Suggested Cost/Price Entry (ICE410)

	How to add suggested cost/price information	How to delete suggested cost/price information
How to change existing cost/price information

This entry program allows you to enter 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 enter 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:
Standard pricing, where you enter suggested standard pricing and commission information for each valid pricing unit of measure. Standard pricing information is based on the item's unit of measure. The standard price may be entered as a basis and multiplier, a set price or a change %. The valid options for basis for standard price are List Price or Manual Cost. All of the item's valid pricing unit of measures are displayed, from smallest to largest. Up to seven lines of standard prices can be displayed at one time.
Price Level pricing information, where you enter suggested price level and commission information for the item and unit of measure selected. The level price may be entered as a basis and multiplier, a set price or a change %. The valid options for basis for level price are List Price, Manual Cost, Standard Price, or any prior Price Level. Price levels can be set up for each pricing unit of measure available for an item.
Quantity Break pricing information, where you enter suggested quantity breaks, prices and commission information for the item and unit of measure selected if your company offers quantity breaks. Suggested Cost/Price information is based on selling unit of measure. The quantity break price may be entered as a basis and multiplier, a set price or a change. The valid options for basis for quantity break prices are as follows: list price, manual cost, standard price, or any previous quantity break price.

IC Static Control record Require Descending Prices Flag

If the require descending prices flag (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.

An edit feature that allows you to modify suggested cost and/or price information for the selected line.Note that when a standard price, a list price and quantity break prices are being entered, the highlighted line returns to the same line after editing, and to the next line after adding a new price.
A delete feature that allows you to delete the selected suggested cost and/or price line.

Access this program by choosing Inventory Control -->Costing & Pricing -->Suggested Cost/Price Entry.

Methods for Creating Suggested Costs and Prices

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 enter 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 enter 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 enter 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 enter 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 enter the commission %. If the flag is turned on, each cost/price you create will require you to enter a commission %.

When entering the commission %, you also have the option to set it to "no priority" $image\none_shg.gif$ (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 $image\excl_right_shg.gif$ . 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 $image\find_shg.gif$ 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.

User Fields

1. Item

Enter the inventory item for which the suggested cost/price is to be entered. Press F2 or $image\find_shg.gif$ to search.

To enter suggested cost/price information on the inventory item for the first time, select $image\plus_shg.gif$ , and the system forwards you to the Effective Date field.

Fields 2-4 contain Suggested Cost/Price Header record information

2. Effective Date

Enter the effective date of this suggested cost/price change. Press Enter (CR) to default to the system date. When running the Update Suggested Costs/Prices program, a cutoff date is entered and effective dates up to that cutoff date are updated.

3. List Price—(Suggested) Amount

The list price may be entered as a dollar amount or you can press F1 or $image\excl_right_shg.gif$ to enter a change %. Using a basis and multiplier is not available for list price.

4. Manual Cost—(Suggested)

The manual cost may be entered as dollar amount or a change %. You can press F1 or $image\excl_right_shg.gif$ to enter a value. The only available basis for manual cost is list price.

To edit existing suggested records for the inventory item, highlight it in the browser or select one of the options across the bottom of your screen, and the press $image\edit_shg.gif$ to edit the highlighted record.

Adding a Suggested Standard Price During Line Entry

When you access line entry to add a suggested standard price, the pricing information defaults to the basis, multiplier and price of the current price.

Use the Filter list box to select the display settings for the suggested cost and/or price lines in the browser. You can select from: P-Price Levels, S-Standard Price, or Q-Quantity Breaks.

5. Qty

For quantity breaks, enter the minimum quantity that must be sold on a sales order document in order to utilize the price from the level. For example, the standard price of I100 is $10.00 ea., the break 1 price is $9.75 and the break 2 price is $9.50. In order to receive a price of $9.75 the customer must purchase a minimum of 50. In order to receive a price of $9.50 the customer must purchase a minimum of 100. Therefore break 1’s quantity is 50 and break 2’s quantity is 100.

Quantity break is always defined in the selling unit of measure.

6. Basis

For quantity breaks, the system displays the basis options. Initially, you can select from L—Use List Price as Basis, M—Use Manual Cost as Basis, S—Use Standard Price as Basis. After you set the basis/multiplier all price breaks must either use the same basis or they must be based on another price break.
The basis options for additional quantity breaks are: L—Use List Price as Basis , or 1-6—Use Prior Quantity Break 1-6 as Basis. 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.

For level pricing, you can select from L—Use List Price as Basis, M—Use Manual Cost as Basis, S—Use Standard Price as Basis, or 1-6—Use Prior Price Level 1-6 as Basis.

For standard pricing, you can select from L—Use List Price as Basis or M—Use Manual Cost as Basis.

7. Mult

For quantity breaks, if you are entering the suggested standard price as a basis and multiplier, enter the multiplier for the suggested standard price for the level. The system automatically calculated and displays the new suggested standard price for the level.

If you are entering the suggested price level as a basis and multiplier, enter the multiplier for the suggested standard price for the level. The system automatically calculated and displays the new suggested standard price for the level.

If you are entering the suggested standard price as a basis and multiplier, enter the multiplier for the suggested standard price. The system automatically calculated and displays the new suggested standard price.

8. Price

The suggested level price may be entered as a basis and multiplier, a set price or a change %. The valid options for basis for level price are as follows: List Price, Manual Cost, Standard Price, or any prior Price Level. You can press F1 or $image\excl_right_shg.gif$ to enter a change percentage (Chg %) value.

The quantity break price may be entered as a basis and multiplier, a set price or a change. The valid options for basis for quantity break prices are as follows: list price, manual cost, standard price, or any previous quantity break price. You can press F1 or $image\excl_right_shg.gif$ to enter a change percentage (Chg %) value.

Note: If the require descending prices flag (in the IC Static record) is set to Y, all price breaks must be the same Note: 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.

The standard price may be entered as a basis and multiplier, a set price or a change %. The valid options for basis for standard price are as follows: List Price or Manual Cost. You can press F1 or $image\excl_right_shg.gif$ to enter a change percentage (Chg %) value. All of the item’s valid pricing unit of measures are displayed in the order of the smallest to largest, and up to seven lines of standard prices can be displayed at one time.

9. Chg % (percent)

Costs/prices may be entered by pressing F1 or selecting $image\excl_right_shg.gif$ to enter a change % (percent) from the existing cost/price. The system automatically calculate and displays the new suggested standard price for the level or the item. For example, if a standard price of $100.00 is increasing by 3% then you enter 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.

10. Comm %

If the flag is turned off, the system does not give you the option to enter the commission %. If the flag is turned on, each cost/price you create will require you to enter a commission %.

Enter a commission percent for the price level, standard price or quantity break price level. When entering the commission %, you also have the option to set it to "no priority" $image\none_shg.gif$ (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.

11. Press $image\save_shg.gif$ to save your changes when you have completed the information entry. You can then update the following header fields: effective date, list price, manual cost, standard prices, and quantity breaks.

12. You can highlight a suggested costing/pricing line in the browser and press Delete to display the Delete Record Type dialog box, where you can select to delete from the following: L--Suggested list price, M—Suggested manual cost, S— Suggested manual price for the selected unit of measure.

13. In the lower left portion of the screen you can use 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.

14. Press Done to end the program and then again to exit the screen.

Suggested Cost/Price Entry (ICE410)

Methods for Creating Suggested Costs and Prices

User Fields

See Also