The facility is provided to create different formulas by type of product which may incorporate pricing points such as RRP, dealer margins, discounts, rebates, allowances etc. Marketing formulas are kept separate from costing factors. PSM marketing factors are created and accessed via the PSM definition/ maintenance program, which provide the ability to do the following.
- Nominate the basis on which marketing factors are to be calculated.
- Round up or down the calculated selling prices and use these rounded prices for further calculations. The rounding specifications are defined in the Auto-Pricing Management module.
- The PSM system allows for the definition of a range of marketing factors, with the help of sequence fields.
- The ability to define Bond and Free pricing factors
The pricing definitions are retrieved by the Price Simulation Module for its calculation routine. The Price Simulation Maintenance program allows for calculated prices to be maintained, approved and deleted. The following features are included in PSI.
- PSM definitions are retrieved based on title hierarchy and effective date.
- The PSM factors are retrieved based on their effective date and TMSDS/PSM-ID.
- The landed cost price is calculated based on the landing charges.
- Price simulation is generated by item or by new item.
- The Database Management module provides the facility to define a minimum margin by title hierarchy. The actual gross profit margin is calculated and displayed during simulation, and a warning message is shown when the actual margin is below the set minimum.
Once simulated prices are approved they cannot be maintained, however, their status can be reversed to Unapproved, after which maintenance is allowed. Approved selling prices can be transferred to the price file.
During simulation, management is able to calculate forward and backwards within PSM. The buying price is retrieved from the Buying Price file, based on its effective date. The effective and expiry date for the buying price can be manipulated; causing the system to re-calculate all affected values. The Buying Price file resides on the Database Management module.
The result values can be manipulated; causing the system to re-calculate all affected values, including the gross profit margin.
A PSM definition can be copied from one effective date to another, and can also be copied from one TMSDS/PSM-ID to another.
PSM records are retained on the system until the retention period (specified in months) is exceeded, after which they are purged.
There are three reports available:
- PSM Definition listing which prints PSM definitions, by item.
- PSM Item Detail Listing which simulates the report by item, in effective and expiry date sequence.
- PSM Approval report which shows:
- Approved selling prices by item
- Items that are below the minimum margin
