Version 6.0 A - Epicor · Stock vs. Non-Stock Product Pricing 5-1 ... 6-1 Chapter Topics ......

Pricing Fundamentals Version 6.0 A

The documentation in this publication is provided pursuant to a Sales and Licensing Contract for the Prophet 21 System entered into by and between Prophet 21 and the Purchaser to whom this documentation is provided (“License Agreement”). In addition, the licensed software to which this documentation refers may be supported in accordance with a customer support agreement by and between the same parties (“Support Agreement”). All warranties, conditions of use, transfer restrictions, and other provisions in the License Agreement or Support Agreement which are applicable to Licensed Software, are applicable to this publication. In addition, this publication may include inadvertent technical inaccuracies or typographical errors for which Prophet 21 is not responsible. Changes may be periodically made to this publication; these changes will be incorporated in new editions of the publication. Any questions about the material contained in the publication should be addressed to the Prophet 21 Customer Support Department at http://customer.p21.com.

Nothing in this statement amends or extends the terms of your agreement with Prophet 21 including any warranties that may be included in our products. Warranties for such agreements are set forth in your agreement with Prophet 21.

Improvements and/or changes to the Licensed Software described in this publication may be made by Prophet 21 at any time without notice.

8/6/04 Prophet 21 Array Version 6.0 A

Prophet 21 is a registered trademark of Prophet 21, Inc. All other trademarks and registered trademarks are the property of their respective companies.

Prophet 21 Array User's Guide Contents • i

Contents

Introduction 1-1 Welcome..................................................................................................................................................... 1-1

The Prophet 21 Array Help Manual System 2-1 General Information ................................................................................................................................. 2-1 How to Use The Array Manuals: ............................................................................................................. 2-2 Manual Format.......................................................................................................................................... 2-3 Chapter Format......................................................................................................................................... 2-4

Manual Overview 3-1 About Pricing............................................................................................................................................. 3-1 Pricing Objectives: .................................................................................................................................... 3-1

Automatic Pricing 4-1 Overview .................................................................................................................................................... 4-1

Prerequisites.................................................................................................................................. 4-1 Chapter Topics .............................................................................................................................. 4-1

Goals of Automatic Pricing ...................................................................................................................... 4-2 Increase Net Profit by Acting On Four Variables .................................................................................. 4-3 Effects On Net Profit Before Tax (When a 1% Change is made) ......................................................... 4-4

Stock vs. Non-Stock Product Pricing 5-1 Overview .................................................................................................................................................... 5-1


Stock vs. Non-Stock Product Pricing....................................................................................................... 5-2

Master Files 6-1 Overview .................................................................................................................................................... 6-1


Trade Service Database ............................................................................................................................ 6-2 Advanced TSDB Usage:............................................................................................................................ 6-4 Inventory Master Record ......................................................................................................................... 6-4

Header Line:.................................................................................................................................. 6-5 Line 01 .......................................................................................................................................... 6-5 Line 02 .......................................................................................................................................... 6-7 Line 03 .......................................................................................................................................... 6-8 Line 04 .......................................................................................................................................... 6-8 Line 05 .......................................................................................................................................... 6-9

Prophet 21 Array User's Guide Contents • ii

Line 06 .........................................................................................................................................6-11 Line 07 .........................................................................................................................................6-12

Warehouse Item Record 7-1 Overview .................................................................................................................................................... 7-1


Warehouse Item Record ........................................................................................................................... 7-2 Header Line................................................................................................................................... 7-2 Line 01 .......................................................................................................................................... 7-2 Line 02 .......................................................................................................................................... 7-3 Line 03 .......................................................................................................................................... 7-4 Line 04 .......................................................................................................................................... 7-5 Line 05 .......................................................................................................................................... 7-5 Line 06 .......................................................................................................................................... 7-6 Line 07 .......................................................................................................................................... 7-7 Line 08 .......................................................................................................................................... 7-7

Pricing Item Record 8-1 Overview .................................................................................................................................................... 8-1


Pricing Item Record .................................................................................................................................. 8-2 Pricing Item File Field Descriptions ............................................................................................. 8-2

