Purchasing Pricing Policies

Overview

Purchasing pricing policies allow you to define special pricing rules for products when purchasing from specific vendors. These policies can automatically apply discounts or set specific prices based on various conditions.

Types of Purchasing Pricing Policies

There is only one type of purchasing pricing policy:

  1. Vendor Pricing Policies: Applied to specific vendors, these policies define special product prices that will automatically apply when creating purchase orders or invoices for those vendors.

Fields of the Purchasing Pricing Policy Form Explained

  1. Policy Name: The name of the pricing policy. This can be translated to multiple languages using the translation feature.
  2. Start Date: Optional. If specified, the policy will only take effect from this date onwards, it will not apply automatically before this date.
  3. End Date: Optional. If specified, the policy will automatically expire and stop applying automatically after this date.
  4. Active Status: Determines if the policy is currently active. Inactive policies won't be applied even if all other conditions are met.
  5. Vendor Selection: Select one or more vendors to whom this policy applies
  6. Product Pricing Rules: For each product included in the policy, this will override the product's default purchase price & can add default discounts:
    • Product: The product to which the pricing policy applies
    • Original Price: The standard purchase price of the product. Defaulted to the product's defined purchase price & can be modified as needed for the policy.
    • Discount Percentage: Optional percentage discount to be applied
    • Discount Value: This is the unit price discount to be applied. It will be applied as a fixed currency amount discount to the product's original price.
    • Actual Price: This is the final unit price after applying the discount percentage or discount value. It is calculated automatically based on the original price and the discount.

Documents in Mezan that implement pricing policies

  1. Purchase Orders: Purchase orders respect pricing policies when adding products to the order.
  2. Purchasing Invoices: Purchasing invoices respect pricing policies when adding products to the invoice.

How Purchasing Pricing Policies Work

  1. Customer pricing policies are considered when creating invoices from the main mezan application
  2. Only one pricing policy can be active at a time for a given vendor
  3. Date-restricted policies are only considered active and apply within their valid date range
  4. When a vendor is first selected, the products are set to the vendor pricing policy if one exists, otherwise the standard product price is used
  5. If the vendor is changed to one which has a different pricing policy, the products are updated to the new pricing policy
  6. If a product is added while a pricing policy active vendor is selected, the product price is set to the vendor pricing policy price if one exists, otherwise the standard product price is used
  7. The pricing after the product is added can still be modified, regardless if a pricing policy is active or not

Best Practices

  1. Policy Naming: Use clear, descriptive names that indicate the purpose of the policy (e.g., "Key Accounts Customer Pricing", "Summer Sale 2024")
  2. Date Ranges: Use date ranges for temporary promotions, seasonal pricing, or time-limited supply terms with customers to avoid manually activating/deactivating policies
  3. Regular Review: Periodically review active pricing policies to ensure they remain relevant and accurate
  4. Testing: Always test new pricing policies with sample transactions after creating them to make sure they work as you expected
  1. Products
  2. Purchasing Invoices
  3. Purchase Orders
  4. Vendors