Using block pricing, you can apply a lumpsum price rather than a per unit price to a price list line. Block pricing also provides flexibility when the unit of measure (UOM) of the header is different from the pricing attributes of each break range.

• In non-block pricing price breaks, the UOM of the break range lines is the same as that of the header.
• In block pricing, the break ranges can have different units of measure than the header. Lastly, block pricing also allows pricing setups that price by recurring values within blocks.

In regular breaks, lines have the application method of unit price (for inventory items) and percent price (for service items only). For block pricing breaks, unit price or percent price is replaced by block price to differentiate between the line UOM and the header UOM. Like regular breaks, block pricing can be defined for either Point or Range price
types.

When the break type is Range, and application method is BLOCK, you can define a recurring value for that block. For example, if the Recurring Value is 100, then the range is priced for every 100 items within the block.
Note: If the recurring value does not divide evenly into the block, the resulting price is a prorated amount, not a flat rate, of the block price.

The following examples show how price breaks with block pricing could be used:

Example 1: Example of Block Price Using a Recurring Value
You can apply a block price and have the price repeat for defined intervals (the recurring value); for example, to charge $10 per 100 items up to 1,000 items. In this example, the recurring value is 100.

Note: You cannot use Recurring Value if the Price Type is Point.
When a recurring value is used with price breaks, the Block price repeats for every interval defined by the Recurring Value column. In this example, for the first 1200 units, the price is $10 for each 100 units up to 1200 units.
For over 1200 units and more, you could create a second price to define a price of $30 for each 100 units.
Therefore, if 1,300 units were purchased, the total cost would be $150, which is calculated as follows:
• Block price 1: Price for first 1200 (1200/100= 12 X $10): $120 (first price break)
• Block price 2: Price for each additional block of 100 units beginning with 1201 units: $30 (second price break)

Block Price with Application Method of BLOCK PRICE and BREAK UNIT PRICE
If BLOCK PRICE is selected as the application method in the price header for a price list (this is possible only with Range breaks), you can select the following application methods for the price lines:
• BLOCK PRICE
• BREAK UNIT PRICE
When the BREAK UNIT PRICE application method is used in the line, the price specified is the break unit price per attribute. For example, if the price is based on the price attribute Item Weight, the price to be specified is price per unit weight. When setting up the price break, the price provided should be the break unit attribute price. The break unit price for the ordered item is calculated by multiplying the BREAK UNIT PRICE with the sourced Volume Attribute value divided by the ordered quantity. For example: if the Item Weight in lbs is used as the Volume Attribute in the following price breaks ($10 is the price per lb.):

The Item Weight is sourced from the total line weight of a sales order line. For example, if a sales order is entered for three items each weighing 2 lbs, then the unit list price returned from the preceding price would be: [10 X 6]/3 = $20. Six is the total line weight (2 x 3) lbs.