JD Edwards Advanced Pricing Tips
JD Edwards offers a variety of features and tools for its ERP users, and one of the most sophisticated and powerful is Advanced Pricing. Why? Because pricing is probably the most complicated aspect of any business. (Just think about how long it takes to plan, set up, and maintain pricing information.) With JD Edwards Advanced Pricing, you’re saving time and energy—all while increasing profit.
With Advanced Pricing, you can:
- Implement pricing strategies that advance your product and market strategies.
- Maintain centralized control over pricing for better consistency and profitability.
- Be sure that pricing configurations meet your organization’s strategy with increased visibility and mass maintenance tools.
Implementing Pricing Strategies
To be successful with Advanced Pricing, you’ll need to make sure you have a well-defined pricing strategy that can be implemented through the application rules. (Of course, if your sales org doesn’t require all the features Advanced Pricing has to offer, you can always use the standard price adjustment module or base pricing in JD Edwards EnterpriseOne Sales Order Management.)
One benefit of a disciplined pricing strategy is that it encourages your customers to purchase in higher volumes. Advanced Pricing makes things even easier for you (and your customers) by giving you the ability to set quantity breaks for prices or discounts based on transaction quantity, weight, or amount. You can also calculate and discount sales volume using order line level pricing, basket pricing, or rebates and volume incentive discounting.
Advanced Pricing also makes it much easier to manage multilayer organizational hierarchies, pricing, discounts, and deals such as rebates through a functionality called a buying structure. These buying structures ensure accurate pricing throughout your customers’ organizations, as well as efficient price setup and maintenance. Even better, after determining a transaction’s eligibility to receive a discount, the system calculates the discount itself.
Pricing Use Case—Supplier Proof of Sales Rebate
For example, let’s say you wanted to set up a supplier proof of sales rebate. These rebates are linked to sales orders, but the recipient of the rebate is not the customer. One use case would be Hair Care Company, which is coming out with a new line of hairspray. Hair Care Company is offering a rebate to its customers when they sell the new product line to a big retail store. When the sales of the hairspray to any qualifying retail store reach 50,000 cases, Hair Care Company will rebate $1.00 off per case, and JD Edwards Advanced Pricing applies that rebate automatically.
Because it offers a wide variety of methods for calculating price adjustments, Advanced Pricing can be used in almost any type of business. Here’s a snapshot of just some of the features you can set up:
- Set a specific markdown or markup amount.
- Establish a cost-plus amount.
- Define a percentage of list or net price.
- Set a price based on achieving a target profit margin.
- Develop a discount formula that pulls from variable data, such as selected sales order line details or a commodity price table.
- Call custom-built pricing logic without modifying a line of base code.
Integrating Advanced Pricing with Your JD Edwards Org
What’s even more beneficial about Advanced Pricing is that it’s designed to integrate easily with many other JD Edwards EnterpriseOne products across your operations. Here are a few of the available integrations:
- JD Edwards EnterpriseOne Financial Management
- JD Edwards EnterpriseOne Order Management
- Fulfillment Management
- Sales Order Management
- Inventory Management
- Service Management
- Procurement and Subcontract Management
- Bulk Stock Inventory
- JD Edwards EnterpriseOne Customer Relationship Management
- JD Edwards EnterpriseOne Supply Management
- JD Edwards EnterpriseOne Supply Chain Execution
Getting Started with Advanced Pricing
Advanced Pricing is provided with JD Edwards, but it can be extremely complicated to set up correctly—even if you know what you’re doing. Our team of senior-level JD Edwards consultants can help you set up and execute Advanced Pricing so that it’s headache-free and effective for your organization. Contact us today to learn more.