Overview:
Vendors often establish pricing for products in terms of “per thousand”, “per hundred”, “per ton”, etc. In these situations, customers typically submit orders in quantities inconsistent with the vendor pricing terms. For example, an electrical contractor issues purchase orders for cable in lengths varying from a few lineal feet to thousands of lineal feet. Regardless of the quantity ordered, the vendor typically bases pricing on a price per thousand lineal feet. When issuing a purchase order for cable, the contractor must have the flexibility to order any length of cable and have PENTA compute the correct purchase order price based on the vendor’s per thousand pricing. Examples:
- C - Per Hundred
- D - Per Five Hundred
- M - Per Thousand
Benefits:
- Pricing Factors provide an easy method to purchase per unit, but have the price listed per factor (hundred/thousand/etc.). PENTA automatically does the math for you when Pricing Factors are utilized.
Roles:
- Purchasing Manager
Location:
- Purchasing > Setup > Pricing Factors
Video: