Setup

Depending on the price calculation method, the Sales Price and Sales Discount in the sales document and Purchase Price and Purchase Discount in the purchase document are determined with the standard best price or lowest price method or the Advanced pricing method. The Advanced pricing method uses hierarchical determination for selecting a valid price and discount for an item. This hierarchy is explained in the Advanced pricing method hierarchy. Changing the price calculation method to the Advanced pricing makes it possible to use other functionality added with this extension, such as sales discounts expressed in amounts.

Advanced pricing calculation method

The advanced price calculation method can be set up at three levels in the following order:

For sales pricing

• Sales & Receivables Setup
• Customer Price Groups or
• Customer card.

For purchase pricing

• Purchase & Payables Setup
• Vendor card

The method that is set at the lowest level surpasses the method(s) set at a higher level(s).

Sales & receivables setup

The Advanced pricing method can be set as the default method to use throughout the whole system for every sales transaction with an item by selecting Advanced Pricing in the Sales & Receivables Setup.

1. Select the Search icon , enter Sales & Receivables Setup, and then choose the related link.
2. On the Prices FastTab, in the Price Calculation Method field, select the Advanced Pricing option from the list.

The Sales & Receivables Setup is now set up with Advanced Pricing as the Price Calculation Method.

Customer price group

If the Advanced Pricing method is not selected in the Sales & Receivables Setup, it is still possible to set the Advanced Pricing method as default for a specific customer price group assigned to one or more customers.

1. Select the Search icon , enter Custom Price Groups, and then choose the related link.
   The Customer Price Groups page opens.
2. Enter Code.
3. Enter Description.
4. Click the Price Calculation Method field.
5. Select the Advanced Pricing option from the list.

The customer price group is now set up with Advanced Pricing as the Price Calculation Method. This group can be assigned to one or more customers.

Customer

Another option to deviate, is to fill the Price Calculation Method with the Advanced Pricing on the specific Customer Card.

1. Select the Search icon , enter Customers, and then choose the related link.
   The Customers list page opens.
2. Click the preferred No. on the Customers list to open the Customer Card page.
3. On the Invoicing FastTab, click the Price Calculation Method field.
4. Select the Advanced Pricing option from the list.

Purchase & Payables Setup

The Advanced Pricing method can be set as the default method to use throughout the whole system for every purchase transaction with an item by selecting Advanced Pricing in the Purchases & Payables Setup.

1. Select the Search icon , enter Purchases & Payables Setup, and then choose the related link.
2. On the Prices FastTab, click the Price Calculation Method field.
3. Select the Advanced Pricing option from the list.

The Purchases & Payables Setup is now set up with Advanced Pricing as the Price Calculation Method.

Vendor

Another option to deviate, is to fill the Price Calculation Method with Advanced Pricing on the specific Vendor Card.

1. Select the Search icon , enter Vendors, and then choose the related link.
   The Vendors list page opens.
2. Click the preferred No. on the Vendors list to open the Vendor Card page.
3. On the Invoicing FastTab, click the Price Calculation Method field.
4. Select the Advanced Pricing option from the list.

Reference date, reference customer and ship-to address

The reference date and reference customer only work when the customer (or customer price group) is set up with the Price Calculation Method as Advanced Pricing, or when the Advanced Pricing method is set up as general pricing method in the Sales and Receivables Setup page.

Reference date

Depending on the type of business a company is in, the pricing strategy can differ substantially. The date that should be used to determine a sales price and discount can vary accordingly. In many cases, the date that a sales order was registered, is the date that the price is set by the salesperson. In businesses where market value (purchase- and sales prices) are constantly fluctuating, the exact moment of shipment or promised/requested moment of delivery may be used to determine the price and discount. Therefore, it is possible to set this Sales Price Reference Date per customer, ensuring that sales price determination in the sales order is as exact as possible. The reference date is always picked from the Bill-to customer in the sales document.

1. Select the Search icon , enter Customers, and then choose the related link.
   The Customers list page opens.
2. Click the preferred No. on the Customers list to open the Customer Card page.
3. Click the Sales Price Reference Date field on the Invoicing FastTab.
4. Select a date option from the dropdown list.

The reference date is only used to determine the sales price and discount for an item in a sales order with the price calculation method set to Advanced Pricing. All other sales document types apply the standard date. To know more on how reference dates are used in the sales process, see Apply different reference dates.

Reference customer

In some cases, it is preferable that pricing for a particular customer is set up on a higher level than the individual customer. For example, for a group of retail customers, a single set of prices may exist. In such a scenario, it is unfavorable to have to register prices for each customer belonging to this group. It can also be unfavorable to use the customer price group because the specific customer price surpasses the prices set at the customer price group level.

To create a maintainable set of prices, it should be possible to define prices for a dummy customer that is referred to on the customer cards of the customers belonging to the group. This way, it can be chosen via setup, if prices are registered on the customer itself, or on a reference customer, possibly linked to multiple other customers.

1. Click the Sales Price Reference Customer field on the Customer Card page on the Invoicing FastTab.
2. Select and click the required No. to choose a customer.

The selected customer number will be used in the sales document to search for the valid price and discount. The reference customer is only used to determine the sales price and discount for an item in a sales order with Price Calculation Method set to Advanced Pricing.

All other sales document types apply the Bill-to customer by default. To know more on how reference customers are used in the sales process, see Using Reference customers for pricing.

Ship-to address

In some cases, prices can differ for one customer depending on the ship-to address for that specific customer. If a large customer has offices/warehouses across the country (say region North and South), prices may differ between these regions due to transportation costs. Hence, the system supports the sales process in these ship-to address specific sales prices by selecting a different customer price - and/or discount group on the ship-to address than on the customer card. The customer price - and discount group on ship-to addresses only work when the customer is set up with the price calculation method set to Advanced Pricing, or when the Advanced Pricing method is set up as general pricing method in the sales and receivables setup.

1. On the Customer Card page, on the action bar, click More options > Related > Customer > Ship-to Addresses. The Ship-to Address List page opens.

   

2. Select and click the required Code.

3. The Ship-to Address can now be set up with a different Customer Price Group than selected on the customer card.

   

4. The Ship-to Address can now be set up with a different Customer Disc. Group than selected on the customer card.

The setup is now completed.

To know more on how ship-to address specific prices and discounts are used in the sales process, see Using ship-to address specific customer price group and customer discount group for pricing.

Item unit of measure

The Advanced Pricing method enables the option to sell items in another unit of measure in a sales price line (for example, Box) than what was set up in the price line (for example, Liter). To avoid rounding differences in the price and discount calculation, the APR extension uses other fields as the conversion basis for alternate units of measure when recalculating the price/discount.

To enable correct operation of the selected pricing method Advanced Pricing, it is necessary to specify all the Quantity fields on the Item Unit of Measure page for all items in the company.

1. Select the Search icon , enter Items and then choose the related link.
   The Items list page opens.

2. Select and click the required No. to open the Item Card page.

3. On the action bar, click More options > Related > Item > Units of Measure.

   An example is used to clarify how to fill in the unit of measures. We assume that the unit of measure CAN is set up as a base unit of measure for item number 0015. As shown in the image below, five cans fit in one box, 20 cans fit in one crate and one pallet can handle 80 cans. One can contains 0.75 liters of soup.

   

   The field Quantity Expressed in the Base UoM specifies how many units (expressed in the base unit of measure) are linked to the number of units as specified in the field “Quantity Expressed in the UoM” (expressed in the unit of measure code). In this example, the current base unit of measure is can. Entering number 5 in this field where Code = Box, indicates that the box contains five cans.

4. Enter the Quantity Expressed in the Base UoM on the Item Units of Measure page.
   The Quantity Expressed in the UoM specifies how many units (expressed in the unit of measure code) are linked to the number of units as specified in the Quantity Expressed in the Base Unit of Measure field. In this example, the alternate unit of measure box is added. Entering the number 1 in this field indicates that 5 cans fit in 1 box.

5. Enter the Quantity Expressed in the UoM.
   The Qty. per Unit of Measure is now automatically calculated by dividing Quantity Expressed in Base UoM by Quantity Expressed in the UoM. In this example, it specifies that “5” cans (the base unit of measure) are contained in one box (the unit of the item).

The units of measure for the item are now set up correctly.

Sales prices and discounts

This section explains how to set up and maintain sales prices and discounts for items. The sales prices and discounts can be opened from both the item card and the customer card because sales prices are based on a combination of item and customer setup.

Sales prices

In industries, especially when you sell to retail, it is common to use sales prices based on an agreement with a customer (group). In previous Business Central versions, you could insert the sales price directly into a customer card or item card. In the current version, you need to create a sales price list and then link it. You can have a specific sales price inserted on a sales price line if a certain combination of customer, item, minimum quantity, unit of measure, or starting/ending date exists. The sales prices can be opened from the customer card and item card.

1. Select the Search icon , enter Customers, and then choose the related link. The Customers list page opens.
2. On the action bar, click Related > Prices and Discounts > Sales Price Lists to open the Sales Price Lists page.
3. On the action bar, click New to open the Sales Price List page. Note that it is necessary to create a price list before actual prices for items can be registered.
4. On the General FastTab, enter Code to identify the price list, e.g., “PL-0024”.
5. Enter Description, e.g., “New Price List Super Heerlen”.
6. In the Assign-to Type field, select the required type from the following options.

   Options	Description
   All Customers	Specifies that the Sales Price List is applicable to all existing customers.
   Customer	Specifies that the Sales Price List is applicable to a particular customer.
   Customer Price Group	Specifies that the Sales Price List is applicable to a specified customer price group.
   Customer Disc. Group	Specifies that the Sales Price List is applicable to a specified customer discount group.
   Campaigns	Specifies that the Sales Price List is applicable to a specified campaign.
   Contact	Specifies that the Sales Price List is applicable to a specified contact.

7. Enter Assign-to No. based on the selected Assign-to Type.
   This field is disabled when the Assign-to Type is set to All customers.
8. Click the View Columns for field.
   Review the View Columns for field. By default, the field is set to option Price & Discount, meaning that both Unit Price and Discount % can be filled on the line level
   You can change this to suit your preference, for example, if you want the price list only to contain unit prices, change its value to Price.
9. Select Price in the View Columns for field.
10. Enter Currency Code, if necessary. Enter the currency code only if the price list is setup in any currency other than the local currency.
11. Enter Starting Date from which the price is valid.
12. Enter Ending Date, if required to specify the date until which the price is valid.
13. On the Lines FastTab, click on the field Product Type.
14. Select the option Item from the dropdown list.
15. Enter Product No.
16. Enter Unit Price.
17. Select the Allow Line Disc. checkbox.
    When the Allow Line Disc. checkbox is selected, it will allow you to apply any additional line discounts to the unit price, if they are set up for the combination of customer and item.
18. Click the Status field on the General FastTab.
19. Select the Active option to set the price list to the Active status.
20. Click on Yes in the dialog box to confirm the status change.

You can view the prices for a specific item from the Item Card page by selecting Prices & Discounts > Sales Price on the action bar to access the Price List Lines page.
You can view the prices directly from the overview. The Price List Code of the related item is highlighted and you can view its Unit Price along with other details. The Assign-to field specifies the entity name to which the prices are assigned. The options depend on the selection in the Assign-to Type field. If you choose an entity, the price list will be used only for that entity. Optionally, you can open a specific price list by clicking it to view the items and prices available in it.

The setup of a sales price list via the menu is now complete.

The description for the fields on the Sales Price List is are as follows:

On the General FastTab:

On the Lines FastTab:

Sales discounts

Similar to sales prices, sales discounts can be set up via the customer card or via the menu if discounts apply to “All customers” for example. In this scenario, we create a Sales Discount List for a particular customer.

