Line Level Customer Price Group Pricing
The system uses the following steps when you add an item to an order and the system uses customer price group line-level pricing to calculate the price of the order line.
• Determine the Customer Price Group to Use
• Determine the Initial Price of the Item
• Determine the Customer Price Group Discount
• Compare List Price to Order Line Price
• Calculate Order Header Discounts
• Apply Final Customer Price Group Price to Order
Determine the Customer Price Group to Use
The system uses the customer price group assigned to the sold to customer on the order. If a customer price group code is not assigned to the sold to customer on the order, or if it is invalid, the system uses the customer price group code defined in the Customer Price Group Code for CPG Pricing Only (L58) system control value.
Determine the Initial Price of the Item
If a price override reason code is defined for the order line, the system does not price the item using customer price group pricing, and instead, uses the price defined for the order line.
If a price override reason code is not defined for the order line, the system looks at the Price Type defined for the customer price group to determine the initial price of the item.
• Original = Original Price. The system uses the price defined in the Orig retail $ (Original Retail Price) field in the SKU table as the initial price of the item.
• Regular = Regular Price. The system uses the price defined in the List price field in the SKU table as the initial price of the item.
If an initial price is not found for the item: If the system cannot determine the initial price for the item (an Original retail price or List price was not defined for the item), the system displays an error message in interactive order entry: Price Not Found.
Determine the Customer Price Group Discount
Item eligible for discount? An item is NOT eligible for customer price group discounting if:
• The Discountable field for the item is unselected.
• The item/SKU is excluded from the customer price group discount. These items display on the Work with Customer Price Group Exclusions Screen and exist in the Customer Price Group SKU Exclusion table.
If the Discountable field for the item is selected and the item/SKU is not excluded from the customer price group discount, the system will apply qualifying discounts and promotions to the item.
Customer price group discount hierarchy: The system determines if a discount exists for the customer price group on the order. The system uses the following hierarchy to determine the customer price group discount.
1. Use the discount defined in the Customer Price Group Detail table with an effective date that is equal to or earlier than the current date. If more than one Customer Price Group Detail record exists with a qualifying effective date, the system uses the discount with the most current effective date. You can review these discounts on the Work with Customer Price Group Details Screen.
2. If a discount is not defined in the Customer Price Group Detail table with a qualifying effective date, use the discount defined in the Customer Price Group table. You can review this discount on the Work with Customer Price Groups Screen.
3. If a discount is not defined in the Customer Price Group table, do not apply a customer price group discount to the order.
Customer price group discount calculation: Original or Regular Price - Customer Price Group Discount % = Updated Order Line Price
Compare List Price to Order Line Price
The system compares the list price defined for the item to the order line price.
• If the list price is lower than the order line price, the system applies the list price to the order line.
• If the list price is equal to or greater than the order line price, the system retains the order line price.
Display Order Detail: If the list price was lower than the order line price, the system displays a message on the Display Order Detail Screen (Reviewing Order Line Detail) in Order Inquiry: LIST PRICE < ORIGINAL RETAIL $ PRICE.
Calculate Order Header Discounts
The system applies any qualifying order header discounts to the order, such as:
• The discount defined in the Disc % field on the Work with Order Screen.
• The discount defined for the source code on the Work with Order Screen. Use the Discount % field on the Create Source Code Screen (1 of 2) to define a source discount.
Discount calculation messages: If the calculated order line price is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order, indicating the order line number of the discounted item, the offer price (this is initial price of the item), the actual price (this is the discounted price the customer is paying), the dollar amount of the discount, and the discount percentage. For example, if the initial price is $10.00 and the order line price is $5.00, the discount calculation message displays as: Line 1: Offer = 10.00 Actual = 5.00 Discount = 5.00: 50.00%.
Apply Final Customer Price Group Price to Order
After calculating any Order Header discounts for the order, the system applies the final customer price group price to the lines on the order.
The system updates the following fields in the Order Detail table during customer price group line level pricing.
