Deacom Pricing Hierarchy

The Deacom application contains a Pricing Hierarchy that 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. In order to fully utilize the Pricing Hierarchy, several different items with overlapping information (date validity range, Part number, Facility, etc.) are required. Once an item is selected during Sales or Purchase Order entry, the Deacom application will immediately check to see what, if any, Pricing Hierarchy exists for the specified item.

Each part of the hierarchy is configured individually. More information on the configuration methods available can be found on the Configuring Sales Pricing Rules and Configuring Purchase Pricing Rules pages. At a minimum, the items listed in the Configuration section of the Entering Sales Orders and Entering Purchase Orders pages need to exist for an order to be entered. Since pricing is populated automatically depending on the system setup, the process for using the hierarchy is as simple as entering a new Sales or Purchase Order and selecting a Customer/Vendor and Part. For more information on how to do this, refer to the Process section of the Entering Sales Orders and Entering Purchase Orders pages.

Sales pricing features chart

The below can be used to compare the various features and selections available in the system in order to find the model that best suits your business. The hierarchy of how a price is selected by the system is explained further down on this page.

Pricing Type	Features
	Set Price $	Cost Plus Margin	List Minus %	Effective Dates	Item Quantity Breaks	Family Quantity Breaks	Truckload Quantity Breaks	Blanket Quantity	Facility Specific	Easily Reportable	Easily Modifiable
Customer Part Cross Reference	YES	NO	NO	NO	NO	NO	NO	NO	NO	NO	NO
Pricing Order - Ship-To	YES	NO	NO	YES	YES	NO	YES	YES	YES	YES	YES
Pricing Order - Bill-To	YES	NO	NO	YES	YES	NO	YES	YES	YES	YES	YES
Pricing Order - Billing Group	YES	NO	NO	YES	YES	NO	YES	YES	YES	YES	YES
Deal: for Specific Ship-To, on Specific Item, type of set Price $	YES	OPTIONAL	OPTIONAL	REQUIRED	YES	YES	NO	NO	YES	NO	NO
Deal: for Customer Group, on Item Group, type of List Minus %	OPTIONAL	YES	YES	REQUIRED	YES	YES	NO	NO	YES	NO	NO
Deal: for All Customers, All Items, type of Cost Plus Margin	OPTIONAL	YES	YES	REQUIRED	YES	YES	NO	NO	YES	NO	NO
Facility List Price	YES	NO	NO	NO	NO	NO	NO	NO	REQUIRED	NO	NO
Item Master List Price	YES	NO	NO	NO	NO	NO	NO	NO	NO	YES	YES

Pricing types are listed from the most powerful (overrides all others when present) to the least powerful (overridden by any other pricing, if present). Deacom’s most specific pricing type, Customer Part Cross Reference, is the least flexible and not easily setup, reportable, or maintained, while Pricing Orders provide the greatest flexibility and ease of use. Deals offer a great amount of flexibility, but are less desirable from a setup and maintenance upkeep.

Deal Pricing is listed three times in the above chart, not to indicate that there are only three types of Deals, but to represent the wide range of Deals that are available. The top-most Deal example is extremely specific, being valid only for a single customer and a single part number, and is using a Set Price $ fixed price rule although other math is also available. The bottom-most Deal example is extremely broad, being valid for all customers and all parts. There are a nearly infinite number of possibilities available between these two extremes, for various classifications of customers and items, represented here by a single example.

Below is a list of available features along with a description of each.

Set Price $ - the ability to fix a price, in dollars and cents. Shown as optional for the middle and bottom-most Deals because it can be used, but that is not typical. There are a number of pricing math rules available exclusively to Deals. "Cost Plus Margin" and "List Minus %" are used as examples. While very commonly used, they are not the only options available.
Cost Plus Margin – the ability to set the selling price based on a margin added to (or a negative margin subtracted from) the Standard Cost. This kind of pricing is exclusive to Deals, and is used very powerfully in middle-level or broad Deals. If there is a customer classification that has many customers in it, and they all pay a 20% margin on top of cost, this is the choice to use. Some pricing is thought of in Markups instead of Margins. While Deacom only does Margin math, it is possible to convert from Markup to Margin. A 100% Markup is the same as a 50% Margin.
List Minus % - the ability to set the selling price based on a percentage subtracted from (or a negative percentage which would be added to) the Item Master list price. This kind of pricing is exclusive to Deals, and is used very powerfully in middle-level or broad Deals. If there is a customer classification that has many customers in it, and they all receive a 10% discount off list price, this is the choice to use.
Effectivity Dates – the ability to define when the pricing rule starts and/or stops having an effect. For pricing types that don’t have Effectivity Dates, like List Price and Customer Part Cross References, the price must be changed on the day of the price change, before any orders that would use that price can be entered. For those that do have effectivity dates, however, the old pricing rules can be set to expire and the new ones can be created and set to take effect, so that on the day of a price change there are no data changes required and new orders simply go in at the new pricing. It may be unusual to know the expiration date of a pricing rule at the moment that it is being added, but some time before the new rule is due to take effect, expiration dates can be added to make the existing rules expire. Deals must have effectivity dates, but long term deals can just have start dates in the past, and expiration dates that are far in the future.
Item Quantity Breaks – the concept that the more of one item that the customer orders on the same order, the less they pay for it. Up to 100 units, they may just pay list price of $10, but if they buy 100 at the same time, the price drops to $9.75. On Deals where "Cost Plus Margin" or "List Minus %" math is available, another example would be that up to 100 units, they pay list price, but if they buy 100 at the same time, they get a 2.5% discount. The results of the two examples would be the same, with the customer paying 9.75 for quantities of 100 or more on the same order.
Family Quantity Breaks – the concept that the more items in a "family" that the customer orders on the same order, the less they pay for them. Families can be defined in Deacom by Category, Sub-Category, or any of the user-definable Item Search 1-5 item master fields. Up to 100 units on the order within the family, they may just pay list price of $10 for one of the members of the family, but if they buy 100 of the family at the same time, the price drops to $9.75. This approach is sometimes used for closely related products, where it doesn’t matter what color or flavor is being sold, the quantity of members in the family on the one Sales Order is what controls the pricing.
Truckload Quantity Breaks – the concept that the larger the truck load, the lower the freight portion is for delivered pricing. For sellers shipping cases of liquid products, truckloads are often limited by weight, with something like 40,000 pounds defined as a full truckload. Based on distributing the freight cost of a full, half, or quarter truckload across the number of cases that it takes to reach those weights, the seller can add the expected freight cost to the FOB selling price to arrive at a delivered price. Truckload pricing, like family pricing, is not based on the quantity of an individual item, but rather the weight of all the items shipping together in the same truckload. Exclusive to Pricing Orders, and new in version 14.10.
Blanket Quantity – the concept that pricing might not be limited just by an expiration date, but also by a total quantity purchased against the price. A customer might negotiate a price of $1 and promise to order 100,000 units over the course of the next year. Blanket pricing would apply that $1 price to all new Sales Orders, until the 100,000 units were purchased or the time expired.
Facility Specific – the ability to limit the pricing to items shipped out of a given Facility. Except for list price and Customer Part Cross Reference pricing, all pricing types have this as an optional feature. Facility list prices are, by definition, limited to that Facility, and so are required to be Facility-specific.
Easily Reportable – this is a subjective measure, but favors the three types of Pricing Orders and list prices over the other pricing rules. Pricing Orders are considered to be easily reportable because there are over 15 pre-defined Sales > Order Reporting reports, any one of which could be customized to communicate pricing to a customer by simply printing and emailing the report from the View Detail or Modify versions of the Pricing Order. The other forms of pricing, in contrast, must either be used on a Sales Order or have a custom report written to communicate to a customer. List pricing is considered easily reportable because an Item Master report of Finished Goods can easily include the list price, and that report could be sent to a customer who always pays list price.
Easily Modifiable – all pricing is modifiable, by those with security to modify it. Easily modifiable has been applied to the three types of Pricing Orders because of existing tools that are available to copy and modify Sales Orders, and Pricing Orders by extension. Pricing Orders can be copied, to create a new order for pricing that is about to take effect. Existing orders can be repriced individually, using the single-order pricing tool on the order’s Pricing tab, and also in large quantities, using the Re-Price tool on the Sales menu. List prices have a different version of easy modification, as they are on the Item Master and can be updated from a spreadsheet, using the Price Updates tool on the Inventory menu.

Sales pricing hierarchy

The Hierarchy is listed below in the order that prices are used during the Sales Order entry process, from most specific to least specific.

