SOE Pricing Parameters

The following control maintenance records belong to the SOE (Sales Order Entry) category and apply to pricing parameters.

Default Rank For Velocity Pricing

For each branch, enter the rank the system should use if the product does not have a rank established for the pricing branch of an order.

Minimum Variance Before Last Price Reduction

For each branch, define a threshold variance and a cost reduction factor the system can use to reduce a price if the current cost is less than the previous cost and the difference exceeds the threshold. More:

Options	Any variance threshold between 0 and 100 percent.
Outcome of setting this control record	The system uses the following formula to calculate the variance between the current and previous cost: Variance % = 100 - (Current Cost /Previous Cost). If the difference between the current and previous cost exceeds the threshold you define in this record, the system decreases the sell price using the following formula to calculate the cost reduction: New Sell Price = Previous Sell Price - Cost Reduction Factor (Previous Rep Cost - Current Rep Cost). The system adds the following comment to the order change log: Price Reduced Because of Cost Reduction on Item<x>. Last Price is <$>.
Default Value(s)	Blank
Action if set to Null	The system does not check for a variance or change a sell price for that branch.
Additional Information	For more information about the last price/cost logic, see Defining Customer Pricing Options.

For example:

If...

Then...

Variance % = 10%

Cost Reduction % = 50%

Previous Sell Price = $19.00

Previous Cost = $15.00

Current Cost = $11.00

Variance % = 100 - (Current Cost /Previous Cost)

Variance % = 100 - (11/15) = 26.66%

Since the variance threshold is reached (10%), the price will be reduced using the cost reduction factor of 50%

New Sell Price = Previous Sell Price - Cost Reduction Factor (Previous Rep Cost - Current Rep Cost)

New Sell Price = $19.00 - .50 (15-11) = $17

Override Basis Name For Last Price Calculation

Enter a global basis name whose associated value is used to override the actual last price when using last price pricing. More:

Options	Any global basis name defined in your system.
Outcome of setting this control record	By default, the last price is based on the last price paid at any accessible branch. However, if you set this control maintenance record, then the basis identified is used instead of the actual last price.
Default Value(s)	None
Dependencies	For the setting in this record to have any effect on a customer, the Use Last Price/Cost Logic control maintenance record must be enabled or last price pricing must be enabled for an individual customer in Customer Maintenance.
Action if set to Null	The system uses the standard last price logic: COGS * Last price/Last COGS
Additional Information	The setting in the Use Last Price/Cost logic field in the Additional tab in Customer Pricing Information window in Customer Maintenance overrides this control maintenance record setting for the customer. Access the Customer Pricing Information window using the Price Information option on the Pricing menu in Customer Maintenance. For more information about the last price paid, see Viewing Customers' Last Price Paid.

Price Ceiling Global Basis Name

To ensure users do not sell above a maximum price, enter a global basis name to set as the maximum list basis field. More:

Options	Any global basis name defined in your system.
Outcome of setting this control record	Provides the ability to set up a maximum list basis that the system checks to ensure that users are entering prices for products below the maximum price limit.
Default Value(s)	Blank
Dependencies	User's must be assigned the SOE.MAX.PRICE authorization key to enter a price that is above the maximum list defined in this control maintenance record.
Action if set to Null	The system does not use a global basis name to restrict maximum price.
Additional Information	None

Reprice Sales Order Upon Invoicing

For each branch, indicate whether the system reprices the sales order at the time it is invoiced using current pricing information. More:

Options	Yes - If pricing has changed since the time the order was placed, the system reprices the sales order when it is invoiced using current pricing information. No - A change to a product price or pricing rules does not affect the price of a product on an order that is not yet invoiced.
Outcome of setting this control record	Depending on your business rules, set this record to Yes to update prices on an order to use the most current product prices when an order invoices.
Default Value(s)	No
Example(s)	In the tire industry, typically the invoice is priced at current standard market prices. A backordered item may be shipped at a different price than the original shipment. .
Action if set to Null	Same as if set to No.
Additional Information	If a product on an order has a price override, no repricing occurs. The override price remains in effect at the time of invoicing, even if this record is set to Yes. This record has no effect on purchase orders or transfers.

