SAP Business One Tips: Pricing Concepts

KHARECHKO ANATOLIY
Senior Project Manager, ERP Projects Architect
a.kharechko@ageless.com.ua

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Ability to offer the best price on the market may be one of the main factors of a company’s success. It is especially important that prices are calculated in a flexible and timely manner.

SAP Business One provides capabilities to set a pricing scenario you need thanks to several pricing mechanisms, connected with each other hierarchically. But the most interesting feature making these mechanisms more flexible is that with different combinations of initial conditions, they can provide different results based on different scenarios.

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There are several methods of price calculation:

  • Price Lists. Contains prices for different goods offered to different groups of customers.
  • Period and Volume Discounts. Allow to determine discounts for an actual price list based on dates, time periods and quantity of goods. In fact, they redefine base price in a customer’s price list.
  • Discount Groups. Different discounts can be added based on groups of goods, their properties and manufacturer.
  • Special Prices for BPs (business partners). Can be used in cases when you want to offer the most beneficial prices to certain customers or groups of customers. They can be used for certain date range and certain measurements.
  • Used to negotiate properties of products, as well as quantities and prices for certain customer for the period of the contract.

 

HOW IT WORKS

Search of an actual price begins with an individual definition – a contract. And then moves to more general things, like period and volume discounts. The calculation is conducted based on a price list, related to a certain client.

For example, with the combination of such methods as “Special Prices for BPs”, “Discount Groups” and “Period and Volume Discounts”, we can realize a scenario, according to which we need to calculate an individual price for each customer to offer the price, most beneficial for us and for him. This can be especially useful when we deal with products which are:

  • About to be released or, on the contrary, removed from the market by certain date.
  • Made by certain manufacturer and possess certain features.

Moreover, we want to offer our VIP clients a priority to use our discount within certain timeframe before it will become available to the whole market.

Another great feature of the price calculation functionality is worth mentioning. When you form a sale document for a client, by looking at the “Price source” field, you can always see where the calculated price derives from: a price list, a period and volume discount or special price for BPs.

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Read about other benefits of SAP Business One, which simplify the work of users and increase the efficiency of the company on the page Why SAP Business One is So Convenient: Interesting Features for Users