Customer Master Record 9-1 Overview .................................................................................................................................................... 9-1


Customer Master Record ......................................................................................................................... 9-2 Heading Line................................................................................................................................. 9-2 Line 01 .......................................................................................................................................... 9-2 Line 02 .......................................................................................................................................... 9-3 Line 03 .......................................................................................................................................... 9-3 Line 04 .......................................................................................................................................... 9-3 Line 05 .......................................................................................................................................... 9-3 Line 06 .......................................................................................................................................... 9-3 Line 07 .......................................................................................................................................... 9-4 Line 08 .......................................................................................................................................... 9-6 Line 09 .......................................................................................................................................... 9-7 Line 10 .......................................................................................................................................... 9-8 Line 11 .......................................................................................................................................... 9-9

Product Pricing 10-1 Overview ...................................................................................................................................................10-1

Prerequisites.................................................................................................................................10-1 Chapter Topics .............................................................................................................................10-1

Factors to be Considered:........................................................................................................................10-2 Pricing and Costing Summary Diagram ................................................................................................10-3 Trade Service Database Usage ................................................................................................................10-5 Independent Item Files Diagram ............................................................................................................10-7 Inventory Master Record ........................................................................................................................10-9 Inventory Master Record Diagram ......................................................................................................10-10

Prophet 21 Array User's Guide Contents • iii

Base & Cost Relationships 11-1 Overview ...................................................................................................................................................11-1


Base/Cost Relationship Diagram.............................................................................................................11-2 Base/Cost Relationships ...........................................................................................................................11-3

Trade Service PFMS Updating 12-1 Overview ...................................................................................................................................................12-1


Using the Trade Service Corporation PFMS Update Service ..............................................................12-2 Inventory Master Record Highlighting PFMS Fields ..................................................................12-2

The PFMS Update Options: ....................................................................................................................12-3 Examples of TS-OPT Usages: .....................................................................................................12-5

Establishing Market Classifications .......................................................................................................12-5 Pricing Item: .............................................................................................................................................12-6

Relationship Between the Pricing Item and Inventory Master Records 13-1 Overview ...................................................................................................................................................13-1


Relationship Between the Pricing Item and Inventory Master Records .............................................13-2

Customer Pricing 14-1 Overview ...................................................................................................................................................14-1


Customer Pricing Controls......................................................................................................................14-2 Primary Pricing Controls .............................................................................................................14-2

Controls.....................................................................................................................................................14-3 Default Pricing: ............................................................................................................................14-3

Customer Pricing Exceptions using the D-GRP ....................................................................................14-3 The Customer Pricing at a Glance: ........................................................................................................14-4 Discount Group Number Override Values ............................................................................................14-5 Discount Group Customer Number: ......................................................................................................14-5

Warehouse Pricing 15-1 Overview ...................................................................................................................................................15-1


Warehouse Pricing Controls ...................................................................................................................15-2

Pricing Priorities 16-1 Overview ...................................................................................................................................................16-1


Priority Order...........................................................................................................................................16-2

Trade Service Model Items 17-1 Overview ...................................................................................................................................................17-1

Prophet 21 Array User's Guide Contents • iv


TS-Model...................................................................................................................................................17-2 Fields used in the TS-Model Item ...........................................................................................................17-2 TS-Model Item Coding ............................................................................................................................17-3

Model Coding ..............................................................................................................................17-3

Work Sheet Procedures 18-1 Overview ...................................................................................................................................................18-1


Worksheet Instructions............................................................................................................................18-2 Worksheet Field Descriptions .................................................................................................................18-5

Frequently Asked Questions 19-1 Overview ...................................................................................................................................................19-1


Frequently Asked Questions....................................................................................................................19-2

Glossary of Terms G-1

Index I-1

Prophet 21 Array User's Guide Contents • 1

Introduction

Welcome Welcome to the Prophet 21 Array Help Manual System. We have created these manuals with you the user in mind. We hope that they are useful easy to understand and efficient. We also have the entire Help Manual System on CD-ROM. In a format much like the Help Systems used throughout the software world. Our Help system for Windows and our On-line Help system are both designed to be user friendly and efficient. We encourage its use as your first resource should you find yourself in a situation that warrants an answer to a question.

