How to Manage Multi-Tiered Customer Pricing in Dynamics GP

Dynavistics Trinity Extended Pricing Enhancements simplifies many of the challenges in managing complex price schemes and as covered in this video, the process of managing volume based pricing. For more information on the Trinity distribution modules please visit the Trinity Product Page.  This is 1 of 3 videos. Transcript Extended Pricing Enhancements comprises a number of varied, and flexible pricing options that complement GP’s core Extended Pricing functionality.

Extended Pricing Includes:

  • Volume based pricing
  • Volume based promotions
  • Order Value Based Discounts
  • Cost Uplift Pricing
  • And site-specific pricing
We will be concentrating on one specific feature – Volume based pricing, sometimes referred to as aggregate pricing. Aggregate pricing functionality enables quantity break pricing to be used in sales transactions to calculate prices for groups of items rather than individual items. Items are assigned to price books and price sheets using Microsoft Dynamics™ GP Extended Pricing. Items are also assigned to an aggregate price group, with each group containing one or more items. Quantity breaks can be set against aggregate pricing groups with each quantity break having a separate price book assigned to it. If required, multiple sets of quantity breaks and price books can be maintained against a single aggregate price group. That way, different customers can then receive different prices for the same aggregate group. Let’s see how this works. In this example, we have a three-line order form. If we drill down on the customer and drill down the additional tab we can see that the customer has been offered aggregate pricing terms. When we save the order, the recalculation prompt appears, and if we select yes, the system now displays the original unit prices and adjacent to it, a new unit price. So how has this happened? Back on the main order screen if we go to the additional tab and select aggregate pricing information, this tracker screen provides us with progress so far. The bottom part of the screen shows the three items ordered. If we drill down on the aggregate pricing group code it will show all the items in the group, and the price books associated with each quantity break. In this scenario, a minimum of 5 must be purchased before aggregate pricing takes effect, but a different price will be offered for a quantity of 10 or more. If we look at the price book that will also confirm the deal on offer. Back on the tracker screen, the three items ordered show a total quantity of 14 cases, but the group quantity in the top half of the screen shows only 7. This is because if we drill down on one of the ordered items, although it is ordered in cases of six, we are accumulating the total using a different unit of measure in the schedule - one which will be common to all items in the aggregate pricing group. If we increase the quantity on the order to achieve the next break point, and re-calculate the prices, we can see that the price for 10 and above is now being used. When we accept this, the order will be re-priced accordingly. The order may of course have other items that are not part of any aggregate deal, and you may also have multiple deals running on different groupings within the same order. If we look at the price tracker again and an individual item, price trace will confirm how the final price has been arrived at.

Aggregate pricing provides:

  • Pricing based on groups of items
  • With different prices offered based on the quantity purchased
  • With the flexibility to offer different prices to different customers.
It is run in conjunction with GP’s Extended Pricing and is one of several additional pricing models available with the Trinity Extended Pricing Enhancements module, which is designed to help wholesale distributors, maximize their selling opportunity.