November 4, 2016

IDEA Tip of the Week: Future Pricing

Manufacturers can use the pricing fields in the Industry Data Warehouse (IDW) to add or modify pricing data and keep their trading partners informed of current pricing or anticipated changes. One such pricing field – “Price Effective Date” – is used to identify whether the provided price is stored as current pricing or future pricing. This field does not refer to the effective date of the manufacturer’s price sheet in the IDW; rather, it refers to the effective date for the price of the item itself. While the “Price Effective Date” field is one of the 43 critical fields, providing future pricing within this field is not mandatory.

Why Load Future Price Effective Date?

As a manufacturer, if your product changes pricing quarterly or monthly due to market variations, you can load that pricing into the IDW with a future price effective date. Your price sheet does not need to change for price increases outside of an increase across the entire account. The future date on which a price will become effective can be loaded in the “Price Effective Date” field, which will then show the cost in the future pricing column until the date of the increase, at which point, it will become current pricing. The new pricing can flow seamlessly into your distributors’ systems within twenty four hours, allowing them to focus on selling products instead of manually manipulating purchase orders and sales documents.

When to Load Information

Manufacturers can also load a full price increase with a new price sheet in advance of the price effective date. In fact, distributors would prefer future pricing to be loaded three months ahead of the effective date to ensure their systems are updated and to be able to take advantage of lower costs to bulk up their stock before the increase. Future pricing can also enable distributors to target their larger customers and suggest that those end users also purchase in bulk, which in turn increases the manufacturers’ sales.

Loading this information as soon as possible will prevent purchase order discrepancies and lost sales -not to mention lessen overhead for both manufacturers and distributors – removing the need to manually manipulate orders while waiting for the distributors’ systems to try to catch up to the price increase.

Data Validation Rules

An item may have a different price effective date than the price sheet on which it appears, but there are certain data validation rules that govern the relationship between these two effective dates. For example, an item’s price effective date cannot be earlier than the price sheet effective date. Also, the item effective date, not the price sheet effective date, determines if an item’s price is to be stored as current pricing or future pricing. Manufacturers should keep these notes in mind when considering how distributors are going to view and extract their pricing data from the IDW.

For more information on available pricing fields, check out the “How to Load Pricing Data Using the FB5 Flat File” Quick Reference Guide within the Documents section of the IDW, or contact your Data Management Specialist.

 

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