1. Pricing
Ken Smith and Tracie Folscroft

2. Pricing Bottom-line: Pricing Drives Your Business
Benefits of cERP Pricing
Bring Control to Process
Gain Efficiencies
Consistency
Competitive Advantage
Leverage power of cERP

3. Pricing Contract Sales
Lump Sum
Item Category
Contract
Product Group
Price Calculated Based on Cost
Unit Price Typically Suppressed
Unit Price
Cost Markups
Sales Prices
Sale Line Discounts
List Price
Manual

4. Pricing Sales Orders Lump Sum Unit Price By Order By Category
Amount, GP $, GP % , Markup %
Unit Price Typically Suppressed
Unit Price
Cost Markups
Sales Prices
Sale Line Discounts
List Price
Manual

5. Unit Price Hierarchy
Unit Price Hierarchy
Cost Markups
Sales Prices
Sales Line Discounts
List Price
Cust ABC for Part 456 had sale price, discount and markup – which price would be calculated - markup
Type: Markup , Then std NAV hierarchy (Price, Discount, List)
Customer, Markup Group, All Customers
Combination of Types (using “Allow Discount”)
Loophole – 0% markup for item/customer

6. Level 1 - Cost Markups
Cost Markups
Customer
Item
Item Markup Group
All Items
Cust Markup Group
All Customers
Cust ABC for Part 456 had sale price, discount and markup – which price would be calculated - markup
Type: Markup , Then std NAV hierarchy (Price, Discount, List)
Customer, Markup Group, All Customers
Combination of Types (using “Allow Discount”)
Loophole – 0% markup for item/customer

7. Level 2 - Sales Prices
Sales Prices by Item
Customer
Cust Price Group
All Customers
Cust ABC for Part 456 had sale price, discount and markup – which price would be calculated - markup
Type: Markup , Then std NAV hierarchy (Price, Discount, List)
Customer, Markup Group, All Customers
Combination of Types (using “Allow Discount”)
Loophole – 0% markup for item/customer

8. Level 3 - Sales Line Discounts
Sales Lines Discounts
Customer
Item
Item Discount Group
All Items
Cust Discount Group
All Customers
Cust ABC for Part 456 had sale price, discount and markup – which price would be calculated - markup
Type: Markup , Then std NAV hierarchy (Price, Discount, List)
Customer, Markup Group, All Customers
Combination of Types (using “Allow Discount”)
Loophole – 0% markup for item/customer

9. Advanced Pricing
Cust ABC for Part 456 had sale price, discount and markup – which price would be calculated - markup
Type: Markup , Then std NAV hierarchy (Price, Discount, List)
Customer, Markup Group, All Customers
Combination of Types (using “Allow Discount”)
Loophole – 0% markup for item/customer

10. Cost Markups – Step 1 Define Which Cost to Markup Unit Cost
Based on Item’s Average Unit Cost
Calculated Cost
List Price Less Vendor Discount
List Price Less Vendor Discount with Overhead %
Override Calculated Cost

11. Cost Markups – Step 2 Set Base Unit Price (aka List)
Unit Price field on Item
Sales Prices - “All Customers”

12. Cost Markup – Step 3 Set Vendor Discounts Set at Vendor And/or Item
Multiple Discounts

13. Cost Markups – Step 4 Set Markup %
Set for Customer, Customer Markup Group or All Customers
Set by Item or Item Markup Group
Start/End Date

14. Cost Markup Groups Customer Markup Group Item Markup Group
Assign Markup Group to Customer
Item Markup Group
Assign Markup Group to Item

15. Sales Prices Fixed Price Set by Item
Set for Customer, Customer Price Group or All Customers
Qty Breaks
Start/End Date

16. Sales Price - Customer Price Group

17. Sales Line Discounts Discount off Unit Price
Set for Customer, Customer Discount Group or All Customers
Set by Item or Item Discount Group
Qty Breaks
Start/End Date

18. Sales Lines Discount Groups
Customer Discount Group
Assign Discount Group to Customer
Item Discount Group

19. Toad Pricing Benefits Unit Cost auto updated in cERP
Vendor Discounts maintained in 1 place

20. Toad Pricing Maintain Discounts in TOAD Open TOAD CRT
Enter Discount by for Vendor/Series
Edit—Maintain Mfg. Discount—Adv. vendor Disc
Enter new line at bottom
Or double click existing row

21. Toad Pricing Link Standard Item to TOAD
Select “Run Hardware Config.” from Item
Configure item within TOAD

22. Adjust Item Cost/ Prices
Batch Update Item Cost or Price
Item or SKU
Adjust Field:
Unit Price
Profit %
Indirect Cost %
Last Direct Cost
Standard Cost
Adjustment Factor
Filter by:
Item number
Vendor
Item Category/Product Group
Location

23. Field Definitions Material List contractERP Setup
Submittal Cost – populated from submittal software
Unit Cost – defaults from item card for standard items
contractERP Setup
Sp. Ordered Standard Item Cost - determines where unit cost for Special ordered standard items will default from
From Source – from Submittal Cost
From Item – from item or sku

24. Field Definitions - Continued
Purchase and Payables Setup
Default Direct Cost when Vendor Discounts Exist (fka: Use Item Direct Unit Cost) – determines where PO cost for item will default from
Applies only if Sp. Ordered Standard Item Cost is set to “From item”
Checked – PO cost from Direct Unit Cost on item/sku
Unchecked – PO cost from Last Direct Cost on item/sku

25. Pricing Ken Smith • ken@accessit.com
 Thank you for attending our session!
Pricing
Ken Smith •
Tracie Folscroft •