Overview
The pricing calculator can be used to set the default purchase or sale price for products in a location. Default purchase and sale prices are used throughout Supplyit for reporting as well as creating orders. The pricing calculator uses a variety of methods to set prices. Pricing can be set based on registered default prices, sale or purchase prices on orders or upstream products related to products on orders or in the pricing table.
Benefits
Managing and setting prices takes time and there is often calculations and data analysis involved. Using the pricing calculator, locations can quickly set default product prices for many products using a variety of complex strategies in a fraction of the time it would take by using the pricing editor. By basing prices on fact data already in Supplyit, the pricing calculator can set prices using a location's desired pricing strategy. When pricing generic products, the pricing calculator assist with identifying products that are not connected to a vendor product. These connections are necessary when using the advanced production features offered in Supplyit.
Common Pricing Strategies
Purchase Price Setting
Update or set a product's purchase price based on purchase orders for the product in a defined time period. This is the most common use for the pricing calculator and is the building block for setting more complex prices. Pricing strategy (average or most recent) should be decided for each location and pricing updates should be run on a regular basis.
Sales Price Setting
Using a registered purchase price or pricing on orders to set the sales price with an adjustment factor is another common use for the pricing calculator. This strategy can be used to set product prices based on a purchase price and a target margin. Locations can also set future sales price increases across all products using the current sales price and a percentage increase.
Upstream Generic Product Price Setting
Products in Supplyit can be related to other products through a recipe (advanced production) or composition (catalog recipe). Prices can be calculated and set based on the relationship ratio between products. A common use is to set the price of a generic product, which is not directly purchased, using its upstream relationship to a vendor product which is purchased. The pricing calculator will only set the price for a generic product if the product's upstream related product (the vendor product) was purchased in the date range specified to insure pricing is not based on old data.
Production Product Price Setting
Production product pricing can be calculated and set using the pricing calculator, however in order to set a price for a production product, all of its upstream products (one generation down) must have a priced in the pricing table. Following the strategy outlined in this article, you can set a product products price based on the material that the product is made from. Prices for vendor products, generic products and product recipes used in the production product must be price first.
Definitions
Vendor products - Products that are purchased from vendor designated contacts in a location or a supplier. Generally the associated location is assigned the type vendor which allows a standard location to enter purchase orders for inventory purposes.
Generic products - Generic products have a specific role in inventory and recipes. They are associated to one or more vendor products and are replenished when their associated vendor products are purchased.
Recipes products - Recipe products are commonly referred to as work in progress products (WIP). Generally they are products that have a recipe but are also used as components or ingredients in other products.
Production products - Product products are generally made or produced by a supplier in Supplyit and are then sold to customers using the Supplyit platform.
Navigation
Location Console=>Administration=>Catalog=>Pricing=>Pricing Calculator
Setting the default purchase price for vendor products
The pricing calculator determines your vendor purchase price for a product based on the purchase order history in the time period selected and the pricing strategy being used. Pricing should always be set for later periods forward. Use a 01 Pricing: Vendor Products label to easily select all vendor products across catalogs. Select (Any) from the catalog and then select the label to add all vendor products to be priced.
Specifying Criteria
Pricing Type To Set: Purchase
Calculate Pricing Using: Most Recent Purchase Price or Average Purchase Price
Date Range: Select the date range to base the calculations on
Adjustment Factor: N/A
New Pricing Start Date: This date will be used to add the new date to the pricing calculator. Typically done on a monthly basis using the first day of the month. All prices after this date in the pricing table will be overwritten.
Add Products: Add the vendor products that you want to set the prices for. You can set prices across multiple vendor catalogs at the same time. Add Products (Use label to make this process easier and uncheck Active flag)=>Calculate Prices. The magnifying glass shows how the new price was calculated.
Select Products To Be Updated: Click Select All to the left of "Product." Only products with a check box can be updated.
Preview: Review and/or update records
Setting the default purchase price for your generic products
The pricing calculator can set a price for generic products based on their related vendor purchase orders in the date range and the relationship (ratio) between their vendor product. The pricing method to choose from when setting a generic product price is the on of the upstream strategies. If a generic product has more than one restorative relationship the price will be weighted based on purchases in the range. Use a 02 Pricing: Generic Products label to easily select all generic products. Select (Any) from the catalog and then select the label to add generic products to be priced.
