a commission percent. A Sales Order Static F/M flag determines whether this flag is available throughout the costing/pricing subsystem.
If the flag is turned off, the system does not give you the option to specify the commission %. If the flag is turned on, each cost/price you create will require you to specify a commission %.
When entering the commission %, you also have the option to set it to "no priority" (which leaves the field blank), indicating that commission is not generated based on the price being set up. (If the item is set to "no priority", any commission % entered in the pricing system will be ignored). For more information on commissions, refer to the Commission Basis flag set in System Management-->File Maintenances-->Company Control F/M.
Suggested Cost/Price Entry Menu Options
The following menu options are available during entry of suggested cost/price records:
File Allows you to Exit the screen.
Browser View Allows you to select the display in the browser in the lower portion of the screen. You can select from:
P-Price Levels
S-Standard Price
Q-Quantity Breaks
Navigate Allows you select from the Item Navigation links to display the Previous Item, Previous Suggested Costing/Pricing Line Next Suggested Costing/Pricing Line or Next Item suggested costing/pricing information.
Help Displays online help for the program.
Suggested Cost/Price Entry General Options
The following general options are available during entry of suggested cost/price records:
F1. Use this option while entering cost/pricing information to access the next setup option. The system allows for three setup options: basis /multiplier, dollar amount and change %. The F1-Enter feature allows the user to skip from the basis to the dollar amount and from the dollar amount to the change %.
F2 or Search. Use this option to activate the search feature for the current field. For example, the system prompts for Item; F2 is pressed and the Item search is then activated.
F3 or Done End. Use this option to end the costing/pricing process for the selected inventory item. When initially adding a suggested cost/price record, the program steps the user through all the pricing screens as selected by the scope window. Upon selection of the F3-End, the program will ask if the program should continue with the next pricing unit of measure (Y/N). No ends the step-through process. Yes starts the process at the next pricing unit of measure.
F4 Backup. Choose this option to go back to the previous field, or screen. Note that the F4 key function changes to End or Exit when you have backed up to the item prompt.
Click field descriptions for information on each field.
See also
Adding suggested cost/price information
Changing existing cost/price information
Deleting suggested cost/price information