Sales orders sales price determination 06/03/2019

Cerm When a customer orders and you create a new sales order for the ordered products, (semi-) automatically a sales price will be proposed To obtain a correct sales price proposal in the sales order, it’s necessary to determine, which options are applicable in your company and based on these options, what are the solutions in Cerm and what steps are required to make it work

Options <-> Solutions With each order, the customer wants a new quotation The customer has a contract for a product for a certain quantity, period and price The customer has a fixed price per product without limitations The customer has a staggered price list with a price/1.000 per ordered quantity The customer wants a price/1.000 and additionally a fixed start cost and/or product change cost Sales prices are recalculated with every new order and confirmed via the order confirmation You reserve batches, in stock OR in production for stock New calculation Call-off contract Product price in product properties Product price per customer Tariffs in reference estimate Recalculate calculation in reference calculation Batch reservations New sales order calculation Tariffs in reference estimate Graduated prices in reference calculation Published price list Tariffs in reference estimate Go to remarks

Recalculate case by case 1 Recalculate case by case 1.1 New calculation: Create quote, then customer order (1) Create quote Copy an existing reference calculation to a new estimate with label changes Define the n° of products, plate and colour changes and the quantity to invoice Enter the qty and the sales price rule Send quote to customer Create customer order Create new sales order and fill out the calculation number Choose products Select the invoice line items

Recalculate case by case 1 Recalculate case by case 1.1 New calculation: Create quote, then the customer order (2) Result Sales price determination = Manually Production calculation = “New” calculation = Basis for production calculation

Recalculate case by case 1 Recalculate case by case 1.1 New calculation: Create quote, then the customer order (3) Clear for you and your customer The cost is based on the current parameters which gives you the opportunity to define the sales price accordingly For every customer order you need to create an estimate In product properties Sales price determination = Product prices Sales price = € 0,00 NO product sales price per customer Create info screen (pop-up) in customer or products to inform customer service to create a quote first before the customer order To create a new quotation, always copy the reference calculation Go to overview Go to remarks

Recalculate case by case 1 Recalculate case by case 1.2 Sales order calculation: Create sales order, then a quote (1) Create customer order Create new sales order Choose products Select and/or define invoice line items Create quote Create sales order calculation (= copy of reference calculation with changes) Define plate and colour changes and the quantity to invoice If necessary adjust the inline finishes Determine the sales price Send quote to customer

Recalculate case by case 1 Recalculate case by case 1.2 Sales order calculation: Create sales order, then a quote (2) Result Sales price determination = (Sales order) calculation Production calculation = (Sales order) calculation = Basis for production calculation

Recalculate case by case 1 Recalculate case by case 1.2 Sales order calculation: Create sales order, then a quote (3) Clear for you and your customer The cost is based on the current parameters which gives you the opportunity to define the sales price accordingly For every customer order you need to create a sales order calculation In product properties Sales price determination = Product prices Sales price = € 0,00 NO product sales price per customer Create info screen (pop-up) in customer or products to inform customer service to create a sales order calculation Create sales order and do go to reference calculation (do not close) Create the sales order calculation and before determining the sales price, you are able to check the price history in the reference calculation. Go to overview Go to remarks

Call-off contract (1) Call-off contract In the call-off contract, the quantity, price and period is determined per call-off item (product) Create customer order (= call-off) Via the new sales order wizard by defining the ordered quantity If “call-off contract” parameter is set to Suggest the oldest OR mandatory use of oldest call-off contract then the price of the call-off contract will be used automatically OR From the call-off contract by defining the ordered quantity Add invoice line items manually

Call-off contract (2) Result Sales price determination = Call-off item

Call-off contract (3) Clear for you and your customer Call-off contracts need to be evaluated and closed manually. If a call-off contract is not closed on time, it is possible that the price of the oldest, not closed contract is used. Does NOT work for W4L Start from the call-off contract module because you have a complete overview of the agreements (number of deliveries, …) Periodically (for example, every first Monday of the month): check, evaluate and if necessary close the call-off contracts Go to overview Go to remarks

Fixed price per product (1) Product properties In the product properties select “product prices” for the “sales price determination” Define the sales price Create customer order Create new sales order Choose products Select and/or define invoice line items

