DBD: Order Processing - Fixed Price in Order Entry

DBD: Order Processing - Fixed Price Field In Order Entry

Bill of Lading order line — Fixed Price field

When we uncheck the box, this is saying No to Fixed Price — we are telling the system that the GP percentage should remain the same regardless of what the actual costs end up being.

Example

• Sell price entered of $100 and a cost on the order line of $70.
• Order line shows GP percentage of 30%.
• When Costs are received from Vendor:
  • Cost is same — Sell price is not affected.
  • Cost comes in at higher rate — Sell price will be adjusted up. Example: $80, the sell price will automatically change to $114.29.
  • Cost comes in at lower rate — Sell price will be adjusted down. Example: $60, the sell price will change to $85.71.
• In each situation the GP percentage will be 30%.

Frequently Asked Questions

Q: What does checking Fixed Price mean?

A: The price entered has been quoted or confirmed to the customer, so regardless of what the actual line cost turns out to be during PO Receiving, the sell price stays the same. This is the default setting, and it can always be manually overridden.

Q: What happens if I uncheck Fixed Price?

A: The system will instead keep the GP percentage the same regardless of actual costs — meaning the sell price will automatically adjust up or down to preserve that GP% when the vendor cost comes in differently than expected.

Q: Can you give an example of how this works?

A: With a $100 sell price, $70 cost, and 30% GP: if the actual cost comes in at $80, the sell price automatically adjusts up to $114.29; if it comes in at $60, the sell price adjusts down to $85.71. In every case, the GP percentage stays at 30%.

Q: Is the Fixed Price field available everywhere in order entry?

A: No — it is not available in Streamlined Order Entry.

Tags: order-processing, fixed-price, gross-profit, order-entry, DB-distributor