The Pricing Rule module, located in the Sales group, allows prices to be automatically adjusted for each sales order according to a variety of variables such as average cost, order quantity, customer, day, product, etc.
Save saves any changes made to the pricing rule.
Delete deletes the pricing rule. A pricing rule can also be inactivated by unchecking the Active checkbox on the General tab
Duplicate creates a copy of the pricing rule.
Print sends the default module report to the printer.
How To opens this article in a web browser.
Refresh reloads whatever is currently open in the module.
Adjustment types and values
To create a new pricing rule, click the New button on the module toolbar. After selecting the applicable customers and products, choose an adjustment type and a price/cost value.
- Markdown - the selected value will be decreased by the specified percentage.
For example, when applying a 50% markdown to a value of $100, the new price would be $50.
- Markup - the selected value will be increased by the specified percentage.
For example, when applying a 50% markup to a value of $100, the new price would be $150. There is also an option in the Sales Order module options to show the markup on the sales order. This allows the markup to be monitored and adjusted for each item.
- Margin - the selected value will be increased to provide the specified margin.
For example, to have a 50% margin on a value of $100 the new price would be $200.
- Percent - the new price will be a set percentage of the specified value.
For example, when adjusting to 50% of a $100 value, the new price would be $50.
- Amount - the new price will be the selected value +/- the specified dollar value
For example, when applying a +$25 adjustment to a $100 value, the new price would be $125.
- Fixed Price - the new price will equal the fixed dollar value that is entered.
- Average Cost - The average value of inventory that is in stock.
This value can be seen on the General tab of the Inventory module.
- Default Vendor’s Cost - If the part has a default vendor, this is the amount the default vendor charges for the part.
This value can be seen on the Vendors tab of the Part module.
- Last Cost - This is the most recent cost of this item from any vendor.
This value can be seen on the Vendors tab of the Part module.
- List Price - The list price is the winning tier 2 price (or the product price if no tier 2 rules have been created).
See Precedence for more information.
- Product Price - This is the product price as set on the General tab of the Product module.
- Standard Cost - This is the standard cost as defined on the Details tab of the Part module.
- Customer Last Price - The customer's last price can be viewed and edited on the Parts tab of the Customer module.
The specific dollar amounts of these price/cost values can also be seen by clicking the Details tab of a saved pricing rule. Right-click the column header and select which values to display. The values will be shown for all of the products that the pricing rule applies to.
Pricing rules can also be imported.
Adjust product prices
In addition to affecting the sales price on a sales order, pricing rules can be used to adjust the actual Price field in the Product module.
- Open the pricing rule that will be used to adjust product prices.
- Click the Adjust Prices button located on the module toolbar and then click Next.
- Review the New Price column which shows how each product price will be affected and then click Finish.
If a pricing rule will only be used to adjust prices, it can be disabled for sales orders on the Advanced tab of the Pricing Rule module.
Pricing rules offer a lot of flexibility with the combination of types, tiers, and module options. To understand the final price on the sales order, it is vital to understand pricing rule precedence.
- TYPE - Below are the pricing rules types listed from highest precedence to lowest precedence.
- Customer pricing rules
- Customer group pricing rules
- Fixed pricing rules
- Other pricing rules
- TIER - At each tier, the pricing rules with the highest precedence type are compared. The highest/lowest price of that type wins based on the Pricing Rule module options.
- Tier 1 (product price): The tier 1 price is the amount in the Price field of the product.
- Tier 2 (list price): The tier 2 rules are compared to the product price. The winning price (not the pricing rule) then flows down and is included in the tier 3 comparison without its rank. For example if a customer type rule wins in tier 2, a customer group rule could win in tier 3 because the customer rule comes down as a price without any rank.
- Tier 3 (sales price): The tier 3 rules are compared to the winning price from tier 2. The winning price will be the amount on the sales order. If the winning price is different than the list price (the tier 2 winner), the price on the sales order will be blue as described here.
- TREE - Pricing rules referencing nodes lower in the product tree take precedence over rules assigned to higher nodes of the tree. When two or more pricing rules are deemed valid, but each rule applies to a distinct product tree branch, rule 2 will be used to determine which rule to apply.
In the example to the right, there are five tier 3 pricing rules that are valid and the module option is set to look for the lowest price in tier 3. Because of pricing rule precedence, the customer rule with the lowest price ($90) will be applied by default, even though it is not the lowest total price. This is because customer rules have the highest precedence. The image shows the rules in order of precedence/rank. The applied pricing rule can be changed at any time by double-clicking the item on the sales order and clicking the Pricing button.
In this example, both module options are set to Lowest. This allows discounts to be stacked together. Everything is marked down 10% and a VIP customer group gets an additional 20% off.
- Tier 1 product price = $100
Tier 2 pricing rule created to mark everything down 10%
- Tier 2 list price = $90 ($100 * .9)
Tier 3 pricing rule created to give 20% off for VIPs
- Tier 3 sales price = $72 ($90 * .8)
In this example, the tier 2 module option is set to Highest and the tier 3 module option is set to Lowest. An item has a manufacturing cost of $5.
- Tier 1 product price = $8
Tier 2 pricing rule created to mark the manufacturing cost up by 100%
- Tier 2 list price = $10 ($5 * 2)
Tier 3 pricing rule created to give 10% off the list price
- Tier 3 sales price = $9 ($10 * .9)
The General tab displays the name, description, customers, products, and adjustment types and values.
The Advanced tab displays rounding options, dates, quantities, tiers, etc.
The Details tab displays a summary of the rule.
- If the pricing rule is selected automatically according to precedence, the New price will automatically be applied to the sales order, or it can be applied manually.
- To update the Price field of the Product module according to a pricing rule, see Adjust product prices.
Some aspects of the Pricing Rule module can be customized by opening the module, clicking the Tools menu, and then selecting Module Options.
- Tier 2 looks for the...
- The tier 2 rules with the highest precedence type will be compared. This option determines if tier 2 then looks for the Highest or Lowest price.
- Tier 3 looks for the...
- The tier 3 rules with the highest precedence type will be compared. This option determines if tier 3 then looks for the Highest or Lowest price.
- Don't allow calculated prices to be less than...
- This option prevents the calculated price from going below a specified level. Options include Average Cost, Default Vendor's Cost, Last Cost, List Price, Product Price, or Standard Cost.