A pricing rule can control how prices are retrieved and saved in various modules. Pricing Rules can be set for the various Purchase Order modules such as creating PO, IR, and Bill.
The users can create and define the Pricing Rules for the Purchase module in the Pricing Rule module.
The Pricing Rule module is used to give suggested prices and restrict maximum discounts for users in the system.
What’s new?
- Added a setting ‘Advance pricing rule for purchase order‘ (Enable pricing rules in purchase modules) under the Purchase Order tab of the App Config module.
If this setting is on, item pricing level will be used instead of Item Vendor mapping.
- The Pricing Rule module is upgraded with the ability to select the required module for which the Rule is to be set.
- Added “Rule For” dropdown in the Pricing Rule module.
- The user can select the type of order: Sales or Purchase.
- Select the Rule for Purchase for setting the Pricing Rule for the Purchase module.
How does it work?
- Navigate to the Pricing Rule module.
- Select the ‘Rule For’ value as “Purchase“.
- When the Purchase option is selected then the Tag Type, and Address Type dropdowns will be disabled.
- By default, Rule Type will be selected as Price Level, as the Restriction type is only applicable in the case of Sales.
- Select the Recipient Type and Item Type.
Pricing Rule Criteria:
- Price Currency: Select the Price Currency from the dropdown.
- Price Adj Type: Select the pricing equation to apply for this rule.
- Operator: Select the equation’s operation to apply this rule.
- Value: Select the value to use in the pricing equation.
- Cost Type: Select the cost type (Average Cost or Standard Cost) to use in the pricing equation.
- Date Range: Enable this feature and select a date range if you want this pricing rule to be seasonal and should only apply for certain days of the year.
- Qty Range: Enable this feature and enter a quantity range if you want this pricing rule to only apply to select quantities.
Price Adj Types in case of Price Level Rule Type:
- Markup. New Price has to be equal to [Cost Type + [Value % * Cost Type]]
- Markdown. [Cost Type – [Value % * Cost Type]] has to be equal to New Price
- Margin. [New Price – Cost Type] has to be equal to [Value % * Input Price]
- Percentage. New Price has to be equal to [Value % * Cost Type]
- Amount. New Price has to be equal to [Value + Cost Type]
- Fixed. New Price has to be equal to the Value
It is recommended when setting up Pricing Rules or Levels to do it on a single item first and test it on a Purchase module to ensure it behaves as expected. If it is set up correctly, then it can be applied to the desired item(s).
How to apply Pricing Rules in the PO module?
- Go to the Purchase Order module after setting the Pricing Rule, and add the Vendor and the Items.
- While adding the Item, the Price of the Item will be reflected according to the defined Pricing Rules.
If there are multiple Pricing Rules set in the system, the prices will be applied to the Items in the following Priority:
- Priority 1: The Rule that is applicable to Both Vendor and Item.
- Priority 2: The Rule that is applicable to Vendor only.
- Priority 3: The Rule that is applicable to Items only.
- The Pricing Rule to be applied can also be selected from the Item detail level in the Purchase Order with a right-click.
- The Options drop-down of the Purchase Order Details section of the PO gives the feature to Remember the Pricing and Recalculate Pricing Rule which will apply the default Pricing Rule amount to the Items.
