Setting Selling Prices

1. When you first enter the Set Selling Prices option a Select An Option window will display with the following options:

• EXIT – Select EXIT to exit the Set Selling Price option and return to the Sales menu.
• ALL ITEMS – Select ALL ITEMS to set selling prices for all items.
• ITEM MASK – Select ITEM MASK to set selling prices for a group of items (item maskA mask is used to conduct a wild card search. Visually a mask is represented by a series of forward slash marks (///), sometimes with a letter, letters, or number(s) preceding it (1/// or AB///). For example, if you enter ////////, this indicates that you want to list all items defined in the system. If you enter in 1//1//1/, this indicates that you want the system to list items that have the digit "1" in those locations.) or an individual item code.

Select ALL ITEMS or ITEM MASK by scrolling to the appropriate selection and pressing Enter.

2. A Select A Price Master window will display a list of price masters defined in the system. Select the price master to set the selling price for the items that assigned to the price master.

3. Select which base price level (1-8) to set the selling price by scrolling to the appropriate base price and pressing Enter. The ability to set up to eight base selling prices for an item is available. For an overview on the basics of pricing in the system, see the Pricing Menu overview.

4. A Select An Option window will display with a list of costing methods. Select the costing method to use as the base cost for calculating the selling price. Each of the base selling prices can be calculated using different costing methods:

• Actual Cost – Select Actual Cost and the system will use the current weighted average cost of the item if there is on-hand inventory; otherwise, the cost history of the last three costs will be averaged and used as the base cost for calculating the selling price.
• Last Completed PO Cost – Select Last Completed PO and the system will use the last completed purchase order cost of the item, including value-type cost adjustments if the Set Selling Prices setting is set to Y (Y=yes) for the cost adjustment type assigned to the purchase orders as the base cost for calculating the selling price. The following message will appear if the Pricing Uses Markup flag in Sales Options is set to Y (Y=yes) or E (E=ESI only): "Create ESI cost file? No/Yes."
  • Select no if you do not want to create an ESI cost file.
  • Select yes to create an ESI file which shows which cost, purchase order number, raw material markup, and yield were used to calculate the selling price.
• Higher of Actual/Last PO – Select Higher of Actual/Last PO to use whichever value is higher to set prices– the actual cost of the item or the last completed purchase order cost of the item. The following message will display if the Pricing Uses Markup flag in Sales Options is set to Y (Y=yes) or E (E=ESI only): "Create ESI cost file? No/Yes."
  • Select no if you do not want to create an ESI cost file.
  • Select yes to create an ESI file which shows which cost, purchase order number, raw material markup, and yield were used to calculate the selling price.
• Standard Cost – Select Standard Cost to use the standard cost of the item as the base cost for calculating the selling price.
• Incoming PO – Select Incoming PO to use the value of the item that is on the next incoming purchase order, including value-type cost adjustments if the Set Selling Prices flag is set to Y (Y=yes) for the value-type cost adjustment type assigned to the purchase orders as the base cost for calculating the selling price. Enter the expected arrival through date in the Expected Thru Date field. The following message will appear if the Pricing Uses Markup flag in Sales Options is set to Y (Y=yes) or E (E=ESI only): "Create ESI cost file? No/Yes."
  • Select no if you do not want to create an ESI cost file.
  • Select yes to create an ESI file which shows which cost, purchase order number, raw material markup, and yield were used to calculate the selling price.
• Higher of Incoming/Last PO – Select Higher of Incoming/Last PO to use whichever is higher – the value of the item on the next incoming purchase order or the last completed purchase order – as the base cost for calculating the selling price. The Completed PO Days setting for the department assigned to the item will determine how many days of purchase order history to use when determining the last purchase order price to use. Enter the expected arrival through date in the Expected Arrival Thru Date field. If the Pricing Uses Markup flag is set to Y (Y=yes) or E (E=ESI only) in Sales Options the following message will display: "Create ESI cost file? No/Yes".
  • Select no if you do not want to create an ESI cost file.
  • Select yes to create an ESI file which shows which cost, purchase order number, raw material markup, and yield were used to calculate the selling price.

Note: If the Pricing Uses Markup flag is set to Y (Y=yes) in Sales Options, the system will automatically apply the Item Markup 1 to the Last Completed PO Cost or Incoming PO cost when either of these two costing methods are selected to calculate the selling price. If an item has a base raw material item and yield assigned, the cost of the base raw material item will be adjusted by the yield to calculate the cost of the item. The Item Markup 1 will be added to the adjusted cost to calculate the cost used in setting the selling price.

6. The Price Setting screen will appear with the following columns of information

• Item – The item code
• Item Name – The item name
• Cost – The cost of the item, calculated as chosen in Step #5 above
• Un – The stocking unit of measure
• Markup – The markup (percent or dollar) as defined in the Item table for that item
• Price – The current selling price
• Profit – The current per unit profit, based on the current price minus the cost type selected in Step #5
• Margin – The gross margin percent based on the current price minus the cost type selected in Step #5.

7. Enter the base selling prices for each item. Or, press F10 to display the following command options to have the system assist in calculating the selling price..

