Dynamic Contract Pricing is contract pricing for a customer that is automatically calculated from cost prices or sell prices applying either a markup or discount and can be for all products, selected product groups or individual products.
A Dynamic Contract Price can be set for a customer for either;
•All Product Groups
•A Specific Product Group
•A Specific Product Code
The Dynamic Contract Pricing calculation can then either be;
•Discount % or Discount $
•Markup % or Markup $
•G/P % or G/P $
It is calculated from either;
•The customer default price
•A selected price, pricing level or cost
Adding/Editing Dynamic Contract Prices
To set up a Dynamic Contract Price you will need to navigate to the Dynamic Contract Pricing tab in Customer Masterfile Maintenance.
You can then enter *** to apply the calculation to all product groups, enter a specific product group, or enter/search for an existing product code.
You then need to select one of the six calculation methods, and then depending on the calculation method selected, you can select a Sell Price (for discount calculations) or a Cost Price (for markup and G/P calculations) to base the calculation on.
The next step is to enter a value – either a percentage or dollar value (depending on the calculation option selected), and a start date (optional) and expiry date (or ‘Never Expire’) for the Dynamic Contract Price, and then click Add/Update.
You can add as many dynamic contract prices as you wish. |
Viewing & Listing Dynamic Contract Prices
You can view Dynamic Contract Prices in the Global Customer Enquiry in the Sales & Service screen by selecting the Dynamic Contract Pricing tab.
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Dynamic Customer Contract Pricing Report
A report exists which allows you to run a list of Dynamic Contract Prices that have been entered into BBS. To run the report go to the Reports Menu, select Sales Ordering, then Contract Pricing, then select Dynamic Customer Contract Price Report.
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Dynamic Contract Pricing Application
When you are deciding if a Dynamic Contact Price applies to a product, BBS will attempt to find a Dynamic Contract Price record for the specific customer and product in question. Where a record cannot be found, it will then search for one for the customer and product group the product belongs to, and failing that it will search for one for the customer for all product groups.
If the customer in question inherits their contract pricing from another account using the ‘Inherit Contract Pricing From’ option, then BBS will first search the ‘Parent Account’ for a dynamic contract price, and then the child account (the same logic used for standard Contract Prices). Therefore, keep in mind that if a parent account has a Dynamic Contract pricing record for a specific product code, and the child account has a Dynamic Contract pricing record for the product group that the product belongs to, even though the parent’s record is for the specific product code, the child’s product group dynamic contract will apply.
Dynamic Contract Prices fall in the pricing hierarchy between Special Pricing Level prices, and Customer Contract Prices, therefore standard (static) contract prices will always override a Dynamic Contact Price, and promotional prices will override, but only if they are less.
•This is an example of a Promo Price that is not overriding because it is higher;
•As opposed to a Contract Price that Overrides ALWAYS;
Dynamic Contract Prices can be reviewed using the previously mentioned Dynamic Customer Contract Pricing Report. Keep in mind that as these prices are dynamically calculated based on one of the other sell prices or a product’s cost, they do not necessarily need to be reviewed whenever costs and prices on a product change. |