Customer Part Pricing
Pricing Order Ship-To with Ship-From Company match
Pricing Order Bill-To with Ship-From Company match
Pricing Order - Billing Group with Ship-From Company match
Pricing Order Ship-To
Pricing Order Bill-To
Pricing Order - Billing Group
Deal Pricing
Facility Specific List Price
Item Master List Price

Notes:

The Pricing Order that takes priority can be directly set to an applicable Sale Order item line if the 'Prompt For Pricing Order' flag is checked in Sales Options.
Once a proper pricing rule is found, the system will stop looking. So if both a Pricing Order and Facility Part Cross Reference exist and match the order criteria, the system will use the Pricing Order details and ignore the cross reference.
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.
Pricing Orders may be set to be specific for one Facility or all Facilities via the "Facility-Specific Pricing Order" check on the Pricing tab of the Sales Order. Additional information is available in the Pricing Tab section on the Sales Order Entry page.
A specific sub-hierarchy exists within Deal Pricing. See the Deal Pricing sub-hierarchy section below for more information.
Promotions and Discounts are not part of the Deacom Pricing Hierarchy and fire regardless of the Pricing Hierarchy used. Additionally, these items will force a line on the order, listing a non-stock Part, that displays the name of the Promotion or Discount being received and the dollars off the eligible Sales Order lines.
In the list above, "..with Ship-From Company match" means the selection in the "Ship-From Company" field on the "Misc 1" tab of the Pricing Order must match the "Ship-From Company" selection on the "Misc 1" tab of the Sales Order being entered in order for the appropriate pricing to take effect. Also, no specific order type exists for Ship-From Company Pricing Orders. These orders are created by making a selection in the "Ship-From Company" field on the "Misc 1" tab of one of the order types listed above.
Pricing Order - Billing Group is only used if no other Pricing Orders are applicable. Pricing for a Billing Group will apply to any Bill-to's in that group.
Users with the appropriate access can enter a manual price. Manual prices cannot have a discount.
Customer part cross references are not considered when applying pricing from a Pricing Order - Billing Group.
The presence of a price on a customer part cross reference would always override any kind of Pricing Order. With a price absent (set to zero) on the cross reference, though, you could easily have a situation where the pricing order was for one member of the billing group, with a customer part from that bill to customer, while the sales order was for another member of the billing group, with a different customer part that is specific to that different bill to customer. If the Pricing Order - Billing Group were to require that the customer parts match, as is the case for the other two Pricing Order types, the price from the Pricing Order - Billing Group would not be applied to the sales order.

Purchasing pricing features chart

The below can be used to compare the various features and selections available in the system in order to find the model that best suits your business.

Pricing Type	Features
	Set Price $	Effectivity Dates	Item Quantity Breaks	Blanket Quantity	Facility Specific	Easily Reportable	Easily Modifiable
Vendor Part Cross Reference	YES	YES	YES	NO	YES	YES	NO
Pricing Order	YES	YES	YES	YES	YES	YES	YES
Item Master - Facility Specific	YES	NO	NO	NO	YES	NO	NO
Item Master - PO Price Type	YES	NO	NO	NO	NO	YES	YES

Purchase pricing hierarchy

The Hierarchy is listed below in the order that prices are used during the Purchase Order entry process, from most specific to least specific.

Vendor Part Pricing
Pricing Order
Facility Specific Purchase Price
Item Master Purchase Price

Notes:

Once a proper pricing rule is found, the system will stop looking. So if both a Pricing Order and Facility Part Cross Reference exist and match the order criteria, the system will use the Pricing Order details and ignore the cross reference.
The only way to get a $0.00 default price to show on a Purchase Order would be to not have any pricing rules set up, the "PO Price Type" on the Item Master General 1 tab set to "Purchase Price", and the Purchase Price on the Item Master Costs 2 tab set to $0.00.
Users with the appropriate access can enter a manual price.
The "Pricing Order Date" field in Purchasing > Options determines what order line date (on the order line Dates tab) that the system will evaluate to determine if a Purchase Order falls within the range of any applicable Pricing Orders.
If multiple pricing orders will be in effect for items, the "Pricing Order Sort" flag in Purchasing > Options determines how the system will apply these pricing orders.
Deacom Version 16.03.018 introduces a new Purchasing Option, "Re-Calc Purchase Order Prices on Receipt". If checked, the system will reevaluate all valid pricing orders and, if applicable, will apply any pricing changes for items on purchase orders after purchase order receipt. This option is useful in situations where pricing orders are modified frequently and Purchase Orders have already been entered in Deacom. Vendors may price items based on a different purchase order date, such as ordered date, pick up date, or received date. If this box is checked, then modification to Pricing Orders can still be applied after applicable purchase orders have been entered but before items/lots are received into inventory. When operating in FIFO cost mode, the lots received will reflect updated prices.