• Change – Select Change to edit the base selling price.
• Cost – Select Cost to replace the current base selling price with the costing method selected above and use this cost to calculate the new base selling price by applying the markups selected below.
• Markup – Select Markup to display new command options: Markup1, Markup2(B), Markup3(C), Markup4(D), Apply Markup to Price, Exit.
  • Select Markup 1 to use the Item Markup 1 as the markup to apply to the base selling price.
  • Select Markup 2 to use the Item Markup 2 as the markup to apply to the base selling price.
  • Select Markup 3 to use the Item Markup 3 as the markup to apply to the base selling price.
  • Select Markup 4 to use the Item Markup 4 as the markup to apply to the base selling price.
  • Select Apply Markup to Price to add the markup selected above to the base selling price.
  • Select Exit to exit the markup selection without making any changes.

Example: Markup Percent:
Price = Markup % + Cost
Markup % = 10% Cost = $2.50 Markup = 10% x 2.50 = $.25
Price = .25 + 2.50 = $2.75

Example: Markup Dollar:
Price = Markup $ + Cost
Markup = $.75 Cost = $2.50 Price = .75 + 2.50 = $3.25

• Price+ – Select Price+ to apply a fixed markup per unit or percentage across an entire base price list at once. A Select A Base Price window will display. Select the current selling price to recalculate the price by a factor or select another base price. Command options will appear:
  • Fixed Adjustment – Select Fixed Adjustment to add a fixed adjustment amount to the base price. The message "Enter Adjustment Amount" will appear and a field will display. Enter the fixed adjustment amount, in dollars, and press Enter. The following message will display: " Price will be adjusted by $X.XXXX. Continue? No/Yes."
    • Select no to exit without adjusting the base selling price and return to the command options.
    • Select yes to adjust the base selling price by the dollar amount entered.
  • Percentage Adjustment – Select Percentage Adjustment to add an adjustment percentage to the base price. The message "Enter Adjustment Amount" will appear and a field will display. Enter the fixed adjustment percentage and press Enter. The following message will display: "Price will be adjusted by X.XXXX%. Continue? No/Yes."
    • Select no to exit without adjusting the base price and to return to the command options.
    • Select yes to adjust the base selling price by the percentage entered.

Note: Changing and updating one base selling price (the one you are working with) will not affect the other base selling lists.

Example: Adjusting Current Selling Price With A Fixed Adjustment:
Price = Current Price + Fixed Adjustment
Amount Current Price = $5.00 Fixed Adjustment Amount = $ .50
Price = 5.00 +. 50 = $5.50

Example: Adjusting Current Selling With A Percent Adjustment:
Price = Current Price + Percent Adjustment
Amount of Current Price = $5.00 Per Adjustment Amount = 20% Markup = 5.00 X 20 % = $1.00
Price = 5.00 + 1.00 = $6.00

Example: Using Base Price (2) With A Fixed Adjustment:
Price = Current Price + Fixed Adjustment
Amount Base Price (2) = $6.00
Fixed Adjustment Amount = $.75
Price = 6.00+.75 = $6.75

Example: Using Base Price(2) With A Percent Adjustment:
Price = Current Price + Percent Adjustment
Amount Base Price (2) = $6.00, Per Adjustment Amount = 20%, Markup = $6.00 X.20 = $1.20
Price = 6.00+1.20 = $7.20

• Round – Select Round to round the base selling price to the nearest nickel. Command options will display:
  • Up to Nearest Nickel – Select Up to Nearest Nickel to round the base price up by a nickel
  • Down to Nearest Nickel – Select Down to Nearest Nickel to round the base price down by a nickel.
  • Round to Nearest Nickel – Select Round to Nearest Nickel to round the base price to the nearest nickel.
  • Exit – Select Exit to exit the Round command option and return to the list of command options.

Example: Rounding To Nearest Nickel:
Price = $5.01 Up to Nearest 5 = $5.05
Price = $5.01 Down to Nearest 5 = $5.00
Price = $5.01 Round to Nearest 5 = $5.00

• Zero – Select Zero to zero all base selling prices. The following message will display: "Reset all fixed prices to O. Continue? No/Yes."
  • Select no to exit without resetting all base selling prices and return to the command options.
  • Select yes to reset all base selling prices to zero.
• Update – Select Update to save the base selling prices entered.
• Print(X) – Select Print(X) to print a Price Report or a Variance Report. see  Printing Selling Prices for more information.
• Exit – Select Exit to exit and return to the Select A Base Price window.

See Price Exceptions and Pricing Programs for more information on how to adjust a base selling price for a price class, customer, customer maskA mask is used to conduct a wild card search. Visually a mask is represented by a series of forward slash marks (///), sometimes with a letter, letters, or number preceding it (1/////// or AB////). For example, if you enter AB//// this indicates that you want to list all customer defined in the system whose names begin with AB., item, or item maskA mask is used to conduct a wild card search. Visually a mask is represented by a series of forward slash marks (///), sometimes with a letter, letters, or number(s) preceding it (1/// or AB///). For example, if you enter ////////, this indicates that you want to list all items defined in the system. If you enter in 1//1//1/, this indicates that you want the system to list items that have the digit "1" in those locations..

For more information on the Set Selling Prices option see Set Selling Prices.

Security Required : Sales - Selling Prices