To Create a Price Break Line:You can use a price break modifier to apply a variable discount or surcharge price adjustment to a pricing request based on the conditions of the break type. You can use both point and range type breaks:
Point: The pricing engine charges each unit of volume at the price of the break within which the total falls.
Range: The pricing engine charges each unit of volume at the price of the break within which it falls.
The following table provides an example of a price break sequence:
| Product Attribute | Value From | Value To | Value (%) |
|---|---|---|---|
| Item A | 0 | 100 | 5 |
| Item A | 100 | 200 | 10 |
| Item A | 200 | Null | 15 |
Suppose a customer is eligible for the preceding price break, and places an order for a quantity of 150 of Item A. The pricing engine calculates the discount differently depending on the type of price break selected:
Point: If the total quantity of Item A is 150, the discount is against 150 at 10 percent.
Range: If the total quantity of Item A is 150, the discount is against 100 at 5 percent and 50 at 10 percent
| Price Break Feature | Example of Price Break Setup |
|---|---|
| All newly-created price breaks are created as continuous price breaks. These are price break lines without gaps between subsequent price break ranges. Example: The first break (0-100) means greater than 0 but less than or equal to 100. A quantity of 100 is eligible for the first price break range (0-100), but a quantity of 100.1 would be eligible for the second price break range (100-200). | 0-100 100-200 200-300 |
| Value From of first break range starts with 0. | 0-100 (greater than 0 to less than or equal to 100) |
| Value From of the current price break (other than the first break range) matches the Value To of the previous break. |
|
Attention: If you copy a price break from a pre-Release 12 release (for example, by copying a price list or modifier list with price breaks or copying a price break line--actions you can complete in the Forms-based UI) , then the price breaks are converted automatically to the continuous format. This conversion changes the price break setup and processing; therefore, you must review the converted price breaks to ensure they continue to achieve your desired pricing results. You can disable the continuous price break feature by setting "No" as the value at Site level for the QP: Continuous Price Breaks profile option. This value enables non-continuous price breaks.
See: Profile Options Setup Summary
To Create a Price Break Line:Navigate to the Create Line page. For more information, see Creating Modifier Lines (HTML Interface).
Select Price Break as the Modifier Type.
The modifier Line Number defaults and can be updated. Each modifier line number must be unique within the modifier list (the line number cannot be duplicated).
Click Continue to display the Create Price Break Line: Controls page. In this page, you can define controls for the modifier line. For more information on setting up and using controls, see Defining Controls.
After you have set up the controls, click Next to display the Products page.
Enter information about the product and product volume that the customer must buy to get the benefit.
Product: Select the product that is eligible for the price break. The Product Description defaults based on the product selected.
Note: If All Items is selected for Product Level, then the Product Description field defaults to All meaning all products.
UOM (unit of measure): The UOM value defaults if an item is selected.
Precedence: Defaults based on the product level selected. You can overtype this value.
In the Pricing Attributes region, select the attribute information:
Attribute: Select the pricing attributes that further define how you want to price the product such as by color or size. The Context value defaults and is display only.
Excluded Products: The Excluded Products region does not appear if Item Number is selected as the Product Level or if the Product Level field is left blank. You can exclude certain products so that the pricing adjustments from the modifier line will not be applied to those products.
Product Level and Product: Select the product level and product to be excluded from the Item Category or All Items selected in the Product Level field.
For example, suppose you set up a Discount modifier line for the Item Category of shoes but you want to exclude designer shoes from the price adjustment. Therefore, in the Excluded Products region, you would select designer shoes to be excluded from the price adjustment.
In the Price Break Benefits region, define the price break benefits for the modifier line:
Adjustment Type: Select an Adjustment Type such as Discount or Surcharge.
Volume Based on: Select a Volume Based on value to define how the buy volume is evaluated before the benefit is given:
Item Quantity: Creates a price break based on the number of items that the customer orders.
Item Amount: This could be a monetary value. (Item Amount must be selected to use the Net Amount Calculation feature.)
Accumulate Line Quantity: Creates an accumulated range price break that accumulates across orders.
Volume Method: Select either Point or Range. For more information, see Using Point and Range Price Breaks.
Accumulation Attribute: Select an Accumulation Attribute that defines the value to be accumulated. This option can only be selected for Range price breaks. For more information, see Using Accumulated Range Breaks.
Note: This field displays only if Accumulate Line Quantity is selected in the Volume Based on field.
Optionally, select Net Amount Calculation to calculate the selling price based on the bucketed Item Amount volume. For more information, see Using Net Amount with Price Breaks.
To use Net Amount Calculation, the following fields must also be selected.
On Controls page:
- Bucket
- Modifier Level: Line or Group of Lines (Group of Lines must be selected to use the For matching products option from the Net Amount Calculation field.)
- Apply automatically box
On Products page: Volume Based on is Item Amount.
After you have set up the products, click Next to see the Benefits page.
Define the following values for each price break:
Value From/To: Define the price break range. For example, to define a break for the first 10 items ordered, create a range from 0-10. To do this, enter 0 in Value From and 10 in Value To.
Note: If you leave the Value To field blank, a value of 999999.. (15 digits long) defaults in the database, but does not display in the Value To field.
Adjustment Value: Defines the value of the adjustment. For example, if you enter 10 in the Adjustment Value field and select Percent as the Adjustment Method, then you create a 10 percent adjustment.
Adjustment Method: Defines how the price is to be adjusted. For more information, see Adjustment Method.
Formula: Optionally, select a Formula if you are using a formula to calculate the benefit.
Click Next to see the Qualifiers page, where you can define eligibility rules for the modifier line.
Complete your entries, and click Next to proceed to the review page, or click Finish to skip the review page and save the line.
A Confirmation message confirms if the modifier line is successfully created.
Caution: After you save can the price break lines, they cannot be removed. However, they can still be updated.