Required: Upstream vendor products must be on purchase orders in the selected date range for the generic product to be priced.
Specifying Criteria
Pricing Type To Set: Purchase
Calculate Pricing Using: Upstream Average Purchase Price, Upstream Most Recent Purchase Price or Upstream Registered Purchase Price.
Date Range: Select the date range to base the calculations on
Adjustment Factor: N/A
New Pricing Start Date: This date will be used to add the new date to the pricing calculator. Typically done on a monthly basis using the first day of the month. All prices after this date in the pricing table will be overwritten.
Add Products: Add the products that you want to set the price for (supplied and remove Active flag). Add Products(Use label to make this process easier and uncheck Active flag)=>Calculate Prices. The magnifying glass shows on how the new price has been calculated.
Select Products To Be Updated: Click Select All to the left of "Product." Products without a check box can not be updated. See see why they can not be updated, click on the magnifying glass.
Preview: Review and/or update records
Best Practice: Use the pricing calculator to identify missing generic product relations. By clicking the magnifying glass on the products where a price can not be set, you can identify which products are not connected to a vendor product.
Setting the default purchase price for your recipe products
The pricing calculator can set a price for recipe products based on their generic product prices (which you would have set above). The pricing method to choose when setting your recipe product price would be Upstream Registered Purchase Price. You will need to repeat the steps below until the items to price list is empty. Use a 03 Pricing: Recipe Products label to easily select all recipe products. Select (Any) from the catalog and then select the label to add generic products to be priced.
Specifying Criteria
Pricing Type To Set: Purchase
Calculate Pricing Using: Upstream Registered Purchase Price
Date Range: Select the date range to base the calculations on
Adjustment Factor: N/A
New Pricing Start Date: This date will be used to add the new date to the pricing calculator. Typically done on a monthly basis using the first day of the month. All prices after this date in the pricing table will be overwritten.
Add Products: Add the products that you want to set the price for (supplied and remove Active flag). Add Products(Use label to make this process easier and uncheck Active flag)=>Calculate Prices. The magnifying glass shows on how the new price has been calculated.
Select Products To Be Updated: Click Select All to the left of "Product." Not all products will be selected. This is to be expected as it only updates prices that have changed (on a purchase order in the period).
Preview: Review and/or update records
Repeat pricing until the recipe items list no longer has items to be priced. Pricing multiple time is required when recipe items contain recipe items rather than generic items.
Best Practice: Use the pricing calculator to identify unpriced generic products. By clicking the magnifying glass on the products where a price can not be set, you can identify which products have unpriced generic products.
Save Changes
Setting the default purchase price for your production products
The calculator can set a price for production products based on the recipe product's purchase price (which you set above). The pricing method to choose from when setting your production product price is the Upstream Registered Purchase Price. Use a 04 Pricing: Production Products label to easily select all generic products. Select (Any) from the catalog and then select the label to add production products to be priced.
Specifying Criteria
Pricing Type To Set: Purchase
Calculate Pricing Using: Upstream Registered Purchase Price.
Date Range: Select the date range to base the calculations on
Adjustment Factor: N/A
New Pricing Start Date: This date will be used to add the new date to the pricing calculator. Typically done on a monthly basis using the first day of the month. All prices after this date in the pricing table will be overwritten.
Add Products: Add the products that you want to set the price for (usually supplied products (remove the Active flag). Add Products(Use label to make this process easier and uncheck Active flag)=>Calculate Prices. The magnifying glass shows how the new price has been calculated.
Select Products To Be Updated: Click Select All to the left of "Product" to select the products that can be updated.
Preview: Review and/or update records
Best Practice: Use the pricing calculator to identify unpriced generic products. By clicking the magnifying glass on the products where a price can not be set, you can identify which products have unpriced generic products.
Set up a label for your 01 Pricing: Vendor Products, 02 Pricing: Generic Products, 03 Pricing: Recipe Products and 04 Pricing: Production Products. These labels can be used to select all products in the label across catalogs by selecting (Any) for the catalog from the product picker in the pricing catalog.
Pricing labels must be maintained. When a new product is added to a location, you must add it to the correct label.