Configuration Price Modification
When a configuration is created for a Business Opportunity line, Sales Quotation Line or a Customer Order Line, the Total Part Price is calculated as the summation of Part Price and the Calculated Characteristic Price. The Calculated Characteristic Price is calculated by considering the Characteristic Prices and Characteristic Option Prices setup which is done in the Price List or Sales Part level. The price setup cannot be done for the characteristic of the type Informational and does not have any price as they are only for informational purposes.
Also, the Calculated Characteristic Price can be modified using the price adjustment functionality.
Characteristic Price Setup
The Calculated Characteristic Price is using the Amount
Offset or adding as a Percentage Offset of the part price for the
configuration characteristics at the Price List or Sales Part level.
Addition to that, it is possible to add a Configuration Characteristic
Sales Price Combination, or a Configuration Characteristic Sales
Price Formula and the return value is included in the Calculated
Characteristic Price.
Adjust Characteristic Price
Configuration Price Adjustment allows you to override total part price and distribute
the difference among configuration characteristics, offset each characteristic
price by a percentage or a value, or offset the price of groups of characteristics
and distribute the price difference among the characteristics of the group.
In basic data, you can mark which characteristics should be excluded from price
adjustments and define Max
Override (%) to stop the characteristic price from being
overridden below a desirable price. Therefore, above functionalities collectively
allows the sales teams to adjust the total part price to meet customer expectations
within profitable limits.
Basic Data - Characteristic Price Setup
Configuration Characteristic Sales Price Combination
Configuration Characteristic Sales Price Combination table is used to evaluate the combinations of different configuration characteristic option values and quantities to return an amount which can be added to the Calculated Characteristic Price.
In price combination tables, it is possible to set a default return setup. The possible default return types are Combination or Amount. Based on the return type, it is possible to setup a default return Combination table or a default return amount. if no hits are found in the combinations list, then default return amount will be directly added to the Calculated Characteristic Price. The default combination will be directed to another price combination table to find the relevant return amount.
In price combination table list section, the columns will be enabled based on the added combination factors and the factor types.
Combination Factors
- Configuration characteristics in the configuration family which is connected to the price combination
Combination Factor Types
- Characteristic Value
- Characteristic Quantity
Based on the combination factor setup, the operator columns, and
columns to add option values are enabled in the Combination Values
section. There are three types of return types;
-
Amount
- Return an amount which is to be added to the sales price.
- Combination
- Direct to another price combination table to get the return amount
- Formula
- Direct to a price formula to calculate the return amount
In Combination Value section, it is possible to setup different combinations
to return the return value based on the return type. The return amount based
on the combinations is included to the Calculated Characteristic Price
as an AddOn value or a Replace value.
Configuration Characteristic Sales Price Formula
Configuration Characteristic Sales Price Formula
is used to calculate the return amount based on
various types of elements (eg: Char Value/QTY, Char Price, Function, Price Combination
etc..) used inside the formula.
When setting up the formula it is possible to use other price formulas and price combinations which are belongs to the same configuration family and have the same currency code. Also, it is possible to use characteristic prices of other characteristics which are available in the configuration family.
Based on the characteristic option values and characteristic quantities added
in the Create/Edit Configuration pages, the price formula is evaluated
and return value is calculated.
The return value of the formula is included to the Calculated Characteristic Price as an AddOn value or a Replace value.
Note:
When setting up the price formulas, there can be situations that closed loops
are created with the usage of Char Price inside formulas.
If closed loops are created, for each and every change in Create/Edit Configuration page, the Calculated Characteristic Price will be update (if the connected formula contains Char Price in element sections and the connected Char price is get updated with other changes). This type of setup is not valid. During the setup this kind of closed loops should be avoided.
Connect Sale Price Combination or Formula to the Configuration Characteristics
Price combinations and price formulas can be connected to the configuration characteristics at three levels.
-
Sales Part/ Configuration Based Pricing tab
-
Configuration Price List
-
Sales Price List/ Configuration Based Pricing tab
When connecting, one price combination table or one price formula can be connected
to the characteristic at a time. To connect, the price combination or price
formula should be in
Released
status. Also, the
Currency Code
should be the same.
Basic Data – Adjust Characteristic Price
Configuration Characteristic Groups
Configuration characteristic group is used to group configuration characteristics and offset the group price (using Adjust Characteristic Prices by Group), after completing the sales part configuration. New groups can be defined in Configuration Characteristic Groups. Configuration characteristics can later be connected to a Characteristic Group ID in Configuration Characteristic.
