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Datacor ERP C/S

Maintain Profitable Pricing

October 22, 2018 by Caitlin O'Donnell

Overview | Maintenance Tools | Pricing Changes | Analysis Tools

(click links above to quickly navigate to topics)

Proper pricing is critical to the profitability of every company. As you know, there are many variables associated with pricing in the chemical industry. The vast array of customers and products, the volatility in raw material costs, and the specialized customer pricing structures can make managing pricing across your organization a challenge. Datacor ERP C/S offers a series of powerful tools to verify, manage, and maintain profitable pricing. Take a look at this sample of features below, including our brand new feature, the ability to send HTML based emails!

Pricing Overview

The type of pricing utilized for each customer product is defined in Customer Product Maintenance. The available Price Types within Datacor ERP C/S are List, Scheduled, and Contract. A brief explanation of each Price Type can be found below:

  • List: List pricing is pricing at the product level. This allows for the definition of general price books that can be utilized across multiple customers.
  • Scheduled: Scheduled pricing is customer product or customer product ship-to specific pricing. Schedule pricing provides for the most distinct pricing within Datacor ERP C/S.
  • Contract: Contract pricing defines a set price at the customer-product level. It may or may not have an expiration date.

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Price Maintenance Tools

Future Price Maintenancepbfuture003

  • What Does It Do? Automates price changes.
  • Why Should I Use It? You can apply price changes to groups of products or master products in bulk.
  • I Want to Learn More!

The Future Price Maintenance functionality provides a quick and efficient mechanism to automate price changes. This program can update all available price types within Datacor ERP C/S. Once entering the necessary criteria and defining the price modifications to be made, the program generates a New Price listing in the browse at the bottom of the screen. Users can then review the newly generated prices, make any modifications, and choose OK to create the new price books.

DTUs (Dynamic Table Update) for Price Books

  • What Does It Do? Exports pricing data to allow bulk updates; Reimports updated data.
  • Why Should I Use It? Allows you to quickly update large amounts of information.
  • I Want to Learn More!

Dynamic Table Update provides the ability to dynamically export data into Excel, update and add to the information, and then import it back into the database. It is a useful tool for quickly updating a large amount of information.

Inventory Cost Analysis Inquiry

InventoryAnalysis
  • What Does It Do? Analyzes the impact that new raw material costs have on finished goods.
  • Why Should I Use It? Quickly analyze what/if cost scenarios to calculate pricing adjustments.
  • I Want to Learn More!

The inventory cost analysis inquiry program analyzes the impact that cost changes for one or more raw materials have on your finished goods costs. After the new costs have been entered, users can view a list of formulas that are impacted by the cost change. After the list of impacted formulas and the new formula costs are generated, users can calculate the pricing impact on finished goods by the change in formula costs.


Communicating Price Changes to Customers

New! HTML Price Change Letters

htmlemail002
  • What Does It Do? Notifies customers of price changes for products they purchase with new HTML email functionality.
  • Why Should I Use It? Customize your price change emails to reflect your organization’s information.
  • I Want to Learn More!

The Price Change Letter Print can be used to notify Customers of new or upcoming price changes for the products they purchase. When sending Price Change Letters via email, this program can be used to customize the body of the email generated.


Keeping Prices/Margins in Check

Pricing Analysis Reports

(click links below to quickly navigate to item)

Pricing Exceptions | Order Entry Profits| Profit Analysis | Daily Invoices | Profit Hold | Pricing Decision Support | Customer Specific Pricing | Customer Product Price Book | Product Margin Review Inquiry

Pricing Exception Report (O/E>Reports)oepexscr002

  • What Does It Do? Identifies discrepancies or adjustments to Customer Product price schedules.
  • Why Should I Use It? Quickly locate discrepancies in your price schedules.
  • I Want to Learn More!

The O/E Pricing Exception Report provides a mechanism for identifying discrepancies or adjustments to Customer Product price schedules.  The report lists and summarizes orders / invoices along with their associated pricing information.  The report seeks pricing discrepancies between those that appear on the order / invoice (Net Price) and default customer product pricing schedules (Calc. Price).

Order Entry Profit Report (O/E>Reports)oeordpfscr002

  • What Does It Do?  Shows expected profit from orders before invoicing.
  • Why Should I Use It? Review expected profits.
  • I Want to Learn More!

The Order Entry Profit Report is designed to show the expected profit from orders before they are invoiced. Cost information is based on product level costs at the cost method your company is using. For Direct Orders, the cost is pulled from the corresponding Direct P.O. line item's cost. If no Direct P.O. exists, the cost is pulled from the Supplier Ship From Product record.

