Allocate Area Pricing

To allocate a price to a component, based on the area that it is obtained from 

When your company operates interstate, and you obtain a certain item from suppliers in different locations, you can allocate a different prices to the same item, depending on what area the item is assigned to. The example below first uses the same price for all areas, and then shows how we can allocate a price per area.  Therefore, when we create an estimate we can choose the area where we create that estimate, and the estimate will extract the correct price for the area.

1.   Ensure the Components module is open, and the component is on screen 
If not, open the Components module, select item and click on Properties  

2.   Click on the Preferred Supplier tab
as mentioned in the Overview, this area allows us to enter a price for a particular supplier that trades in several locations.  For example, we can have a BUNNINGS supplier in Adelaide, Melbourne and Sydney, but they may have slightly different prices for items we purchase from them e.g. if they give us a discount in one location and not another 

3.   Click New
Enter a preferred supplier for this component.  This refers to who we usually use to supply this item.  This list comes from the supplier list in Accounts Payable

4.   If necessary, check the Insert Supplier Price for all Areas check box
this uses the supplier price for all areas that we are in.  This may be the case if we only obtain this item from this particular supplier, and then ship it to our company in other areas.  If this is checked, the Areas drop down box is greyed out  

5.   If the Insert Supplier Price for All Areas is not checked, click on the Areas drop down box, and choose the Area that this supplier supplies this item to us 
Enter the Supplier Item Code if applicable

6.   Enter the cost of this item from this supplier, in the Cost text box.
This cost will be fetched by the estimate for this item based on the Area that the estimate is created for

7.   The Currency drop down box will default to AUS - 01/01/1990

8.   The Date Effective will default to today’s date 

9.   The Base of BOM checkbox is used to identify item that can be used in a Bill of Materials item.

10. Click OK save and close this Area Pricing Amount

11. Follow steps 1.-10. to create another Area Pricing entry for each of the other areas ie Default, QLD and VIC,

12. Click OK to close the component 

13. Click Refresh, and the component will appear in the list

14. If you now have a look at the List of Components on the main menu (you will need to do this in Table view not Tree view), you will notice that Component appears a number of times.  This is because if we set area pricing, the software creates a Component for each area, so that we can choose a particular component, for a particular area in an estimate, and get the correct price for that estimate.