In today’s training video, we are going to talk about how to set up Supplier Pricing Maintenance for a new supplier in Prophet 21.
It is important to note that after you create a new supplier in Prophet 21, the next step should be to set them up in supplier pricing maintenance.
In this video, we will focus on the multiplier functionality. We will not go into Supplier Pricing Libraries right now but will cover them in detail in a future video.
How to Set Up Supplier Pricing Maintenance:
Open Supplier Pricing Maintenance.
The first step is to switch your pricing method to Multiplier.
You have four different options to choose from for the Source Price.
- List Price
- Location Cost
- Location List Price
Cost and List Price are both located in the Supplier Detail tab of Item Maintenance.
At the bottom of the Item Maintenance window is Supplier by Location.
Location Cost and Location List Price are in the Supplier by Location tab. This is also where you will assign all suppliers that cater to your locations and mark one as a primary supplier.
How Source Price Works in Supplier Pricing Maintenance:
When you choose Cost or List Price, Source Price will always pull the Supplier pricing from the top tab. It will not care about any pricing information in the bottom tab.
On the other hand, when you choose Location Cost or Location List Price, the function will prompt Prophet 21 to always look at the bottom tab first.
Example: You choose the Location Cost source price and view the lower tab for Location 10, which has a listed Location Cost of $2.00. However, when you view Location 20, it has a listed Location Cost of $0.00.
In this case, although it is set to location cost since there is a zero in the cost field, it would automatically revert to the Cost in the upper Supplier Detail tab.
This is a helpful failsafe that prevents you from having to enter location costs for every single Location.
Summary: This function will always look at the Location List Price first. If you have the Price set to pull from there, but it has a value of zero, it will revert to the Supplier Detail tab instead.
Tip! If only one or two of the Locations are different, you can simply maintain those, and the rest will default to the Cost tab in Supplier Detail.
How Costs Work in Supplier Pricing Maintenance:
The Cost functions of Supplier Pricing Maintenance are pretty straightforward.
You will choose either Cost or Location Cost with a multiplier of one.
The Cost function takes the value from either of those fields and enters it in your Purchase Order.
How to manage Discounts:
If you use List Price or Location List Price, and the supplier gives you a discount, come into the open multiplier field and enter the remaining percentage after the discount.
For instance, a supplier offers you a thirty percent discount off a list price for a remaining percentage of 0.70. This function will then multiply that number by the list price (For example: If the List Price is $10.00, your cost would be $7.00).
You must utilize Supplier Pricing Maintenance for each new Supplier entered into your Prophet 21 system.
This tutorial focused on the multiplier method of Pricing. We will talk about the pricing libraries in future tutorials, but this method covers the majority of P21 users.
If you have any questions about Supplier Maintenance or want to see videos on other topics, make sure you put a comment down below.
Prophet 21 Training – Purchasing: Understanding Prophet 21’s ABC Class Maintenace functions.