Dimension Based Pricing
Dimension based pricing allows users to:
Work with cost prices in units of measure other than the standard unit of measure.
Work with sell prices in units of measure other than the standard unit of measure.
Order, quote, purchase and sell in units of measure other than the standard unit
of measure.
The standard unit of measure is the holding unit of measure found in Stock Control. The "stock in"
quantity in Stock Control refers to the standard unit of measure. So if the "stock in" field
holds a quantity of 50, then 50 standard units are held in stock by the system. A standard unit normally
refers to a single piece/item that is the smallest convenient unit of sale.
The ability to easily vary the size (or length or dimension) of the unit of sale or calculate cost and
sell prices in different units, is particularly useful in industries such as timber and metal and where
the same goods are offered in a variety of different sizes.
You can activate the dimension pricing features of CAPITAL by setting dimensions for products in Stock
Control and by adding custom columns to your transaction entry screens.
To use an example, in the timber industry pricing is typically set by the size of the item being sold.
The size may be by metre, square metre, cubic metre, sheet, set length, or by some other unit of measure.
Prices may be quoted by the unit dimension of the item. For example, $5 per metre. A piece of timber that
is 2.5 metres in length would therefore be sold for:
2.5 x $5 = $12.50 per piece
By specifying the dimension conversion of a stock item, CAPITAL can be set to allow operators to enter
the price per metre and the number of pieces (units) purchased. The system will then calculate
the correct line item total price.
The dimension conversion for a stock item is set in Stock Control. Locate the Dimension
field of a product and enter the multiplication value per length that CAPITAL will use to calculate the
price per piece. The step by step instructions are listed next:
Go into Stock Control.
Locate the product code you wish to invoice by length (e.g., by metre) instead
of by piece (unit).
Locate the Dimension field and enter the dimension
conversion factor. For example, if the piece is 2.5 metres in length enter 2.5 here. Then save the change.
Go into Invoicing.
Enter the product code of the item you have set the dimension conversion for in
steps 2 and 3.
In the Qty (quantity) column enter: 3
In the Sell Price column enter: 5
You will now see that the Total price for the line item is $37.50. This is calculated as follows:
2.5 (metres) x 3 (unit pieces) x $5 (per metre) = $37.50
Viewing The Dimension & Unit Price
When invoicing or working on any stock related transaction in CAPITAL, you can view the dimension conversion
factor by selecting Customise|Column Options|Dimension from the transaction menu. The dimension conversion
factor is copied from the Stock Control Dimension field onto the line entry.
You can change the conversion factor if required, for each line item.
You can also view the normal unit price--as opposed to the sell price per length--by selecting Customise|Column
Options|Unit Sell Price from the transaction menu. If you change the Unit sell price manually by entering
a value in it, the dimension conversion factor is reset to 1. The system assumes that you wish to sell
by the piece rather than by the length.
Working With Different Units of Sale
CAPITAL normally uses the standard holding stock or "stock in" unit when invoicing and when
working with other stock related transactions. If the "stock in" unit is 11 and you invoice
5 units, the quantity remaining in stock will be 6.
It is also possible, however, to invoice in different sizes. You may, for example, track stock by the
piece but wish to offer special prices per box or carton. Alternatively, you may need to cut items to
a specific size and then offer a different price if you no longer sell an item in its original unit of
sale.
To work with a different unit of sale select Customise|Column Options|Box Dimension Quantity from the
transaction menu. The "Box" column appears on the transaction. Note that Box is a generic term
that refers to any size that is different from the unit of holding stock. A Box might really be a sheet,
a crate, a carton, a pack, etc.
When a quantity is entered in the Box column, the dimension conversion factor is used to determine the
quantity to remove from Stock Control. For example, if the dimension conversion factor is 2.5, and you
sell 3 Box units, the actual number of units of stock sold will be:
2.5 (dimension conversion) x 3 (Box units) = 7.5 units of holding stock
If you specify Box units, CAPITAL automatically uses the Box sell price if you have specified one in INSTALLATION
Workshop. (See Install|Invoicing|Cost & Sell Prices.) The Box sell price may be set to any of
the 8 standard Stock Control price fields.
If you are entering Box quantities instead of standard unit quantities, then the correct way to calculate
the total line item price is:
Box Units x Sell Price
When invoicing using standard unit quantities the correct way to calculate the total line item price is:
Normal Units x Sell Price
It is important to keep in mind that when entering Box units, the unit sell price recorded on the transaction
may only be an approximation of the correct price due to rounding error. CAPITAL always multiplies the
Box units by the sell price to derive the exact sell price.
When
using Visual
Builder to create reports, and you use Box units in your transactions, be sure to multiply the dimension
quantity (DIMQTY) by the dimension sell price (DIMSOLDFOR) to derive the correct line total. The unit
sell price multiplied by the unit quantity may only be an approximation of the line item total sell price.
In a like manner, if you are ordering or selling in standard units, always multiply the standard quantity
by the unit sell price. In order to determine which method to use, check the value of the DIMQTY field.
If it is zero, the stock item is being sold in standard holding units and not Box units.
If you have entered Box units and then enter standard units, the Box unit price is reset to zero.
The dimension conversion factor will also be changed to match its original entry in Stock Control.
If you attempt to enter Box units when the dimension conversion factor is 1 or zero, then CAPITAL will
reject the entry as it will not have enough information to calculate the Box to unit conversion. As well,
if you enter 1 or zero in the Dimension column CAPITAL will reset the Box quantity column entry to zero.
____________________________
Related Topics:
Box
Dimension Table
Portional
Pricing
