Visma Net
About sales price calculation
Pricing policy is a major factor affecting a company's total income, profit, and competitiveness. Companies generally set prices that cover their production costs and bring some profit, while also being low enough to motivate customers to buy more frequently and in greater quantity than they otherwise would. At times, companies pursue short-term pricing strategies for certain products.
In Visma Net, you can manually set prices on a per-record basis, or you can mass-calculate sales prices by using the price basis you specify. If your business needs to maintain prices that include a VAT, as with value-added taxes (VATs), you can configure the system to exclude the VAT from the price on sales orders if this VAT does not apply or to recalculate the VAT if a discount was applied. For details, see About inclusive VAT support.
In this topic, you will read about the price basis used to calculate prices and how to maintain VAT-inclusive prices.
Price basis
While some companies use a cost-plus approach in calculating sales prices, others set prices to achieve specific profit goals. In Visma Net, you can use the approach that makes the most sense at a particular time.
In Visma Net, the options for the price basis can be divided into the following groups:
- Inventory-related: A cost-plus basis (the Last cost + mark.up % or Avg./std. cost + mark-up % option) or the manufacturer's suggested retail price (MSRP). You specify values for these options by using the Stock items (IN202500) window for stock items. For non-stock items only the Avg./std. cost + mark-up % option is applicable, and the system uses instead of the average or standard cost the current cost of a non-stock item, which is specified in the Current cost field in the Non-stock items (IN202000) window.
- Price record-related: The item's current price (Source price) or pending price (Pending price). You specify values for these options by using the Sales price worksheets (AR202010) window.
Before you start price calculation, make sure that the option you want to use as a price basis has the correct values.
Calculate prices
By using the Sales price worksheets (AR202010) window, you can perform mass calculation of prices for all records in the selected worksheet.
To calculate the pending prices for the price records in the worksheet, you use the Calculate pending prices dialog box, which you invoke by clicking the Calculate pending prices button on the table toolbar. In the dialog box, you can select one of the following price bases, in accordance with your company's pricing policies:
- Last cost + mark-up %: To calculate each pending price based on the stock item's last cost plus the mark-up percentage specified for the item.
The option is not applicable for non-stock items.
- Avg./std. cost + mark-up %: To calculate each pending price based on the stock item's average or standard cost increased by the mark-up percentage specified for the item. In case of non-stock items, the system uses the current cost, instead of the average or standard cost.
- Source price: To calculate each pending price based on the item's source price (displayed in the Source price column).
- MSRP: To calculate each pending price based on the manufacturer's suggested retail price of the item.
- Pending price: To calculate the new pending price based on the earlier pending price of the item.
If value-added (or similar) taxes are enforced for your business, you can apply a specific percentage to the basis you select to cover additional unassigned costs or to include a specific VAT.
Also, you can change the number of decimal places when you calculate pending prices. For a price list intended for end customers, you may want to set prices expressed in integers or with fewer decimal places than are used by the currency for which you calculate pending sales prices.
Minimal mark-up validation
You can configure minimal mark-up validation for prices on the General settings tab of the Sales order preferences (SO101000) window. In the Validate min. profit margin field, you can select one of the following options:
- No validation: No mark-up validation is performed for new pending prices.
- Warning: The system will display a warning when a user enters a pending price that is below the price with the minimum mark-up.
- Set to minimum: The system will automatically set the price to the value with the minimum mark-up if a user enters a pending price below the price with the minimal mark-up.
The mark-up percentage defined for an item class in the Item classes (IN201000) window is used as a default value for items of the class. You can override the item class setting for a particular stock item by defining the mark-up percentage on the Price/cost information tab for non-stock items by using the Non-stock items (IN202000) window, and for stock items by using the Stock items (IN202500) window.
VAT-inclusive prices
Your company may need to maintain prices that include a VAT. Such prices are typical in countries where value-added taxes are enforced. Among your company's customers may be end customers that must pay a VAT and retail customers that are exempt from paying the VAT.
To maintain price lists with taxes included and to prevent charging VAT-exempt customers, take the following steps:
- In the Sales prices (AR202000) window, create a price list with the VAT amount added to prices.
- Specify the VAT included in the prices in the VAT column of the same window.
- Assign customers exempt from the VAT to a VAT zone that doesn't include this VAT, and customers that pay this VAT to a zone that includes it.
When you save a sales order created for a customer, the system creates the list of applicable taxes by using the VAT category of each item and the VAT zone of the customer. For each item on the order, the system performs checks and handles prices accordingly:
- If the VAT included in the price applies to the line item, the price is used as-is and the VAT is processed as inclusive.
- If the VAT included in the price does not apply to the line item, the VAT amount is excluded from the price.
