27.1 Introduction

There are a number of mechanisms which interact to create a price for an item on an invoice, order or quote:

  1. 1.

    Through direct entry on the document being created (either the price, the discount or both)

  2. 2.

    Using the “Sellprice” (or “Last cost” @@@ really?) on the parts entry screen

  3. 3.

    Using a “Type of Business” associated discount

  4. 4.

    Using the price matrix functionality, which combines (for customers), from least to most specific:

    1. (a)

      A price group

    2. (b)

      A customer

    3. (c)

      A minimum order quantity

    The price matrix for vendors is simpler and only includes the vendor as a selection criterion.

The price matrix can be used to set a price, a discount or both. Do note that the customer’s payment terms may cause another discount to be applied for early payment. This type of discount is not part of the topic at hand.

This chapter deals with business type and price matrix discounts.

@@@ types of business are ’old school’; price groups have been introduced to replace types of business with a more fine-grained structure.