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Price List Lines

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Question

Price List Lines

Answer

Price List Lines

Each price list line in a price list associates aproduct with a list price.

The difference between list price unit price andline price is as follows:

  • The list priceis the price specified in the price list. The list price does notconsider volume discounts special pricing rules or anything elsethat may affect the price.
  • The unit priceis the calculated price of an item after a percentage adjustment oran absolute adjustment has been applied to the list price.
  • The line priceis the price for a given line item. The line price depends upon thelist price quantity ordered and pricing rules.

For example the following table shows that MXWS-1000has a list price of $10.00. A -$2.00 adjustment is applied to thelist price resulting in a calculated unit price of $8.00. The linequantity ordered for MXWS-1000 is 100 resulting in a line price of$800.00.

Product IDList PriceAbsolute AdjustmentUnit PriceQuantity OrderedLine Price
MXWS-1000$10.00-$2.00$8.00100$800.00

Each list price can have positive or negative adjustmentsassociated to that price. The adjustments are usually discounts andcan be a percentage adjustment (such as 10%) or an absolute adjustment(such as $10.00). For example you can have a price list containingseveral MXWS products and you can apply adjustments to some or allof the list prices as shown in the following table:

  • A -5% adjustment is applied to the $100.00 listprice of MXWS-2000 resulting in a unit price of $95.00. A quantityof 2 is ordered resulting in a line price of $190.00.
  • A -$10.00 adjustment is applied to the $120.00 listprice of MXWS-3000 resulting in a unit price of $110.00. A quantityof 3 is ordered resulting in a line price of $330.00.
  • No adjustment is applied to MXWS-4000. The listprice and the unit price are the same. A quantity of 2 is orderedresulting in a line price of $260.00.
    Product IDList PriceAdjustmentUnit PriceQuantity OrderedLine Price
    MXWS-2000$100.00-5%$95.002$190.00
    MXWS-3000$120.00-$10.00$110.003$330.00
    MXWS-4000$130.00None$130.002$260.00

You can specifyquantity tiers for the items in a price list. In quantity-tiered pricingeither absolute adjustments or percentage adjustments are appliedto a list price depending on the quantity ordered. For example youcan have quantity tiers for order boundaries between 10 and 19 20and 29 and 30 or greater. Generally the greater the quantity orderedthe greater the absolute discount or percentage discount. When theorder quantity falls within one of these boundaries either an absoluteadjustment or a percentage adjustment is applied to the list price.If the quantity falls outside the specified boundaries an adjustmentis not applied and the price defaults to the base list price.

Forexample you can set up quantity-tiered pricing as follows:

  • Percentage adjustments for product MXWS-1100

    If a customer orders between 10 and 99 of item MXWS-1100a -10% adjustment is applied to the list price. If a customer ordersbetween 100 and 199 of item MXWS-1100 a -15% adjustment is appliedto the list price. If a customer orders 200 or more of item MXWS-1100a -20% adjustment is applied to the list price. If a customer ordersless than 10 numbers of item MXWS-1100 it defaults to the base listprice.

  • Absolute adjustments for product RDMS-1100

    If a customer orders between 10 and 99 of item RDMS-1100a -$1.00 adjustment is applied to the list price. If a customer ordersbetween 100 and 199 of item RDMS-1100 a -$2.00 adjustment is appliedto the list price. If a customer orders 200 or more of item RDMS-1100a -$3.00 adjustment is applied to the list price. If a customer ordersless than 10 numbers of item RDMS-110 it defaults to the base listprice.

The following table illustrates these examples:

Product IDList PriceQuantity OrderedPercentage AdjustmentAbsolute Adjustment Unit PriceLine Price
MXWS-1100$10.0050-10%$9.00$450.00
MXWS-1100$10.00150-15%$8.50$1275.00
MXWS-1100$10.00200-20%$8.00$1600.00
MXWS-1100$10.005None$10.00$50.00
RDMS-1100$10.0050-$1.00$9.00$450.00
RDMS-1100$10.00150-$2.00$8.00$1200.00
RDMS-1100$10.00200-$3.00$7.00$1400.00
RDMS-1100$10.005None$10.00$50.00

Effectivity dates can also be specified for the itemsin a price list. For more information about effectivity dates referto the topic ?Price List Line Item Effectivity Dates?.


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Document Information

Modified date:
08 December 2018

UID

ibm10760641