Product Pricing
Price handling provides great flexibility in determining sales prices and maintenance of the purchase and sales prices in the product register.
Tip! In the
company settings for product - in the Default
Values tab - you can define default values which will be used automatically
when you register a new product. These settings will be used for all new
products. Already existing products can be edited by using the Price
Adjustment feature. Read more in Changing Prices for a Selection of Products.
Sales price
A product's sales price is in the field for Sales
price via the Price tab
in the product register. If you have activated the company setting Company wants to track the price history for
products you must first click New.
You can enter the amount in the Excluding
VAT column or in the Inclusive
VAT column. The system will calculate the VAT amount and enter
it in the opposite column.
You can use different prices for different periods, e.g. a campaign that
runs for a limited period. If you use differentiated prices you should
activate the display of price history in company settings for product.
You can also use the External Price list to show adapted prices, which apply to one particular customer or to a selection of customers.
Product Register: The Price Tab
External Price List - Customising the Price List
Discounts
You can offer various discounts to single customers or a selection of customers. Discounts can be given as quantity discounts, as a percentage or as a nominal value.
You activate the usage of discount deals for individual customers for single products, quantity discounts and discount for customer categories through company settings for product.
To simplify the maintenance of discounts you can predefine prices and discounts for a variety of combinations of customer categories and product groups through the Discount register.
Mamut Business Software includes functionality for Early Payment Discounts. This means that customers who pay before the due date stated on the invoice can be offered a discount. The reason for this is to give the customer an incentive to pay on time and thereby ensuring your company's profit margins and cash flow. The early payment discount can be set up in two levels in the Properties Register. The basis for the discount is the product price including VAT. This means that the discount will reduce the VAT.
Product Register: The Discount Tab
The Properties Register - Payment Terms
Surcharges
In addition to the ordinary sales price you can add a surcharge. You will have to activate this in the company settings for product. The surcharges are registered in the properties register under Surcharges. These can be calculated as unit price, price per unit weight, price per unit volume or as a % of sales value or % of cost price.
Company Settings for the Properties Register
Cost price
If you want to estimate gross profit etc. you will have to register the Purchase price. This can be entered directly or be estimated on the bases of the purchase prices in the Supplier info tab.
In addition to the purchase price, expenses such as freight, duty etc may apply. They can be registered in the Expenses field. Together, the purchase price and expenses make up the product’s Cost price.
With two ways of registering extra cost for purchasing, i.e. posting Duty/Freight invoice or post freight and handling directly in the supplier invoice, available, you can select whether these two types of expenses will be included in the cost price. You will find the selections for this in company settings for product.
The Cost price field is automatically calculated as the sum of the purchase price and expenses.
Product Register: The Supplier Tab
About Cost accounting and Accounts update of stock value
Price Changes
The sales price can be changed directly in the product card. If the sales price is changed manually, you can decide that this will update the price calculated in % or by a fixed gross profit. The default setting is that a change in the sales price does not change the cost price, only gross profit.
The wizard for Price adjustment makes it possible to adjust the prices for a group of products in one operation, as well as fixed sales prices in different currencies.
You can choose whether the purchase prices will continuously affect the sales prices and if so, how it will be updated. If you want to estimate gross profit manually, you can do this directly through the Price calculator without further settings. You can also automatically update the sales price in the following ways:
- Changes in cost price will affect sales price, fixed gross profit in %
- Changes in cost price will affect sales price with a fixed gross profit
If you do not want the changes in cost price to affect the sales price, you can let the changes in cost price influence gross profit and the sales price remain unchanged.
You can select that the purchase prices will update the purchase prices and expenses in the product card when the purchases are posted. This selection is activated through company settings for product.
Note! Be aware that if you update both
cost price at posting and leave cost price changes to influence sales
price then sales prices will automatically change when purchasing is posted.
How to change/edit the Product Price
Changing Prices for a Selection of Products
Prices in different currencies
On a product's product card you can enter fixed sales prices in one ore more different currencies. These prices are fixed for a single product and you can individually define them according to your company's needs. In addition to this, you can adjust fixed sales prices with the Price adjustment functionality. Fixed sales prices in different currencies have to be activated via the company settings for products.
If you do not want to enter a fixed sales price for a product, you can nevertheless create orders in different currencies. If you add a product to a sales order in a different currency, the product's sales price will be re-calculated based on the actual sales price in company currency and the exchange rate defined in your Currency Register.
In order to add a product with a sales price in a different currency to a sales order, the order has to be set to the currency: If a customer has defined a different currency on his contact card, new sales orders will contain this currency per default. Furthermore, you can change the currency directly on one particular sales order.
How to change/edit the Product Price
Product Register: The Price Tab
Settings
In User Settings for Product you decide what is to be displayed in the
screen. You can also make selections that will simplify the registration
process.
Company Settings control the manner of program usage for all users.
Read more about: