This guide explains the formation of model pricing, product price groups, customer-specific prices, and the calculation of the purchase price for a composite product.

CONTENTS

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 can affect the final sum. Customer-specific prices can also be set for products.

In short, the formation of prices for model variations:

  1. The user can set sales prices for model variations themselves without any coefficients 
  2. The final price of models can be determined from the coefficients or price change definitions given to attribute values. In this case:
    1. The base price is set for the main product, which is copied to all models as the starting price
    2. The user sets 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:

  1. With price groups or
  2. With customer-specific price definitions
  3. Additionally, a product group can be set on sale for a limited time, 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. However, the price coefficient or final price is always set from the product card. The set price coefficient only affects the sales price.

Setting Price Group with Coefficient

  1. Select product price groups (1)
  2. Select "Coefficient" and set the value by which the final price of the product is desired to be multiplied (2)
  3. The price group and the set coefficient are visible in the Price Groups section (3)
  4. The information is reportable in the product card's price information (4)

Setting Price Group Directly with Final Price

  1. Select product price groups (1)
  2. Select "Final Price" and set the absolute value desired to be used as the product's final price (2)
  3. The price group and the set final price are visible in the Price Groups section (3)
  4. The information is reportable 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 corresponding price group is selected.

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 then save information on the product about what price the product is in each price group.

 

For example, it has been defined that in the "Discount 50%" price group, our 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/model that would cost 20.00€ for another, costs only 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, or 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. They can also be directly saved with a fixed price. In this case, the above-mentioned settings and definitions do not affect these customers. 

Defining Customer-Specific Price on Product Card

  1. Select "Manage Customer Prices" (See image, point 1)
  2. Select customer (2)
  3. Select Final Price OR Price Coefficient (3). NOTE! 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)
  • Customer-specific price definitions are reported per product and only 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 it 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. 
It is also affected by various locks when something is updated and when it is not, meaning that values are not calculated in the background for events in a VAT locked period. There are also inventory settings that can affect the price of composite products (e.g., "Do not use average price in the calculation of composite product purchase prices"). 

The calculation of the purchase price for sub-products goes like this. When handling purchase prices from the sub-product chain of a composite product, if a non-inventoried composite product is encountered,
its values are not processed, but its sub-products are drilled into and their purchase prices are processed. If an inventoried composite product is encountered, the drilling in the chain stops and the values of the inventoried 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/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 practically 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, e.g., 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.

Keywords: pricing, composite product, purchase price, model variation, price groups

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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