Configuring Sales Pricing Rules

The Deacom application offers many ways of setting prices, all of which adhere to the rules of the Deacom Pricing Hierarchy.

Process Definition:

The Deacom application offers many ways of setting prices, all of which adhere to the rules of the Deacom Pricing Hierarchy. Each option may be configured with multiple options depending on a company's requirements. This is helpful for when there are general prices set per product, but specific customers or locations get discounted pricing. The use of the sales pricing hierarchy is optional, meaning companies could manually enter sales pricing at time of order entry, however, this is not a typical practice and companies will almost certainly make use of the pricing hierarchy to some extent.

Sales Pricing Hierarchy

Customer Part Pricing (see ‘Configuring Customer Part Pricing’ below)
Pricing Order (see ‘Setting up Pricing Orders’ below)
1. Pricing Order Ship-To with Ship-From Company match
2. Pricing Order Bill-To with Ship-From Company match
3. Pricing Order - Billing Group with Ship-From Company match
4. Pricing Order Ship-To
5. Pricing Order Bill-To
6. Pricing Order - Billing Group
Deal Pricing (see ‘Creating Deal Pricing’ below)
1. Deal Pricing for Specific Ship-To, on Specific Item, type of Set Price $
2. Deal Pricing for Customer Group, on Item Group, type of List Minus %
3. Deal Pricing for All Customers, on All Items, type of Cost Plus Margin
Facility Specific List Price (see ‘Configuring Facility Part Pricing’ below)
Item Master List Price (see ‘Entering an Item Master List Sales Price’ below)

Options for Customer-Specific Pricing

Customer Part Cross References (see ‘Configuring Customer Part Pricing’ below)
- May be added and maintained using the desired Part's Item Master and are the most specific of the pricing rules.
- Should only be configured for a small set of customers on top of other pricing types.
- Cannot be used to set future prices (no effectivity dates), not easily reportable or modifiable, does not allow quantity price breaks.
Pricing Orders (see ‘Setting up Pricing Orders’ below)
- These types of orders are entered the same way as a regular Sales Order but cannot be shipped. The lines on a Pricing Order contain the information about the item pricing along with quantity pricing break points.
- Can be set for specific products based on the Bill-to Company, Ship-to Company, Ship-From Company, or Billing Group selected on the order.
- Option to set total order pricing for an item if the customer orders a set quantity of all items on the pricing order.
- Best option for contract pricing.
- Advantages: Useful for planning and configuring future prices; Easy to setup, maintain, and report on; can use with the Import Excel function.
- Disadvantages: Cannot use with family quantity breaks.
- If multiple Pricing Orders are applicable to a line item, the user can select the desired one by using the 'Prompt For Pricing Order' flag in Sales Options.

Options for General Item pricing

Deal Pricing (see ‘Creating Deal Pricing’ below)
- Designed to offer flexible pricing options on Sales Orders and can be an excellent way to price items across multiple customers with a single Deal entry.
- Does not add lines to orders, just affect the line's price. If a customer wishes to see the price normally paid and a separate line indicating the savings, Promotions may be a better avenue.
- Advantages: Useful for planning and configuring future prices.
- Disadvantages: Not easily reportable or updated; Multiple items or quantity breaks cannot be entered on the same Deal.
- Example: If a Deal exists that is based on List Minus % on a large group of items, the deal will automatically update every time an Item Master List Price is changed; a user is not required to update the Deal.
Facility-specific prices (see ‘Configuring Facility Part Pricing’ below)
- Good option to ensure that the company is not losing money if one Facility is at a cost disadvantage over another.
- Used only if no other pricing options have been set and there is a Facility entry with the ‘Use Prices’ flag checked for the item in the Item Master record.
- Disadvantages: Not easily reportable or updated, cannot be used to set future prices (no effectivity dates).
- Example: If a Facility building is rented from a different company and the Facility houses a specific set of products, the associated costs can be built into the Part's Facility List Price.
- Example: Manufacturing an item at one location and shipping it to a Facility far away. If there are high shipping costs associated with getting the item from the point of manufacture to the selling Facility, the cost can be built into each of the Parts it applies to.
Item Master list prices (see ‘Entering an Item Master List Sales Price’ below)
- Specified by the ‘List Sale Price’ field on the Costs 2 tab of an Item Master record.
- Base level of the Deacom Pricing Hierarchy.
- Not uncommon for companies to use this option for most of their pricing and add a few Deals on top of the List Price.
- If no other level of the hierarchy is being used and this field is empty, manual pricing will have to be used when entering a new Sales Order.
- Since pricing is typically a very controlled aspect of any company and even though access to manually enter pricing can be restricted, the best practice is to add, at minimum, a List Sale Price for every item in the system.
- Advantages: Easily reportable and modifiable.
- Disadvantages: Cannot be used to set future prices (no effectivity dates), does not allow quantity price breaks.

