Question

Price List vs Customer Agreement

  • 23 January 2020
  • 5 replies
  • 1147 views
A
  • Anonymous
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Any comments on the topic what is more convenient for maintaining sales prices in IFS applications: price list or customer agreement ?

We need to consider domestic sales and foreign sales (direct and via foreign branch).

I see that price list is regardless of the customer while agreement is connected to specific customer. Is it the main difference ?

Price List can be connected to customer price group or to the customer.

In here customer agreements are used in one company and in the second price lists are used. I wonder what are the advantages of each of the way. It seems for me that price lists are more convenient, as I do not have to enter prices for each customer separately. But I need more arguments to convince the sales department here.

Another topic is the need for price update periodically. I need to write some PL/SQL for it but I wonder what should be the source of the data: it could be excel but I prefer the data to be present in IFS e.g. on some price list. The I can use it as source in order to update the other customer agreements or price lists.

 

Regards,

Marek

5 replies

PRODQ
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I think you have to ask yourself what your pricing policies are. 

If you have a fairly flat “this type of customer gets price/discount ‘a’, this type of customer gets price/discount ‘b’” then it’s Price List as the same pricing policy applies to multiple customers.  If you have a complex/granular pricing structure where particular customers and no others get particular pricing then its agreement.  

Agreements are good if you have product which falls into particular categories and the category drives the pricing - using the Deal per Sales Group.

We use both very successfully across our business group.

Linda
eqbstal
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Userlevel 7
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My thought is that in normal, ok I can’t explain what normal is :smiley: , situations a price list is in use. Uplifting of the prices is relatively elegantly done by %. If the customer and you really negociate the prices I would go for an agreement as this has clearly an end date.

If needed it is most likely easier to push/market a price list then an existing agreement for another prospect.

I know it doesn’t help, it’s much more what I think.

Steve

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S
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Hi Marek,

Have you been able to decide which one of the two, price lists or customer agreements are easier to maintain. we are at a point where we want to implement the price lists functionality and I also realize that maintaining (say changing prices for group of parts, or entire price lists) has to be easy down the road. 

Thank you for the feedback. 

S
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Userlevel 5
Badge +7

That's very simple question. You do not have to create a Customer Agreement unless you have specific agreement with customer to sell them at a special price. Price lists are easy to maintain unless your business have complex requirements it cannot handle. 

Rasika Lakmal
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Userlevel 7
Badge +17

Price List

  • There are two types of Price Lists (Part Based & Unit Based) by Currency.
  • A Price List can be connected to a Customer or to a group of Customers where prices, discounts, and Price Breaks can be entered.
  • For Part Based Price Lists, it is possible to enter prices both as net amounts and as amounts including tax.
  • Multiple Price Lists may co-exist for the same Sales Price Group. Each Price List is defined in a specific Currency that determine which quotations and orders can make use of it.
  • Multiple Price Lists may co-exist for the same Sales Price Group. Each Price List is defined in a specific Currency that determine which quotations and orders can make use of it.

Customer Agreement

  • Connected to a Customer and can be connected to several Sites.
  • You can enter Prices, Discounts, Delivery and Payment Terms which can be entered either as net amounts or as amounts including tax.
  • A provisional price can be selected (A price update is expected in the future.)

To go with customer agreement, you need to have prior agreement with the customer. But you can setup a sales pricelist based on the sales price group that is not customer specific.

When you update the prices, you can go to “Sales Part Base Price” window and from there you can right click and update the prices periodically.

Rasika Lakmal

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