Reprice/Recost Order On Change Of Shipping Branch

Specify whether the system reprices or recosts items on an order generation when the user changes the shipping branch on that generation. More:

Options	Yes - The system always reprices/recosts items on the order generation when the user changes the shipping branch. No - The system never reprices/recosts the items on an order generation. Prompt - If a user changes the shipping branch on an order generation and the new shipping branch has a sell price or cost that is different from the sell price or cost at the original shipping branch, the system prompts the user to specify whether the system should reprice/recost the items to use the sell price/cost at the new shipping branch.
Outcome of setting this control record	Determines if products on an order are repriced/recost automatically, by prompt, or not at all when the shipping branch on the order changes. If a product on an order is scheduled on multiple generations with different ship dates and the shipping branch is changed for one of the generations, the change affects the item on all generations, if repricing/recosting is done.
Default Value(s)	Prompt
Dependencies	If set to Yes or Prompt, users must be assigned the SOE.OPEN.ORDER.EDIT and SOE.OPEN.PRC.EDIT authorization keys to reprice/recost products on the order.
Action if set to Null	Same as if set to No.
Additional Information	This record works independently of the setting in the Reprice Sales Order Upon Invoicing control maintenance record, which affects the repricing/recosting of items at the time an order is processed.

Use Central Warehouse Branch Rank If No Pricing Branch Rank

Enter one of the following to determine whether to use the branch rank of your central warehouse if you do not have a pricing rank set at a pricing branch. More:

Options	Yes - The system uses the branch rank settings as established for your central warehouse. No - The system does not use the branch rank settings as established for your central warehouse. Instead the system uses the rank settings as established for each branch.
Outcome of setting this control record	The system uses the following hierarchy when this control maintenance record is set to Yes: If a pricing branch has a rank, uses that rank. If a pricing branch does not have a rank, use the rank for the central warehouse. If the central warehouse has a rank, use that rank. If the central warehouse does not have a rank, use the settings in the Default Rank For Velocity Pricing control maintenance record. If your pricing branch is the same as your central warehouse, then the system uses the branch rank settings as established for your central warehouse.
Default Value(s)	No
Dependencies	Default Rank For Velocity Pricing control maintenance record
Action if set to Null	Same as if set to No.
Additional Information	If you use velocity pricing, we recommend that you set this control maintenance record to Yes.

Use Last Price/Cost Logic

Specify whether a customer’s last price and cost for a product should determine the current price and cost for that product. Typically only companies whose business type dictates it activate last price pricing at the time the system is implemented. More:

Options	Prompt - The system prompts the user to enter a price or cost for an item. The system displays the Last Price Verification window for all customers in sales order entry when a product is placed on an order. Price Only - The system uses the last price as the current price of an item. To determine the current cost, it uses the normal costing calculation. Last price pricing disregards all other pricing or matrix cells with the exception of contract pricing and customer-specific matrix cells (ship-to or bill-to) and generates an order entry price based on the percentage of markup on the last sale of the item to that customer. When a contract price or customer specific matrix cell is not in effect, the system prices an item at the COGS cost multiplied by the gross margin of the selling price from the customer's most recent shipment for the same item. The pricing audit displays the basis as "LP" and the formula as the percentage of difference between the last price and the calculated new price. For example, if the customer's price for the item on the most recent invoice was $1.25, the cost was $1.00 (a margin of 25%), and the current cost is $1.10, then the new price will be $1.375 and the audit will display LP+.10. Cost Only - The system uses the last cost as the current cost of an item. To determine the current price, it uses the normal pricing calculation. Both - The system uses the last price and last cost of an item as the current price or cost of an item. None - Last price pricing and last cost costing are disabled for all customers. The system uses the current price and cost for products added to orders.
Outcome of setting this control record	Determines if an how the system uses the last price and last cost a customer was granted on an order in sales order entry. See the descriptions above.
Default Value(s)	None
Action if set to Null	Same as if set to None.
Additional Information	Setting the Use Last Price/Cost Logic field to Both, Price Only, Cost Only, Prompt, or None on the Additional tab in the Customer Pricing Information window overrides the setting in this control maintenance record. Setting this record to Price Only overrides promotional pricing, if last price pricing is found, and changes the standard best-price-check logic.

SOE Pricing Parameters Control Maintenance Records