Pricing Rule
Pricing Rule
Based on predetermined criteria, a pricing rule specifies the discount/price rules that will be used.
There are numerous ways to manage an item's price using a pricing rule. You can set filters using conditions like quantity, date, groups, and others.
A pricing rule is comparable to a tax rule in several ways.
The few situations listed below can be resolved utilizing the pricing rule:
1.According to a special sale policy, the customer receives a 20% discount if he buys more than 10 of a particular item.
2.The selling price for the particular item for Customer "XYZ" should be adjusted as ###.
3.The selling or buying price of items that fall under a particular item group is the same.
4.Consumers who fall under a certain customer group should receive items at ### selling price or % of discount.
5.The ### purchase rate should be applied to suppliers who fall under a particular supplier group.
Create pricing rules for an item if you want the discount and price list rate to be automatically applied.
Go to: to access the Pricing Rule list.
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1. Prerequisites
Prior to developing and utilizing a pricing rule, it is recommended to first develop the following:
1.Item
2.Item Group
3.Customer
4.Supplier
2. How to create a Pricing Rule
1.Go to the Pricing Rule list and click on New.
2.Set a title for the rule.
3.Select what to Apply On from Item Code, Item Group, Brand, or Transaction.
4.Select whether you want to apply Price discount or Product discount. If you want to give free products then select the product discount.
5.For a single item, select Item Code and select the items.
6.If you want Pricing Rule to be applied on all the items, select 'Item Group' and select All Item Group (parent Item Group).
7.Set the discount/price to be applied. To know more, go to this section.
- Save.
2.1 Additional options when creating a Pricing Rule
*Warehouse *
If a warehouse is given here, only if the item is chosen from that warehouse will the pricing rule be applied.
Apply Rule On
You can establish the Price Rule based on one of these depending on the characteristic you choose in the "Apply On" field:
1.Item
2.Item Group
3.Brand
4.Transaction (on the total amount of the transaction)
You can choose a specific item, item group, or brand from the table. For instance, this pricing rule will only be applied to items that are a part of the Group "Raw Materials" if you choose Apply On "Item Group" and choose "Raw Materials" in the table.
UoM: If the UoM set here fits the transaction, the Price Rule will only be applicable.
*Condition *
As illustrated below for Sales Invoice, you may add a condition to this field in Python to check against field values in the transaction doctype:
customer=='Customer Name' and status!='Overdue'
Please be aware that only single-line Python conditions that use the target doctype's fieldnames will function.
Mixed Conditions
If you choose two or more items while establishing the minimum and maximum quantities. Only if the aggregate of all Items matches the predetermined quantities will the pricing rule be implemented. If you, for instance, construct a pricing rule on Items 1 and 2 with a minimum and maximum amount of 30, the rule will only be effective if the total quantity is 30.
Is Cumulative
Selecting this option enables the cumulative application of the pricing rule. For this, you must set the "Min Amt" and "Max Amt" values.
Imagine a situation where the Min Amt and Max Amt are 1,500 and 2,000 respectively. Now, the Price Rule will not be enforced if one transaction is created for 1,400. Nonetheless, the pricing rule will be used when creating a second invoice for $600. This occurred as a result of the invoices' combined total of 2,000 dollars. Keep in mind that only the most recent transaction that exceeds the cumulative limit will receive the discount.
If a customer purchases an item more than once and you want to thank him with discounts or special prices, you can use this to do so.
3.Features
3.1 Apply Rule On Other
This feature verifies the first item's condition but applies the rule to a different item.
Set Item1 and Item2 in the "Apply Rule On" table, for instance, and Item3 with "Apply Rule On Other." The Price Rule will now be applied to Item3 if the transaction contains Items1,2, and 3. This is because the first two Items were included in the transaction.
3.2 Party Information
Decide if the pricing rule applies to buying or selling the item.
You can assign applicability to one of the following masters depending on your choice.
1.Customer
2.Customer Group
3.Territory
4.Sales Partner
5.Campaign
6.Supplier
7.Supplier Group
3.3 Quantity and Amount
When this pricing rule should be implemented, specify the minimum quantity, maximum quantity, minimum amount, or maximum amount of an item.
Please take note that the Price Rule will not be implemented at all if the quantity or amount is less than or greater than the ceilings established above. If you have selected the options for Mixed Conditions or Cumulative, it will, however, be implemented.
3.4 Validity
The Price Rule's validity period can also be specified in terms of dates. This is beneficial for a marketing campaign. The Pricing Rule will not have a time restriction if the dates are left empty.
3.5 Margin
1.While selling an item, you may choose to sell it for a specific margin. With the help of this function, you may automatically create a margin if you don't want to add selling prices to Items every time.
2.Margin Rate or Amount: The margin can be set based on a percentage or a fixed amount, such as 5% or $50.
For further information, see margin adding.
3.6 Price Discount Scheme
this part, the actual rule that will be used is established.
- Rate: This represents the item's new rate. For instance, if you normally sell an item for 100 but wish to sell it to a certain party for 112, choose Rate and set the Rate to 112.
2.Discount Percentage: You can set a certain discount percentage. A specific Price List can be used to set the discount %. The Pricing Rule will be applied to all Price Lists if the "For Price List" field is left empty.
3.Discount Amount: There will be a set discount amount. The Discount Amount option can be used to define a requirement, for instance, that an item sold for 100 must be sold with a discount of 7.
3.7 Advance Settings
1.Threshold for Suggestion: This is the value that the system will use to alert you to change the quantity of an item for a discount. For instance, the system would alert you to add 1 more item before the discount becomes effective if the Minimum Quantity is 10 and the Threshold is 9. This likewise holds true for the determined sum.
2.Priority: Take into account a group of items from which you want to impose strict guidelines on a single item. This can be accomplished by establishing a higher priority and a new Price Rule. The customer group and supplier group are more examples of this.
3.Employ several pricing rules: To get this, think about a 500-rate item. P1 and P2 are the two pricing rules listed there. P1 offers a 10% discount, whereas P2 offers a 5% one. When this option is enabled, a total of 15% will be applied to the item rate, which results in 425.
4.Discount to be Applied to Rate: The discount will be added together. Think about the identical situation as before. When this option is enabled, 10% will be applied to 500, giving 450; next, 5% will be applied to 450, giving 427.5.
5.Validate Applied Rule: Shows the entered validation message if the discount/rate set manually by you in a transaction does not match the Pricing Rule.
When the hierarchy's top distributor determines the discount or rate to be applied and you are merely confirming whether the Pricing Rule is used appropriately, this is helpful.
4. Pricing Rule Discount Types
4.1 Price Discount
1.You can choose whether the margin is calculated as a percentage or an amount under the Margin Type heading. For instance, 10% of the supplier's price list at the time of sale.
2.Rate specified in the pricing rule will take precedence over the rate listed in the item's price list (item price).
2.Discount Percentage can be applied for a specific Price List (Selling or Buying). To apply it for both, leave the 'For Price List' field blank.
4.Discount can also be set in terms of amount.
4.2 Product Discount
1."Purchase 2 amounts and receive a third of the same item for free." Set the Price or Product Discount to "Product discount," select the Same Item option, and enter the amount to define this sort of rule.
2."Purchase two amounts, get one of the other item free." to set up these kinds of rules. Set the "Free Item" and quantity settings, uncheck the "Similar Item" checkbox, and set the price or product discount to product discount.