Override Allowed
Override Allowed is an option that decides whether a specific characteristic price can be overridden while using sales configurator. This option is available for configuration characteristic prices (offsets) defined in Sales Part/Configuration Base Pricing or Configuration Price List. Override Allowed option is selected by default.
Max Override (%)
If Override Allowed is selected for a specific configuration characteristic, it is possible to set a Maximum Override (%), to stop the characteristic price from being overridden below a desirable price. You can set the Maximum Override (%) for a specific configuration characteristic in Sales Part/Configuration Base Pricing or Configuration Price List. If Maximum Override (%) field is left blank, it means there is no maximum override limit.
Calculating the Calculated Characteristic Price
During the configuration pricing the relevant configuration characteristics are included in the Create/Edit Configuration pages. The connected sales price combinations or formulas to the configuration characteristics are also visible in these pages. When adding the characteristic option values and quantities, the return values of the sales price combinations and formulas are included to the Calculated Characteristic Price.
When the Apply command is performed, the calculation logic is executed one more time. This is used to calculate the price formulas which contains Char Price in element section one more time. The reason is, the Char Price used in the element section can have been changed after the initial calculation. So, the recalculation will include the latest changes as well into the Calculated Characteristic Price.
Example
-
Price Combination
- Price Combination ID : Price Cmb A
Combination Factors
| Display Sequence | Factor Type | Factor Value |
| Characteristic 1 | Characteristic Value | Characteristic 1 |
| Characteristic 2 | Characteristic Value | Characteristic 2 |
| Sequence | Characteristic 1 Operator | Characteristic 1 | Characteristic 2 Operator | Characteristic 2 | Return Type | Return Value |
| 1 | Equal To | 10 | Equal To | Yes | Amount | 1000 |
| 2 | Equal To | 20 | Equal To | Yes | Amount | 2000 |
| 3 | Equal To | 10 | Equal To | No | Combination | Price Cmb B |
| 4 | Equal To | 20 | Equal To | No | Formula | Price Fr C |
Combination Values
-
Price Formula
- Price Formula ID : Price FR-A
PriceFR - A = 1000 + Char Value [Characteristic 1] * 20 + Price Formula [PriceFR - B]
- Price Formula ID : Price_FR-B
Price FR - B = Char Quantity [Characteristic1] x Price Combination [Price Cmb A]
| Characteristic ID | Percentage Offset | Amount Offset | Price Combination ID | Price Formula ID | Replace/AddOn |
| Characteristic 1 | 0 | 150 | Price Cmb A | AddOn | |
| Characteristic 2 | 0 | 200 | Price FR-A | AddOn |
Configuration Characteristic Setup at Price List Level or Sales Part Level
| Characteristic ID | Option Value | Quantity | Price | Calculated Price | Price Combination ID | Price Formula ID |
| Characteristic 1 | 10 | 1 | 1150 | 1150 | Price Cmb A | |
| Characteristic 2 | Yes | 1 | 2400 | 2400 | Price FR-A |
Calculation at Create/Edit Configuration Pages
Calculated Characteristic Price [Characteristics1] = Offset Amount +
Combination table Return Value
150 + 1000 (Combination sequence 1 is returned)
= 1150
Calculated Characteristic Price [Characteristics2]
= Offset Amount + Formula Return Value
=
200
+ 2200 (Calculated result of the formula)
= 2400
Adjust Calculated Characteristic Price
- Adjust All Characteristic Prices
- Adjust Characteristic Prices by Group
- Adjust Total Price
- Clear Adjustments
Herein after
- Eligible characteristics are characteristics for which, Override Allowed option is enabled in Sales Part/Configuration Base Pricing or Configuration Price List, Price Freeze option is disabled, and the Price is greater than the minimum allowed price as per Max Override (%).
- Calculated Price means the price defined in Sales Part/Configuration Base Pricing or Configuration Price List. This is displayed in Calculated Price column in characteristic list of Edit Configuration, Create Configuration or Edit Pricing.
- Characteristic Price means current price of the characteristic, which is displayed in the Price column of characteristics list in Edit Configuration, Create Configuration or Edit Pricing.
Adjust All Characteristic Prices
You can use Adjust All Characteristic Prices to
offset the price of each eligible characteristic, using either an offset (%)
or an offset amount.
It is not allowed to offset a characteristic price
below the Minimum Price of the characteristic which is calculated
as below.
For the eligible characteristics, new price will be calculated using the formula below.
