I have noticed an issue with existing Sales Parts and I am unsure of the correct way to apply a % increase to the price. Initially, I assumed I could use the contribution margin on a Sales Quotation to accomplish this, however, if the part is existing in your system, that is calculated automatically.
The scenario below outlines the issue I am facing:
- Existing part number XYZ has a Cost of $4.55 and a Price of $18.35
- The system calculated Contribution Margin rate is 75.17%
- The customer has contacted us and stated they want 255 XYZ parts expedited and they would like to see a quote for this.
- We would like to add 20% to the price of the part for the expediting.
- Our Sales team created a quote and modified the contribution margin. They changed it to 20%, which dramatically lowered the price.
Modifying the CM does not appear to be the correct method to markup a price of an existing part in this instance.
Is there a function in IFS that would accommodate this scenario? Any help would be greatly appreciated.
Best answer by paul harland
If the requirement is to add 20% to the price, then why don’t they just add 20% to the price? maybe go into the price field and type *1.2 (would be the fewest keystrokes)?
The tool of being able to manage the CM is there in case there are defined minimums on margin.