26 Work with Repricing

This chapter contains these topics:

26.1 Working with Repricing (ECS)

You reprice sales orders when you want to:

  • Allow additional discounts or markups on groups of items

  • Set up different pricing for specific items or customers

  • Provide overall discounts based on total quantities of items within a product family

  • Update sales orders with the most current prices

You update prices for an item to adjust the price for specific items or create special discounts. You can update prices for an item based on the amount of the order, weight of the items, or the total quantity of all items ordered.

You update prices for a customer to recalculate sales orders based on the most current price or price adjustment. You might need to do this for items with volatile prices. You can also use this process to update the unit and extended costs of items on sales orders with the most current costs.

26.2 Updating Prices for an Item (ECS)

You update prices for an item to adjust the price for specific items or create special discounts.

The Standard Order/Basket Reprice program uses the following two methods to update the price of an item:

  • Basket repricing

  • Order repricing

Standard Order/Basket Reprice is a DREAM Writer batch program.

Complete the following tasks to perform basket and order repricing:

  • Define repricing groups

  • Process basket and order repricing

You define repricing groups similar to the way you define customer and item groups. You first create user defined codes for basket and order repricing groups and enter this information for specific items in the Item Master table. You then set up either basket or order repricing in the inventory pricing rules.

When you run the Standard Order/Basket Reprice program, the system searches the detail lines of a sales order for items in either a basket or order repricing group. If the system must perform both basket and order repricing, it will perform the basket repricing calculations first.

26.2.1 What You Should Know About

Topic Description
Limitations to repricing If you have defined a trade discount or manually entered a price, the system will not reprice the order line.
Order entry repricing You can run the Standard Order/Basket Reprice program when you enter a sales order by choosing the appropriate option on the Sales Order Entry form. You can also set the processing options for the Sales Order Entry program to automatically run the Standard Order/Basket Reprice program.
Performing repeated repricing If you need to reprice an order line that has already been repriced, you can set the appropriate processing option for the Standard Order/Basket Reprice program to allow order detail lines to be repriced repeatedly.

26.2.2 Defining Repricing Groups (ECS)

Navigation

From ECS Sales Order Management (G4910), choose Price Management

From Price Management (G491022), choose Inventory Pricing Rules

You define repricing groups similar to the way you define customer and item groups. After you create user defined codes for basket and order repricing groups, you enter this information for specific items on the Item Master Information form. You then complete the steps to define inventory pricing rules for basket and order repricing. You define the pricing method in the inventory pricing rule as either basket repricing or order repricing.

For example, you group pens, rulers, and erasers in the basket group called SUPPLIES. You can then define an inventory pricing rule for the SUPPLIES basket repricing group so that the system will reprice each of the items in this group at a discount of .25.

If you define both basket and order repricing for an item, the system will perform the basket repricing calculations first.

26.2.3 Before You Begin

To define repricing groups

On Inventory Pricing Rules

Figure 26-1 Inventory Pricing Rules (Repricing) screen

Description of Figure 26-1 follows
Description of "Figure 26-1 Inventory Pricing Rules (Repricing) screen"

  1. Complete the following fields:

    • Pricing Rule

    • Pricing Method

  2. For basket repricing, access the fold area.

    Figure 26-2 Inventory Pricing Rules (Basket Repricing) screen

    Description of Figure 26-2 follows
    Description of "Figure 26-2 Inventory Pricing Rules (Basket Repricing) screen"

  3. Complete the following field:

    • Reprice Line

Field Explanation
Reprice Line or Order Code that is applicable only if you are using pricing method R (Basket Repricing). Y (yes) tells the system to apply the pricing rule to the unit and calculate the extended price. N (no) tells the system to write a new order detail line for the amount of the additional discount into the sales order.

The Order Repricing Program (P421301) provides an option to reprice orders that had already been repriced. You can alter the results of this process by adjusting this field. If you would like to re-discount the order based on the original unit price, you must have this field set to N or blank PRIOR TO repricing the order. However, if you would like to re-discount based on the discounted unit price, set this field to Y to adjust the individual detail lines. For more detail on this process, please refer to the help instructions of the Order Repricing Program (P421301).