Options for Individual Order Pricing

Manual Pricing
- Specified in the ‘Unit Price’ field on the Edit Sales Order Line, which requires security access to ‘Sales orders -- change line item pricing’.
- Once manual pricing is set, the ‘Pricing Method’ field on the Pricing tab of the Sales Order line will display "Manual".
- Not typical to use only this pricing method; companies will almost certainly make use of the pricing hierarchy to some extent.
- The only way to get a $0.00 default price to show on a Sales Order would be to not have any pricing rules set up and the List Price on the Item Master set to $0.00.
- Advantages: Can set or manipulate populated pricing to account for one-off costs.
- Disadvantages: Requires a user to touch the price of every order entered.
Single Order Pricing
- Another version of manual pricing is Single Order Pricing, which is set on individual orders.
- Special pricing, such as current price plus a factor or list minus a factor, is configured on the Sales Order header.
- Discounts, in addition to the regular Terms discounts available, are configured on the Sales Order lines and respected when receiving payment for the order.
- Parts may also have the ‘Single Order Pricing’ flag on their Item Master Properties tab checked, and when checked, that Part is subject to re-pricing via the Sales > Re-Price function and on individual Sales Orders via the Re-Calc Prices button on the Sales Order header.
- Re-Pricing is used to change the price or costs of items on existing orders.
- Advantages: Useful if Deals, Promotions, or Discounts have been added after an order was entered and should be included when pricing the items on the order.

Pricing Methods Outside the Pricing Hierarchy

Promotions (see ‘Setting up Promotions’ below)
- Once added to an order, the dollar amount and/or quantity to be ordered will be automatically adjusted as the order is modified.
- Useful for short-term changes to pricing.
- Can be dollars off items, dollars off order, percentage off, or buy one get one.
- Can be added automatically during Sales Order entry or manually by selecting from a list of applicable promotions.
- Add an additional line to the Sales Order, either immediately below the line added or at the bottom of the order.
- Not part of the Deacom Pricing Hierarchy and fire regardless of the pricing option used.
- Supports flexible prices, such as if Sales Reps enter orders and are given the ability to negotiate prices; contain effectivity dates.
Discounts (see ‘Setting up Discounts’ below)
- Can be added automatically during Sales Order entry or manually by selecting from a list of applicable Discounts.
- Does not add line items on Sales Orders. Instead, they apply the appropriate discount amounts to existing line items on the order.
- When items are selected during sales order line entry, the system will evaluate the Pricing Hierarchy to see if any applicable pricing conditions or rules, including deals, are applicable to the item and quantity being added to the order.
- Contain effectivity dates.
- Can only be based on ordered quantities, not shipped.

Process in Deacom

Configuring Customer Part Pricing

Also see ‘Sales - Creating Customer Part Cross References’.

Navigate to Inventory > Item Master.
Select a part in the ‘Part Number’ field.
Click View.
Click Bill-Tos/Ship-Tos on Item Master -- Standard.
To add a new Customer Part Cross Reference:
1. Click Add.
2. Enter a ‘Bill-To Company’.
3. Update the ‘Cust. Part Number’ and ‘Cust. Description’ if known.
4. Update the ‘Stock Pricing Unit’ and ‘Sales Unit’ if necessary.
5. Update any other customer specific information as needed.
To update an existing Customer Part Cross Reference:
1. Highlight the line and click Modify.
Enter the ‘Sales Price’.
Click Save.

Setting Up Price Orders

Also see ‘Sales - Setting up & Using Pricing Orders’.

