Can QAD’s Best Pricing handle complex pricing scenarios?

Posted on: March 31, 2022 | By: John Pletch | QAD Financials

QAD offers Best Pricing as part of the base Enterprise Resource Planning (ERP) software.  Many companies have complex pricing scenarios and sales management that would like the ability to quickly change strategy as the market requires.  Best Pricing can handle most pricing scenarios, and when properly implemented, can be changed updated or changed with minimal effort.

The most important factor in successfully implementing Best Pricing is mapping out all pricing scenarios for your business.  Involve all stakeholders in this design process including Customer Service, Marketing, Sales, and others as required.  This group will layout the basis for item pricing which could include List Price (MSRP), Mark-up based on cost, Contractual Prices, and if there are quantity-based pricing requirements.  Next, review your Customer base and determine what type of pricing related rules are required.  Do your Customers receive discounts, adjusted credit terms or freight terms based for large orders, accruals for later rebates?  Finally, who receives each type of pricing.  Can Customers be grouped together for a specific discount or adjustment?  Are some pricing requirements based on region?  Do we have special pricing based on season, from trade shows or other marketing efforts, or that can be applied manually to an order based on authorization from Sales?  Every scenario should be well documented.

Once all scenarios have been fully mapped out, your business can determine which Customer or Item Analysis Groups and Price Lists are needed.  Appropriately utilizing Analysis Codes will greatly reduce the amount of pricing records required to meeting your pricing requirements.  Following this, Price List Maintenance can be setup.

 

Analysis Codes

Customer Analysis Codes will be utilized to group Customers into a set for which pricing rules can be applied.  Customers can be grouped by the Customer fields Bill-to, Class, Customer number, Region, Salesperson 1 or 2, Site, Sort name, Type, or User Field 1 or 2.  They can also be grouped by List Type.  List Type provides and unlimited number of entries used to tie Customers together for pricing.

Item Analysis codes will provide similar grouping for pricing rules.  An example is when a buying group gets different discounts based on Product Line or Item Type.  Items can be grouped by the Item Maintenance fields Article, Break Category, Buyer/Planner, Description 1, Description 2, Group, Item Number, Product Line, Site, Type, User Field 1, and User Field 2.

 

Price List Maintenance

Price List records are setup for each scenario described above.  List Prices, Discount Prices, and Contractual Pricing will be the largest quantity of records loaded.  All other pricing scenarios identified above will be created as Price List records as well.  For example, one buying group obtains a 10% discount from base pricing.  This would be done with one entry which applies to the buying group and ALL Items.  If the buying group gets 10% off one Item Type and a different discount for different Item Types, then there will be multiple records.  Each would by applied to the buying group and specific Item Type Analysis Codes.  The same concept will work for credit terms, freight terms, accruals, and other pricing scenarios.  It is even possible to create price adders using negative discount amounts in a business case like adding core charges.

 

Test the Pricing Setup

Best Pricing will potentially find multiple prices for a specific scenario based on item and Customer groupings.  When Analysis Codes and Price Lists are setup, utilize Pricing What-if Inquiry (S/O) to validate that each pricing scenario is working as expected.

More on pricing in QAD:

Evaluated Receipt Settlement (ERS) Set Up in QAD

Creative use of the QAD Configurator for complex costing and pricing

 

Next Steps

If you are interested in learning more about Best Pricing in QAD and/or maximizing the use of your QAD system, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8810.



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