1. Advanced Pricing Implementation Guide
  2. Understanding Base Pricing

Understanding Base Pricing

When you enter a sales or purchase order, the system retrieves the price for the item based on characteristics, such as the branch/plant, the customer, the supplier, or the quantity. Before the system processes any type of advanced price adjustment to the sales or purchase order, it must retrieve a base price from which to apply the advanced price adjustments. After the system retrieves the base price, it verifies that the JD Edwards EnterpriseOne Advanced Pricing system is activate. If the JD Edwards EnterpriseOne Advanced Pricing is activate, the system bypasses the standard price adjustments, such as inventory pricing rules, and searches for applicable schedules and adjustments in JD Edwards EnterpriseOne Advanced Pricing.

The system uses three types of pricing:

  • Base pricing.

  • Standard price adjustments, which is a means of adjusting the base price without JD Edwards EnterpriseOne Advanced Pricing programs.

  • Advanced price adjustments, which is a means of adjusting the base price with JD Edwards EnterpriseOne Advanced Pricing programs.

Any price that you enter in either the sales or purchase order overrides the base price that the system retrieves. You can use either standard pricing or advanced pricing to create adjustments to the base price.

For sales orders, you can set up customer groups and item groups and assign prices to combinations of items, item groups, customers, and customer groups. The pricing hierarchy determines how the system searches for prices. The system always uses the Base Price Preference hierarchy to retrieve base prices. The hierarchy structure must be flexible enough to accommodate the pricing that you set up for various combinations of items and customers.

Changes or additions to base prices and advanced price adjustments and schedules can be set up to route through an approval system. JD Edwards EnterpriseOne Workflow Management automates the process of approving prices.

For purchase orders, you can set up supplier groups and item groups and assign prices to combinations of items and suppliers. The system retrieves the unit cost in the purchase order based on purchase price level and, if applicable, the supplier catalog. The system does not use the Base Price Preference hierarchy to retrieve pricing information for purchase orders.