Pages

2012/09/21

2BizBox Price & Discount Walkthrough



When you create a SO or PO in 2BizBox, you definitely want the system to give you item prices because you've set various prices in advance. There are list price, contract price and discount codes in 2BizBox, but have you made clear which one will be considered first in what circumstances? In this article, we will introduce you very systematically the Price and Discount in 2BizBox, and their priority levels.

Before we dig into the essential, there are several basic concepts for you to comprehend:

Price and Discount. On the Updating Order Item interface, the "Cost/UOM" is the part price of per unit. Discount is the reduction percent to the part price. In 2BizBox you can define the price and discount in many ways.




Part Inventory List Price. To a part for sale, the Part Inventory List Price is the basic price without priority when adding a SO or Quote Item. The list price can be edited when updating part properties, or imported by "Import Part Inventory Basic Information" in control panel. 





Standard Cost. It is the pre-defined cost price of a part that is purchased or manufactured. Standard Cost also can be edited when updating part properties, or imported by "Import Part Inventory Basic Information" in control panel. It is the basic price for PO Item without priority.




Now let's take a look at the complete price & discount levels in 2BizBox.


1. Sales Order Price & Discount

 
The following chart shows the descending priority levels of prices & discounts in a Sales Order:



1.1 Sales Order Price
 

Customer Contract Price. The "Customer Contract Price" in Sales Box is the first consideration in a Sales Order. You need to specify the exact price of the part and appoint this price to certain customers. When adding a customer contract price, you have to fill in the "List Price" and "Disc%". The "List Price" in Contract Price is prior to "Part Inventory List Price", so even if there's no discount here, you can still specify a contract price for specific customers.



Latest Quote Price. After Customer Contract Price comes the "Latest Quote Price (Same Part # & Customer ID)". As the literal meaning suggests, when you are making a Sales Order, the system will take the most recent approved quote price if the sales order is made to the same customer and with the same sales item.

Part Inventory List Price. Finally, if a part has no contract price or last quote price, the basic inventory list price will be the only choice. 


1.2 Sales Order Discount


Contract Price Discount. There are two discount rates settings in 2BizBox, one is the contract price discount, which is mentioned above, and it is also the first consideration for discount.

D Code. Short for "Discount Code", each D Code represents a discount rate, and is applied to the part. 



You can set D Code in "Sales Box - Sales Order - Control":


The "D Code" is constituted by only one letter or number. One D code must be related to one Customer Type, and in one D Code, you can set one discount rate. 




Two conditions must be satisfied to apply the "D Code":


1. the SO Customer is appointed to the same Customer Type as D Code:
  



2. The part has "D Code" in inventory information. 





2. Quote Price & Discount

 
The following chart shows the descending priority levels of prices & discounts in a Quote:



Quote Price and Discount is similar to a Sales Order, and simpler. The Quote Price only has Contract Price & List Price, while the Quote Discount only has the Contract Discount to apply.

3. Purchase Order Price & Discount

 
The following chart shows the descending priority levels of prices & discounts in a Purchase order:





3.1 Purchase Order Price

 
Vendor Contract Price. In Purchase Box, there is Vendor Contract Price which is the first consideration for the Purchase Order Price. It specifies the exact price of parts from certain vendors. The "List Price" in Vendor Contract Price is prior to "Part Inventory List Price", so even if there's no discount.




Vendor Qty Price & Vendor Price. When adding vendor information to a part, we can both add Vendor Price and Qty Price. Vendor Price is the part list price from Vendor, and the Qty Price gives stepped discounts according to different purchasing quantities. A part with multiple vendors will have multiple Vendor Qty Prices and Vendor Prices.

The Vendor Price is filled in when updating the vendor info:



After submitting vendor info, you can click "2Add Qty Price" to add the Vendor Qty Price:



In Updated Quantity Price of Vendor interface, you can edit quantity price and discount:




Therefore, following the Contract Price, there are Vendor Quantity Price and Vendor Price.

Standard Cost. If there's no other prices set, the PO Item will take the Standard Cost which has been explained in the beginning.

3.2 Purchase Order Discount


Quantity Price Discount. As we mentioned before, there are quantity price in vendor information, and the Quantity Price Discount is the first choice of PO Discount.

Contract Price Discount. There might confusion on why Contract Price goes before Qty Price but Qty Price Discount goes before Contract Price Discount. Though we list four different discounts for PO, only the "Last PO Item Discount" and "Vendor Discount" works on all prices. That is to say, Contract Discount and Qty Discount are applied to their corresponding prices only. Though we give out the priorities in the system level, it is enough for common users to remember that Quantity Price * Discount goes before Contract Price * Discount.






Last PO Item Discount. When you add a PO Item with discount rate (manually discount rate), the following item added will refer to that rate.

Vendor Discount. You can find Vendor Discount in Vendor Properties, and update it in Address Box. When a PO is made to a vendor with Vendor Discount, system will give all PO items the discount rate, premised that no other discounts rate is related to these items. 




To clarify and make good use of these prices will greatly help you to manage your part and product prices. But don't forget that at any rater, you can change them manually.

2 comments:

  1. Is 2BizBox still an active project?

    ReplyDelete
    Replies
    1. Hi

      We are going to publish 2BizBox v4.0 and we will continue to work on it in the future.

      Partners are still needed in the global range. If you want to participate in 2BizBox, welcome to tell us more about your plan.

      Delete