The system calculates the Strategic List Price and Strategic Cost by applying the core status from the Product record, Visibility from the product's sell group, and the Price Cube Modifier from either the product sell group or from the Price Cube default settings. These are applied to either the vendor's list or cost, depending on the basis used in the sell matrix, and if the customer has the List Price/Cost Method selection set to Strategic
The following conditions are true for the strategic list and cost calculation:
If the core status for a product at the customer category level is not defined, the system uses the core status at the product level. If the product does not have a core status assigned the system uses the default core status set for the product's sell group. If the product's sell group does not have a default core status set, the system uses a default core status of Non-Core D.
If the product is part of a core status family, the system uses the highest core status of the products in the family, instead of the product's individual core status assignment.
If a Vendor Visibility factor is not set for the product sell group, the system uses Very Low.
If Price Cube Modifiers and Price Cube Factors are not defined at the sell group level, the system uses the modifiers and factors in the
If your Data Services contract has expired, the following conditions are true for the strategic list and cost calculation:
The system processes all products as Core A, regardless of the customer category setting.
The system processes all calculations with a Vendor Visibility factor of Very High.
Product 4 V6X-S with a list price of $11.99 and the customer ordering the product is assigned to the Contractor customer category. In the Gold Data Services tier, the core status is taken from the customer category level for a product. The customer ordering the product is a Contractor, and product 4 V6X-S has a core status of Core B for customers assigned the contractor category.
Looking at the visibility table for the sell group, a Core B product with a High Visibility factor has a 0.03 multiplier. Then, looking at the Price Cube Modifier table, a product with a list price above $10.00 and below $50.00 has a 0.70 Price Cube Modifier.
If the sell matrix is set up to use Strategic List, the strategic list price is calculated as follows:
Supplier List Price x [(Visibility Factor x Price Cube Modifier) + 1]
$11.99 * [0.03*0.70)+1]
$11.99 * 1.0 = $12.2418
If the sell matrix is set up to use Strategic Cost, calculation is as follows:
Vendor Cost x [(Visibility Factor x Price Cube Modifier) + 1]
The system determines the strategic price for an item using the following steps: