This guide explains how the model price is formed, product price groups, customer-specific prices, and the calculation of the purchase price for a composite product.
CONTENTS
- Formation of model pricing
- Product price groups
- Customer-specific prices for product/model
- Purchase price of composite product and its calculation
Formation of model pricing
A product has a base price. The values of model attributes can have coefficients or price changes, from which the model price is formed. Additionally, price groups allow the product to be sold at different prices in different situations. The customer's discount percentage affects the final sum. Customer-specific prices can also be set for products.
In short, the formation of prices for model variations:
- Set sales prices for model variations yourself without any coefficients.
- Determine the final price of models from the coefficients or price change definitions given to attribute values. Do as follows:
- Set the base price for the main product. The system copies the base price to all models as the starting price.
- Set either a price coefficient or a price change for each attribute value. The base price is multiplied by the price coefficient and the price change is added to the base price when the model's sales price is calculated this way.
Pricing of model variations can be managed after the above basic settings in the following ways:
- Price groups
- Customer-specific price definitions
- A product group discount can be set for a fixed period, in which case the discount according to the discount campaign is added to the price calculation during the sales process
Product model prices
For example, consider packaging boxes with a base price set at 10.00 € in the basic information.
There are 3 models of the product, with the attribute "Size" and its values being "Small", "Medium", and "Large".
Attribute values
The price of a model formed for a product can vary according to the values of the model's attributes. A price coefficient or a fixed impact on the price can be set for the value. You can read more about this in the guide Product attribute management.
Need to set model prices based on coefficients
For example, we want the "Small" packaging box to cost the base price of the main product, so the coefficient for the value is 1. "Medium" is desired to cost 2 times the base price and "Large" 3 times the base price. The end result would look like this:
Need to set model prices based on price changes:
For example, we want the "Small" packaging box to cost 5 euros more than the base price of the main product, so the price change for the attribute value should be marked as 5. "Medium" is desired to be set to cost 10 euros more than the product's base price and "Large" is desired to be set to cost 20 euros more than the product's base price. The end result would look like this:
Product price groups
A price group can be set for a product either with a price coefficient or directly with a final price. In this case, the price setting according to the price group is used on the sales document when the same price group is also set behind the customer card for the customer. The price coefficient or final price is always set from the product card. The set price coefficient only handles the sales price.
Setting price group with coefficient
Open the product price group settings by selecting Products > Product card > Product price groups.
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Select product price groups (1).
- Select "Coefficient" and set the value by which the final price of the product is desired to be multiplied (2).
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Check that the price group and the set coefficient are visible in the Price groups section (3).
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Use this information in reporting in the product card's price information (4).
Setting price group directly with final price
Open the product price group settings by selecting Products > Product card > Product price groups.
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Select product price groups (1).
- Select "Final price" and set the absolute value you want to use as the product's final price (2).
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Check that the price group and the set final price are visible in the Price groups section (3).
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Use this information in reporting in the product card's price information (4).
When a customer is linked to a price group, the product is sold to them at the price according to that price group. The customer's price group selection is located on the customer's Edit additional information tab. If the price group setting is desired to be used in the sales process, the same price group that is selected for the customer is selected on the sales quote, order, or invoice.
The price group setting is used on sales offers, orders, and invoices only when the customer selected on the sales document has the same price group selected from the "Edit additional information" tab on the customer card.
Example of defining a price group for a model variation
It is possible to define price groups with different names and save information on the product about what price the product has in each price group.
For example, it has been defined that in the "Discount 50%" price group, the product costs half of the original, so its price coefficient is set to 0.50.
In this price group, the example model prices would be:
- Small: (10 euros + 5 euros) * 0.5 = 7.5 euros
- Medium: (10 euros + 10 euros) * 0.5 = 10 euros
- Large: (10 euros + 20 euros) * 0.5 = 15 euros
Defining price groups for product and model variations
Defining customer-specific discount percentage
A customer-specific discount percentage can be given to a customer on the customer's Edit additional information tab (see image below, point 2). The discount percentage reduces the final price of the product/model. For example, a product or model that would cost 20.00 € for another customer costs 15.00 € for a customer whose discount percentage is given as 25%.
If a discount percentage is used, the customer must not have a price group selected. The price group setting overrides the discount percentage in product pricing if the same price group setting is also set for the product as for the customer.
Customer-specific prices for product/model
Customer-specific prices can be set for a product (or product models). Management of customer-specific prices is part of extended product management (included in the Premium package). A customer-specific coefficient can be set for a product, allowing its final price to be different for different customers, even if they belong to the same price group. A fixed price can also be saved directly for the product. In this case, the above-mentioned settings and definitions do not affect these customers.
Defining customer-specific price on product card
Open the customer-specific price management by selecting Products > Product card > Manage customer prices.
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Select "Manage customer prices" (see image, point 1).
- Select customer (2).
- Select Final price OR Price coefficient (3). Note that the discount percentage does not affect the price in either case.
- Final price: Overrides all other price definitions and this price always appears as such on the invoice.
- Price coefficient: Also overrides all other price definitions, so the product's base price is multiplied by this coefficient.
- Save (4).
- Follow customer-specific price definitions per product on the product card.
Purchase price of composite product and its calculation
If the main product states that "the purchase price is from the main product", it means that the purchase price has not been calculated from the sub product chain even once. When values are calculated for a composite product from sub product chains, some choices are made in the background depending on the types of products added to the chain.
The calculation is also affected by various locks that determine when something is updated and when it is not. Values are not calculated in the background for events in a Vat-locked period. In addition, stock settings can affect the price of composite products (for example, the setting "Do not use average price in the calculation of composite product purchase prices").
The calculation of the purchase price for sub products proceeds as follows:
- When handling purchase prices from the sub product chain of a composite product and there is a non-stocked composite product in the chain, its values are not handled, but the calculation drills down to its sub products and their purchase prices are handled.
- When there is a stocked composite product in the chain, the drilling in the chain stops and the values of the stocked composite product are considered in the calculation. In this case, the purchase price is not fetched from the sub products of these products.
Values calculated from the sub product chain include the quantity of the sub product, purchase price, sales price, and gross and net weight. The average price is primarily used as the purchase price if it is found and not otherwise specified in the settings. If the average price is not used or found, the purchase price of the sub product in question is used.
Locks on the composite product can prevent the use of values calculated from the sub product chain. This means that a fixed value can be used instead of a calculated value. The lock can be set for the purchase price, sales price, or weight. For the sales price, the price margin ("Lowest sales price") is also considered.
When product information is changed, for example the purchase price is changed and the product is part of a sub product chain, the user is asked upon saving whether the changes should be updated to the sub product chains.
Frequently asked questions
How is the price of a model variation formed from the base price?
The price of a model variation is formed from the base price of the main product and the price coefficients or price changes defined for the model's attribute values. In addition, price groups, customer-specific discount percentages, and customer-specific prices can change the final sales price.
What is the difference between a price coefficient and a price change for an attribute value?
The price coefficient multiplies the main product's base price by the attribute value's coefficient. The price change adds a fixed euro amount to the main product's base price based on the attribute value.
When does the price according to the price group appear on the sales document?
The price according to the price group appears on the sales quote, order, and invoice when a price group has been defined for the product on the product card and the customer selected on the sales document has the same price group selected on the "Edit additional information" tab of the customer card.
How does the customer-specific discount percentage affect pricing?
The customer-specific discount percentage reduces the final price of the product or model. If a discount percentage has been defined for the customer, the product price is calculated from the normal price by subtracting the share according to the discount percentage, unless a price group or customer-specific price overrides this.
How does a customer-specific price differ from a price group?
A customer-specific price is defined directly for a specific customer on the product card either as a final price or as a price coefficient. It overrides all other price definitions, such as price groups and discount percentages. A price group, on the other hand, is based on a shared price group setting for the product and the customer.
How is the purchase price of a composite product calculated from sub products?
The purchase price of a composite product is calculated from the sub product chain by taking into account the sub products' quantities, purchase prices, sales prices, and gross and net weights. The values of non-stocked composite products are not used; instead, the calculation drills down to their sub products. For stocked composite products, the calculation stops and their values are included.
When should locks be used for a composite product?
Locks should be used when you want to use a fixed purchase, sales, or weight value instead of a value calculated from the sub product chain. Locks prevent values calculated from the sub product chain from being updated to the composite product.
Keywords: pricing, composite product, purchase price, model variation, price groups
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