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Base Cost Field vs Base Price Field

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5 comments

Date Votes
  • Seth Halvaksz

    Tagging Anthony Costantino to weigh in

  • Anthony Costantino

    Seth Halvaksz Afraid IDK. Pass it over to Engineering?

  • Seth Halvaksz

    Re-stating the question, to make sure i understand what is being asked..

    I understand the question is

    Should the Base Price and Base Cost field both set to 0 when a Pricing Scheme is added to the Price List Item. This is how the help text is interpreted when it says: “Only applies to non-tiered pricing items”.

    What is Observed:

    Only the Base Cost field is set to 0. Base Price retains its original value.

  • Minka Verkaar

    That is correct. My observation is that there is a difference in behavior between Base Price and Base Cost, while the help text suggests that these should behave the same way.

  • Seth Halvaksz

    Minka Verkaar here's the update on this. Please let me know if this answers. It sounds like we need to update the help text for “Base Price". I'll get that updated.

    • When a pricing scheme is added to a Price List Item, the system is designed to set the Base Cost field to 0 while retaining the original value in the Base Price field.
    • The rationale is that the Base Price is used as the reference for calculating tiered or scheme-based pricing. It remains visible and is used for price calculations, even when a scheme is applied. The Base Cost, however, is not relevant for scheme-based pricing and is therefore reset to 0 to avoid confusion or incorrect cost calculations.

    Why Base Price Is Relevant for Tiered/Scheme-Based Pricing:

    • The system uses the Base Price as the anchor value for calculating tiered or scheme-based pricing. When a pricing scheme is applied, the tiered prices are typically defined as a percentage or markup relative to the Base Price. This allows the system to dynamically calculate the unit charge for each tier or scheme level based on the Base Price, ensuring consistent and accurate pricing across different scenarios.
    • For example, tiered pricing templates use the Base Price as the reference, and each tier is a percent discount or surcharge of the Base Price. When an order is placed, the system looks at the template and uses the percentages to calculate the tiered price instead of the fields in the Price List tables.

    Why Base Cost Is Not Used in Tiered/Scheme-Based Pricing:

    • he Base Cost is not used for tiered or scheme-based pricing calculations. Its primary purpose is to represent the cost of supply for the item, which is relevant for cost tracking and markup calculations, but not for determining the selling price in tiered or scheme-based scenarios.
    • When a pricing scheme is applied, the Base Cost is set to 0 to prevent it from being used in price calculations, as only the Base Price is relevant for determining the tiered or scheme-based price. This is a deliberate design choice to avoid confusion and ensure that only the Base Price is used as the reference for pricing calculations.

    Summary:

    • Base Price: Used as the reference for calculating tiered/scheme-based pricing; all tiers/levels are calculated as a percentage or markup of this value.
    • Base Cost: Not used in tiered/scheme-based pricing; set to 0 to prevent its use in price calculations.

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