This chapter contains these topics:
Companies that react slowly to changes in the market place, give competitors an unearned advantage. JD Edwards World Advanced Pricing is a flexible price management system that enables you to be proactive to changing pricing conditions. The benefits of the JD Edwards World Advanced Pricing system include:
Improved profitability and competitiveness through accurate pricing.
Flexibility to develop pricing strategies that target different market sectors.
Ability to respond in a timely manner to fluctuating market conditions.
Price management is one of the most complex aspects of any business; and it may consume a considerable amount of time to plan, set up, and maintain. After planning your pricing strategies, setting up the JD Edwards World Advanced Pricing system is straightforward and requires minimal maintenance.JD Edwards World Advanced Pricing allows flexibility when defining pricing. For example, you can set up price adjustments for multiple sales promotions and place each price adjustment into a single advanced pricing schedule.
Features of JD Edwards World Advanced Pricing include:
You can define groups of customers and/or items to accommodate vastly different market sectors and product lines. Using customer group and item group definitions frees you from the tedious task of setting up price adjustment information for each item and customer.
You can setup the system to accrue the amount of an adjustment instead of applying the adjustment to the current sales order. You can use adjustment accruals for:
Advertising allowances and cooperative allowances.
Royalties based on product or customer.
Percentage of the base price.
Percentage of the current net price.
Percentage of the net price as of a prior adjustment on the schedule.
Percentage of your cost.
A specific amount.
A formula. For example, you can create formulas that:
Reference a field in sales order detail.
Pull data from variable tables if you must create pricing for items with prices that fluctuate frequently.
Price override. If you create an override adjustment, the system replaces the base price with the override price you defined in the adjustment.
For each adjustment, you can define an effective from and an effective through date. For example, if a promotion takes place during the month of May, you can define an effective date range of May 1 through May 31.
You can set up and maintain pricing by currency. If you sell items in multiple currencies, the system retrieves the currency from the base price file based on the default currency for your customer or the currency of the sales order.
Free goods often are items that help promote, display, or accompany the product being ordered. For example, for certain products you may want to identify free goods as the display case, posters, or additional promotional items used to highlight a sale.
When you set up an adjustment, you define how the system applies the free goods. You can tie an adjustment to free goods, including basket reprice adjustments.
You can reward customers who buy in volume by providing price breaks based on order quantity, weight, or total price. When you define adjustment types, you specify the level-break type you want to use.
Automated accounting instructions are provided so you can set up liability accounts for royalties, commissions, and rebates. You can define rebate thresholds to establish rules for generating credit orders.
The price history table provides accountability through its detail. It is accessible online as you enter or inquire on a sales order.
The adjustment control code in the adjustment definition determines whether the system prints adjustment information on invoices. The profit margin shown on the report can include accrual adjustments on the sales order line.
You can add freight or tax charges as a line that applies to the entire order.
While taking a customer's order, you can negotiate prices and review the results on line. You can change the price calculation until both you and the customer are satisfied. The system automatically updates the profit margin as you make changes, giving you the ability to verify that you stay within established guidelines.