How to establish Price Levels using Vendor Price Level Maintenance

Use Vendor Price Level Maintenance to set up price structures for specific vendors, product lines, or inventory items based on a specified pricing method and the quantities ordered. This option is available only if the Inventory Management module is integrated with Purchase Order.

Three levels of price schedules can be established:

1. By vendor number/item number.
2. By vendor number/product line.
3. By vendor number.

Price level by vendor number/item number is applicable for only a specific inventory item purchased from the vendor. Price level by vendor number/product line is applicable for all inventory items within the specified product line. Price level by vendor number (without specifying item number or product line) is applicable for any inventory items purchased from the vendor. Each time a specific item number is entered in a data entry field, the unit cost is calculated automatically, based on the applicable vendor price level and the quantity entered. The applicable price level is checked in the following order.

1. The price level by vendor number/item number, price level by vendor number/product line, and price level by vendor number are checked first.
2. If a vendor price level does exist, see Defining the Hierarchy of Costs for more information.

To establish / create Price Levels do the following:

1. Open Purchase Order / Setup / Vendor Price Level Maintenance.
2. Select ‘Vendor Name’ or use magnifying glass to select from list.
3. Select either ‘Product Line’ or ‘Item No.’ Use magnifying glass to select from list.
   NOTE: Selecting either ‘Product Line’ or ‘Item No.’ will disable the other fields.
4. Select ‘Pricing Method’ from drop list. Three price methods can be established.
   • “Standard Cost” amount can be specified for each quantity break. The cost entered is used as the default unit cost during data entry.
   • “Cost Discount Amount” amount can be specified for each quantity break. The entered discount amount is subtracted from the unit cost from the Inventory master file.
   • “Discount Percentage” can be specified for each quantity break. The entered discount percentage is subtracted from the unit cost from the Inventory master file. Up to eight quantity breaks can be established.
5. The ‘Unit Cost’ will equal the standard cost from the Inventory master file for the inventory item.
   Note: This field can only be viewed and only appears if the price level is created by vendor and by item.
6. Setup the quantity and price levels as needed.  Setting up the pricing levels will depend on ‘Pricing Method’
7. Click the ‘Accept’ button