Field |
Order Detail Update |
ODT Offer Price |
The initial price of the item, based on the Price type defined for the customer price group. • If Price type is Original, this is the Original Retail Price from the SKU table. • If Price type is Regular, this is the List Price from the SKU table. You can use this field to determine the initial price of the order line before the system applied any discounts or promotions to the order line. |
ODT Original Price |
The List price defined for the item/SKU in the SKU table. |
ODT Pre-Discount Price |
The price of the item after applying the customer price group discount and order header discount. This is the initial price - the customer price group and order header discount; however, if the list price is lower than this price, this is the list price of the item. |
ODT Price |
The final calculated price of the item after applying the customer price group discount and order header discount. This is the initial price - the customer price group and order header discount; however, if the list price is lower than this price, this is the list price of the item. Note: The final price of the order line may update during Customer Price Group Price Code Pricing. |
Price Method |
The method the system used to calculate the price of an item, but before applying an order-level discount, such as a source code discount percentage. F Customer Price Group displays for lines priced using Customer Price Group Line Level pricing; see the Order Pricing Window for a complete list of price methods. The system uses this value to display the Pricing method on the Work with Order Line Screen (Changing/Adding an Item). |
Important: The system may reprice the order line during Customer Price Group Price Code Pricing and Customer Price Group Best Price Comparison. The system performs price code pricing and best price comparison during repricing and end-of-order pricing.
Examples: Line Level Customer Price Group Pricing
• Example: Original Customer Price Group Line Pricing
• Example: Regular Customer Price Group Line Pricing
• Example: Customer Price Group Line Pricing With Customer Price Group Discount
• Example: Customer Price Group Line Pricing with Order Header Discount
• Example: Customer Price Group Line Pricing with Customer Price Group and Order Header Discount
Example: Original Customer Price Group Line Pricing
1. Determine the Customer Price Group to Use. A customer assigned to customer price group CPGO places an order.
2. Determine the Initial Price of the Item. The Price type for customer price group CPGO is set to Original, indicating the system uses the Original retail price in the SKU table as the initial price of the item.
The customer adds item ITO to the order. Item ITO has the following prices defined:
• List price of $25.00
• Original retail price of $20.00
Since the Price type for customer price group CPGO is set to Original, the system uses 20.00 as the initial price of the item.
The customer adds item ITR to the order. Item ITR has the following prices defined:
• List price of $10.00
• Original retail price of $15.00
Since the Price type for customer price group CPGO is set to Original, the system uses 15.00 as the initial price of the item.
3. Determine the Customer Price Group Discount. The Discountable flag for items ITO and ITR is selected, indicating the items are eligible for customer price group discounting, however, a discount is not defined for customer price group CPGO, so a customer price group discount is not applied to the order.
4. Compare List Price to Order Line Price. The system compares the list price defined for the item to the order line price.
• The list price for item ITO is $25.00 and the order line price is $20.00. Since the order line price is lower than the list price, the system retains $20.00 as the order line price.
• The list price for item ITR is $10.00 and the order line price is $15.00. Since the order line price is greater than the list price, the system updates the order line price to $10.00.
5. Calculate Order Header Discounts. The order does not qualify for any Order Header discounts.
6. Apply Final Customer Price Group Price to Order. The system applies the final customer price group price to the lines on the order:
• The order line price for item ITO is $20.00
• The order line price for item ITR is $10.00.
Because the calculated order line price for item ITR is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 15.00 Actual = 10.00 Discount = 5.00 :33.33%
The system updates the Order Detail table with the customer price group line level price.
Field |
Item ITO |
Item ITR |
ODT Offer Price |
Initial price: 20.00 |
Initial price: 15.00 |
ODT Original Price |
List price: 25.00 |
List price: 10.00 |
ODT Pre-Discount Price |
Price after discounts: 20.00 |
Price after discounts: 10.00 |
ODT Price |
Order line price: 20.00 |
Order line price: 10.00 |
Price Method |
F = Customer Price Group. |
F = Customer Price Group. |
Example: Regular Customer Price Group Line Pricing
1. Determine the Customer Price Group to Use. A customer assigned to customer price group CPGR places an order.
2. Determine the Initial Price of the Item. The Price type for customer price group CPGR is set to Regular, indicating the system uses the List price in the SKU table as the initial price of the item.
The customer adds item ITO to the order. Item ITO has the following prices defined:
• List price of $25.00
• Original retail price of $20.00
Since the Price type for customer price group CPGR is set to Regular, the system uses 25.00 as the initial price of the item.
The customer adds item ITR to the order. Item ITR has the following prices defined:
• List price of $10.00
• Original retail price of $15.00
Since the Price type for customer price group CPGR is set to Regular, the system uses 10.00 as the initial price of the item.
3. Determine the Customer Price Group Discount. The Discountable flag for items ITO and ITR is selected, indicating the items are eligible for customer price group discounting, however, a discount is not defined for customer price group CPGO, so a customer price group discount is not applied to the order.
4. Compare List Price to Order Line Price. The system compares the list price defined for the item to the order line price.
• The list price for item ITO is $25.00 and the order line price is $25.00. Since the order line price is equal to the list price, the system retains $25.00 as the order line price.
