Discount groups are applicable for all (or specific) business partners, or specific customers and vendors.įor each of the above types, discount groups can be created based on the following: Period & Volume discounts are automatically applied for any customer or product that does not enjoy any group discount or special pricing.ĭiscount groups are the third level of price lists in SAP Business One, which overrides both the previous two levels, namely, price lists and period & volume discounts. Volume (or item quantity that the customer is ordering).Period (or a date range when the discount scheme would be applied) and.
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This is the second level of price lists that can be used when food businesses want to offer a discount (in percentage) on a specific price list, based on: With SAP Business One, food companies can create several price lists.įurther, it is possible to build relationship between multiple price lists and usher automation & speed on managing and updating pricelists. This is the first and basic form of product pricing that is created for every business partner. SAP Business One – Pricing Levelsīe it in the form of group discounts or special pricing, SAP Business One provides the following 4 levels of price lists in ascending order, each of which overrides the previous level: Next, let us look at the four levels of pricing that are enabled by SAP Business One. Just like the sales cycle, food companies can utilize SAP Business One to assign many purchase products to multiple price lists, with each configured for a vendor segment. Similarly, the purchase price factor when buying directly from manufacturers can be set at 0.5x (or $500 for a product priced at INR 1,000). For instance, when purchasing from wholesalers, the purchase price factor can be set at 0.6x (meaning a purchase order value of INR600 for a product with a base price of INR1,000). SAP price lists also take care of the purchase order when the food business is procuring products (with the base price as “x”) from its vendors. With SAP Business One, food companies can assign multiple products to different price lists – each with the same sales price factor that automates the price calculation for the same sales group or category. Similarly, the sales price factor for retailers can be set at 1.75x and that for a direct consumer at 2x. For instance, food distributors can have the sales price factor of 1.5x (meaning they pay a price of $1,500 for a product with a base price of $1,000). Here, the SAP price list calculates the value of the sales order for selling an item (with base price “x”) to multiple customer categories. Primarily, SAP price lists are based on the following two categories: The same facility is also available on the vendor side (meaning manufacturers and wholesalers) from where the company is purchasing food items.
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Managing Price Lists using SAP Business OneĪs an ERP tool, SAP Business One allows food businesses to create multiple price lists for food items, which are available at a customized price to different categories of customers (for example, retailer, distributor, or the end customer). Let us look at how price lists work with SAP Business One. The correct price list ensures that food companies are earning the right margin from their food sales – and offer a fair price to their distributors and consumers.Īmong the popular ERP solutions, SAP Business One is enabling food processing companies to create and manage the right price list. Product pricing is extremely important as it is the sole determinant of income and revenue earned by food processing companies. Every year, food distributors lose massive revenue simply because of inaccurate pricing.