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Service SKUs vs Conditions for Pricing - Sales orders

Jan 29 at 02:15 PM

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Hi ,

At my business, I am looking for references for best practices to go with scenarios to charge customers for special service charges on the sales orders. We are currently using both the pricing conditions as well as Service SKus to apply prices on the Sales orders. From a manufacturer perspective, if we have to charge for Pallets, Small order Handling fees, Dropship handling/shipping fees and also some scenarios covering Art and Engraving fees, Labeling fees etc. whats the preferred way to charge for these - Service SKU using a manual condition or capturing as part of condition on the finished good material itself - manual/automatic. What are the pros and cons with either approach.

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2 Answers

Best Answer
Jelena Perfiljeva
Jan 29 at 06:23 PM
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You might want to search the older SCN posts as I believe similar questions have been asked before. In addition to what Jignesh mentioned - there is really no single "best practice" as the choice depends on variety of factors and specific business requirements.

Pricing conditions are easy to use, they can be configured to be added automatically and don't get lost accidentally.

By using a separate line item (=SKU) you have more flexibility, especially when it comes to analysis and forms. It's very difficult to provide sales reports based on pricing conditions and very easy for line items. And if the discount/surcharge needs to be listed as a separate item on the forms (e.g. invoice) then extracting it from the conditions can be a bit iffy: you can run into some rounding issues etc. Also you can't add a text manually to the condition but you can put any text against the line item.

From my experience, I'd say a manual pricing condition is the least effective option since it combines all the negatives of two other options (automated condition and separate SKU). If you have high volume of transactions then automation with the pricing conditions would be the way to go, based on my experience. Otherwise chose whichever fits better.

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Jignesh Mehta Jan 29 at 02:59 PM
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Hello,

As far as the Charges and Fees are fixed (fixed amount or percentages) and possible to determine based on some conditions for example a particular Material Group invites few charges another Material group invites few fees or particular Delivering Plant invites additional Shipment charges, it is better to have a Automatic Pricing with Pricing Condition for each Surcharge or Fee.

As far as possible, manual maintenance of Pricing values should be avoided.

Also rather than bundling everything as a Finished Material Price, it is better to split the Basic price and Surchanges, fees and discounts. This gives flexibility to add / remove particular surcharges or fees for some Customer or Material or groups of Customer or Materials.

Thanks,

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