Setup Contract Pricing for a customer

Contract pricing in BrokerForce®

Contracts

Contract pricing is managed as a contract with the customer's parent company. BrokerForce contract pricing tracks commission, individualize pricing, customer item numbers, and fulfillment of a commitment.

When an order is placed for an affiliate of a parent company, pricing for the order will default to the parent company's established contract prices. Contract pricing is consistent for all customers that are affiliated with the same parent company.

In the case of a contract with an individual customer, that customer's information must be entered in both Customer and Parent forms. Customers are affiliated with a parent company on the Customer form using the <Parent Company> drop list. Use the <Create Parent> button on the customer form to quickly create a parent company using the bill to address information of the current customer as the default bill to information.

A contract is also useful for tracking an Open to Buy purchase order. Typically, the contract description used for this type or purchase order is the same as the customer's purchase order number. The amount purchased and the amount still available for purchase under this Open to Buy purchase order is reported using the Contract Fulfillment report on the Products form.

Creating a new Contract
1) Before beginning a contract you should complet parent company and vendor price list information on their respective forms. Click the <Price Lists> tab on the vendor form and add a new price list for this vendor by selecting "7" from the <Price List> drop list. The description will default to "Contract" and should not be changed.

2) Click the <Products> tab on the top tab strip. Select the appropriate vendor and <Contract> from the <Pricing> drop list at the center of the product form. Click the <New Record> (asterisk) button at the bottom of the Contracts subform to start a new record and select a Parent Company name from the <Parent Company> drop list

3) Enter a description for the contract that will be shown on subsequent orders. For Open to Buy purchase orders, this description is usually the same as the customer's purchase order number.

4) Enter the contract's Begin Date and End Date. These dates are not required; however, if either is available, when a contract item is added to an order, the user will be alerted if the order's Ship Date is outside the allowable date range.

5) Select a base price list. This would be the vendor's price list to use as a starting point when an item is added to a contract.

6) If needed, enter a percentage discount to deduct from the base price list as items are added to the contract. When items are added to the contract, the pricing can be further adjusted by item.

7) Enter the gross margin (GM) for calculating the customer's suggested retail price (SRP).
BrokerForce will deduct any contract discount and then calculate the customer's SRP for each item added to a contract. The SRP will be rounded to the nearest nine cents if the Nearest 9 check box is checked. The Discount, SRP, and Nearest9 controls may be changed dynamically before items are added to the contract.

8) Enter the commissions percentage to apply to the contract's orders. This will be the percentage used for items added to an order unless an individual contract item has a commission percentage other than 0%.

9) Enter any Note regarding the contract up to 255 characters in length.

Adding Items to a Contract

1) On the Product form, select "Contract" pricing and then select a contract or enter a new one in the Contracts subform. When "Contract"
pricing is selected, the Vendor Products subform will be split into two windowpanes; Vendor Products, and a datasheet view of the Contract Items subform.

2) Select an item in the Vendor Products subform that is not in the Contract Items subform. If the item is not in the contract a message will be displayed saying so underneath the product name on the Product form and the <Add it> button will become visible.

3) Click the <Add it> button. The item will be added to the contract using the parameters specified in the Contracts subform. That is, price, SRP, and rounding to the nearest nine cents will be calculated based on any discount, GM, and rounding values set in the Contracts form.

Any of the values in the Contract Items subform may be changed from their default values established when items are added using the <Add it> button.

4) A quantity may be entered as a reference for the contract item either as a goal or commitment. This number will be used on the Contract Products and Contract Fulfillment reports. This number is used to track Open to Buy purchase orders.

5) If a CommPct other than 0% is entered, this commission rate will override the base commission rate entered for the contract.

Note: The Vendor Products and Contract Items sub forms are synchronous. Selecting an item in either windowpane selects the item's counterpart in the opposite windowpane. A contract may be duplicated by clicking the <Duplicate Contract> button just above the contract items window.

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