Full Cycle Lot Pricing

Contents

Overview

Assumptions

Sales Process

Purchasing Process

AP - Lot Priced Vendor Bills

AR - Lot Billing

Overview

This document will cover how to create Lot Priced sales orders and corresponding linked purchase orders. It will also cover billing the customer and entering bills from the vendor on Lot Priced SOs/POs.

There are many scenarios in wholesale distribution where lot pricing is leveraged and each scenario is different. Some of the factors to consider are listed below:

• Number of Vendors included in Lot Price

• Shipped Direct vs. Shipped From Warehouse

• Stock Items vs. Existing Non-Stock Items vs. Non-Stock-Build items

Each factor would change how you set up the sales order slightly, but the user should rely on their base knowledge of how to set up a normal sales order and then apply the Lot Pricing concepts outlined below.

Assumptions

For the purpose of this knowledge base article, we will take the following example. The distributor is selling four items from two different manufacturers for a single lot price to their customer. The four items that make up the lot price are all non-stock items that haven’t yet been built in the item manager.

**All lot priced orders must start with a sales order.

**An item of type “Lot Price” must be set up in your item manager

Sales Process

• Open new quote

• Enter Order Header Details (Customer, Contact, PO Number, Job)

• Click the Direct checkbox

  

• Add items to quote grid

• You must add one “Lot Price” item for every MFG you are selling. In our example, since we are selling four items from two different manufacturers we will add two “Lot Prices” and select the proper MFG for each “Lot Price” item.

  

• Because all four parts in our example are non-stock special buy items that are not yet built in the item manager, be sure to add a relevant MFG and check the “NSB” box for each item.

  

• Assign a cost and sell for each “Lot Price” item but NOT the actual items you are selling. **If you want your order/invoice templates to lump both lot prices into a single lot price this logic can be added to your template**

• At this time, the quote should look similar to the image below and you are ready to convert to an order.

  

• Convert

  

Purchasing Process

• In our example, the SO was marked as direct. As a result, RFQs will be kicked out for each vendor automatically based on your user level settings at the time of order conversion.

• You will find the linked RFQs in the links tab of the order. **If it was not a direct order, you can create hard-linked RFQ/POs by going to the links tab and clicking “Create RFQ/PO”**.

  

• Follow the links to the RFQs, verify the vendor information and cost then convert. Repeat for each RFQ/PO.

  

• Once converted and the bill is received from the vendor, post the material to delivered and a shipper will automatically kick out on the sales side since it is a direct order. **If it was not direct, your WH staff will receive the material and process backorders as they normally would**

• Once all material is marked as delivered, the POs become payable and you can enter bills for the Lot Priced POs accordingly.

AP - Lot Priced Vendor Bills

• When entering bills for Lot Priced orders you will follow the same process as entering normal bills with the exception that you will manage the amount billed on the “Lot Price” item instead of the actual inventory item

• Pull up the PO in the enter bills screen, select the items that were billed and select the “Lot Price” line item by checking the boxes next to each

  

• Adjust the net field for the “Lot Price” item based on what you were billed for the item you are entering the bill for

  

• This will set the Balance Due at which point terms discount, freight, misc. Charges etc. can be applied

  

• Create bill

  

• Repeat for additional bills and proceed to pay bills as you would normally

AR - Lot Billing

• In our example, as soon as the material on the direct PO is posted to delivered, a shipper auto-posted to delivered will be created on the SO.

• If you are in the order, you can open the shipper from the status tab.

  

• If you are following your typical invoicing workflow, you will find this among the other orders to be invoiced in Accounting Manager Accounts Receivable Invoicing

  

• Once the invoice screen is opened you will notice there is a “Lot Price” item present and highlighted in the Billing portion of the screen.

• There will be a $0.00 balance due and Invoice Status will indicate “PAID IN FULL” in the invoicing details until you take the steps outlined below. This is normal.

  

• Expand the Lot Price function by clicking on the “+” symbol

  

• Enter the desired invoice amount in the “Net” cell for each lot price. You will notice that “total net applied” and “(Remaining: $xx.xx)” will automatically populate and the cost field will be auto calculated based on order line item margin.

  

• Alternatively, if you don’t care which “Lot Price” item you invoice against, you can click the pie graph symbol next to the total “Lot Price” and assign a percentage of the total lot price you want to bill.

  

• You will notice that the total/individual lot price costs will automatically calculate based on what proportion of the sell price you are invoicing.

• Shipper and order amount applied and shipper/order cost applied will calculate accordingly.

  

• Click Invoice

  

• If you don’t invoice the total amount of the lot, you will be able to invoice the remaining amounts in subsequent releases.

• On the final release, you will be required to invoice the remaining balance of the Lot Price.

This concludes the full cycle lot pricing process document.