How Customer Pricing Works in Sage 300 ERP

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By Hrayr Galoyan

Several parameters affect what selling price Sage 300 ERP assigns by default in a new sales order. The price and extended price depend upon:

1.   The customer selected
2.   Customer’s currency
3.   The ship-to location selected
4.   Discounts defined in the pricelist
5.   Ordering unit of measure and pricing unit of measure
6.   Whether or not there is a contract pricing defined

So what is the logic Sage 300 ERP uses to determine the price? Here are the steps.

Determine the Pricelist Code

First, Sage 300 ERP needs to decide which pricelist code to use in an order. If a ship-to location is specified in an order, then it uses the pricelist defined in the ship-to location.

If you do not specify a ship-to location, then it uses the pricelist defined for the customer.

If you do not specify a customer pricelist either, then there is no default pricelist for the order, and each detail line uses whatever pricelist is assigned to the item in that detail line.

If you do not assign a pricelist to an item, then the respective field in order details is empty by default, and you must specify a pricelist code before the item can be added to the order.

Of course, any of these pricelists are just the defaults and you can override them at any time on the order header and/or details, as long as the order hasn’t been shipped yet.

Determining the Price

Now that Sage 300 knows which pricelist to use, it needs to determine the price itself. The price may come from one of two places:

1. Contract Pricing
2. Item Pricing

Contract Pricing takes precedence over Item Pricing and allows creating special pricing for certain customers, for example, if you agreed to give them additional discount.

Contract Pricing

Contract Pricing is flexible; it can be setup for one item at a time, or for a whole category of items. However, you always need to specify a customer, so you cannot define contract pricing for all, or a range of customers. Here is an example.

In this example, any item in category C1 that is sold to customer 1200 will receive 5% discount. Start and Expiration dates are empty, which means this contract is active indefinitely. Here is another example:

Whenever item A1-103/0 is sold to customer 1200 using pricelist USD, $70.00 is used as the price. However, it also has the “Use Lowest Price” option selected, which means if the price defined in the standard item pricing is lower than the price in special pricing, the lowest price will be used. This ensures that the client gets the best possible deal.

Item Pricing

Item pricing in Sage 300 is flexible. Here are some of the important features:

1.   A price can be setup for a single unit of measure, i.e., $10 each.
2.   A price can be setup for multiple units of measure, i.e. $10 each, but only $110 for a dozen.
3.   A price can be calculated based on a cost, i.e. average cost of the item, plus a certain percentage.
4.   Sale price and sale period can be defined separately from the base price.

There are also multiple ways to define discounts:

1.   Discount can be based either on customer type or on volume.
2.   Discount can be defined as a percentage or amount.

Sage 300 allows overriding the unit price in sales transactions, but you can optionally configure it to show a warning or error if the price does not meet the specified criteria, for example, if sales margin is insufficient.

Other Considerations

Multicurrency Pricelists

In multi-currency ledgers, it is possible to define the same pricelist in multiple currencies.

Notice that pricelist CTPR01 exists in CAD as well as USD currencies. This allows you to define proper pricing for each market.

Pricing and Ordering UoM

Pricing and ordering Units of Measure can be different, for example, the price may be defined for a “Dozen”, while the order is in “Each” units. Sage 300 converts the various units of measure automatically and no additional effort is required from the user.

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