If the new characteristic price is less than the Minimum Price for a specific characteristic, Minimum Price of the characteristic will be taken as the new characteristic price. Any other characteristic which does not violate this condition is updated with the new characteristic price.
Price of each characteristic will then be updated with the new price, Characteristic Price and Total Part Price in the header will be recalculated, and source line price will be updated.
Example
| Characteristic | Calculated Price (USD) | Price (USD) | Override Allowed | Maximum Override % | Minimum Price (USD) |
| Characteristic 1 | 10,000 | 10,000 | Yes | 10% | 9,000 |
| Characteristic 2 | 20,000 | 20,000 | Yes | 50% | 10,000 |
| Characteristic 3 | 30,000 | 30,000 | Yes | 0 |
Offset per Characteristic is - 5,000 USD.
Since 5,000 USD is less than the Minimum Price of Characteristic 1, minimum is reached for Characteristic 1.
Hence, new characteristic price of Characteristic 1 is 9,000 USD and other characteristic prices are modified with – 5,000 USD. The resulting characteristic prices are as follows.
Adjust Characteristic Prices by Group
You can use Adjust Characteristic Prices by Group to adjust prices of characteristic group. You can either set an offset amount or an offset (%). It is not allowed to set a new group price below the Minimum Group Price. For each characteristic group, a Minimum Group Price will be calculated as below.
Once an acceptable offset is set, the following steps will be executed to
distribute the offset amount among the eligible characteristics.
- Since some characteristics in the group could have restrictions for price adjustments, an effective offset factor needs to be calculated to offset the eligible characteristics.
- For the eligible characteristics, new price will be calculated using the formula below.
- For all characteristics which gets a new characteristic price less than the Minimum Price of that characteristic, Minimum Price of the characteristic will be set as the new characteristic price. Then a new offset amount is calculated using the equation below.
With the new offset amount, repeat the same steps above until the entire offset is distributed among the eligible characteristics.
New group price will be set, Price of each characteristic will be updated with the new price, Characteristic Price and Total Part Price in the header will be recalculated, and source line price will be updated.
Example
| Characteristic | Calculated Price (USD) | Price (USD) | Characteristic Group | Override Allowed | Maximum Override % | Minimum Price (USD) |
| Characteristic 1 | 10,000 | 10,000 | Group 1 | Yes | 10% | 9,000 |
| Characteristic 2 | 20,000 | 20,000 | Group1 | Yes | 50% | 10,000 |
| Characteristic 3 | 30,000 | 30,000 | Group 1 | Yes | 0 | |
| Characteristic 4 | 40,000 | 40,000 | Group 1 | No | 40,000 | |
| Characteristic 5 | 50,000 | 50,000 | Group 2 | Yes | 50,000 |
Offset per Group requested for Group 1 is – 5,000 USD.
Minimum Group Price = 9,000 + 10,000 + 40,000 = 59,000
Then offset of 5,000 USD needs to be distributed among the characteristics.
Effective offset factor per group = (- 5,000) / (10,000 + 20,000 + 30,000) = - 0.083
New characteristic price of Characteristic 1 = 10,000 (1 + (-0.083)) = 9,166.67 USD
New characteristic price of Characteristic 2 = 20,000 (1 + (-0.083)) = 9,166.67 USD
New characteristic price of Characteristic 1 = 10,000 (1 + (-0.083)) = 9,166.67 USD
| Characteristic | Calculated Price (USD) | Price (USD) | Characteristic Group | Override Allowed | Maximum Override % | Minimum Price (USD) |
| Characteristic 1 | 10,000 | 9,166.67 | Group 1 | Yes | 10% | 9,000 |
| Characteristic 2 | 20,000 | 18,333.33 | Group1 | Yes | 50% | 10,000 |
| Characteristic 3 | 30,000 | 27,500 | Group 1 | Yes | 0 | |
| Characteristic 4 | 40,000 | 40,000 | Group 1 | No | 40,000 | |
| Characteristic 5 | 50,000 | 50,000 | Group 2 | Yes | 50,000 |
Initial Group Price = 100, 000 USD
Offset amount = -5,000 USD
New Group Price = 95,000 USD
Adjust Total Price
Adjust Total Price allows you to set a New Total Pales Price and then distribute the price difference between all eligible characteristics in the configuration. It also gives the possibility to set an offset value or offset (%).
It is not allowed to set the new total part price below the minimum total part price which is calculated as below.
Once an acceptable offset is set, the following steps will be executed to distribute the offset amount among the eligible characteristics.