Navigate to Sales > Order Entry.
On the General tab:
1. Set ‘Order Type’ to “Pricing Order/Billing Group”, “Pricing Order/Bill-To”, or “Pricing Order/Ship-To”.
2. Select appropriate ‘Bill-To Company’ and ‘Ship-To Company’.
3. Check that ‘Terms’ and ‘Facility’ are correct.
On the Misc. 1 tab:
1. Select the appropriate ‘Ship-From Company’ if applicable.
On the Dates tab, if the price is valid for a known, defined time, enter the following:
1. Release Date (Sales Date 5) – when the pricing order will begin to take effect.
2. Expires – the last date the price is valid.
On the Pricing tab:
1. Check ‘Facility-Specific Pricing Orders’ if this Pricing Order is specific to the Facility on the General tab.
On the Lines tab, click + to begin adding parts:
1. Select a ‘Part Number’.
2. For a Standard Pricing Order:
  1. Enter the ‘Quantity’ that the price should begin to apply at.
    - Example: if you entered “10”, then the sales order with a quantity of 10 or greater would have the Pricing Order applied.
  2. Enter the ‘Unit Price’ that should be used when this item and customer are selected.
  3. To add additional parts, click Next. When finished, click Save and Exit.
3. For a Pricing Order based on Quantity Increments:
  1. Enter the ‘Quantity’ that the price should begin to apply at.
    - Example: if you entered “10”, then the sales order with a quantity of 10 or greater would have the Pricing Order applied.
  2. Enter the ‘Unit Price’ that should be used when this item and customer are selected.
  3. Click Next to continue adding the quantity breaks. An example of the SO lines would be:
    - Part A, quantity of 10, unit price of $4.00.
    - Part A, quantity of 15, unit price of $3.50.
    - Part A, quantity of 20, unit price of $3.00.
  4. To add additional parts, click Next. When finished, click Save and Exit.
4. For a Blanket Order:
  1. Enter a ‘Quantity’ of “1”.
  2. Enter the ‘Unit Price’ for this blanket pricing.
  3. Enter the ‘Blanket Quantity’.
  4. To add additional parts, click Next. When finished, click Save and Exit.
Click Save.

Creating Deal Pricing

Also see ‘Sales - Configuring Deal Pricing’.

Navigate to Sales > Maintenance > Deal Pricing.
Click the New button to create a new Deal Price.
Enter in a ‘Description’ for the Deal. Note: to copy a previous Deal, click the Same As button.
1. Select a ‘Deal’.
2. Check the ‘Copy Dates’ box as well to use the same dates as the copied previous Deal.
3. Click Apply to set changes.
Select the ‘Deal For’ to define where or for who the Deal will be applied.
1. Set the specific individual/company for which the Deal will be applied in ‘Deal For’.
2. Note: disabled when the above ‘Deal For’ is set to “All Bill-To Companies” or “All Ship-To Companies”.
Select the ‘Deal On’ to define on what basis the Deal will be applied.
1. Note: when ‘Deal On’ is set to “All Items”, users still have the option use Item Master User Defined Fields in ‘Expression’.
2. Set the specific criteria for which the Deal will be applied in ‘Deal On’.
  1. Note: disabled when the above ‘Deal On’ is set to “All Items”.
Select the ‘Deal Type’ to define the pricing type on which the Deal will be based on. Use “Set Price” if the exact price should be entered here.
1. If ‘Deal Type’ is set to “Expression”:
  1. Enter an ‘Expression’ to set pricing.
    - Note: see the Appendix for more information about the Expression.
2. If ‘Deal Type’ is NOT set to “Expression”:
  1. Enter the dollar amount or percentage in ‘Factor’.
Enter the ‘Minimum’ quantity that must be hit on the Sales Order line before the Deal will be applied.
1. Select the unit of measure for the minimum in the ‘Minimum Unit’ field.
  1. This allows the minimum quantity for a Deal to be specified in a different UOM than which it is sold. This is useful when companies will give a per unit price break on the total weight of the Sales Order. For example, if the total weight of an order exceeds 5,000 lbs., all items on the order are given an additional discount, such as $0.03 per EA or $1.00 per CASE.
2. Select the ‘Minimum Based On’ to define how the Deal will be applied once the Minimum Quantity specified above has been met.
  1. The drop down is set to "Specific Item" by default which supports the idea of applying the Deal line by line, item by item. If any other selection is made in this field, the system will group order line items on the value selected in this field when applying Deals.
Select the deal unit of measure from the ‘Deal Unit’ field search box.
1. This search field is used to override the Sale Unit and Pricing Unit of an item when calculating the minimum quantity and the Deal Price. For example, a company may sell a product by the case with the Sale Unit and Pricing Unit specified as Case but give Deals to Brokers or Bill-to/Ship-to Companies based on the $/pound measure. If this field is not populated, the system will base Deals on the Stock Unit of Measure.
Set the ‘Date Based On’ to define which date on the Sales Order header the system will evaluate when considering the ‘Start Date’ and ‘End Date’ below.
Choose the ‘Start Date’ and ‘End Date’ the Deal will take effect and expire, respectively.
Select a ‘Facility’ to set the Deal availability for only Sales Orders created in the specified Facility.
Check the ‘Override Other Deals if Lowest Price’ box to ensure that if this Deal is the lowest price, it will override other Deals that are more specific. In other words, the most specific Deal wins unless one of the Deals has this flag checked.
Click Save.

