How SMARTSystem Pricing Works

Prices are not calculated in the sales order program, they are shown.

The prices in Selective Order and Box Ordering either come from the price stored in the PO Detail record OR the price stored in the inventory record.  

What determines which price is used is the “Use Inventory Pricing Everywhere” option in System Control -> Sales -> Misc tab.

If Use Inventory Pricing Everywhere is selected it Shows Price Level 1, 2, 3, 4 or 5 from the inventory record depending on the customer’s price level.  

If the “Use Inventory Pricing Everywhere” option is NOT checked, then Selective ordering and Box Ordering will use the Price that was saved in the Purchase Order Detail Line item when the PO Line Item was created. This price is used to calculate Price Level 1, 2, 3, 4 or 5 by evaluating the Sales Price that was set in the PO Detail Record when it was created, the product type’s price level factors, and the default price level in system control.  

Margins

The sales price is SUGGESTED to the person entering the PO at the time the PO is being created, that person has the option to manually change the Sales Price that will be stored with the PO detail line item.   The price suggested is the landed cost x (the product type’s markup of the default price level defined in System Control [Level 1, 2, 3, 4 or 5].

This ability to override the sales price can change the margin of the product from the values defined in the product type price factor list.  That is why the Sales Price is used as the basis for the price calculation for Price Levels 1, 2, 3, 4, and 5 that are shown in selective ordering and box ordering when “Use Inventory Pricing Everywhere” is Unchecked in System Control.    The price is not calculated again. The margin is established when the PO Detail item is written when “Use Inventory Pricing Everywhere” is Unchecked in system control.

If you have other vendor charges and / or other import charges on your PO you will need to click the Update Shipping and Update Sales Prices buttons (in that order) on the Product Selection tab of the PO

Box ordering is also showing individual lots so it follows the same rules as selective ordering.

When the “Manually Update Sales Prices” option is UNCHECKED as you indicated you set it today: 

1.      The same rules apply as mentioned above for pricing and margins – this option doesn’t control that. 
2.      This option controls whether or not the prices in the inventory table get updated by the PO when it is received.

a.      This means that the price in the PO Detail Record that is described above as being able to be overridden by the user entering the PO and calculated at the time the PO line item is created will update the Sales Price Levels in the inventory record when the PO is RECEIVED.  This can be also be configured for individual categories when the “Manually Update Sales Prices” option is checked. This allows the pricing in the inventory table for some categories to be updated manually, and some categories to be updated when PO’s are received. 

The text above describes Selective Ordering and Box Ordering ONLY.

The Inventory Tab on Pre-book orders does not show individual lots and it always shows pricing from the Inventory table unless there is a contract price for the product.

Products entered from the Summary tab also use the price from the inventory table.

The incoming tab on pre-books uses the method above for its pricing unless the option to use incoming markup pricing is enabled. When use Incoming Markup Pricing is enabled – the “Incoming Inventory Level” MARKUP factors will be used by calculating the landed cost of the lot being shown x the markup factor as the price shown in the incoming tab. The System Control Margin option is not applied to the incoming tab when the Incoming Markup Pricing is enabled because it is Incoming markup pricing.