Configuration Price Modification

When a configuration is created for a Business Opportunity line, Sales Quotation line, or a Customer Order line, the Total Part Price is calculated as the summation of Part Price and the Calculated Characteristic Price. The modification to the Calculated Characteristic Price can be done by updating the configuration characteristics setup at the Price List or Sales Part level. Also, it is possible to use price adjustment functionality to modify the Calculated Characteristic Price.  

Update Characteristic Price

The Calculated Characteristic Price can be updated by adding an Amount Offset or adding as a Percentage Offset of the part price for the configuration characteristics at the Price List or Sales Part level. Addition to that, it is possible to add a Configuration Characteristic Sales Price Combination, or a Configuration Characteristic Sales Price Formula and the return value is included to the Calculated Characteristic Price.

Adjust Characteristic Price

Configuration Price Adjustment allows you to override total part price and distribute the difference among configuration characteristics, offset each characteristic price by a percentage or a value, or offset the price of groups of characteristics and distribute the price difference among the characteristics of the group. In basic data, you can mark which characteristics should be excluded from price adjustments and define Max Override (%) to stop the characteristic price from being overridden below a desirable price. Therefore, above functionalities collectively allows the sales teams to adjust the total part price to meet customer expectations within profitable limits.

Update Characteristic Price

Basic Data

Configuration Characteristic Sales Price Combination

Configuration Characteristic Sales Price Combination table is used to evaluate the combinations of different configuration characteristic option values and quantities to return an amount which can be added to the Calculated Characteristic Price.

In price combination tables, it is possible to set a default return setup. The possible default return types are Combination or Amount. Based on the return type, it is possible to setup a default return Combination table or a default return amount. if no hits are found in the combinations list, then default return amount will be directly added to the Calculated Characteristic Price. The default combination will be directed to another price combination table to find the relevant return amount.

In price combination table list section, the columns will be enabled based on the added combination factors and the factor types

Combination Factors

• Configuration characteristics in the configuration family which is connected to the price combination

Combination Factor Types

• Characteristic Value

• Characteristic Quantity

Based on the combination factor setup, the operator columns, and columns to add option values are enabled in the Combination Values section. There are three types of return types;

• Amount

  • Return an amount which is to be added to the sales price

• Combination

  • Direct to another price combination table to get the return amount

• Formula

  • Direct to a price formula to calculate the return amount

In Combination Value section, it is possible to setup different combinations to return the return value based on the return type. The return amount based on the combinations is included to the Calculated Characteristic Price as an AddOn value or a Replace value.

Configuration Characteristic Sales Price Formula

Configuration Characteristic Sales Price Formula is used to calculate the return amount based on various types of elements (eg: Char Value/QTY, Char Price, Function, Price Combination etc..) used inside the formula.

When setting up the formula it is possible to use other price formulas and price combinations which are belongs to the same configuration family and have the same currency code. Also, it is possible to use characteristic prices of other characteristics which are available in the configuration family.

Based on the characteristic option values and characteristic quantities added in the Create/Edit Configuration pages, the price formula is evaluated and return value is calculated.

The return value of the formula is included to the Calculated Characteristic Price as an AddOn value or a Replace value.

Note:

When setting up the price formulas, there can be situations that closed loops are created with the usage of Char Price inside formulas.

If closed loops are created, for each and every change in Create/Edit Configuration page, the Calculated Characteristic Price will be update (if the connected formula contains Char Price in element sections and the connected Char price is get updated with other changes). This type of setup is not valid. During the setup this kind of closed loops should be avoided.

Connect Sale Price Combination or Formula to the Configuration Characteristics

Price combinations and price formulas can be connected to the configuration characteristics at   three levels.

• Sales Part/ Configuration Based Pricing tab

• Configuration Price List 

• Sales Price List/ Configuration Based Pricing tab

When connecting, one price combination table or one price formula can be connected to the characteristic at a time. To connect, the price combination or price formula should be in Released status. Also, the Currency Code should be the same.

Configuration Pricing Update

During the configuration pricing the relevant configuration characteristics are included in the Create/Edit Configuration pages. The connected sales price combinations or formulas to the configuration characteristics are also visible in these pages. When adding the characteristic option values and quantities, the return values of the sales price combinations and formulas are included to the Calculated Characteristic Price.

When the Apply command is performed, the calculation logic is executed one more time. This is used to calculate the price formulas which contains Char Price in element section one more time. The reason is, the Char Price used in the element section can have been changed after the initial calculation. So, the recalculation will include the latest changes as well into the Calculated Characteristic Price.

