The ability to set rules on how a sell price will be rounded after a cost change has occurred has been added to the ACR system. The price rounding system works by first applying the Margin or Markup to the new cost price to get a calculated sell price. The new configured price rounding rules are then applied to the calculated sell price to get the new rounded sell price. This new rounded sell price can then be applied to the product directly from the Price Change screen that appears when a cost adjustment is performed. If a rounded price is used it will change both the sell price and the Margin/Markup of the product. This can introduce a phenomenon called Margin/Markup creep which needs to be monitored if using this function.
The components of the new Price Rounding System are:
- Price Rounding Maintenance – This screen allows for price rounding rules to be configured within the ACR system.
- Ordering Configurations – Price Change Screen Default To – This configuration can set the default function of the ‘Price Change Screen’ to be ‘Rounded Price’ rather than having to select it each time the Price Change screen appears.
- Price Change Screen – This screen allows for the review of prices and the applying of a rounded price if required.
Warning: The use of price rounding can over time introduce Margin/Markup creep. This is a situation where the rounded price of an item may increase the Margin/Markup of an item. The next time there is a price increase the increased Margin/Markup that was created due to the rounding will be used. This new price will then have rounding applied which may again increase the Margin/Markup recorded on a product. If price rounding is to be used it is strongly advised that it be monitored and managed so as to prevent prices becoming uncontrolled.