All of us at Prophet 21 Array would like to thank you for purchasing the Prophet 21 Array System. We hope that these manuals help you understand, utilize, and problem solve your system for years to come.

Prophet 21 Array User's Guide The Prophet 21 Array Help Manual System • 2-1

The Prophet 21 Array Help Manual System

General Information We at Prophet 21 Array hope that you use these manuals and they meet all your expectations and all your needs. Each manual was created in a standard format and organized so that once you use one manual you will be able to easily utilize every other manual in our system.

Menus A menu is simply a list of options you can choose from. Rather than entering a long command, you need only to enter the corresponding number that lies to the left of your choice. After choosing a selection from the MASTER MENU you are presented with yet another menu, a sub-menu.

Common Function Keys FK2 - Exit / Backup / Cancel / Quit / End-of-Job

FK2 or F2 will back-up a step in most cases. In some cases, it is used to cancel a process, such as in Sales Order Entry.

FK3 - Mode switch key. FK3 or F3 will usually allow you to switch between different modes in the system. In Sales Order Entry, the F3 key is used to switch from NEW ORDER mode to MAINTENANCE mode.

FK5 - Search key. Anytime the system allows a user to search for items, vendors, customers, etc.; the F5 key will initiate that search.


How to Use The Array Manuals:

1. Once you have read the Introduction and the How to use The Array Help System sections in your first manual it may not be necessary to read these two sections again. They are the same throughout the entire Array Help System.

2. Begin by reviewing the Content page. This will give you a general idea of what is included in the manual you are reading.

3. Begin each manual by thoroughly reviewing the manual Objectives. The Objectives give you a basic understanding of what major topics you will need to understand after reading and using each manual.

4. At the beginning of each chapter there is a prerequisites heading. This lists any courses, information and/or procedures that need to be accomplished before the information contained within the chapter can be best utilized by you the user.

5. Once you have reviewed the general manual objectives, begin each chapter by reviewing its specific objectives. (See Chapter Layout for more information) During your initial introduction to each manual review the manual, sequentially chapter by chapter.

6. After your initial review of any manual you can find out information and find solutions to questions in the manual through any of the following avenues;

• Content page

• Glossary

• Appendix

• Index

• Browsing

7. Once you have reviewed the Chapter Objectives, Go over the field descriptions and function keys of any program screens that are being discussed.

8. In each chapter subsection, read any descriptions thoroughly and familiarize yourself with the Program screens that are being discussed.

9. In chapters that have procedures, read any procedure first before attempting the instructions. After reading the procedures carefully, implement each step until the its conclusion.

NOTE: In the Installation phase, it is imperative that the chapters are followed sequentially.

10. During the course of using the Array Help System Manuals if there is any term, field code and/or function key that you don't understand please refer to the Appendix, Glossary and/or Index.


Manual Format Each manual contains a Contents page, an Introduction, an Overview, specific Manual Objectives, Content Chapters, an Appendix, a Glossary, and an Index.

Each area is described below in more detail.

• Contents – is a chapter by chapter and heading by heading outline of each manual.

• Introduction – is general information about the entire manual system and describes how the manuals are organized and formatted

• Overview – gives you, the user information about the Array Help Manual System and some general information on the best way to utilize the information contained in our system.

• Objectives – are manual specific and will give you, the user the general knowledge base that you will obtain by reading and following all the procedures that are contained in each manual.

• Content Chapters – contain the information, descriptions, procedures etc. that you will need to implement, operate and problem solve your Array Software System.(See Chapter Layout for more information)

• Appendix – contains any tables and/or lists that are common throughout any particular manual.

• Glossary – contains words, technical terminology, symbols, and field abbreviations that may need to be defined so that you can get the most accurate information from specific areas throughout a specific manual.

• Index – contains many of the terms that are in the glossary but instead of those terms being defined, there are referenced page numbers, in order for you to quickly access topics, procedures and/or information about a topic during and after your first use of a particular manual.


Chapter Format We attempted to organize the chapters so that the content could be easily understood and the procedures could be simple to follow. The chapters are formatted as follows:

• Chapter Title – the general name of the subject matter

• Prerequisites – includes any readings, training and/or training classes, file set-ups, hardware installations, etc that you need to accomplish before the chapter should be started. The prerequisites are designed so that the content can be best understood and the procedures can be accomplished efficiently.

• Chapter Topics - are chapter specific and will give you, the user the understanding of what will be covered in the chapter. It will also give you an idea of what sequence the chapter is formatted.

• Chapter Content – within the chapter there will be information pertaining to the subject matter, step by step procedures, diagrams, tables and/or screen shots which will help you better understand and successfully conclude your tasks

• Review – contains some of the important outcomes, which should be received when the chapter is completed.

Prophet 21 Array User's Guide Manual Overview • 3-1

Manual Overview

About Pricing The strength of the Array software begins with the most flexible price and product database structure available to the Distributor. Product and price information automatically interacts with the key applications creating pricing consistency throughout your company. Unique pricing methods can be customer specific, item specific, product line specific, or any other number of groupings available in the system. Pricing data can be updated electronically each week with the use of Trade Service Corporation's PFMS (Price File Maintenance Service), thereby ensuring accurate and current information at all times.

With Array, the product and customer pricing information can be tailored to meet varying market conditions.

Pricing Objectives: After using this manual, you will gain an understanding of the structures available to establish accurate Product and Customer Automatic Pricing and Costing controls.

• Contents of the basic databases used.

• Establishing weekly PFMS update parameters.

• Creating varying product resale controls for multiple markets.

• Establishing accurate costing for gross margin calculations.

• Establishing simple resale controls for customers.

• Establishing customer pricing exceptions.

• Establishing warehouse pricing exceptions.

• The priority that the system uses in calculating the resale price.

• Using TS-Model Items to control items being passed back from the Trade Service Database.

Prophet 21 Array User's Guide Automatic Pricing • 4-1

Automatic Pricing

Overview The primary goal for establishing a computerized pricing system is to allow the sales personnel to fill customer orders quickly and efficiently. The basic objectives of Automatic Pricing can facilitate this process.

None

Goals of Automatic Pricing

Increase Net Profit by Acting On Four Variables

Effects On Net Profit Before Tax

Prerequisites

Chapter Topics


Goals of Automatic Pricing • Pricing Consistency.

• Improved Profitability.

• Improved Employee Productivity.

• Improved Customer Service.

• Improved Management Reporting and Analysis.

• Ability to interface with Pricing Services

Pricing Consistency can best be defined as each customer's order being processed with current and up-to-date information and the dependency of the sales personnel from having to "remember" special pricing considerations.

Improved Profitability can be achieved by managing the relationship between the resale price and the cost of goods sold in a consistent manner. Frequent overrides to the resale price result in inconsistent profit margins.

Improved Employee Productivity can be achieved by establishing the "rules" for how a customer is priced. By eliminating manual price schedules, each employee should be allowed to feel confident in quoting customer prices consistently.

Improved Customer Service can be achieved through consistent resale price calculations. By producing consistent customer prices, the frequency of customer credits being issued for incorrect pricing is reduced.

Improved Management Reporting and Analysis is achieved through the Array software features. With accurate resale and cost controls established, the presentation of accurate reports enhances management's ability to make informed decisions.

The Ability to Interface with Pricing Services allows the distributor to keep product information and pricing up-to-date, and reduces the manual efforts to maintain pricing as vendors make changes.


Increase Net Profit by Acting On Four Variables

Increasing Gross Margin.

By effectively managing the relationship between the resale and cost of goods sold, the distributor can control the profitability based on customer sales.

Increasing Sales.

Active marketing to attract new customers, providing superior customer service, and active sales management to existing customers to increase the unit sales of the business.

Decreasing the Cost of Goods Sold.

Implementation of effective Inventory Control and Management procedures to reduce the cost of possession and acquisition costs.

Decreasing Operating Expenses.

Reduction of operation expenses whether they are comprised of equipment, methods, manpower, trade association memberships, etc.