Profit Analysis Report (I/N>Reports)inptalscr002

  • What Does It Do? Shows profit and gross profit % for invoice and credit/debit memo line items.
  • Why Should I Use It? Know your margins and profit calculations.
  • I Want to Learn More!

The Profit Analysis Report is designed to show users a range of Invoice and Credit/Debit Memo information and to calculate the profit and gross profit percentage for each line item. The report also includes the costs and prices that went into the profit calculation.

Daily Invoice Report (I/N>Reports)ininvdscr002

  • What Does It Do? Provides a detailed analysis of invoices and credit/debit memos by date.
  • Why Should I Use It? Know how much your company is invoicing per day.
  • I Want to Learn More!

The Daily Invoice report is designed to provide users with a detailed analysis of invoices and credit/debit memos by date. For each line item/lot, the report displays the cost (unit and extended), price, freight and any outbound charges. In addition, miscellaneous charges and fees are listed and totaled for each invoice. A grand total of the amount for all of the invoices and credit/debit memos is included at the end of the report.

Order Level Profit Hold

  • What Does It Do? Places orders that do not meet acceptable profit margins on profit hold.
  • Why Should I Use It? Prevents you from shipping out orders that don’t meet your profit margin criteria.
  • I Want to Learn More!

Datacor ERP C/S can evaluate orders for profitability and place those orders that do not meet acceptable profit margins on profit hold to prevent shipment until further review. To use this feature, O/E Module Control #92 - Check for Order Profit Hold must be set to Yes. If this flag is not selected, Datacor ERP C/S will not perform profit evaluations for orders when they are entered or updated. There are three main areas that work in conjunction with one another and in a hierarchy when determining Profit Hold: 

  • Delivery Type- Delivery types can be used to set a minimum profit amount in conjunction with the order profit evaluation functionality.
  • Product Class- Product Classes can be used to define an acceptable gross profit percentage range when orders/invoices are evaluated for profit hold.
  • Gross Profit Percent Range (O/E Module Controls #47 and #48)- Line items with gross profit percentages outside the acceptable range are placed on profit hold and the invoice is automatically  placed on posting hold with a hold reason of “Profit."

Pricing Decision Support (S/A>Inquiries)pricedssgraph002

  • What Does It Do? Displays historical sales and profit information on products.
  • Why Should I Use It? Identify trends/patterns in relation to product pricing and profit and make more informed pricing decisions.
  • I Want to Learn More!

The Pricing Decision Support Inquiry provides users with the ability to identify trends/patterns in relation to product pricing and profit and allows for more informed pricing decisions. The program displays data in a tabular browser form as well as a graphical form via an Excel spreadsheet. In addition to displaying raw sales data, the inquiry also calculates several basic statistical values.

Customer Specific Pricing Report (T/M>Reports)cspricescr002

  • What Does It Do? Reviews current pricing for customer products.
  • Why Should I Use It? Know what you’re charging per product regardless of price type (scheduled or list).
  • I Want to Learn More!

The Customer-Specific Pricing Report can be used to review current pricing for customer products. The report displays the current pricing for each customer product regardless of the price type defined in Customer Product Maintenance. The report uses the below hierarchy to determine which price to display:

  • Scheduled Pricing Hierarchy
  • List Pricing Hierarchy

Customer Product Price Book (T/M>Reports)cppricescr002

  • What Does It Do? Lists customer product price book entries created using the Customer Product Price Book Maintenance program.
  • Why Should I Use It? Know your pricing per customer.
  • I Want to Learn More!

The Customer Product Price Book Report lists customer product price book entries created using the Customer Product Price Book Maintenance program. Customer Product Price Books are used when the customer product has a Price Type of "Scheduled" defined in Customer Product Maintenance.

Product Margin Review Inquiry (I/C>Inquiries)

icmrginq001-1

  • What Does It Do? Displays estimated profit margins.
  • Why Should I Use It? Estimate profit margins and set prices.
  • I Want to Learn More!

The Product Margin Review Inquiry is designed to display estimated profit margins when selling a product purchased from a supplier to a customer. It is useful in estimating profit margins and setting prices.


For further instruction on implementing these tools, please visit the Datacor ERP C/S Help Portal and search for "Pricing Overview."

Topics: Pricing, Datacor ERP


Caitlin O'Donnell

Written by Caitlin O'Donnell

CRM_Request_Demo

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