1. Select the Search icon , enter Customers, and then choose the related link.
2. Select and click the required No. to open the Customer Card page.
3. On the action bar, click Related > Prices and Discounts > Sales Price Lists.
4. On the action bar, click New on the Sales Price Lists page to open the Sales Price List page.
5. On the General FastTab, enter Code to identify the discount list, e.g., “PL-0034”.
6. Enter Description, e.g., “New Discount List Super Heerlen”.
7. Enter Currency Code, if necessary.
8. Enter Starting Date from which the discount is valid.
9. Enter Ending Date, if required to specify the date until which the discount is valid.
10. On the Lines FastTab, click the Product Type field.
11. Select the Item option from the dropdown list.
12. Enter Product No.
13. Click the Discount Method field.
14. Select the required method from the options, Percentage and Amount. For example, Percentage.
15. Enter Discount Value, e.g., “8.00”.
    In case discount method percentage is chosen, the discount value registered represents a percentage over the unit price. If the discount method Amount is chosen, the discount value registered represent an absolute amount as a combination of the unit of measure and currency of the price list line.
16. Click the Status field on the General FastTab.
17. Select the Active option to set the price list to the Active status.
18. Click Yes in the dialog box to confirm the status change.

The setting up of a sales discount list via the customer card is now complete.

In the above example, a price list of type discount was set up for a specific customer. It is also possible to create a price list of type discount for All customers. This is done via the menu.

1. Select the Search icon , enter Sales Price Lists, and then choose the related link.
   The Sales Price Lists page opens.
2. On the action bar, click New to open the Sales Price List page.
3. On the General FastTab, enter Code to identify the price list, e.g., “PL-0038”.
4. Enter Description, e.g., “New Discount List”.
5. In the Assign-to Type field, select the required type, e.g., All customers.
6. Enter Assign-to based on the selected Assign-to Type.

   Note

   This field is disabled when the Assign-to Type is set to All customers.

7. Click on the View Columns for field. Review the View Columns for field. By default, the field is set to option Price & Discount, meaning that both Unit Price and Discount % can be filled on the line level. You can change this to suit your preference, for example, if you want the price list only to contain discounts, change its value to Discount.
8. Select Discount in the View Columns for field.
9. Enter Currency Code, if necessary. Enter the currency code only if the price list is set up in any currency other than the local currency.
10. Enter Starting Date from which the discount is valid.
11. Enter Ending Date, if required to specify the date until which the discount is valid.
12. On the Lines FastTab, click the Product Type field.
13. Select the option Item from the dropdown list.
14. Enter Product No.
15. Click the Discount Method field.
16. Select the required method from the options, Percentage and Amount. For example, Percentage.
17. Enter Discount Value, e.g., “1.00”.
18. Click the Status field on the General FastTab.
19. Select the Active option to set the price list to the Active status.
20. Click Yes in the dialog box to confirm the status change.

The setup of a sales discount list via the menu is now complete.

The description for the fields on the Sales Price List page are as follows:

On the General FastTab:

On the Lines FastTab:

In some cases, you may wish to see what discounts exist for a specific item, regardless of a specific customer or price discount list. In that case, it is possible to view all discounts directly from the item card.

1. Select the Search icon , enter Items, and then choose the related link.
   The Items list page opens.
2. Select and click the required No. to open the Item Card page.
3. On the action bar, click Sales Prices & Discounts > Sales Prices to open the Price List Lines page.

You can view the line discounts directly from the overview. The Assign-to field specifies the entity name to which the prices are assigned. The options depend on the selection in the Assign-to Type field. If you choose an entity, the price list will be used only for that entity. The Price List Code for discount for the related item is highlighted and you can view its Line Discount % along with other details.

Optionally, you can open a specific price discount list by clicking it to view the items and discounts available in it.

Purchase prices and discounts

This section explains how to set up and maintain purchase prices and payables for items. You can access purchase prices and payables from both the Item card and the Vendor card as the purchase prices are based on the Item-Vendor setup combination

Purchase prices

In industries, especially when purchasing from retail vendors, it is common to use purchase prices based on an agreement with a vendor. In the previous versions of Business Central, you could insert the purchase price directly into a Vendor Card or an Item Card. However, in the current version, you need to create a vendor price list and then link it. You can have a specific vendor price inserted on a purchase line if a particular combination of vendor, item, minimum quantity, unit of measure, or starting/ending date exists. The purchase prices can be accessed from the Vendor Card and Item Card.

