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Add and price the items in a customer contract

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There are several pricing and discounting options available for the items you add to the contract (see Pricing options for a customer contract and Discounting options for a customer contract below).

To add and price the items do as follows:

  1. Select the Work with customer contracts menu item.
  2. On the initial panel, highlight the applicable customer contract and click Items.
  3. On the Work with customer contracts, items panel click Add.
  4. You access Work with customer contracts, where you enter all of the item details for the contract. Complete the following fields:
    5. Item code
    Mandatory entry. Enter the item code to which this contract applies.
    Warehouse
    Enter the warehouse number. If left empty, the contract details will be applicable for all warehouses.
    Currency
    Enter the currency used in the contract. If left empty, the contract details will be applicable for all currencies.
    Sales unit
    Depending on what has been activated and/or defined in the system, the unit can either be automatically retrieved or entered manually. Enter the unit of the item. If left empty, the contract details will be applicable for all units.
    Base
    Indicate the terms of the contract, choosing from one of the valid codes:
    T if the contract is Time based
    Q if the contract is Quantity based
    B if the contract is Both (time based and quantity based)
    Quantity contracted
    Mandatory entry if Base = Q (Quantity) or B (Both Time and Quantity based). Enter the quantity of the item that you have agreed to sell under the conditions of this contract.

For the pricing and discounting alternatives, click to expand the applicable section directly below for the different alternatives and fields that need to be completed.

Pricing options for a customer contract

To define the pricing for the item on the contract choose one of the four pricing options in the table below and apply, if applicable, any discounts listed under Discounting options for a customer contract.

Note: To generate retail prices see Generate a suggested retail price from the sales price of a customer contract.

Pricing options for a customer contract.
(Only one of the first four can be applied per item)
Pricing options Mandatory fields Optional fields
1. Fixed price

You manually set the price.
    Item
    Currency
    Unit
    Base
    Price
    Quantity contracted
    Only mandatory if Base = Quantity or Both time and Quantity.
    VAT based
    Indicate if the item is VAT based.
    VAT included
    Indicate if VAT is included in the sales price.
    Warehouse
    If left empty the details will apply to all warehouses.
    Include VAT % code
    If the price is to include VAT, enter the included VAT handling code.
2. Variable price

Let the system calculate the price based on a cost or purchase price.
    Item
    Base
    Basis
    Select a basis code that identifies the type of base cost that you wish to use in your sales price calculation.
    Marg/mark
    Define how you want the sales price of the item to be calculated by the system relative to the base cost. Enter 1 if you want your sales price to be a Margin. Enter 2 to denote that it will be a Mark-up.
    Fact/per
    Define how the margin or mark-up is to be applied. Enter 1 if you want the margin or mark-up to be calculated as a factor. Enter 2 to denote that it will be a percentage.
    Value
    Enter the value of the factor or percentage. You can leave this field empty if you want to sell an item at cost.
    VAT based
    Indicate if the item is VAT based.
    VAT included
    Indicate if VAT is included in the sales price.
    Currency
    If left empty the details will be valid for all currencies. If any amount dependent limits are defined, the entered amounts will be considered in the order’s transaction currency during the qualification process for this contract. Note: An exception to the rule occurs when order summary discounts are being set up. In this case, the amounts will be considered in system currency and the applicable lines’ amount converted to it before the qualification process takes place.
    Unit
    If left empty the details will apply to all units. If any quantity dependent limits are defined, the entered quantities will be considered in the order’s sales unit during the qualification process for this contract. Note: An exception to the rule occurs when order summary discounts are being set up. In this case, the quantities will be considered in stock unit and the applicable lines’ quantity converted to its corresponding stock unit before trying to qualify for them.
    Include VAT % code
    If the price is to include VAT, enter the included VAT handling code.
3. Sales price list

Retrieve the price from a Sales price list to achieve one of the following:

– Use the price (fixed or variable) and any discounts from the Sales price list

– Use the basis for calculating the cost and any discounts from the Sales price list, but decide the margin or mark-up in the contract.

 Item/Currency and Unit on the contract must be the same as that in the chosen Sales price list.

    Base
    Price list

Note: The VAT is picked from the price list.
4. FOC

Free of charge
    Item
    Base
    FOC
    VAT based
    Indicate if the item is VAT based.
    VAT included
    Indicate if VAT is included in the sales price.
    Include VAT % code
    If the price is to include VAT, enter the included VAT Handling code.
5. Unique Limit dependent pricing (Quantity ordered) for item in the contract

Note: You can define your sales prices by setting up unique quantity limits and attaching Fixed prices to each limit.
    Item
    Currency
    Unit
    Base
    Quantity contracted
    Only mandatory if Base = Quantity or Both time and Quantity).
    Limit type
    Code for Quantity.
    VAT based
    Indicate if the item is VAT based.
    VAT included
    Indicate if VAT is included in the sales price.

    Click the Limit dependent pricing function key. Click the Add option and complete the following fields.

    Quantity limit
    Enter the quantity that the customer has to purchase in order to receive the fixed sales price.
    Sales Price
    The fixed sales price for this limit.
    Warehouse
    If left empty the details will apply to all warehouses.
    Include VAT % code
    If the price is to include VAT, enter the included VAT handling code.

Discounting options for a customer contract

Discounting options for a customer contract
(Only one of the following can be applied on Fixed Price or Variable Price or Price list)
1. Unique Limit dependent pricing (based on Amount value or Quantity ordered) for item in the contract Can be applied on Fixed Price or Variable price or Price list (see above)

Complete fields:

    Discount ID
    Denotes the reason for giving the discount.
    Limit type
    Code for Quantity or Amount

    Click F8 then Add to define the limit and discount.

    If Amount dependent discounts complete:

    Amount limit
    Enter the amount value that the customer has to purchase in order to receive the discount percentage or amount.

    And one of the following fields:

    Discount %
    Discount amount
    FOC items

    If Quantity dependent discounts complete:

    Quantity limit
    Enter the quantity that the customer has to purchase in order to receive the discount percentage or amount.

    And one of the following:

    Discount %
    Discount amount
    FOC items

    The system updates the following field:

    Discounted price
    If a fixed price was defined on the contract the system updates this field with the discounted price. If no fixed price was defined, the base price will be retrieved during the pricing calculation at sales order entry and updated in this field at that time. Base price taken from the customer’s default Sales price list or the standard sales price list attached in the DIS control file.
2. Connect predefined Limit dependent pricing (limits and discounts held in a code). Can be applied on Fixed Price or Variable price or Price list if no limit dependent pricing is defined on the price list

    Unit
    Mandatory field if you are connecting a quantity based limit code. It must be the same as that defined in the limit code.
    Currency
    Mandatory field if you are connecting an amount based limit code. It must be the same as that defined in the limit code.
    Limit code
    Enter/select the code that holds the amount or quantity discounts.
3. Discounts with no limit restrictions Can be applied on Fixed Price or Variable price or Price list (see above)

Click F10 and then Add to define the discounts.

Complete:

    Discount ID
    Denotes the reason for giving the contract discount.

    And one of the following:

    Discount percentage
    Discount amount

Note: The Claimable field is automatically set to True or False and denotes if the connected Discount ID has been set up as claimable. The Supplier Marketing Support functionality allows you to set up and process rebate/discount claims from your supplier/manufacturer. For more information see About IBS Supplier Marketing Support (SMS).

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