When you sell items to customers, you can create standard selling prices. When you create a customer or supplier, you can assign an automatic discount to each customer and supplier, which applies a default discount on each line. However, you may need to exercise finer control than an overall discount:
- With customer processing, you may need to have discounts/prices per group of customers, or even per customer. These prices could apply to groups of inventory items, or to specific items.
- With supplier pricing, you may receive volume discounts from your supplier. In addition, you may wish to track quoted prices from different suppliers for one or more items.
If you need this type of flexibility and control of prices, you can purchase the Pricing Matrix add-on module, which gives you the following capabilities:
- You can create volume discount contracts. These pricing structures exist for groups or individual customers/suppliers and inventory items:
- You create a contract per customer/supplier account or per customer/supplier group.
- Within each contract, you can create an unlimited number of contract lines. Each line can be for an inventory item or for an inventory group.
- A contract line has an effective date and an expiry date.
- A contract line can have multiple lines representing item quantities. For each quantity, you can enter either a price or a percentage discount on the price. Either way, the system adjusts the price on the invoice/goods received voucher line.
You can create a discount matrix, which works as follows:
- You create a two dimensional matrix, with rows representing customers and columns representing inventory items. The cells of the matrix contain discount percentages.
- You assign a row of the matrix to a customer or a customer group, and a column of the matrix to an inventory item or an inventory group.
- When you process a sale of an inventory item to a customer, the system puts the customer’s row and the inventory item’s column together and derives the discount percentage to apply to the invoice line.