As an Enterprise Resource Planning (ERP) system, SAP Business One helps you automate important business processes in financials, operations, and human resources. One feature that is especially helpful for both sales and purchase cycles is price lists. You can use this feature to determine prices automatically for items, whether it is for one business partner or many. Read on to learn more about using price lists to save time and increase accuracy in SAP Business One.
How Price Lists Work in a Sales Cycle
During the creation of sales documents, SAP Business One extracts prices directly from a price list linked to a business partner, such as a group of customers. Using the price list, you can create a sales order for a product to be sold to a business partner’s different segments: for example, its retailers, distributors, and end-users. In this case, the product’s price is set at $1,000, which is the base price. The base price also is set as the base number 1 for SAP Business One’s auto-calculation ratio.
To create three separate price lists for this product, you assign a factor, which is a percentage that is applied to the base price. A retailers’ price list might have a factor of 1.75. The product price is automatically calculated to $1,750. For distributors and end-users, factors of 1.60 and 1.90 are specified respectively to their price lists, and their product prices would be auto-calculated to $1,600 and $1,900.
Because the price lists are generated automatically, you save time and reduce possible errors that result from manual entry and calculation. An added benefit is that you can assign as many products to as many price lists as you require.
Using Price Lists for a Purchase Cycle
You can use price lists in SAP Business One similarly when setting up a purchase order for vendors such as manufacturers and wholesalers. As with a sales cycle, the price list is linked to a business partner, and you can assign a factor to the base price. Using the base price of $1,000 again, you can assign factors of 0.80 and 0.70 to wholesalers and manufacturers, respectively. When you create a purchase order for wholesalers, you select the price list for wholesalers, and the final product price will be $800. Likewise, selecting the price list for manufacturers will yield a final product price of $700.
SAP Business One’s auto-calculation of price lists adds time efficiency and precision to your sales and purchase cycles. Consultare, an SAP Gold Channel Partner, can help you learn more about this feature and many others in SAP Business One.
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