Configuring Facility Part Pricing

Navigate to Inventory > Item Master.
Select a part in the ‘Part Number’ field.
Click View.
Click View Facilities on Item Master -- Standard.
To add a New Facility Part Cross Reference:
1. Click Add.
2. Enter a ‘Facility’.
To update an Existing Facility Part Cross Reference:
1. Highlight the line and click Modify.
On the Costs 2 tab:
1. Check ‘Use Prices’.
2. Enter a ‘List Price’.
Click Save and Exit.

Entering an Item Master List Sales Price

Navigate to Inventory > Item Master.
Select a part in the ‘Part Number’ field.
Click Modify.
On the Costs 2 tab:
1. Enter a ‘List Sale Price’.
Click Save.

Note: The next time this part is entered on a Sales Order, the unit price used on the order line will be the list sales price from the item record, unless there is any other type of pricing set up to override it. Users can also manually adjust the unit price when needed.

Setting Up Promotions

Also see ‘Sales - Setting up & Using Promotions and Discounts’.

Navigate to Sales > Maintenance > Promotions and Discounts.
Click New.
In the ‘Transaction Type’ field, select “Promotion”.
In the ‘Promo Item’ field, select your non-stock Promo Item that will be added as a line. If this is a “Buy One Get One” promotion, then this is the item being given away.
1. Note: a Promotion will add a Line to the SO. If a line is not wanted, create a Discount instead.
Enter the ‘Description’ for the Promotion.
Select the ‘For’ to define eligibility for the Promotion.
1. Set the specific individual/company that is eligible for the Promotion in ‘For’.
  1. Note: disabled when the above ‘For’ is set to “All Bill-To Companies” or “All Ship-To Companies”.
Select the ‘On’ to define eligibility for the Promotion.
1. Set the specific criteria that is eligible for the Promotion in ‘On’.
  1. Note: disabled when the above ‘On’ is set to “All Items”.
Select the ‘Type’ of Promotion. Options are:
1. Buy One Get One – for every quantity of items purchased, another quantity of items is given for free.
2. Dollars Off Item – multiplies the ‘Factor’ by the item quantity, in the Stock Unit of Measure, and therefore applies a variable dollar amount to the order based on the item quantity, as long as it exceeds the ‘Minimum’ quantity specified.
  1. Note: the Promotion should only be applied when the ‘Extension’ is greater than the ‘Factor’ of the promo. In other words, $20 cannot be taken off a line if the total extension for the line is $10.
3. Dollars Off Order – if a qualifying item is added to a Sales Order, a flat dollar amount is taken off the order, no matter what the quantity is, as long as it exceeds the ‘Minimum’.
4. Expression – uses the ‘Expression’ entered to define the conditions by which the Promotion will be applied to the item price on the Sales Order line.
5. Percent Off – lowers the item price by the specified ‘Factor’.
If ‘Type’ is set to “Dollars Off Item”, “Dollars Off Order”, or “Percent Off”:
1. Enter the dollar amount or percentage of the Promotion in ‘Factor’.
2. Note: if ‘Flexible Pricing’ is checked, the ‘Factor’ is the maximum discount allowed.
If ‘Type’ is set to “Buy One Get One”:
1. Set the ‘Buy Quantity’ and ‘Free Quantity’.
If ‘Type’ is set to “Expression”:
1. Enter the ‘Expression’ to define the conditions by which the Promotion will be applied to the item price on the Sales Order Line.
  1. Note: available fields are all Bill-To and Ship-To fields (including UDFs) and all Item Mater Fields (including UDFs). The variable “shipped” is also available. The variable is a true or false (true when order shipped & false when order not shipped) determination of whether the order has been shipped yet and should be available to the promo expression so that it can be used on promos that need to be calculated at the time of shipment.
Select the ‘Quantity Based On’ to determine what quantity qualifies the Promotion to be added to Sales Orders. Options are:
1. Ordered – if selected and ‘Applied On’ is set to “Shipped”, the promo is qualified for the order based on the initial order amount and it will get added to the order at the time of order entry. Then, the system will apply the ‘Factor’ to the order based on the quantity shipped.
2. Shipped – if selected, the promo will not show up until after the order is shipped, in which case, the ‘Applied On’ field will be set to “Shipped” as well.
Select the ‘Applied On’ to determine what quantity the Promotion will be applied to.
1. Note: only available when ‘Quantity Based On’ is set to “Ordered”.
2. Options are:
  1. Ordered – the promo is applied based on the ordered quantity of the Sales Order.
  2. Shipped – promotions will re-calculate during the shipping process and apply to only the shipped amount of the Sales Order.
Set the ‘Minimum’ to define the minimum quantity/extension required before the Promotion can be applied.
1. Select the ‘Minimum Type’ to define what the promotion is checking against on Sales Order lines (quantity or extension).
2. Select the ‘Minimum Based On’ and ‘Minimum On’ to define the criteria on which the ‘Minimum’ will be based on.
3. If ‘Minimum Type’ is set to “Quantity”, select the ‘Unit’ to indicate the Unit of Measure on which the ‘Minimum’ will be based on.
Select the applicable ‘Inventory’ option.
Set the ‘Date Based On’ to define which date on the Sales Order header the system will evaluate when considering the ‘Start Date’ and ‘End Date’ below.
Choose the ‘Start Date’ and ‘End Date’ the Deal will take effect and expire, respectively.
Select a ‘Facility’ to set the Promo availability for only Sales Orders created in the specified Facility.
Ensure the ‘Active’ checkbox is checked and check any other checkboxes, as needed.
Click Save.