Fixed price per product (2) Result Sales price determination = Product

Fixed price per product (3) Clear for you and your customer It is not possible to modify product prices in group with a % or fixed amount Does NOT work for W4L (SOAP services) See previous slides Go to overview Go to remarks

Staggered price list 4.1 Per product, per customer (1) Product properties In the product properties select “product prices” for the “sales price determination” Define customer specific graduated prices Create customer order Create new sales order Choose products Select and/or define invoice line items

Staggered price list 4.1 Per product, per customer (2) Result Sales price determination = Product

Staggered price list 4.1 Per product, per customer (3) Clear for you and your customer It is possible to modify product prices in group with a % or a fixed amount It is possible to sell one product to different customers by using the product sales prices per customer Maintenance For example: If there are 10 similar products that have the same staggered price list, it is necessary to create this 10 times and maintain it 10 times See previous slides Go to overview Go to remarks

Staggered price list 4.2 Per reference calculation: Graduated prices (1) Define graduated price quantities and prices Select “Graduated prices” in the calculation method Product properties In the product properties select “Price from reference calculation” for the “sales price determination” Create customer order Create new sales order Choose products Select and/or define invoice line items

Staggered price list 4.2 Per referenc calculation: Graduated prices (2) Result Take into account the following: Sales price determination = Reference calculation

Staggered price list 4.2 Per reference calculation: Graduated prices (3) Clear for you and your customer The sales price is based on the data in the reference calculation and is fixed. If for example the calculation is for 1 product and the order is for 4 products, the product changes, nor colour and plate changes are taken into account, only the quantity. Set “Behaviour on cost change” in the calculation to “Keep unit price” Go to overview Go to remarks

Staggered price list 4.3 Per reference calculation per number of products: excel price list (1) Create a price list And publish it Start from a calculation with 2 products OR make sure to set the average plate and colour changes Create customer order Create new sales order and choose products Look up the unit price for the combination quantity and number of products and manually adjust the sales price of the sales orders

Staggered price list 4.3 Per reference calculation per number of products: excel price list (2) Result Sales price determination = Manually

Staggered price list 4.3 Per reference calculation per number of products: excel price list (3) Clear for you and your customer Excel file needs to be consulted and price needs to be entered manually Maintenance Does NOT work for W4L Publish the price list in such a way it is clear for which period it is applicable for example by changing the file name. In product properties Sales price determination = Product prices Sales price = € 0,00 NO product sales prices per customer Create info screen (pop-up) in customer or products to inform customer service that the price list needs to be used to determine the sales price Go to overview Go to remarks

Staggered price list with unit price and start and change-over cost: tariffs (1) Reference calculation Create tariffs Start price = cost price for qty 1 Product change price = Difference between cost price for qty 1 for 1 product and cost price for qty 1 for 2 products Production price = (Price for the quantity-Start price-Product change price) * 1000 / quantity Select “Tariffs” in the calculation method and define minimum and maximum quantity

Staggered price list with unit price and start and change-over cost: tariffs (2) Product properties In the product properties select “Price from reference calculation” for the “sales price determination” Create customer order Create new sales order Choose products The sales price will be calculated based on the tariffs: Production price x Quantity + Start cost + Product change cost x # product changes

Staggered price list with unit price and start and change-over cost: tariffs (3) Result Sales price determination = Reference calculation

Staggered price list with unit price and start and change-over cost: tariffs (4) Clear for you and your customer Cost changes will not have an effect on the sales price, unless you review the tariffs The tariffs are applicable for the estimate, no matter the calculations within the estimate NOT available for second quantity Example of second quantity: 500 rolls of 250m or 1.000 rolls of 5kg See previous slides Go to overview Go to remarks

Automatic recalculation tool: recalculate calculation (1) Reference calculation Define the sales price Select “Recalculate calculation” in the calculation method Product properties In the product properties select “Price from reference calculation” for the “sales price determination” Create customer order Create new sales order Choose products Select and/or define invoice line items

Automatic recalculation tool: recalculate calculation (2) Result Sales price determination = Reference calculation

Automatic recalculation tool: recalculate calculation (3) Result Sales price = Recalculated cost taking into account Quantities and number of products of the order And accordingly the following settings in the reference calculation: N° plate/colour changes for 1 product change Extra make ready time / product change Additional make ready for inline/offline finishes

