Setup

Price and management parameters

Retail > Headquarters setup > Parameters > Price and margin management parameters

• Set Available cost and coverage levels to Commercial cost 2 and Coverage 2
• Set Margin calculation to Factor

Procurement and sourcing parameters

Procurement and sourcing > Setup > Procurement and sourcing parameters > tab Prices

• Enable Find auto charges for line parameter
• Set Date type to Today
• Enable Net- & Net exclusive purchase prices

Accounts receivable parameters

Accounts receivable > Setup > Accounts receivable parameters > tab Margin alerts

• Enable margin alerts
• Set Acceptable factor to 1,5
• Set Questionable factor to 1,25
• Enable Use alternative base for margin calculation
• Set Base for margin calculation to Coverage 2
• Enable Inherit setup options for price calculation

Accounts receivable > Setup > Accounts receivable parameters > Prices > tab Price details

• Set Enable price details to yes

Price margin worker group

Retail > Pricing and discounts > Price margin worker groups

• Create a price margin worker group 'All' that shows all information.
  • Set Show margin values to All
  • Enable Show purchase to cost price details
  • Enable Show cost to sales price details

• Create a price margin worker group 'CCL2' which can be used for an override of the standard base for margin calculation. This will allow the user to give more discount than other users.
  • Set Override to Yes
  • Set Base for margin calculation to Commercial cost 2
  • Set Show margin values to Base for margin calculation (this means that it will only show the values for Commercial cost 2)
  • Disable Show purchase to cost price details
  • Enable Show cost to sales price details

Human resources > Workers > Workers > tab Retail > Price margin worker group

 

 

• Set the field Price margin group to Shows all price and margin information (for the worker that is linked to the active user)

Category hierarchy (Role association)

Product information management > Setup > Categories and attributes > Category hierarchies / Category hierarchy role associations

• Create a new or use an existing category hierarchy for cost component setup (Cost markup)
• Create a new or use an existing category hierarchy for sales coverage setup (Sales price markup)

In this example, for simplicity, the existing Retail product category is used for both purposes.

• Link the two hierarchies to the correspondent Category hierarchy role associations

 

(Cost) Charge code

Accounts payable > Setup > Charges code

• Create cost charge code Freight In

• Create cost charge code Duty In

 

• Create cost charge code Insurance

These charges codes are used in the cost component lines of the Cost component template. When a purchase order is created the system will search for a valid Cost component value record and it will add these charge codes to the purchase order lines.

Commercial cost markup charge code

Accounts payable > Setup > Charges Setup > Commercial cost setup > Commercial cost markup charge code

• Create Commercial cost markup charge code Markup. These codes are used in the Cost component template to define the commercial markup lines. Commercial markups will not generate ledger journal postings.

 

Delivery terms

Procurement and sourcing > Setup > Distribution > Delivery terms

• Create Delivery terms CIF with description Cost Insurance and Freight. The terms of delivery are uses as carrier of the cost component stucture which is defined in the Cost component template.

 

Cost component template

Accounts payable > Setup > Charges Setup > Commercial cost setup > Cost component template

• Create a Cost component template for delivery terms CIF in which you define the following structure:
  • Three cost charges
    • Freight In as a percent over the purchase line amount (= Include base amount =Yes)
    • Duty In as a percent over the  purchase line amount (= Include base amount =Yes)
    • Insurance as a percent over the purchase line amount (= Include base amount =Yes) + Freight In + Duty
  • Commercial markup (level 1)
    • Markup as a Fixed amount per purchase order line
  • Commercial markup (level 2)
    • Markup as an amount per Pcs per purchase order quantity.

Cost component value

Accounts payable > Setup > Charges Setup > Commercial cost setup > Cost component value

In the cost component value it's possible to setup the values that are used in the cost to sales price calculation.

In this walkthrough we decide to setup the values per Retail product category:

• Setup a cost component value for the category Action Sports which is valid for al vendors with delivery term CIF and enter the values as shown in the picture above.

 

 

(Coverage) Charge code

Accounts receivable > Charges Setup > Charge codes

• SC_Hand with description Sales coverage handling

• SC_Pick with description Sales coverage picking 

 

Price group

Retail > Pricing and discounts > Price groups > All price groups

• Create price group Base Price with description Base price for all customers to link the base sales price to all customers

Retail > Channels > Call centers > All call centers

Select Fabricam call center:

• Link price group Base Price (menu item Price groups)
• Add current user (menu item Channel users)

 

Sales markup template

Retail > Pricing and discounts > Sales markup template

With the sales markup template the structure of the sales coverage charges and some default values for the sales markup can be setup. When you add the template to the sales markup line it will inherit the values from the template as a default which can be overwritten.

• Create a sales markup template with Coverage calculation input based on Commercial cost 2
• Set input Base price for sales price calculation on Coverage
• Set Factor to 3
• Create two coverage lines:
  • Select Charge code SC_Hand with Category Percent and Default value 1
  • Select Charge code SC_Pick with Category Pcs. and Default value 1

Sales coverage charge group

Retail > Pricing and discounts > Sales coverage charge group

 

• Create the following Sales coverage charge groups
  • Picking 5p with description Replace default picking charge with 5 per pcs
  • Picking 4p with description Replace default picking charge with 4 per pcs
  • Handling 4% with description Replace default handling charge with 4%
  • Handling 3% with description Replace default handling charge with 3%

These groups can be used to set an override on a certain coverage charge line in the sales markup. On the release product you can link this group to the charge code and in de cost to sales price calculation it will use that override if a match is found . If not it will fall back to the default value on the sales markup coverage line.

 

Sales price markup

Retail > Pricing and discounts > Sales price markup

• Create a sales price markup for Base Prices to calculate the sales price based on the commercial cost 2
  • Attach via menu item Price groups the price group Base Price
  • Add a line for category Adult BMX Helmets
  • Select  Sales markup template SMTBase0 and notice that the Base price is set to Coverage and the Factor to 3
  • Change the Charge value for SC_Hand Percent into 2 and create the following overrides:
    • Set Charge value for Sales coverage charge group Handling3% to 3
    • Set Charge value for Sales coverage charge group Handling4% to 4
  • Change the Charge value for SC_Pick Pcs. into 5 and create the following overrides:
    • Set Charge value for Sales coverage charge group Picking 4p to 4
    • Set Charge value for Sales coverage charge group Picking 3p to 3