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Rules of Pricing

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This topic is for advanced users. See Basic Pricing and Special Purpose Pricing for ordinary Pricing explanations.

Here are some general Rules of Pricing, explaining how the "3 building blocks" described in Basic Pricing can be used and what will cause one Pricing entry to dominate over another. To review all possible places where you could enter these, refer to:

Parts Markups
Labor Rates

Note: Whatever pricing structure has defaulted onto a Work Order detail line, it is always possible to override the Unit Sale Amount manually. You control access for Employee ability to change the Unit Sale Amount through Employee Security Rights.

The Rules below describe calculations for the Unit Sales Amount, commonly known as "price." Note that Rule 6 expresses that Agreement Discount Coverage is applied after that calculation is completed.

1. Three Work Order Tabs contain price controls and allow entries

WO General Tab - Work Order Types, Parts Markups, Labor Rates
Items Tab - Parts Pricing - Parts Markup
Items Tab - Labor Pricing - Labor Code, Labor Rate Type
Examples:
Click here for an example of the Work Order General Tab.
Click here for an example of the Items Tab - Parts.
Click here for an example of the Items Tab - Labor.

2. There are two Levels within each Tab:

General - usually the incoming default
Specific - pricing defaults set up in other places, such as for the Customer
Examples:
Click here for an example of General and Specific entries on the Work Order General Tab.
Click here for an example of General and Specific entries on the Items Tab - Parts.
Click here for an example of General and Specific entries on the Items Tab - Labor.

3. Specific Level entries override General Level entries:

Within the Work Order itself, Work Order Items Tab entries override General Tab entries.
Click here for an example where a manual Parts Markup overrides the incoming Work Order General Tab default.
Within a given Work Order Tab, specific values override general defaults.
Click here for an example where a Customer has Special Pricing for a specific Part which overrides the default.

4. At the same Level (General or Specific), Customer-related pricing will prevail over other types:

Customer Special Pricing entries override other Company settings

Examples:

Click here for an example on the Work Order General Tab.
Click here for an example on the Items Tab - Parts.
Click here for an example on the Items Tab - Labor.
Customer Agreement Margins override other Company settings

Examples:

Click here for an example on the Work Order General Tab.
Click here for an example on the Items Tab - Parts.
Click here for an example on the Items Tab - Labor.

5. Customer Agreement Margins prevail over Customer Special Pricing:

Since a single Agreement with a Customer is itself specific, Agreement Margins prevail over most Customer Special Pricing entries, whether general (like All Parts or Labor) or specific (for a specific Part or Labor Code).
Examples:
Click here for an example on the Work Order General Tab.
Click here for an example on the Items Tab - Parts.
Click here for an example on the Items Tab - Labor.
There is one exception to the above rule: If the Customer Special Pricing has a FIXED Dollar Amount indicated for a specific Part or Labor Code, then when that particular entry is made, the FIXED Dollar Amount will apply.
Click here for an example on the Items Tab - Parts.
Click here for an example on the Items Tab - Labor.
However, if both Customer Special Pricing and Agreement Pricing have FIXED Prices, then the more specific Agreement FIXED Price will prevail over the one from Customer Special Pricing.

6. Agreement Coverage Discounts are applied after pricing:

Since Agreement Coverage Discounts are applied after the Unit Sale Amount is determined, no further manually keyed overrides are possible. They only affect the Unit Sale Amount.
Since Agreement Coverage consists of No Charge Discounts, there is no charge at all, until the Discount Limit is exceeded.
Finally, when a given Discount Limit is reached and exceeded, then the normal pricing hierarchy takes over, calculating partial amounts and remainders, if needed. (See Coverage Discount Example for explanation.)
Examples:
Click here for an example on the Items Tab - Parts.
Click here for an example on the Items Tab - Labor.

 


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