ERP Price Basis

Basis Pricing is used to calculate an item price based on other items.

This is most commonly used to price feed for sale. A feed item is based on a formula with multiple ingredient items. Each ingredient item has a quantity needed to produce the feed.

A simple example of a feed formula is below

For Basis Pricing we use Formulas configured in ERP Work Orders.

We then set a basis price for each ingredient item using Price Basis Cost. The basis price can be set manually or derived from the ingredient item cost in ERP Inventory.

Once the ingredient items are priced the Formula Price can be calculated. The calculated basis formula item price can then be used as a starting price on a customer pricing template.

The above is a simplified explanation of Basis Pricing. It does not include details like a formula can have multiple effective dates, a formula can have multiple markups, a formula can have a formula as an ingredient, basis pricing for ingredients are also based on effective dates and grouped by a price basis code. These addition configurations allow Basis Pricing to incorporate the business rules for our clients.

Pre-Requisites

1. Items Masters
2. Formulas
3. Customers

Setup Steps

1. Price Basis Codes
2. Price Basis Costs
3. Formula Price Calculations
4. Formula Price Input
5. Template Manager