Example

Price Combination

Price Combination ID : Price_Cmb_A

Combination Factors

Display Sequence	Factor Type	Factor Value
Characteristic 1	Characteristic Value	Characteristic 1
Characteristic 2	Characteristic Value	Characteristic 2

      Combination Values

Sequence	Characteristic 1 Operator	Characteristic 1	Characteristic 2 Operator	Characteristic 2	Return Type	Return value
1	Equal To	10	Equal To	Yes	Amount	1000
2	Equal To	20	Equal To	Yes	Amount	2000
3	Equal To	10	Equal To	No	Combination	Price_Cmb_B
4	Equal To	20	Equal To	No	Formula	Price_Fr_C

 

 

 

 

 

 

 

Price Formula

Price Formula ID : Price_FR-A

                          = 1000 + Char Value [Characteristic 1] * 20 + Price Formula [Price_FR-B]

Price Formula ID : Price_FR-B

                          = Char Quantity [Characteristic 1] * Price Combination [Price_Cmb_A]

Configuration Characteristic Setup at Price List Level or Sales Part Level

 

Characteristic ID	Percentage Offset	Amount Offset	Price Combination ID	Price Formula ID	Replace/AddOn
Characteristic 1	0	150	Price_Cmb_A		AddOn
Characteristic 2	0	200		Price_FR-A	AddOn

 

 

 

 

 

Calculation at Create/Edit Configuration Pages

Characteristic ID	Option Value	Quantity	Price	Calculated Price	Price Combination ID	Price Formula ID
Characteristic 1	10	1	1150	1150	Price_Cmb_A
Characteristic 2	Yes	1	2400	2400		Price_FR-A

 

 

 

 

 

 

Calculated Characteristic Price [Characteristics 1]   = Offset Amount + Combination table Return Value

                                                                                  =  150 + 1000 (Combination sequence 1 is returned)

                                                                                  = 1150 

Calculated Characteristic Price [Characteristics 2]   = Offset Amount + Formula Return Value

                                                                                  =  200 + 2200 (Calculated result of the formula)

                                                                                  = 2400

Adjust Characteristic Price

 Basic Data

Configuration Characteristic Groups

Configuration characteristic group is used to group configuration characteristics and offset the group price (using Adjust Characteristic Prices by Group), after completing the sales part configuration. New groups can be defined in Configuration Characteristic Groups. Configuration characteristic can later be connected to a Characteristic Group ID in Configuration Characteristic.

Override Allowed

Override Allowed is an option that decides whether a specific characteristic price can be overridden while using sales configurator. This option is available for configuration characteristic prices (offsets) defined in Sales Part/Configuration Base Pricing or Configuration Price List. Override Allowed option is selected by default.

Max Override (%)

If Override Allowed is selected for a specific configuration characteristic, it is possible to set a Maximum Override (%), to stop the characteristic price from being overridden below a desirable price. You can set the Maximum Override (%) for a specific configuration characteristic in Sales Part/Configuration Base Pricing or Configuration Price List. If Maximum Override (%) field is left blank, it means there is no maximum override limit.

Adjust Price

Price adjustments can be done when configurations are created or edited in Business Opportunity, Sales Quotation or Customer order. Adjust Price is enabled in Create Configuration, Edit Configuration, and Edit Pricing (only available for Released customer orders) when the configuration is Completed. Under Adjust Price, four commands are available to adjust the prices.

1. Adjust All Characteristic Prices
2. Adjust Characteristic Prices by Group
3. Adjust Total Price
4. Clear Adjustments

Herein after

• Eligible characteristics are characteristics for which, Override Allowed option is enabled in Sales Part/Configuration Base Pricing or Configuration Price List, Price Freeze option is disabled, and the Price is greater than the minimum allowed price as per Max Override (%).
• Calculated Price means the price defined in Sales Part/Configuration Base Pricing or Configuration Price List. This is displayed in Calculated Price column in characteristic list of Edit Configuration, Create Configuration or Edit Pricing.
• Characteristic Price means current price of the characteristic, which is displayed in the Price column of characteristics list in Edit Configuration, Create Configuration or Edit Pricing.

 

Adjust All Characteristic Prices

You can use Adjust All Characteristic Prices to offset the price of each eligible characteristic, using either an offset (%) or an offset amount.
It is not allowed to offset a characteristic price below the Minimum Price of the characteristic which is calculated as below.