26.2.4 Processing Basket and Order Repricing (ECS)

Navigation

From ECS Sales Order Management (G4910), choose Price Management

From Price Management (G4222), choose Standard Order/Basket Reprice

You process basket and order repricing to adjust the price for specific items or create special discounts. When you run the Standard Order/Basket Reprice program for basket repricing, the system searches the detail lines of a sales order for items in a basket group.

When you perform order repricing, the system searches the detail lines of a sales order for items in an order group. If it finds items that belong to the order group, it creates an adjustment for the order as a whole and writes a new order detail line with the amount of the adjustment.

For example, you attach a pricing rule to the SUPPLIES order repricing group so that the system will discount the entire order by .25 if it identifies an item from the SUPPLIES group. The system does not recalculate prices but adds a new line to the order to reflect the order discount.

Line Item Name Unit Price Group Name
Line 1 PEN 10.00 SUPPLIES
Line 2 RULER 2.00 SUPPLIES
Line 3 ERASER 1.00 SUPPLIES
Line 4 Discount .25-  

The Standard Order/Basket Reprice program generates a report listing the order lines that the program repriced.

Figure 26-3 Order Repricing report

Description of Figure 26-3 follows
Description of "Figure 26-3 Order Repricing report"

26.2.5 What You Should Know About

Topic Description
Defining the repricing method Depending on how you complete the Reprice Line field on the Inventory Pricing Rules form, you can instruct the system to do one of the following:

  • Update the order line with the new price

  • Write a new order line with the amount of the change

26.3 Updating Prices for a Customer (ECS)

Navigation

From ECS Sales Order Management (G4910), choose Price Management

From Price Management (G491022), choose Update Sales Price/Cost

You update prices for a customer to recalculate sales orders based on the most current price or price adjustment. You might need to do this for items with volatile prices. You can also use this process to update the unit and extended costs of items on sales orders with the most current costs. If multi-currency processing is activated in your system, the foreign unit and extended costs fields will be updated as well.

Update Sales Price/Cost is a DREAM Writer batch program.

You can use Update Sales Price/Cost to:

  • Update sales order costs. When you use this program to update sales order costs, the system replaces the unit and extended costs in any open, unshipped orders with current costs from the Item Cost Ledger table (F4105).

  • Update sales order prices. When you use this program to update sales order prices, the system recalculates the unit and extended prices in the Sales Order Detail table (F4211) using the most current base price and price adjustments. The system bases this recalculation on the date that you enter in the processing options.

  • Update sales order exchange rates. You can use this program to update the currency exchange rate that the system uses to calculate costs and prices on an order. The system replaces the currency exchange rate that was in effect at the time you entered the order with the existing currency exchange rate.

You can set the processing options for the Update Sales Price/Cost program to define which date on the sales order that the system will use to determine if it should recalculate costs or prices. For example, you can instruct the system to base the recalculations on the promised date. The system will update only those order lines with a promised date that is less than or equal to today's date. Sales order prices can be updated more than once.

When you run the Update Sales Price/Cost program, the system updates the order detail information for open sales orders and replaces the current price with the new base price. The program disregards any special pricing discounts that you have previously defined for the customer or item.

26.3.1 What You Should Know About

Topic Description
Updating prices when you update customer sales You can set the processing options for the Update Customer Sales program to run the Update Sales Price/Cost program when you run Update Customer Sales. The system will update all selected sales orders with current costs, exchange rates, and prices before you run invoices and create G/L records.
Month-end repricing If the price of an item fluctuates or is not known until the end of the month, you can perform month-end repricing for the item.

You create a User Defined Price Code preference to flag the customer and item combination for month-end repricing (for example, EM). The system enters this code in the Price Codes field on the sales order to identify the orders to be repriced at the end of the month.

At the end of the month, you run the version of the Update Sales Price/Cost program that performs repricing by preference at month end. You should set the data selection for this version to select the sales orders with a price code of EM. These orders are updated with the most current price for the item.

The Update Sales Price/Cost program creates a separate record in the Sales Order Detail table. The next time you run the Cycle Billing program, it processes this record.

See Section 20.4, "Running Cycle Billing (ECS)."