Creating Custom Price Formulas
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Last updated
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Creating a custom price formula includes entering the name and currency of the formula, then defining the formula price details, such as price level, markup or markdown percentage, price level, and decimal rounding. By doing so, you can meticulously define the formula for each custom price.
To create the custom price formula, you will begin by entering basic details of the formula, such as the name and currency for the formula that will act as an identifier.
You can enable the “Use the same formula for all Currency Prices” toggle option located at the top-right corner of the page to enable the use of same formula for all currencies. If it is set to false, then multiple formulas can be defined for different currencies.
Once the basic information is set, the next step is to define the formula. This includes defining the pricing level, base price level, markup or markdown percentage, and decimal rounding.
Price Level
This field specifies the type of price being calculated. This could be Standard Unit Price, Wholesale Price, Retail Price, or any custom price.
Markup%
This field indicates the percentage markup or markdown to be applied to the Standard Cost of an item. Use (-) sign for markdown percentages. For example, 10 for markup by 10% and -10 for markdown by 10%.
Of Price Level
This field specifies the base price level from which the custom price is calculated.
Decimal Rounding
This field determines the rounding rule applied to the calculated price, ensuring the final price adheres to a specific decimal precision.
After defining the formula, click "Save" to create the custom price formula.
The custom price is calculated based on the following formula:
Price Level = Of Price Level/100 * (100+markup%) + Decimal Rounding
Let’s see an example of how the calculation will work. Let's suppose we have the following parameters:
Price level=Standard Unit Price
Markup %= 10, (Use minus(-) sign for markdown percentages)
Of Price level=Standard Cost ( $50)
Decimal Rounding= 0.50
As the selected price level is “Standard Unit Price”, this is a formula for creating the unit price of an item. Based on the formula Standard Unit price will be calculated from Standard Unit Cost with 10% Markup and after calculations, 0.50 Decimal Rounding will be added to the Calculated Standard Unit Price.
Standard Unit Price= {50/100+(100+10)}+0.5 = 55.5
After the custom price formula is saved, you can add the directly to the item. To do that, follow the steps below:
Navigate to the Item Centre and open the item in which you want to assign the custom price formula.
Go to Item > Advance Pricing > Formula.
In the Custom Price Formula screen, select the formula from the “Custom Price Formula Price” dropdown and click on “Apply Changes” to add it to the Item.
When you select the “No Rounding” option in the Decimal Rounding dropdown, the resulting custom price is not rounded off and can capture up to six decimal places.
For example, let’s say the Standard Cost of an Item is $12.69. If you create a custom price formula for 10% markup in the standard cost with no rounding, the calculated standard unit price will be 13.958888.
If there is a change in the base price level, you can use the “Re-calculate” option to update the Custom Prices based on the formula. This ensures that your prices are always current and accurate.
We have also provided the ability to batch update the custom price formula. You can do this either from the Item Centre or via an upload.
Item Centre
Go to Item Centre and select the Items. Then, go to Options > Batch Update.
Select “Custom Price Formula Profile” under the Column Name.
From the Value dropdown, choose the custom price formula you want to add to the items.
Click on “Update” to apply the changes.
Product Upload
You can utilize the “CustomPriceFormulaProfile” column in the Product upload file. In this column, you can include the custom price formula profile created in the system. Upload the file to batch update the custom price formula for multiple items simultaneously.