For the eligible characteristics, new price will be calculated using the formula below.

If the new characteristic price is less than the Minimum Price for a specific characteristic, Minimum Price of the characteristic will be taken as the new characteristic price. Any other characteristic which does not violate this condition is updated with the new characteristic price.

Price of each characteristic will then be updated with the new price, Characteristic Price and Total Part Price in the header will be recalculated, and source line price will be updated.

Example

Characteristic	Calculated Price (USD)	Price (USD)	Override Allowed	Maximum Override %	Minimum Price (USD)
Characteristic 1	10,000	10,000	Yes	10%	9,000
Characteristic 2	20,000	20,000	Yes	50%	10,000
Characteristic 3	30,000	30,000	Yes		0

Offset per Characteristic is - 5,000 USD.

New characteristic price of Characteristic 1 = 10,000 + (- 5,000) = 5,000 USD

Since 5,000 USD is less than the Minimum Price of Characteristic 1, minimum is reached for Characteristic 1.

Hence, new characteristic price of Characteristic 1 is 9,000 USD and other characteristic prices are modified with – 5,000 USD. The resulting characteristic prices are as follows.

New characteristic price of Characteristic 2 = 20,000 + (- 5,000) = 15,000 USD

New characteristic price of Characteristic 3 = 30,000 + (- 5,000) = 25,000 USD

Adjust Characteristic Prices by Group

You can use Adjust Characteristic Prices by Group to adjust prices of characteristic group. You can either set an offset amount or an offset (%). It is not allowed to set a new group price below the Minimum Group Price. For each characteristic group, a Minimum Group Price will be calculated as below.

Once an acceptable offset is set, the following steps will be executed to distribute the offset amount among the eligible characteristics.

1. Since some characteristics in the group could have restrictions for price adjustments, an effective offset factor needs to be calculated to offset the eligible characteristics.

 

2. For the eligible characteristics, new price will be calculated using the formula below.

3. For all characteristics which gets a new characteristic price less than the Minimum Price of that characteristic, Minimum Price of the characteristic will be set as the new characteristic price. Then a new offset amount is calculated using the equation below.

With the new offset amount, repeat the same steps above until the entire offset is distributed among the eligible characteristics.

New group price will be set, Price of each characteristic will be updated with the new price, Characteristic Price and Total Part Price in the header will be recalculated, and source line price will be updated.

Example

Characteristic	Calculated Price (USD)	Price (USD)	Characteristic Group	Override Allowed	Maximum Override %	Minimum Price (USD)
Characteristic 1	10,000	10,000	Group 1	Yes	10%	9,000
Characteristic 2	20,000	20,000	Group1	Yes	50%	10,000
Characteristic 3	30,000	30,000	Group 1	Yes		0
Characteristic 4	40,000	40,000	Group 1	No		40,000
Characteristic 5	50,000	50,000	Group 2	Yes		50,000

Offset per Group requested for Group 1 is – 5,000 USD.

Minimum Group Price = 9,000 + 10,000 + 40,000 = 59,000

Then offset of 5,000 USD needs to be distributed among the characteristics.

Effective offset factor per group = (- 5,000) / (10,000 + 20,000 + 30,000) = - 0.083

New characteristic price of Characteristic 1 = 10,000 (1 + (-0.083)) = 9,166.67 USD

New characteristic price of Characteristic 2 = 20,000 (1 + (-0.083)) = 9,166.67 USD

New characteristic price of Characteristic 1 = 10,000 (1 + (-0.083)) = 9,166.67 USD

Characteristic	Calculated Price (USD)	Price (USD)	Characteristic Group	Override Allowed	Maximum Override %	Minimum Price (USD)
Characteristic 1	10,000	9,166.67	Group 1	Yes	10%	9,000
Characteristic 2	20,000	18,333.33	Group1	Yes	50%	10,000
Characteristic 3	30,000	27,500	Group 1	Yes		0
Characteristic 4	40,000	40,000	Group 1	No		40,000
Characteristic 5	50,000	50,000	Group 2	Yes		50,000

Initial Group Price = 100, 000 USD

Offset amount = -5,000 USD

New Group Price = 95,000 USD

 

Adjust Total Price

Adjust Total Price allows you to set a New Total Pales Price and then distribute the price difference between all eligible characteristics in the configuration. It also gives the possibility to set an offset value or offset (%).

