Structure of Price Lists

Hansa allows you to assign different Prices to individual Items so that each Price is associated with a particular Price List. For example, many retail outlets have different prices for their retail and trade Customers, or different retail and educational prices. You might then have separate retail, trade and educational Price Lists, each of which is available to the appropriate kind of Customer. When a Price List is specified in an Order or Invoice, the appropriate prices will be selected automatically.

In planning such a price structure, follow these steps:

  1. Enter the Items with their Base Prices, using the Item register.

  2. Price Formulae should be defined, using the Price Formula register in the Pricing module. These are the mechanism by which the different prices are calculated. In our example, the retail price might be the same as the Base Price, the trade price might represent a discount of 20% and an educational price might represent a discount of 30%. A Price Formula record would be set up for each.

  3. Each Price List (retail, trade and educational) should then be defined using the Price List register in the Pricing module. Items or Item Groups should be attached to the Price Lists with an appropriate Price Formula. For example, in the educational Price List, all Items that are likely to be sold to such Customers should be attached, using the 30% discount Price Formula. Effectively, the relationship between the Items and the Price List is being defined here.

  4. For each Price List, the Prices of the Items should be calculated. This process is automated by the provision of the 'Calculate Price Lists' Maintenance function in the Pricing module. For each Item on each Price List, this function applies the specified Price Formula and saves the result in a record in the Price register. In our example, for each Item three Price records will be created: one each containing the retail, trade and education prices.

    The relationship between the Items, the Price Lists and the Price records makes it of critical importance that the 'Calculate Price Lists' function is run whenever the Base Price of an Item changes or, if you have Price Lists in various Currencies, whenever the Exchange Rate alters. Otherwise, the Price records could soon lose their relationship to the Base Price of their Items, resulting in you quoting out-of-date prices to your Customers. If a Price List is specified in an Order or Invoice, Hansa searches in the Price register for the appropriate, and unique, record representing the particular Item for that Price List.

    The 'Calculate Price Lists' function in fact can save records to one of two places depending on how the Price List record has been defined: the Price register and the Quantity Dependent Prices setting, also in the Pricing module. The Price register contains a single price to be applied irrespective of the quantity sold, while the Quantity Dependent Prices setting can be used to set up quantity discounts.

  5. Each Customer, Customer Category and/or Payment Term record can now be assigned a Price List. When Orders or Invoices are entered for each Customer, prices will be taken from the specified Price List automatically. If an Item not on the appropriate Price List is sold, the Base Price will be used.

  6. Once calculated, Price Lists can be printed or exported to disk for incorporation into your company's publicity material. Price Lists are printed using the report of the same name, available in the Pricing and Sales Orders modules and in the Sales Ledger. This report is fully described here.
Please follow the links in the individual steps for more details, and click here for worked examples.