• The list price for item ITR is $10.00 and the order line price is $10.00. Since the order line price is equal to the list price, the system retains $10.00 as the order line price.
5. Calculate Order Header Discounts. The order does not qualify for any Order Header discounts.
6. Apply Final Customer Price Group Price to Order. The system applies the final customer price group price to the lines on the order:
• The order line price for item ITO is $25.00
• The order line price for item ITR is $10.00.
The system updates the Order Detail table with the customer price group line level price.
Field |
Item ITO |
Item ITR |
ODT Offer Price |
Initial price: 25.00 |
Initial price: 10.00 |
ODT Original Price |
List price: 25.00 |
List price: 10.00 |
ODT Pre-Discount Price |
Price after discounts: 25.00 |
Price after discounts: 10.00 |
ODT Price |
Order line price: 25.00 |
Order line price: 10.00 |
Price Method |
F = Customer Price Group. |
F = Customer Price Group. |
Example: Customer Price Group Line Pricing With Customer Price Group Discount
1. Determine the Customer Price Group to Use. A customer assigned to customer price group CPGO places an order.
2. Determine the Initial Price of the Item. The Price type for customer price group CPGO is set to Original, indicating the system uses the Original retail price in the SKU table as the initial price of the item.
The customer adds item ITO to the order. Item ITO has the following prices defined:
• List price of $25.00
• Original retail price of $20.00
Since the Price type for customer price group CPGO is set to Original, the system uses 20.00 as the initial price of the item.
The customer adds item ITR to the order. Item ITR has the following prices defined:
• List price of $10.00
• Original retail price of $15.00
Since the Price type for customer price group CPGO is set to Original, the system uses 15.00 as the initial price of the item.
3. Determine the Customer Price Group Discount. The Discountable flag for items ITO and ITR is selected, indicating the items are eligible for customer price group discounting. Customer price group CPGO has the following discounts defined:
• 10.00% discount at the Customer Price Group Detail level with an effective date of 1/16/12.
• 30.00% discount at the Customer Price Group Detail level with an effective date of 2/14/12.
• 5.00% discount at the Customer Price Group level.
Because the current date is 2/15/12, the system applies the 30.00% discount to the order.
• Item ITO: initial price $20.00 - 30.00% = $14.00.
• Item ITR: initial price $15.00 - 30.00% = $10.50.
4. Compare List Price to Order Line Price. The system compares the list price defined for the item to the order line price.
• The list price for item ITO is $25.00 and the order line price is $14.00. Since the order line price is lower than the list price, the system retains $14.00 as the order line price.
• The list price for item ITR is $10.00 and the order line price is $10.50. Since the order line price is greater than the list price, the system updates the order line price to $10.00.
5. Calculate Order Header Discounts. The order does not qualify for any Order Header discounts.
6. Apply Final Customer Price Group Price to Order. The system applies the final customer price group price to the lines on the order:
Because the calculated order line price for item ITO is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 20.00 Actual = 14.00 Discount = 6.00 :30.00%
Because the calculated order line price for item ITR is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 15.00 Actual = 10.00 Discount = 5.00 :33.33%
The system updates the Order Detail table with the customer price group line level price.
Field |
Item ITO |
Item ITR |
ODT Offer Price |
Initial price: 20.00 |
Initial price: 15.00 |
ODT Original Price |
List price: 25.00 |
List price: 10.00 |
ODT Pre-Discount Price |
Price after discounts: 14.00 |
Price after discounts: 10.00 |
ODT Price |
Order line price: 14.00 |
Order line price: 10.00 |
Price Method |
F = Customer Price Group. |
F = Customer Price Group. |
Example: Customer Price Group Line Pricing with Order Header Discount
1. Determine the Customer Price Group to Use. A customer assigned to customer price group CPGO places an order.
2. Determine the Initial Price of the Item. The Price type for customer price group CPGO is set to Original, indicating the system uses the Original retail price in the SKU table as the initial price of the item.
The customer adds item ITO to the order. Item ITO has the following prices defined:
• List price of $25.00
• Original retail price of $20.00
Since the Price type for customer price group CPGO is set to Original, the system uses 20.00 as the initial price of the item.
The customer adds item ITR to the order. Item ITR has the following prices defined:
• List price of $10.00
• Original retail price of $15.00
Since the Price type for customer price group CPGO is set to Original, the system uses 15.00 as the initial price of the item.
3. Determine the Customer Price Group Discount. The Discountable flag for items ITO and ITR is selected, indicating the items are eligible for customer price group discounting, however, a discount is not defined for customer price group CPGO, so a customer price group discount is not applied to the order.
