Create Databases -> Inventory -> Custom -> Column Pricing & Quantity Breaks

Column Pricing and Quantity Breaks

Column pricing and quantity breaks are used to calculate the suggested selling price in Order Entry.

In this section, we discuss the following:

• Understanding Column Pricing & Quantity Breaks
• Setting Up Column Pricing

Understanding Column Pricing & Quantity Breaks

You can offer your customers special prices for an item based on the quantity they order; you can guarantee them a column price regardless of the amount ordered; or you can set up assortment pricing. Assortment pricing lets customers receive breaks when buying an assortment of similar items. You can have the column price automatically calculated, based on the gross profit margin or on a discount from list, or you can manually set the column price.

Within the information for each customer, you specify how column pricing information applies to that customer in the Column Breaks box in the Customer Order Entry tab. For example, you can specify whether the customer is allowed a standard discount on top of column breaks. You can guarantee a specific column price (the customer pays no more than that price, regardless of the order quantity), or you can specify that the customer be excluded from column pricing.

The information about column pricing is stored in the I-COLUMNS file. Column pricing information is location specific and can be set up differently for each General Ledger location.

Quantity Break pricing offers the customer a special price if their order quantity meets the specified amount in the Column Pricing boxes in the Item Master tab.

If you use quantity break pricing based on a discount percentage, the quantity break price is discounted from the list price. The list price can be adjusted before the quantity break prices are figured by entering a percentage in the CON% box in the Item Master tab or in the Up List % box in the Item Settings tab. The quantity break prices themselves can be discounted if the Columns box in the Customer Master tab is set to Y. However, the Col# box from the Item Master tab limits the level of quantity breaks that may be discounted.

If you can use quantity break pricing based on gross profit percentage, the quantity break price is calculated using the gross profit percentage entered in the % box in the Column Pricing boxes in the Item Master tab and the current wholesaler cost. This figure is updated each time the wholesaler cost changes.

You may also choose whether you want the customer's standard discount to be applied to the break price. If you want the standard discount to be applied to the break price, specify Y in the Columns box in the customer's account in the Customer Master tab. (In order for the standard discount to be applied, the Net box in the Pricing boxes in the Item Master tab must be set to N.)

The standard discount is limited to the break column specified in the Col# box in the Item Master tab.

If you leave the Columns box blank, the customer receives the quantity price break if a sufficient quantity is ordered. The customer's standard discount is not applied to this price.

If you do not want the standard discount to apply, specify N in the Columns box.

Setting Up Column Pricing

Column pricing can be set up in the following ways:

• Discount: quantity breaks discounting a percentage from list for items or assortments. The break price is based on the specified discount percentage and list price.
• Gross Profit: quantity breaks using gross profit percentage for items or assortments. The break price is calculated using the specified gross profit percentage in the Percent box in the Item Master tab Column Pricing boxes and the cost specified in the Cost Code box in the Customer Order Entry tab.
• Fixed Price: fixed price quantity breaks for items or assortments. The break price is a guaranteed price that you manually enter. This price is not updated by O/PUS.
• Sales Asst: quantity breaks based on dollar amounts for items purchased from a specified assortment. The break price is based on a discount from list.
• Sales Asst GP: quantity breaks based on dollar amounts for items purchased from a specified assortment. The break price is based on gross profit.

For more information on setting up column pricing, see the topic Adding Column Pricing.