Effects On Net Profit Before Tax (When a 1% Change is made)

• A 1% Decrease in Operating Expense

will result in a 9% Increase in Net Profit before tax.

• A 1% Decrease in Cost of Goods Sold will result in 35% Increase in Net Profit before tax.

• A 1% Increase in Sales will result in a 10% Increase in Net Profit before tax.

• A 1% Increase in Gross Margin will result in a 45% Increase in Net Profit before tax


TURNS VS CUSTOMER SIZE

Small Customers Large Customers

• List or small discount • Higher than average

gross margins.

• Small to moderate discounts from list.

• Good to average gross margins

Low Turns

• Precise Pricing. • Accept marketplace

prices and smaller gross margins.

• Precise Pricing. • Accept marketplace

prices and smaller gross margins.

Fast Turns

Prophet 21 Array User's Guide Stock vs. Non-Stock Product Pricing • 5-1

Stock vs. Non-Stock Product Pricing

Overview The file structures within the Array software allow for the establishment of two independent item files. For those distributors that have elected to utilize the Trade Service Corporation's Price File Maintenance Service (PFMS), a database is loaded onto the computer that reflects general information about products and prices. This file is also known as the Trade Service Database or TSDB.

None

Stock vs. Non-Stock Product Pricing

Prerequisites

Chapter Topics

Prophet 21 Array User's Guide Stock vs. Non-Stock Product Pricing • 5-2

Stock vs. Non-Stock Product Pricing The Trade Service Database contains over 700,000 unique items when the distributor elects to receive the full file supported by TSC. The distributor then has electronic access to the file and can use this file to retrieve items during file development processing, Sales Order Entry and Purchasing.

For controlling items, which the distributor does inventory, and for managing specific information relating to inventory, the software has an Inventory Master File. This file contains specific pricing information that is maintained to address unique marketing situations.

Since the Distributor has expanded access to hundreds of thousands of items, the distributors is faced with the challenge to accurately price what is in inventory, and, establish price controls for items that are not. Although a distributor is an authorized distributor for a particular vendor, not all line items are stocked or special ordered. In cases where special orders are made, the distributor needs to consider the added costs associated with the acquisition of the items, and make allowances during the resale calculations. In addition, distributors often find themselves in a position to provide added customer service by purchasing items locally from other supply houses.

Considering the multitude of items that are available to the distributor, care should be taken to clearly identify those items, which are stock vs. non-stock, and establish pricing controls accordingly.

Prophet 21 Array User's Guide Master Files • 6-1

Master Files

Overview The Array system relies on the presence of file information and programs in order to effect the automatic pricing features. This chapter will highlight the various file types and associated programs, which, when combined allow the distributor to remain competitive and improve their gross margins.

None

Trade Service Database (TSDB)

Advanced TSDB Usage

Inventory Master Record

• Files Associated with Automatic Pricing

• Trade Service Database

• Inventory Master File

• Warehouse Item File

• Pricing Item File

• Customer Master File

Prerequisites

Chapter Topics


Trade Service Database The Trade Service Database (TSDB) is a file containing general product and price information for over 700,000 unique items, and is provided by Trade Service Corporation. Distributor's utilizing the TSDB must first enter into a Price File Maintenance Service (PFMS) subscription and determine if the entire database or selected vendors are to be supported.

After the initial building of the TSDB, Trade Service Corporations PFMS update service will electronically provide Price and Product changes as they are released by the manufacturers

The display of an item contained in the TSDB can be achieved during direct inquiry, or through a search initiated through the Sales Order Entry or Purchasing programs.

Figure 1 Trade Service Database Inquiry Display - MBS278

The information contained for each item in the Trade Service Database is as follows for an electrical distributor version of the file:

• Trade Service Number - Common called the UPC code for an item, DCI#, NAED#. This record is 11-digits in length.

• Item Description - The description of the item as it appears in the Trade Service catalog. The description contains the manufacturers part number.

• Catalog Number - Prophet 21 Array has developed programming that assigns a common sense code to each item in the Trade Service Database. This code is made up of a manufacturer prefix and the manufacturers part number.

