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Minimum Charge

I’m interested in how others have dealt with minimum charges. Here’s a scenario: Coating an item is 40 cents each, with a minimum charge of $200. So a coating 1 item is $200, 2 items is $100/ea, etc. Obviously you could (painfully) have price break levels setup for every quantity up to 500, but that’s not realistic. I could even do that programmatically, but there has to be a better way.

Ok…no quick answers…so I’m going to brainstorm a bit.

If the price of 500 pcs is $200, then the pricing is as follows: 200/1…200/2…200/3 - in other words, MinPrice/qty

I want a formula for the price. Hmmmm…thinking.

Hi Scott:

Are you buying or selling?

Larry

Selling price.

If you are selling, I would create a Reference item that has a description of Minimum Charge and list price of 0.00

When the operator is creating the Sales Order or the Invoice they would need to do some quick calculation of how much to add and then the Minimum Charge Reference item as a qty of 1 and a price of what is being added to get up to the minimum. If the operator is careful to always add the minimum immediately after the primary item it will be explanatory to the customer when they get their invoice. Avoiding the “you charged me X last time and Y this time, etc etc.”
Not sure about the impact on Sales and profit analysis etc.

The order and/or invoice might look something like this:

120 XYZWidgets at .40 EACH

Yep, that’s the normal (bastardized?) way we would do this. We’re currently migrating a customer from an older ERP system that handles minimum charges in a very clean manner. If I suggested those extra manual steps, I would cause serious issues.

My guess is that I need to figure out how to modify the system to make it work.

Having pricing formulas could be very useful.

Didn’t finish

120 XYZItem at .40 EACH 48.00
1 Minimum Charge at 152.00 EACH 152.00

I think if I were a customer I would like seeing this.

Yep. I have seen those kinds of things also.

Proof of concept is now complete. Basically, I had to hijack some functions and add in the pricing model that I needed. I would be interested in putting this in the core product, but we need a lot more regression testing.

We would be interested in this feature too.

This is happening. The tricky stuff we ran into has to do with relating one line to another.

Most pricing is based upon the quantity of a single item. In this case, we typically have one item, dependent upon another. Coating (child item) dependent upon amother item, let’s call it a control arm. So the minimum charge isn’t on coating, it’s on coating and the control arm. So our data model becomes item 1 & item 2, then the min charge. Simple enough. Then it gets trickier. The pricing checks pass item and quantity, but no sales information. If we’re pricing line 7, we need to relate it to line 6. We’re working thru this. Lots of ways to do it.