A very common requirement that comes up on many projects and especially wholesale distributors is the need to store and see sub-totals along the various levels within the Pricing Tree. I view the Pricing Tree as essentially the Costing Sheet for Standard Cost but the Pricing Tree is for how the Selling Price has been calculated.
Here is an example:
Let's say we buy something for $1,000 from the Vendor. The company decides they want to utilize two Margin Components to Mark Up the Cost along the way to the final selling Price. They determine they want one for 10% to cover corporate Procurement and Marketing expenses and another 2% for inbound Freight. They would like to see this $1,120 as a sub-total in the Pricing Tree labelled as "Sales Cost". This Sales Cost is what the salespeople are allowed to see and all commissions and store level profitability is calculated from Sales Cost to Selling Price instead of all the way back to the actual Financial Cost. Some organizations require to display some of these sub-totaled layers in the Pricing Tree on reports and invoices so it would need to be a stored value to utilize in reporting. Additionally, they often want to allow further Discounts, Rebates, etc. pointing at one of these named/stored Sub-Totals. For example, the customer might get 24% markup from Sales Cost but then 2% off Selling Price for using the private label credit card and a 5% Vendor Rebate leverage another layer in the Pricing Tree.
- Allow for the insertion of named Sub-Totals in the Pricing Tree
- Store these Sub-Totals to leverage on reports and other processes
- Allow these various Sub-Totals to be pointed at throughout other Pricing Elements so the Margin Components, Discounts, Rebates, etc. can access different layers of the Pricing Tree.
Comments
I found there was an area for Unified Pricing and Rebates after I posted this. Can it be moved to that area?
Category: Product Information Management