About Pricing and Cost
In order entry, the system calculates and displays a suggested selling price. The selling price is determined by parameter screen settings and the information you enter for each customer and item.
When setting pricing information, there are several decisions you must make, such as how to set pricing for individual customers and how pricing is affected when you load inventory onto your system. In addition, the pricing matrix uses the settings in several parameter screens to determine how the system calculates pricing in different situations. The topic Understanding Basic Customer Pricing Options gives the information you need to make decisions with regards to setting price.
It’s important that you’re familiar with the material in the topic Understanding Basic Customer Pricing Options before you review the information in Understanding How the System Calculates Suggested Selling Price. (This may take several readings.) Once you have a grasp of the various factors that can affect pricing for customers and items, you can follow the information. This topic explains how the various pricing factors that you have learned about can work together to determine the suggested selling price. This topic also explains the types of contracts that are available and gives examples of each.
The topic Understanding How Cost is Maintained discusses the types of cost maintained in the system and explains how those costs are used in the order entry application.
Instructions for maintaining cost in contracts are given in About Cost Options. This topic also explains how you can base report information on a variety of price figures, and gives information on correcting cost without creating a credit.
About Cost of Goods explains the methods available for determining cost of goods sold. This topic also discusses the weight rate calculations that are used to calculate additional cost adjustment factors.