- Since some characteristics in the configuration could have restrictions for price adjustments, an effective offset factor needs to be calculated to offset the eligible characteristics.
- For the eligible characteristics, new price will be calculated using the formula below.
- For all characteristics which gets a new characteristic price less than the Minimum Price of that characteristic, Minimum Price of the characteristic will be set as the new characteristic price. Then a new offset mount is calculated using the equation below.
With the new offset amount, repeat the same steps above until the entire offset is distributed among the eligible characteristics.
Price of each characteristic will be updated with the new price, New Total Part Price will be calculated, Characteristic Price and Total Part Price in the header will be recalculated, and source line price will be updated.
Example:
Sales Part Price = 100,000 USD
| Characteristic | Calculated Price (USD) | Price (USD) | Override Allowed | Maximum Override % | Minimum Price (USD) |
| Characteristic 1 | 10,000 | 10,000 | Yes | 10% | 9,000 |
| Characteristic 2 | 20,000 | 20,000 | Yes | 20% | 16,000 |
| Characteristic 3 | 30,000 | 30,000 | Yes | 50% | 15,000 |
| Characteristic 4 | 40,000 | 40,000 | Yes | 0 | |
| Characteristic 5 | 50,000 | 50,000 | No | 50,000 |
The Total Part Price is 250,000 USD and the New Total Part Price requested is 225,000 USD.
Minimum Total Part Price = 100,000 + (9,000 + 16,000 + 15,000 + 0 + 50,000) = 190,000
Then offset of -25,000 USD needs to be distributed among the characteristics.
Effective offset factor = (- 25,000) / (10,000 + 20,000 + 30,000 + 40,000) = - 0.25
Then the new prices;
New characteristic price of Characteristic 1 = 10,000 (1 + (-0.25)) = 7,500 USD
New characteristic price of Characteristic 2 = 20,000 (1 + (-0.25)) = 15,000 USD
New characteristic price of Characteristic 3 = 30,000 (1 + (-0.25)) = 22,500 USD
New characteristic price of Characteristic 4 = 40,000 (1 + (-0.25)) = 30,000 USD
New prices of Characteristic 1 and Characteristic 2 (7,500 USD and 15,000 USD respectively) are less than their Minimum Prices (9,000 USD and 16,000 USD respectively). Hence, new price of Characteristic 1 is set to 9,000 USD with an offset amount of 1,000 USD and new price of Characteristic 2 is set to 16,000 USD with an offset amount of 4,000 USD.
Since the offset amount remaining from the Characteristic 1 and Characteristic 2 also need to be distributed, new characteristic prices for Characteristic 3 and Characteristic 4 will be recalculated after adjusting the offset amount.
New offset amount = 25,000 - (1,000 + 4,000) = 20,000
New effective offset factor = (- 20,000) / (30,000 + 40,000) = - 0.286
Hence, new characteristic prices are
New characteristic price of Characteristic 3 = 30,000 (1 + (-0.286)) = 21,428.58 USD
New characteristic price of Characteristic 4 = 40,000 (1 + (-0.286)) = 28,571.42 USD
| Characteristic | Calculated Price (USD) | Price (USD) | Override Allowed | Maximum Override % | Minimum Price (USD) |
| Characteristic 1 | 10,000 | 9,000 | Yes | 10% | 9,000 |
| Characteristic 2 | 20,000 | 16,000 | Yes | 20% | 16,000 |
| Characteristic 3 | 30,000 | 21,428.58 | Yes | 50% | 15,000 |
| Characteristic 4 | 40,000 | 28,571.42 | Yes | 0 | |
| Characteristic 5 | 50,000 | 50,000 | No | 50,000 |
Initial Price = 250,000 USD, Calculated Characteristic Price = 150,000 USD
New Total Part Price = 225,000 USD
Offset amount = -25,000 USD
Characteristic price= 9, 000 + 16,000 + 21,428.58 + 28,571.42 + 50,000 = 125,000 USD
Clear Price Adjustment
You can use Clear Price Adjustments to clear all the price adjustments done using any of the above-mentioned assistants. All adjusted characteristic prices will be replaced with the value before the adjustment.
Configuration Changes after Price Adjustments
If the configuration is changed after characteristic price are adjusted,
price of all affected characteristics (affected by a manual change or by sales
rules) are recalculated using price data from Sales Part/Configuration
Based Pricing ,Configuration
Price List
or Sales Price List/Configuration Based Pricing tab.
Hence, price adjustments done previously for these characteristics are removed.