4. Compare List Price to Order Line Price. The system compares the list price defined for the item to the order line price.
• The list price for item ITO is $25.00 and the order line price is $20.00. Since the order line price is lower than the list price, the system retains $20.00 as the order line price.
• The list price for item ITR is $10.00 and the order line price is $15.00. Since the order line price is greater than the list price, the system updates the order line price to $10.00.
5. Calculate Order Header Discounts. The order qualifies for a 25% source discount.
The system applies the 25% source discount to the order.
• Item ITO: current order line price $20.00 - 25.00% = $15.00.
• Item ITR: current order line price $10.00 - 25.00% = $7.50.
6. Apply Final Customer Price Group Price to Order. The system applies the final customer price group price to the lines on the order:
Because the calculated order line price for item ITO is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 20.00 Actual = 15.00 Discount = 5.00 :25.00%
Because the calculated order line price for item ITR is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 15.00 Actual = 7.50 Discount = 7.50 :50.00%
The system updates the Order Detail table with the customer price group line level price.
Field |
Item ITO |
Item ITR |
ODT Offer Price |
Initial price: 20.00 |
Initial price: 15.00 |
ODT Original Price |
List price: 25.00 |
List price: 10.00 |
ODT Pre-Discount Price |
Price after discounts: 15.00 |
Price after discounts: 7.50 |
ODT Price |
Order line price: 15.00 |
Order line price: 7.50 |
Price Method |
F = Customer Price Group. |
F = Customer Price Group. |
Example: Customer Price Group Line Pricing with Customer Price Group and Order Header Discount
1. Determine the Customer Price Group to Use. A customer assigned to customer price group CPGO places an order.
2. Determine the Initial Price of the Item. The Price type for customer price group CPGO is set to Original, indicating the system uses the Original retail price in the SKU table as the initial price of the item.
The customer adds item ITO to the order. Item ITO has the following prices defined:
• List price of $25.00
• Original retail price of $20.00
Since the Price type for customer price group CPGO is set to Original, the system uses 20.00 as the initial price of the item.
The customer adds item ITR to the order. Item ITR has the following prices defined:
• List price of $10.00
• Original retail price of $15.00
Since the Price type for customer price group CPGO is set to Original, the system uses 15.00 as the initial price of the item.
3. Determine the Customer Price Group Discount. The Discountable flag for items ITO and ITR is selected, indicating the items are eligible for customer price group discounting. Customer price group CPGO has the following discounts defined:
• 10.00% discount at the Customer Price Group Detail level with an effective date of 1/16/12.
• 30.00% discount at the Customer Price Group Detail level with an effective date of 2/14/12.
• 5.00% discount at the Customer Price Group level.
Because the current date is 2/15/12, the system applies the 30.00% discount to the order.
• Item ITO: initial price $20.00 - 30.00% = $14.00.
• Item ITR: initial price $15.00 - 30.00% = $10.50.
4. Compare List Price to Order Line Price. The system compares the list price defined for the item to the order line price.
• The list price for item ITO is $25.00 and the order line price is $14.00. Since the order line price is lower than the list price, the system retains $14.00 as the order line price.
• The list price for item ITR is $10.00 and the order line price is $10.50. Since the order line price is greater than the list price, the system updates the order line price to $10.00.
5. Calculate Order Header Discounts. The order qualifies for a 25% source discount.
The system applies the 25% source discount to the order.
• Item ITO: current order line price $14.00 - 25.00% = $10.50.
• Item ITR: current order line price $10.00 - 25.00% = $7.50.
6. Apply Final Customer Price Group Price to Order. The system applies the final customer price group price to the lines on the order:
Because the calculated order line price for item ITO is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 20.00 Actual = 10.50 Discount = 9.50 :47.50%
Because the calculated order line price for item ITR is lower than the initial price of the item, the system displays Discount Calculation Messages when you add the item to the order: Line 2:Offer = 15.00 Actual = 7.50 Discount = 7.50 :50.00%
The system updates the Order Detail table with the customer price group line level price.
Field |
Item ITO |
Item ITR |
ODT Offer Price |
Initial price: 20.00 |
Initial price: 15.00 |
ODT Original Price |
List price: 25.00 |
List price: 10.00 |
ODT Pre-Discount Price |
Price after discounts: 10.50 |
Price after discounts: 7.50 |
ODT Price |
Order line price: 10.50 |
Order line price: 7.50 |
Price Method |
F = Customer Price Group. |
F = Customer Price Group. |
