In this task you will optionally set up Price Levels for assignment to customers.
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DBA Key Concepts
Base Prices and Qty Breaks
The Base Price is the price you charge customers for your products. You can optionally define Quantity Break Prices against your Base Prices.
Price Levels
Price Levels enable you to establish different price lists for different types of customers based on a fixed multiplier applied to Base Prices. Price Levels will be applied to Base Prices/Qty Break Prices to come up with a Reference Price in Sales Orders Details.
Discount Codes
Discount Codes enable you to establish sets of discounts that can be assigned to different groups of customers. The Discount percentage is applied to the Reference Price (Base Price/Qty Break Price adjusted by Price Level) in a Sales Order to come up with the Price. You can also manually apply a discount in a sales order by either typing in a Discount % or modifying the Price field. Discounts do not apply to Contract Prices.
Contract Pricing
Contract Prices are exceptions to Base Prices, Price Level prices, and Discounts. These are special prices given to specific customers or groups of customers, often with an expiration date
Sales Order Pricing Hierarchy
During sales order line item entry, pricing is determined by the following hierarchy:
| 1. | First, the program looks for a Contract Price. If one is found, it will be used. A Discount will not be applied. |
| 2. | If a Contract Price is not found, the program then looks for a Price Level price. If one is found, the Price Level rule is applied to the Base Price/Qty Break Price to establish a Reference Price and applies a Discount, if applicable. |
| 3. | Finally, if a Price Level price is not found, the program uses the Base Price/Qty Break Price and applies a Discount, if applicable. |
