Picking Mode Control Deliveries and Invoicing

345 rebates, seasonal promotions, and progressive price reductions. Note: Rebate, Refund, Reduction In some accounting jurisdictions you have to differentiate between the three following terms: • Rebate: reimbursement to the client, usually at the end of the year, that depends on the quantity of goods purchased over a period. • Refund: reduction on the order line or invoice line if a certain quantity of goods is purchased at one time or is sold in a framework of a promotional activity. • Reduction: a one-off reduction resulting from a quality defect or a variation in a product’s conformance to a specification. Intelligent price management is difficult, because it requires you to integrate several conditions from clients and suppliers to create estimates quickly or to invoice automatically. But if you have an efficient price management mechanism you can often keep margins raised and respond quickly to changes in market conditions. A good price management system gives you scope for varying any and all of the relevant factors when you are negotiating a contract. To help you work most effectively, OpenERP’s pricelist principles are extremely powerful yet are based on simple and generic rules. You can develop both sales pricelists and purchase pricelists for products capable of accommodating conditions such as the date period, the quantity requested and the type of product. Tip: Do not confuse the different price specifications Do not confuse the sale price with the base price of the product. In OpenERP’s basic configuration, the sale price is the list price set on the product form but a customer can be given a different sale price depending on the conditions. It is the same for purchase price and standard cost. Purchase price is your suppliers’ selling price, which changes in response to different criteria such as quantities, dates, and supplier. This is automatically set by the accounting system. You will find that the two prices have been set by default to the same for all products with the demonstration data, which can be a source of confusion. You are free to set the standard cost to something different. Each pricelist is calculated from defined policies, so you will have as many sales pricelists as active sales policies in the company. For example a company that sells products through three sales channels could create the following price lists: 1. Main distribution: • pricelist for Walbury, • pricelist for TesMart, 2. Postal Sales. 3. Walk-in customers. A single pricelist can exist in several versions, only one of which is permitted to be active at a given time. These versions let you set different prices at different points in time. So the pricelist for walk-in customers could have five different versions, for example: Autumn, Summer, Summer Sales, Winter, Spring. Direct customers will see prices that change with the seasons. Each pricelist is expressed in a single currency. If your company sells products in several currencies you will have to create as many pricelists as you have currencies. The prices on a pricelist can depend on another list, which means that you do not have to repeat the definition of all conditions for each product. So a pricelist in USD can be based on a pricelist in EUR. If the currency conversion rates between EUR and USD change, or the EUR prices change, the USD rates can be automatically adjusted.

22.7.1 Creating Price Lists

To define a pricelist use the menu Sales → Configuration → Pricelists → Pricelists . For each list you should define: 346 • a Name for the list, • a Type of list: Sale for customers or Purchase for suppliers, • the Currency in which the prices are expressed. Price List Versions Once the list is defined you must provide it with at least one version. To do that use the menu Sales → Configuration → Pricelists → Pricelist Versions. The version contains all of the rules that enable you to calculate a price for a product and a given quantity. So set the Name of this associated version. If the list only has a single version you can use the same name for the pricelist and the version. In the Price List field select the pricelist you created. Then set the Start Date and End Date of this version. The fields are both optional: if you do not set any dates the version will be permanently active. Only one version may be active at any one point, so bear this in mind when creating them. Use the Active field in the versions to activate or disable a pricelist version. Note: Automatically updating the sale pricelist You can make any sale pricelist depend on one of the other pricelists. So you could make your sale pricelist depend on your supplier’s purchase pricelist, to which you add a margin. The prices are automatically calculated as a function of the purchase price and need no further manual adjustment. Calculation Rules A pricelist version is made up of a set of rules that apply to the product base prices. Figure 22.16: Detail of a rule in a pricelist version You define the conditions for a rule in the first part of the definition screen labelled Rules Test Match. The rule applies to the Product or Product Template andor the named Product Category. If a rule is applied to a category then it is automatically applied to all of its subcategories too using the tree structure for product categories. If you set a minimum quantity in Min. Quantity, the rule will only apply to a quantity the same as or larger than that set. This lets you set reduced rates in steps that depend on the quantities ordered. Several rules can be applied to an order. OpenERP evaluates these rules in sequence to select which to apply to the specified price calculation. If several rules are valid, only the first in sequence is used for the calculation. The Sequence field determines the order, starting with the lowest number and working up. Once a rule has been selected, the system has to determine how to calculate the price from the rule. This operation is based on the criteria set out in the lower part of the form, labelled Price Computation. The first field you have to complete is labelled Based on. Set the mode for partner price calculation, choosing between: • the Public Price set in the product file, • the Cost Price set in the product file,