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Item Formulae

This page describes using Items with calculated prices in sales transactions.

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When entering Quotations, Orders or Invoices, you can use Items whose prices are calculated from the value of the other Items sold. Examples might be freight or freight insurance. Use the Item Formula register in the Pricing module to define the formulae used in these calculations.

To use this feature, follow these steps:

  1. Enter an Item Formula as described below.

  2. Assign the Item Formula to an Item in the Item register, using the Item Formula field on the 'Pricing' card.

  3. Enter this Item on the last line of a Quotation, Order or Invoice. The Unit Price of the Item will be calculated by applying the Formula to the value of the other Items sold.
The Formula can be a simple one whereby a percentage will be applied to the total value of the other Items sold. Alternatively, separate percentages can be applied to Items belonging to each Item Group. Finally, the percentage can be varied depending on the value of the other Items sold.

To work with Item Formulae, change to the Pricing module using the [Switch Module] button in the Navigation Centre. Then, if you are using Windows or Mac OS X , click the [Registers] button, also in the Navigation Centre and then double-click 'Item Formulae' in the resulting list. If you are using iOS or Android, tap the [Registers] button in the Navigation Centre and then tap 'Item Formulae' in the 'Registers' list . The 'Item Formulae: Browse' window is displayed, showing the Item Formulae that you have previously entered.

To enter a new Item Formula, select 'New' from the Create menu (Windows/Mac OS X) or the + menu (iOS/Android). You can also use the Ctrl-N (Windows) or ⌘-N (Mac OS X) keyboard shortcut. Alternatively, highlight or open an Item Formula similar to the one you want to enter, and select 'Duplicate' from the same menu. If you don't want to open the 'Item Formulae: Browse' window before creating a new record, you can also use the + menu in the Navigation Centre (all platforms).

When you have finished working with the Item Formula, save it by clicking the [Save] button in the Button Bar (Windows/Mac OS X) or by tapping √ (iOS/Android). You can then close it using the close box (Windows/Mac OS X) or by tapping < (iOS/Android). To close the record without saving changes, click the close box.

For each record, enter a unique Code and a name and then use the grid to define the Item Formula. This is perhaps best explained by a series of examples.

In this simple example, the Item Group, From and To fields are blank so the price of this Freight Insurance will be 10% of the total value of the other Items sold.

Once you have entered your Item Formulae, you can assign them to your Item records. The Item shown below is Freight Insurance: we have left the Base Price empty and entered the "FI" Item Formula in the Item Formula field (if you enter both a Base Price and an Item Formula, the Base Price will be ignored):

When you add this Freight Insurance Item to the final row of a Quotation, Order or Invoice, the Unit Price will be calculated automatically:

In the next example, Freight Insurance will be calculated at different rates depending on the Items in the sale. The price of the Freight Insurance will be 10% of the total value of any Group 1 Items, plus 12% of the value of any Group 2 Items. Items belonging to any other Item Group will not affect the price of the Freight Insurance.

In the third example illustrated below, the price of the Freight Insurance will depend on the total value of the Group 1 Items that you sell. If this value is less than 50.00, Freight Insurance will be charged as in the previous example. If it is greater than 50.00, it will be charged at 15% of the value of the Group 1 Items, plus 12% of the value of the Group 2 Items. In either case, Items belonging to any other Item Group will not affect the price of the Freight Insurance.

This final example is similar to the previous one, except that when Items that do not belong to Item Groups 1 or 2 are sold, 11% of their value will be added to the price of the Freight Insurance.

The examples so far have used an Item Formula to add a charge to an Invoice. You can also use Item Formulae to add a discount to an Invoice, by entering a negative figure in the % column.

Please refer here for details about using Item Formulae when sales prices include VAT.

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The Pricing module in Standard ERP:

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