Specifications
Chapter 5. Inventory
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F NOTE: It is not necessary that the price basis be the same for all items in your inventory. In fact,
you need to have the flexibility of pricing certain items using one method and other items
using another method. You will probably have entire sections using the same price basis.
Each customer is assigned a price level in the Customer Master File (CM1.D). The
price level corresponds to the inventory price adjustment and determines the price
the customer receives at POS. If a customer is price level 3, the prices at POS will
reflect price level 3 on all items purchased and not price levels 2 or 1 (unless
manually overridden). Make sure each inventory item has adequate pricing to
accommodate all price levels assigned in Accounts Receivable. See Chapter 4,
Accounts Receivable, for more information on price level.
F NOTE: For all pricing methods, price level 1 (PRICE ADJ 1) is your highest price.
0 = Percentage Markup/Markdown
Use this method if you wish to markup or markdown from List/Base using
a percentage of List/Base. A change to List/Base will change the
calculated price levels accordingly. For example, if an item's cost is $10.00
and you want to markup from cost, enter 10.00 in List/Base. Then enter
the percentages to markup in Price Adj 1-9:
Calculation
List/Base + % of List/Base
Selling price
for:
Price Adj 1 100.00 10.00 + 10.00 PL 1 20.00
Price Adj 2 90.00 10.00 + 9.00 PL 2 19.00
Price Adj 3 80.00 10.00 + 8.00 PL 3 18.00
etc.
Customers assigned to price level 1 will be sold the item at $20.00. Price
level 3 customers will be sold the item at $18.00.
If you want to markdown from a list price, use negative price adjustments
(List/Base=10.00):
Calculation
List/Base + % of List/Base
Selling price
for:
Price Adj 1 0.00 10.00 - .00 PL 1 10.00
Price Adj 2 -3.00 10.00 - .30 PL 2 9.70
Price Adj 3 -5.00 10.00 - .50 PL 3 9.50
etc.
If you know the gross margin you want to make on this item but you do
not want to use price basis 3 (or 13), enter the markup percent that will
calculate the price to the desired gross margin. See "Gross Margin %
Conversion Table" at the end of this section for a quick reference of
markup percentages).