Regular Pricing Matrix

Pricing matrix schedules are set up and used to calculate the billing amount for inventory items, payables, equipment, material, subcontractor, and other costs for a service call. By selecting a price matrix in the Location window, you establish the markup and markdown billing amounts for all non-labor costs for that specific location. As costs are accumulated through Payables, Inventory, and through manual transactions (using the "+" button in the Service Invoice window), the billing amount is calculated using the price matrix specified for the customer's location.

The only time you use a markdown price matrix is when billing for inventory under the percentage-of-list inventory method. That is, you want to mark down the already increased Microsoft Dynamics GP list price. You most likely won't need to mark up the list price since the list price already reflects a markup. However, you can manually override the invoice amount if you want to bill more than the list price.

If you chose the markup-on-cost inventory method during setup, then you are only able to mark up the standard or current cost of the inventory item. The list price won't be used at all. See the following table.

All billing amounts automatically calculated by Service Management can be overridden at the time of invoicing.

Creating a Price Matrix Markup

1. Select Microsoft Dynamics GP > Tools > Service Management > Invoice Setup > Pricing Matrix.
2. If you selected the markup-on-cost inventory method in the Invoice Options window, the Payables & Manual Transactions Pricing Matrix window opens.
3. If you selected the percentage-of-list inventory method, the Pricing Matrix window opens with a drop-down list. (Percentage-of-list inventory method allows you to mark down the list price of inventory items in addition to marking up the cost of payables and manual transactions.) Select Payables & Manual Markup as the transaction source and select OK.
4. Complete the following fields, as necessary.
   • Pricing Matrix Name
     You can select an existing pricing matrix or create a new pricing matrix name in this field.
   • Pricing Code
     Used to differentiate markup percentages and cost ranges. A different code can be assigned to each markup percentage grouped under the same price matrix name. For example, a pricing matrix named Preferred could include pricing code A, having a 200% markup for items with a cost in the $0.01 to $2,000.00 range. Pricing code B could have a 150% markup for items with a cost in the $2,000.01 to $4,000.00 range, and so on. If you enter information for a pricing code that already appears in the scrolling window, data initially associated with that code is replaced with new data when the pricing code information is saved.
   • Pricing Markup Percent
     This is the amount that the payable, manually added cost or inventory item is increased by to calculate the billing amount.
   • Pricing Description
     Enter a pricing description.
   • Starting/Ending Cost
     The Starting/Ending Cost field is used to establish the cost range for the pricing code.
   • Select Save to save the code and add its information to the scrolling window. To delete or edit a pricing code, double-click it in the scrolling window. The text fields in the data entry area of the window fill in with the pricing matrix information. Select Delete to delete the selected pricing code, clear the data entry fields, and remove the record from the scrolling window.

Creating an Inventory Price Matrix Markdown

If you selected the percentage-of-list inventory pricing method in the Invoice Options window, then you can mark down the cost of an inventory item from the list price established in the Inventory module. (Choosing the markup-on-cost invoice option only allows marking up inventory items.)

Inventory pricing matrix markdowns can be established and used to calculate the billing amount for inventory items used for a service call. By selecting a price matrix in the Location window, you establish the billing rate for non-labor costs for that location. In the Service Invoicing module, the price matrix markdown schedules apply only to inventory transactions and appear in the materials cost category. As costs are accumulated through Inventory, the billing amount is calculated using the price matrix specified for the customer's location.

The lookup items in the Pricing Matrix Name field are the same for both payables and manual markup and inventory markdown transaction sources. The pricing codes and other information, of course, are not the same. Because you assign only one price matrix to a location, the price matrix name must be the same if you want to markup payables and manual transactions and markdown inventory items.

1. Select Microsoft Dynamics GP > Tools > Service Management > Invoice Setup > Pricing Matrix.
2. Select Inventory Markdown from the Transaction Source drop-down list and select OK.
3. Complete the following fields, as necessary.
   • Pricing Matrix Name
     You can select an existing pricing matrix or create a new pricing matrix name in this field.
   • Pricing Code
     Pricing codes are used to differentiate the markdown percentages and cost ranges. A different code can be assigned to each markdown percentage grouped under the same price matrix name. For example, a pricing matrix named Preferred could include a pricing code A having a 10% markdown for items with a cost in the $0.01 to $200.00 range. Pricing code B could have a 20% markdown for items with a cost in the $200.01 to $400.00 range, and so forth. That is, a $100 item would be billed at $90. If you enter information for a pricing code that already appears in the scrolling window, data initially associated with that code is replaced with new data when the pricing code information is saved.
   • Pricing Markdown Percent
     This is the amount the inventory item's list price is marked down to calculate the billing amount.
   • Pricing Description
     Enter a pricing description.
   • Starting/Ending Cost
     The Starting/Ending Cost field is used to establish the cost range for the pricing code.
4. Select Save to save the code and add its information to the scrolling window.

To delete or edit a pricing code, double-click it in the scrolling window. The text fields in the data entry area of the Inventory Pricing Markdown Matrix window are filled with the pricing matrix information. Select Delete to delete the selected pricing code, clear the data entry fields, and remove the record from the scrolling window.