Proposal Summary
Bigrig Group needs a price list structure implementation based on specific price levels for each item.
Requirement
The Bigrig Group need to implement a new price list structure for subsidiary, Big Rig Partz CAN.
The %age for Base Price and Retail Price which needs to be implemented in the NetSuite as given below.
This %age mentioned in the base price column is to be added to our cost price to reflect the Base Price and the same is for the retail price.
The price level will be defined as under:-
First Price Level: Base Price +4%
Second Price Level: Base Price+8%
Third Price Level : Base Price +12%
Fourth Price Level: Base Price +18%
Fifth Price Level : Base Price+25%
Sixth Price Level : Base Price +30%
These price level should be in between Base Price and Retail sale Price.
Prerequisite
- A CSV import will be needed in order to import the Base Price Percentage and Retail Price Percentage in item record.
Deliverables
For each item the base price percentage and retail price percentage are different. So, two custom fields will be created to store the Base Price Percentage and Retail Price Percentage in item record.
Formula for the Base price and Retail Price calculation:
Base Price = Average Cost + (Average Cost* Base Price Percentage/100)
Retail Price = Average Cost + (Average Cost* Retail Price Percentage/100)
To store the Base price and the Retail Price two custom fields will be created in item record.
Additionally, 6 new standard price levels will be created for the items. The Price levels and the mark up percentages will be predefined as given below. For all items these price levels and the percentage markup will be same.
| Price Level | Markup Percentage |
| Price Level 1 | 4% |
| Price Level 2 | 8% |
| Price Level 3 | 12% |
| Price Level 4 | 18% |
| Price Level 5 | 25% |
| Price Level 6 | 30% |
Formula for the Price level amount calculation:
Price level Amount = Base Price + (Base Price*Markup Percentage/100)
Average Item Cost
The average cost of the item will be the average purchase price of the last 5 purchases. A scheduled process will be implemented to update the average cost in item records on a specific interval.
Purchase price
The purchase price will be the item cost that is calculated in the purchase order by also considering the other charges like freight, shipping, etc.
Item cost = (Total line amount + Proportionally allocated other charges amount, including
Freight, discount, etc.) / Quantity of the item
Assumptions
- This is only needed to be implemented in the subsidiary, Big Rig Partz CAN.
- Price levels will be created based on the table given above.
- In transaction record the default rate will be the Retail Price of the item.
- In the future, if there are any changes in the price level markup rate, the administrator will have to update the markup percentage in the predefined Price levels.
- The price level Markup percentage will be the same for all the items in the Big Rig Partz CAN subsidiary and the price level amount will be calculated from the base price.
- The markup percentage for the Base Price and Retail Price may change based on the item and the base price and the retail price will be calculated from the Average item cost.
Future Scope
- Assigning price levels for each customer. So, when a sales transaction is created for that customer the Price level will auto selected to the one that is predefined in the customer record.