Automatic recalculation tool: recalculate calculation (4) Result Sales price = Recalculated cost taking into account Quantities and number of products of the order And accordingly the following settings in the reference calculation: N° plate/colour changes for 1 product change Extra make ready time / product change Additional make ready for inline/offline finishes Current calculation parameters except Full speed after and depreciation costs (in label presses) Technical parameters of the inline and offline finishes Material and surface as defined in the finishing types Meaning that the original values in the calculation are used. X Calculation manner of the sales price of the basic quantity in the reference calculation

Automatic recalculation tool: recalculate calculation (5) The defined calculation manner of the sales price in the reference calculation will always be used The sales price will always be based on the calculation manner of the basic quantity no matter the size of the order. If there are several calculations within the estimate, that can be used to calculate the sales price, always the lowest price is chosen (see for more details “Remarks”) It is not possible to see in the sales orders that the sales price is recalculated based on the reference calculation The result of the recalculated sales price is not always clear for you and the customer Which parameter changed in comparison with previous orders? For example: The current cost parameters result in an increase/decrease of cost and therefor the total sales price will be higher/lower. And this without notification. Often used for W4L because the sales price is recalculated based on the current costs Go to overview Go to remarks

Pick from batch (1) Parameters Define if you want to copy the batch price or not Define if you want manual or automatic batch reservations For demo purposes (following slides) the settings are “Copy batch price” and “No automatic reservations”

Pick from batch that is 7.1 In stock and not yet invoiced (1) Create customer order Create new sales order For manual reservations click the button in the “Reserve” column Only available if there are batches for this product Define the ordered quantity

Pick from stock that is 7.1 In stock and not yet invoiced (2) Result Sales price determination = Batch

Pick from batch that is 7.2 In stock and already invoiced = customer property (1) Create stock sales order, produce stock and invoice the sales order Create customer order Create new sales order For manual reservations click the button in the “Reserve” column Only available if there are batches for this product Define the ordered quantity

Pick from stock that is 7.2 In stock and already invoiced (2) Result Sales price determination = Manually (fixed 0,00)

Pick from batch that is 7.3 Not in stock (1) Create stock sales order and create a production job Create customer order Create new sales order For manual reservations click the button in the “Reserve” column Only available if there are batches for this product Define the ordered quantity

Pick from stock that is 7.3 Not in stock (2) Result Sales price determination = Batch

Pick from batch Clear for you and customer If you tick “Copy batch price” and you choose automatic batch reservations, the batch price will also be proposed in W4L Via batch reservations, you can force to pick from the reserved batch If you choose automatic batch reservations you can force FIFO picking Define in the parameters: Automatic batch reservation FIFO with customer property Go to overview Go to remarks

Remarks Go to overview

Remarks – Other sales order properties (1) And the impact on the sales price of the sales orders Price change ‘source’ This property will only be available if the sales order sales price determination is reference calculation, calculation, job or version Do NOT follow price change of the source = recommended Follow price change of the source This option can be used if you are waiting for the calculation and sales price to be approved. In this way, there will be an automatic price update from the sales orders, ONLY if the “price status” is NOT “price determined”.

Remarks – Other sales order properties (2) And the impact on the sales price of the sales orders Graduated price quantity This property will only be available if the sales order sales price determination is product, reference calculation, calculation, calculation, or job Use global quantity of this order <-> Use the no. of the sales order

Remarks – calculation details (1) And the impact on the sales price of the sales orders Calculate sales price You can indicate the calculation within an estimate that can be used to calculate the sales price Be aware !!! especially for recalculate calculation If all calculation of an estimate can be used to calculate the sales price. The sales price proposal will be the lowest sales price of the calculations within the estimate

Remarks – modify sales price of the sales orders (1) New sales order => Sales price proposal It is possible to manually adjust the sales price of not invoiced sales orders via the sales order properties

Remarks – modify sales price of the sales orders (2) New sales order => Sales price proposal It is possible to manually adjust the sales price of not invoiced sales orders via the sales order properties When the sales price determination  is set to manually or product, it is possible to select a different unit for the unit price on the General tab When the sales price determination is set to reference calculation, call-off item, calculation, job, version or batch it is not possible to select a different unit for the unit price When the sales price in a sales order is modified, the sales price in the related job versions and the already executed stock movements (visible in the stock movements of the job explorer) are updated automatically as well