Setting Up Discounts

Also see ‘Sales - Setting up & Using Promotions and Discounts’.

Navigate to Sales > Maintenance > Promotions and Discounts.
Click New.
In the ‘Transaction Type’ field, select “Discount”.
Enter the ‘Description’ for the Discount.
Select the ‘For’ to define eligibility for the Discount.
1. Set the specific individual/company that is eligible for the Discount in ‘For’.
  1. Note: disabled when the above ‘For’ is set to “All Bill-To Companies” or “All Ship-To Companies”.
Select the ‘On’ to define eligibility for the Discount.
1. Set the specific criteria that is eligible for the Discount in ‘On’.
2. Note: disabled when the above ‘On’ is set to “All Items”.
Select the ‘Type’ of Discount. Options are:
1. Dollars Off Item – multiplies the ‘Factor’ by the item quantity, in the Stock Unit of Measure, and therefore applies a variable dollar amount to the order based on the item quantity, as long as it exceeds the ‘Minimum’ quantity specified.
  1. Note: the Discount should only be applied when the ‘Extension’ is greater than the ‘Factor’ of the Discount. In other words, $20 cannot be taken off a line if the total extension for the line is $10.
2. Expression – uses the ‘Expression’ entered to define the conditions by which the Discount will be applied to the item price on the Sales Order line.
3. Percent Off – lowers the item price by the specified ‘Factor’.
If ‘Type’ is set to “Dollars Off Item”, “Dollars Off Order”, or “Percent Off”:
1. Enter the dollar amount or percentage of the Discount in ‘Factor’.
2. Note: if ‘Flexible Pricing’ is checked, the ‘Factor’ is the maximum discount allowed.
If ‘Type’ is set to “Buy One Get One”:
1. Set the ‘Buy Quantity’ and ‘Free Quantity’.
If ‘Type’ is set to “Expression”:
1. Enter the ‘Expression’ to define the conditions by which the Discount will be applied to the item price on the Sales Order Line.
  1. Note: available fields are all Bill-To and Ship-To fields (including UDFs) and all Item Mater Fields (including UDFs). The variable “shipped” is also available. The variable is a true or false (true when order shipped & false when order not shipped) determination of whether the order has been shipped yet and should be available to the Discount expression so that it can be used on Discounts that need to be calculated at the time of shipment.
Set the ‘Minimum’ to define the minimum quantity/extension required before the Discount can be applied.
1. Select the ‘Minimum Type’ to define what the Discount is checking against on Sales Order lines (quantity or extension).
2. Select the ‘Minimum Based On’ and ‘Minimum On’ to define the criteria on which the ‘Minimum’ will be based on.
3. If ‘Minimum Type’ is set to “Quantity”, select the ‘Unit’ to indicate the Unit of Measure on which the ‘Minimum’ will be based on.
Select the applicable ‘Inventory’ option.
Set the ‘Date Based On’ to define which date on the Sales Order header the system will evaluate when considering the ‘Start Date’ and ‘End Date’ below.
Choose the ‘Start Date’ and ‘End Date’ the Deal will take effect and expire, respectively.
Select a ‘Facility’ to set the Discount availability for only Sales Orders created in the specified Facility.
Ensure the ‘Active’ checkbox is checked and check any other checkboxes, as needed.
Click Save.