Price Breaks

You can use price breaks (bracket pricing) to define prices that vary with the quantity ordered. For example, if you buy up to 10 items the price is $20 per item, but if you buy more that 10 items, you get a lower price per unit.
Note: If you define a price for an Item Category, then all items within the category are eligible for the price break.

When setting up price breaks, you can define price breaks as either Point or Range breaks:

Point break

Defines prices based on the price bracket in which the total quantity falls.
For example, if you ordered 16 units of Item A11111, the total quantity falls into the Price 2 bracket where the unit price is $45. So the total price is calculated as follows:
Total price = 16 * $45 each = $720

Range break
Defines prices based on the ranges of the defined price breaks. For each range, the engine calculates a price and sums across all ranges to obtain the list price.
For example, if you ordered 16 units of Item A11111, the unit price from each price
(Price Breaks 1 and 2) is applied as follows:
• Price I: For the first 11 units * $50 each (unit price from Price 1) = $550
• Price 2: The remaining 5 units * $45 each (unit price from Price 2) = $225 Total price (the extended price) = $550 + $225 = $775. The unit price is now 775/16.

Note: Before setting up price breaks, the following must be selected in the Price Lists window:

  • Line Type: Price Break Header
  • Application Method: Unit Price or Block Price

Define Price Breaks
To define price breaks, click Price Breaks in the List Lines tab of the Price Lists window to display the Price
Breaks window.

1. The Pricing Context is Volume (default), and the Pricing Attribute is Item Quantity. Optionally, select a different Pricing Attribute.

2. Enter a Value From and Value To. Price ranges for breaks must start with 0 with no gaps between breaks. If you leave the Value To field blank, a value of 999999.. (15 digits long) defaults in the database, but does not display in the Value To field.

3. Enter a Price:
• For inventory items and item categories, enter the base list price of the item.
• For service items: If the Application Method is Unit Price, enter the base list price of the item. If the Application Method is Percent Price, enter a percent of another item's price.

4. Select an Application Method.
• Unit Price: For inventory items and item categories.
• Percent Price: For service items. You will only see Percent Price as an Application Method if the price list line is a service item.
• Block Price: Using block pricing, you can apply a lumpsum price rather than a per unit price to a price list line. Block pricing also allows pricing setups that price by recurring values within blocks

5. Optionally, enter a Recurring Value for a block price. For example, if the Recurring Value is 100, then the range is priced for every 100 items within the block.
Note: The Recurring Value field is enabled when the following values are selected:
• Break type is Range.
• The application method of Block Price is selected for both the price list line and price break line

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