MYOB EXO Business

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Pricing and Discounting Overview

There are comprehensive mechanisms in MYOB EXO Business for automatically determining appropriate prices to be offered to customers for goods dependent on a number of preset pricing rules that make up your pricing policies.

To

For Example

Use

Define a price value for a single stock item

A single whiteboard marker.

One of the ten configured Sell Prices

Define a price value for multiple stock items

Whiteboard markers stocked and sold in different colours but the same price.

Stock Price Groups

Apply a discount percentage to a product or list of products

 

Price Rules

Apply a discount percentage to a product or list of products, and share that with a customer or multiple customers

 

Price Policy

Define a group of customers for common pricing or discounting

To apply pricing policies to all branches of a company, or apply price policies for internet, trade, retail customers.

Debtor Price Policy Groups

Price Rules

A price rule is used to apply a discount or substitute price to an inventory item or group of inventory items. You can specify a minimum quantity of the inventory item(s) the customer must purchase to qualify for the discount, and also a date range the discount is valid for.

Price rules must be maintained individually in the Discounts/Prices tab of the Debtor account for which they were created. Price rules cannot be easily attached to a pricing policy at a later date. Price rules are not shared across parent/child account relationships if they are created on the parent account.

A price rule can be made up by either:

  • A percentage above or below the list price, or

  • An absolute net price, i.e. a new price.

Note: Discounts have the advantage in that if the list price fluctuates, the selling price also fluctuates proportionally. Net prices are often used to avoid inconveniently rounded net unit prices that can result from discounting.

Price Policies

Price Policies are collections of price rules for Products (or groups of products) that can be shared between customers (or whole groups of customers). Using price policies helps you to maintain pricing rules with the least possible elemental changes. Each price policy has a name and notes.

Tip: A single customer can be attached to many price policies, but a well-rationalised discounting model would avoid this. It might be useful to have one price policy called policy to which every debtor price policy group (see below) belongs. This can be used to apply promotional items or to be applied to or removed from to your entire customer base with a single entry rather than simply changing the list price.

Invoice Line Discounts

Offering a discount on an invoice line item at the time of invoicing or order entry is the most common way of offering a discount on a purchase. You can discount on the invoice line either as a result of a price rule, or by manually applying a discount. The discount percentage shows as a separate column on the invoice entry window, and the invoice line total is shown with the discount removed.

Discounting has its advantages over adjusting the unit price directly because:

  • It clearly distinguishes an amount that a customer pays from the perceived price

  • Discounting requires less maintenance as it adjusts proportionally when the base selling price is changed

Note: MYOB EXO Business does not support discounts on the invoice total. This is because of the difficulty in analysing profitability by invoice line. If you want to offer such a discount, we recommend applying the discount to a line on the invoice.

Stock Price Groups

Stock Price Groups allow you to collect similar products together that may share common pricing but are distinct products. Example whiteboard markers are stocked and sold in different colours but are all the same price, any discount policies that refer to them refer to every colour in the range. Using Stock price Groups you need only change the policies relating to the group and not every individual colour.

Stock Price Groups are set up in MYOB EXO Business Config at Admin > Stock > Stock Price Groups.