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The Item Formula Register

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. The Item Formula register in the Pricing module is used to define the formulae used in these calculations.

To use this feature, enter an Item Formula as described below. Next, enter an Item in the Item register, and assign to it the Code of this Formula using the Item Formula field on the 'Pricing' card. Then, 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 is applied to the total value of the other Items sold. Alternatively, a separate percentage 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 Modules menu, and select 'Item Formulae' from the Registers menu (or click the [Item Formulae] button in the Master Control panel). The 'Item Formulae: Browse' window is displayed, showing all Item Formulae previously entered. Double-click a Formula in the list to edit it, or add a new record by clicking the [New] button in the Button Bar.

When you have finished working with the Item Formula, save it by clicking the [Save] button in the Button Bar or by clicking the close box and choosing to save changes. 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 quote them in 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:

When this Freight Insurance Item is added as the final Item in a Quotation, Order or Invoice, the Unit Price is calculated automatically:

The next example demonstrates that the result of the application of the Formula is effectively the sum of the rows in the grid.

The price of the Freight Insurance this time will be 10% of the total value of any Group 1 Items sold, plus 12% of the value of any Group 2 Items sold. Items belonging to any other Item Group will not affect the price of the Freight Insurance.

Here, the price of the Freight Insurance will depend on the total value of the Group 1 Items sold. 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 sold, plus 12% of the value of the Group 2 Items sold. 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 not belonging to Item Groups 1 or 2 are sold, 11% of their value will be added to the price of the Freight Insurance.