20.1. Create Price List Version

The process is specific to distribution activities where contracts are closed over multiple year periods, and the effective values can be edited from year to year, respecting the commercial conditions, as agreed at the beginning of the contracts. We assume the existence of a reference price list with one or more versions (one per year). For every business partner price list (selected when defining a customer), the process uses the reference price list to generate a new price list version.

The Create Price List Version process can be found in Product Setup -> Price List Setup. The SOFF component license is required for the process to be active.

• Reference Pricelist - select a price list;

• Reference Price List version - select a version for the reference price list;

• Date - the date when the specific list versions are generated (by default, the current date);

• Business Partner Group - the process will run for business partners in this group;

• Business Partner - optionally, you can run the process only for a business partner;

• Variants - list parameter with the following values:

  • "Never under limit price" - limit the calculated price at the price limit imposed by the reference list;

  • "Under limit price" - let the calculated price go under the price limit imposed by the reference list;

  • "Partially" - set price at the minimum negotiated price of the latest version of the specific list.

• Keep Std Price From Previous Version checkbox - select this if you want to keep the standard price of the previous version of the specific list, instead of using the proposed discount. You actually indicate which is the fixed element that is taken from the specific list: the negotiated discount or the negotiated standard price.

• Activate Generated Price List Version checkbox - indicates if the generated versions are automatically activated or not; this is useful if the user wants to manually intervene and, only afterwards, activate the versions.

The process is used in the following situations:

• when sending a project from the In Progress status to the Completed one, if the conditions described in Project Workflow are met;

• when pressing the Close Project button (which only appears for the non-workflow-type projects):

  • by viewing the Projects;

  • by viewing the Anexe/Oferte tab of the Contracts window;

  • by viewing the Lead - Opportunity lines;

• through the Close Offers (Projects) process.

• directly from the menu: Product Setup -> Price List Setup.

As a result of running the process, we will obtain:

• new versions attached to the specific price lists;

• a report listing the process's running parameters and the lists and versions obtained for each customer.

Price Generation Algorithm

Only the products found on both the reference list and on the most recent version of the specific list for a business partner will be taken into account:

• new products on the reference list will not be included;

• products from old versions of the specific list will not be included if they are not also part of the new version.

List Price = List Price (from the reference list);

Standard Price - depends on CSP (calculated standard price):

• if CSP >= Limit Price (from the reference list): Standard Price = CSP;

• if CSP < Limit Price (from the reference list), the standard price will depend on the Variant parameter:

  • • "Under limit price": Standard Price = CSP;

    • "Never under limit price": Standard Price = Limit Price (from the reference list);

    • "Partial": Standard Price = Standard Price (from the specific list);

• if CSP < List Price (from the reference list) the process will have no effect;

Limit Price - depends on CSP (calculated standard price):

• • if CSP >= Limit Price (from the reference list): Limit Price = Limit Price (from the reference list);

  • if CSP < Limit Price (from the reference list), the standard price will depend on the Variant parameter:

    • "Under limit price": Limit Price = CSP;

    • "Never under limit price": Limit Price = Limit Price (from the reference list);

    • "Partial": Limit Price = Limit Price (from reference list);

  • if CSP < List Price (from the reference list) the process will have no effect;

Convention: CSP (Calculated Standard Price) =

• List Price (from the reference list) * Discount - if the Keep Std Price From Previous Version checkbox has not been selected;

• Standard Price (from the specific list) - if the Keep Std Price From Previous Version checkbox has been selected.

Specific lists are the lists selected in the Customer tab of the Business Partner window with their versions. The Discount is always calculated relative to the last version of a business partner specific list.

Example

In order make the description of this process as clear as possible, we will use the following example:

In the first distribution year, the negotiations with the clients are based on a manually entered price list called "Reference List". This contains:

• First version - year 1;

• All the products that are part of the distribution proposal;

• List Price - the price the negotiation is based on;

• Standard Price - the standard sales price;

• Limit Price - the minimum acceptable price.

Based on the offers, signed contracts, projects in progress and the Reference List, we will obtain specific price lists for each customer. Specific lists will be included in the Customer tab of the Business Partner window. Only this way will the Reference List be separated from the Specific List. A Specific List is a price list that has the same currency as the Reference List in this process. These contain:

• Price List version;

• All or part of the products contained in the Reference List;

• List Price - unchanged, equal to the Reference List Price;

• Standard Price - changed, according to the negotiation = contract price;

• Limit Price - unchanged, equal to the Reference Limit Price;

• Percentage (standard price/list price)- in this case this is the negotiated discount used to form the sales price.

This first version is usually obtained based on the offers (project type offers) that save the specific price list version for the respective customer at their completion.

In the second distribution year, for the extended contracts/offers that keep their commercial conditions, new Specifc Lists (versions) will be created for each customer.

In this second year, you also need to modify the Reference List so that it receives the version valid for the second year. These contain:

• Year 2 price list version;

• All the products that are part of the second year distribution proposal, excluding the old products that can no longer be delivered and including the new ones;

• List Price - the price the negotiation is based on;

• Standard Price - the standard sales price;

• Limit Price - the minimum acceptable price.

Based on the modifications in the second year Reference List, you need to generate Specific Lists for the second year as well for each customer with an extended contract/offer. We start with the new Reference List (second year version) and apply the same commercial conditions, including the negotiated "discount". As such, we will get new prices for all the existing Specific Lists, with the following items:

• the price list version

• All or part of the products contained in the Reference List (second year version) and were part of the previous version;

  • the products that do no longer appear in the Reference List (second year version) are erased;

• List Price - unchanged, equal to the Reference List Price (second year version);

• Standard Price - changed, according to the algorithm we will describe in the next paragraph;

  • Limit Price - changed, according to the algorithm we will describe in the next paragraph.