Quantity Pricing provides a way to automate discounts for bulk orders. Some companies may already be offering this kind of discount whenever a customer purchases certain amounts of items. With the NetSuite Quantity Pricing feature, we can set up quantity pricing schedules that define the quantity discounts and automatically apply discounts to qualifying orders.
NetSuite Quantity Pricing Setup
Enable the Feature
This feature on the Sales section of the Transactions tab in Enable Features.
Establish Quantity Pricing Preferences
Need to set the preferences for quantity pricing. There are two preferences specific to quantity pricing, and both are available on the Sales & Pricing section of the Items/Transactions tab in Accounting Preferences. First set a maximum number of quantity-based price levels. The second quantity pricing preference is “Allow Quantity Discounts Per Price Level on Schedules.
Automate the process of setting up quantity pricing, you’ll use quantity pricing schedules. You can create any number of quantity pricing schedules. Then, when you select a specific quantity pricing schedule on an item record, NetSuite will automatically calculate the prices for each of your price levels based on the schedule. To create a quantity pricing schedule, navigate to Lists > Accounting > Quantity Pricing Schedules > New.
On the Quantity Pricing Schedule page, name the new schedule. On the header level, have some options for how NetSuite will apply this pricing schedule. For example, if you want to measure quantity by a specific unit of measure rather than by the number of items, select the unit type and exact unit. The Calculate Quantity Discounts dropdown allows you to determine how NetSuite will measure quantities.
For a more complex way of measuring discounts,select the Use Marginal Rates checkbox. If you want to apply different discounts at the different amounts, you would select this checkbox. For example, you may want no discount to apply to the first 50 items in an order, a 3% discount to apply for the next 50 to 100 items, and a 5% discount to apply to the next 100+ items. This differs from how quantity pricing would normally function, where the same discount percentage would apply to every item in the order.
After you set up your quantity pricing parameters, you’ll enter the actual quantities and associated discounts. You’ll need to use a negative percentage for a discount; a positive percentage would result in a price markup.
Multiple Prices and Quantity Pricing in NetSuite
item records in edit mode and navigate to the Sales/Pricing subtab, you’ll see that NetSuite has listed out the active price levels in your account and has calculated the corresponding discounts or markups for each price level. Using the Quantity Pricing Schedule dropdown, you’ll be able to select one of your active pricing schedules. NetSuite will then calculate prices for all of your price level discounts and all of your quantity discounts.
