The price book provides a flexible approach to pricing. You may want to:
● Vary prices between customers.
● Give special discounts to regular customers who are quick to pay.
● Offer incentives to purchase certain quantities of particular stock items.
Depending on whether you are using Sage 200 to generate a price for a customer, or whether you agree a price with a customer and then enter the agreed price along with the order, you can set up and maintain various mechanisms to give you full flexibility and control. There are three parts to this: prices, and discounts and surcharges. These are only brought together at the moment the order is taken. The process of maintaining them is separate, although both work in the same way.
Prices
Selling prices displayed during order entry for standard items stock, miscellaneous and service/
labour are calculated using either:
● Mark-up. The item's buying price plus a percentage increase. For more information see Mark up prices on page 94.
● Specific price. A price for an item from the associated price band, for example, Standard, Retail, Trade, and so on.
A standard stock item can have several prices. This makes it possible to charge different customers, different prices for the same item. This is achieved using 'price bands'. All standard stock items have a price entered for each band. Customers are then linked to price bands so that the system knows which price to use for your customers.
Prices can be entered in your system base currency or you can set them in a foreign currency. If you set them in a foreign currency then only customers with the same currency can be linked.
Foreign customer accounts can be linked to a price band using the system's base currency. The prices are converted automatically to the customer's currency during order entry.
Note: The prices and discounts specified in the Price Book are applied to item types stock, miscellaneous and service/labour during sales order entry. Sales order items and free text items are not subject to price book prices or discounts.
All stock items (not using mark-up prices) have at least one price, referred to as the standard price. The standard price for all items is maintained in the standard price band. The standard price band is created when the system is installed. This price band uses your system's base currency and all stock item prices are set at zero. One of your first tasks is to set the standard price for each stock item. For more information see Set standard prices on page 95.
All customers use the prices specified in the standard price band unless linked to another price band.
To use different prices for some customers, create a new price band and link these customers to it. For example, you may want to charge trade customers a lower price.
Discounts
You can discount goods and services according to customers, quantities sold and order value.
This is achieved using single item discounts, product group discounts and order value discounts.
Order value discounts are applied once the total value of an order is known and this will include any single item or product group discounts awarded on the way. To receive this, discount groups are established and customers linked to them. Product group and item discounts are also linked to discount groups. To receive discount on a single item, customers must be defined in the customer discount group for the item.
Single item discounts
Each item may have one or more discounts. Single item discounts incorporate:
● A name.
● A unit of measure, which is the measure used to sell the item. For example, is the discount for each item, a box or a case. Units of measure are set for the item in the Stock Control module. For more information see your Sage 200 Stock Control documentation.
● Type, whether percentage, amount or special price.
● A currency, if the discount type is amount or special price.
Note: An order is only discounted if the customer operates in the same currency as the discount, or if the price band to which the customer belongs is in the same currency as the discount.
Note: Discounts set as a percentage do not need a specified currency.
● A flat rate discount amount, or quantity break discounts.
● If you use quantity break discounts, it will show the quantity breaks and whether it is a discount or a surcharge.
Single item discounts are not automatically available to all of your customers. You control which customers are eligible for this type of discount. This is achieved using customer discount groups, which are a list of customers, linked to the discounts.
As well as a price book discount, an item may attract a line discount as specified on the customer's account. Some discounts take precedence over others when applied to the order line.
If found, the system first applies a surcharge then a special price and then the best discount on offer after comparing the customer line discount and the discounts in the price book.
Product group discounts
Each product group may have one or more discounts. Product group discounts incorporate:
● A name.
● Type (which is always set as a percentage).
● A flat rate discount amount, or quantity break discounts.
● If quantity break discounts, then it will show the quantity breaks and whether it is a discount or a surcharge.
Product groups provide an efficient means of discounting by applying the discount to all stock items linked to the product group. However, the discount is applied irrespective of the measures used to sell the items. Therefore, the discount can be awarded when the item is sold as a single item or in boxes of ten, cases of six etc, depending on the measures used to sell the item.
Product group discounts are not automatically available to all of your customers. You control which customers are eligible for this type of discount. This is achieved using customer discount groups, which are a list of customers, linked to the discounts.
Note: Sales order items and free text items are not subject to price book discounts. However, they do attract the line discount specified on the customer's account.
Order value discounts
Order value discounts are based on the total value of an order once any single item or product group discounts have been deducted.
They are specified in order value discount bands, which are then linked to customers. This provides the means of controlling which customers are eligible for the discounts. The discount band incorporates:
You can establish several bands to apply varying order value discounts to customers.
During order entry, the customer is initially awarded the order discount specified on the customer's account as the invoice discount. During order confirmation, the system checks if an order value discount is available to the customer from the Price Book. If the price book discount exceeds the customer's invoice discount, you have the option to apply the price book discount in preference to the invoice discount before saving the order.
Surcharges
Surcharges are added to prices (while discounts are subtracted from prices). Surcharges result in an increase in order value. They are established and maintained using the rules used for discounts.