To set up the Purchase Price List via the Vendor Card,

1. Select the Search icon , enter Vendors, and then choose the related link.
   The Vendors list page opens.
2. Select and click the required No. to open the Vendor Card page.
3. On the action bar, click Prices & Discounts > Purchase Price Lists to open the Purchase Price Lists page.
4. On the action bar, click New to open the Purchase Price List page.
   Note that it is necessary to create a price list before actual prices for items can be registered.
5. On the General FastTab, enter Code to identify the price list. This code is created as per the set Number series in Purchase & Payable Setup, e.g., “PL-0024”.
6. Enter Description, e.g., “New Price List Super Heerlen”.
7. Enter Currency Code, if necessary. Enter the currency code only if the price list is setup in any currency other than the local currency.
8. Enter Starting Date from which the price is valid.
9. Enter Ending Date, if required to specify the date until which the price is valid.
10. Turn on the Allow Updating Defaults toggle to allow the users to change the field values on the price list line containing default values from the header.
11. Turn on the Allow Invoice Disc. toggle to allow the invoice discount. You can change this value on the lines only if this toggle is turned on.
12. Turn on the Allow Line Disc. toggle to allow line discounts. You can change this value on the lines only if this toggle is turned on.
13. On the Lines FastTab, click the Product Type field.
14. Select the option Item from the dropdown list.
15. Enter Product No.
16. Enter Direct Unit Cost.
    Direct Unit Cost is automatically filled with the data from the existing price lists or from the Item Card. You can also enter it manually.
17. Enter Minimum Quantity, Variant Code, Unit of Measure and Currency Code to calculate the Direct Unit Cost automatically.
18. Select the Allow Line Disc. checkbox.

    Note

    When the Allow Line Disc. checkbox is selected, it allows you to apply any additional line payables to the direct unit cost, if they are set up for the combination of vendor and item.

19. Select the Allow Invoice Disc. checkbox.

    Note

    When the Allow Line Disc. checkbox is selected, the invoice discount will be calculated when the price is offered.

20. Click the Status field on the General FastTab.
21. Select the Active option to set the price list to the Active status.
22. Click Yes in the dialog box to confirm the status change.

The setup of a purchase price list via the vendor card is now complete.

When we select All Vendors, the Assign-to field is disabled

In some cases, you might want to view the prices for a specific item, regardless of a particular vendor or price list. It is now possible to view all prices directly from the Item Card for such scenarios.

1. Select the Search icon , enter Items, and then choose the related link.
   The Items list page opens.
2. Select and click the required No. to open the Item Card page.
3. On the action bar, click Prices & Discounts > Purchase Prices to open the Price List Lines page.

You can view the prices directly from the overview. The Price List Code of the related item is highlighted, and you can view its Direct Unit Cost along with other details.

Optionally, you can open a specific price list by clicking it to view the items and prices available in it.

Purchase Price Lists

The description for the fields on the Purchase Price List page are as follows:

On the General FastTab:

On the Lines FastTab:

Purchase Order

1. Select the Search icon , enter Purchase Orders, and then choose the related link.
2. On the action bar, click New to open the Purchase Order page.
3. On the General FastTab, in the Vendor No. field, select and click the required Vendor No. with Advanced Pricing.
4. On the Lines, select Type as Item.
5. Enter Item No.
6. Enter the Quantity.
7. Enter the Unit of Measure Code.
8. The Direct Unit Cost Excl. VAT is entered automatically. In the Details FactBox, on Purchase Line Details, click Purchase Prices to see how many special prices your vendor grants you for the purchase line. Choose the value to see the special purchase prices.
9. The Line Amount Excl. VAT is also filled automatically.
10. The Invoice Discount Amount and Total Incl. VAT is calculated based on the lines.

You can then post the purchase order.

You can check the calculation for advanced pricing by clicking the line and then the Applied Purchase Price and Discount function.