It is not allowed to set the new total part price below the minimum total part price which is calculated as below.

Once an acceptable offset is set, the following steps will be executed to distribute the offset amount among the eligible characteristics.

1. Since some characteristics in the configuration could have restrictions for price adjustments, an effective offset factor needs to be calculated to offset the eligible characteristics.

2. For the eligible characteristics, new price will be calculated using the formula below.

3. For all characteristics which gets a new characteristic price less than the Minimum Price of that characteristic, Minimum Price of the characteristic will be set as the new characteristic price. Then a new offset mount is calculated using the equation below.

With the new offset amount, repeat the same steps above until the entire offset is distributed among the eligible characteristics.

Price of each characteristic will be updated with the new price, New Total Part Price will be calculated, Characteristic Price and Total Part Price in the header will be recalculated, and source line price will be updated.

Example:

Sales Part Price = 100,000 USD

Characteristic	Calculated Price (USD)	Price (USD)	Override Allowed	Maximum Override %	Minimum Price (USD)
Characteristic 1	10,000	10,000	Yes	10%	9,000
Characteristic 2	20,000	20,000	Yes	20%	16,000
Characteristic 3	30,000	30,000	Yes	50%	15,000
Characteristic 4	40,000	40,000	Yes		0
Characteristic 5	50,000	50,000	No		50,000

The Total Part Price is 250,000 USD and the New Total Part Price requested is 225,000 USD.

Minimum Total Part Price = 100,000 + (9,000 + 16,000 + 15,000 + 0 + 50,000) = 190,000

Then offset of -25,000 USD needs to be distributed among the characteristics.

Effective offset factor = (- 25,000) / (10,000 + 20,000 + 30,000 + 40,000) = - 0.25

Then the new prices;

New characteristic price of Characteristic 1 = 10,000 (1 + (-0.25)) = 7,500 USD

New characteristic price of Characteristic 2 = 20,000 (1 + (-0.25)) = 15,000 USD

New characteristic price of Characteristic 3 = 30,000 (1 + (-0.25)) = 22,500 USD

New characteristic price of Characteristic 4 = 40,000 (1 + (-0.25)) = 30,000 USD

New prices of Characteristic 1 and Characteristic 2 (7,500 USD and 15,000 USD respectively) are less than their Minimum Prices (9,000 USD and 16,000 USD respectively). Hence, new price of Characteristic 1 is set to 9,000 USD with an offset amount of 1,000 USD and new price of Characteristic 2 is set to 16,000 USD with an offset amount of 4,000 USD.

Since the offset amount remaining from the Characteristic 1 and Characteristic 2 also need to be distributed, new characteristic prices for Characteristic 3 and Characteristic 4 will be recalculated after adjusting the offset amount.

New offset amount = 25,000 - (1,000 + 4,000) = 20,000

New effective offset factor = (- 20,000) / (30,000 + 40,000) = - 0.286

Hence, new characteristic prices are

New characteristic price of Characteristic 3 = 30,000 (1 + (-0.286)) = 21,428.58 USD

New characteristic price of Characteristic 4 = 40,000 (1 + (-0.286)) = 28,571.42 USD

Characteristic	Calculated Price (USD)	Price (USD)	Override Allowed	Maximum Override %	Minimum Price (USD)
Characteristic 1	10,000	9,000	Yes	10%	9,000
Characteristic 2	20,000	16,000	Yes	20%	16,000
Characteristic 3	30,000	21,428.58	Yes	50%	15,000
Characteristic 4	40,000	28,571.42	Yes		0
Characteristic 5	50,000	50,000	No		50,000

Initial Price = 250,000 USD, Calculated Characteristic Price = 150,000 USD

New Total Part Price = 225,000 USD

Offset amount = -25,000 USD

Characteristic price= 9, 000 + 16,000 + 21,428.58 + 28,571.42 + 50,000 = 125,000 USD

 

Clear Price Adjustment

You can use Clear Price Adjustments to clear all the price adjustments done using any of the above-mentioned assistants. All adjusted characteristic prices will be replaced with the value before the adjustment.

 

Configuration Changes after Price Adjustments

If the configuration is changed after characteristic price are adjusted, price of all affected characteristics (affected by a manual change or by sales rules) are recalculated using price data from Sales Part/Configuration Based Pricing ,Configuration Price List or Sales Price List/Configuration Based Pricing tab.

Hence, price adjustments done previously for these characteristics are removed.