• Unit of Measure - The standard pricing unit of measure for the item. Values may consist of E, C or M.

Trade Service Database Inquiry Display


• Commodity Code - Trade Service has developed a coding system that groups types of items under a numerical value. An example would be a code of 6620 for all hand tools regardless of manufacturer.

• Velocity Code - Many manufacturers have adopted matrix pricing to the distributor. Often the matrix is identified with a discount schedule code, which if supplied to Trade Service is added to the item as the Velocity Code.

• Standard Package Quantity - The standard package quantity for the item.

• Weight - The weight per unit of measure for the item.

• Cash Discount % - The cash discount percentage published by the manufacturer when prompt payment is made to the vendor.

• Change Symbol - An indicator that identifies if an items price has increased, been lowered, if a newly created item, or if the item is no longer supported.

• List - The published manufacturer’s list price for the item.

• Column 1 - The published column 1 trade price for the item.

• Column 2 - The published column 2 trade price for the item.

• Column 3 - The published column 3 trade price for the item. Commonly referred to as the “end column”.

• Trade Service Cost - The published cost of the item to the distributor. Some vendors are protected and the cost will be provided to authorized distributors only.

The Trade Service Database for Plumbing and HVAC distributors, the velocity code is not provided, and the commodity code assignments are alpha/numeric.

For distributors who are beginning the implementation process of the Array software, the TSDB can play an important role in the development of the Distributor's personal Inventory Master File. By applying industry standard information, such as the item description, the UPC code, and published trade prices, the file development process is significantly reduced.

For those distributor's who have experience with the Array pricing system, that need to refine their pricing policies for stock and non-stock items, the Velocity Code can be very valuable. The Velocity Code usage would allow the distributor to tailor vendor specific discount schedules for purchasing directly to the supplied Velocity code, thereby keeping in parallel with vendor discounts as they change.


Advanced TSDB Usage: Products, which are normally not stocked, purchased locally on a recurring basis, or special ordered, need to be addressed for improving the gross margin for non-stock sales. The cost of acquisition, including the personnel costs associated with ordering and material handling, is typically higher than the cost for recurring stock items.

For line items, which are typically not stocked or special, ordered, the use of the Trade Service Model Items and the "passback" capabilities during Sales Order Entry needs to be addressed. Whenever the distributor is supplied with the Velocity Code for line items, the discounts to cost and the resale should reflect a 4% to 7% minimum increase in the resale calculation vs. like items that are stocked.

Other Considerations:

• Separate Pricing Items should be incorporated in the TS-Model Items that will point to non-stock pricing calculations

• Discount Group Number assignments should be unique to disallow possible "deals" for specially ordered items or items that may receive higher incoming order charges.

• Product Line assignments should be made to break out non-stock TSDB sales so that sales are not included in stock reporting.

• LIST or Line Buy codes should be added to designate and allow for quick inspection of items transferred from the TSDB to the Distributor's inventory file.

• The HAZ switch should be set to a value of "P" for all TSDB models.

• Avoid using TS-Update Options of 0, 6, or 9 that require net cost management. For lines that the cost is not maintained due to the distributor cost not being present, use TS-OPT 3 with a discount OFF to approximate the cost calculation.

• For lines where the supplied Velocity Code does not match the vendors discount schedule, it may be advantageous to set the SNGF switch to a value of "1" to allow for full line support in the distributor's inventory master file. Maintenance would be required to segregate line items via LIST assignments, etc.

Inventory Master Record The Item File Maintenance program MBS101 is used to add, modify, inquiry and delete records to the Distributor's personal item file. Information contained in each item record can be tailored to meet the Distributor’s resale and costing calculations, as well as reporting and file management criteria.

Not all of the data elements contained in the Inventory Master record affect pricing and or costing controls. General information about the product can be applied during report generation, etc.


Figure 2 Inventory Master Record - MBS101

The data elements contained in the Inventory Master Record and the explanation of each field is as follows:

ITEM #

Normal is 3 character Manufacturer alphabetic prefix code followed by the manufacturer's catalog number without any special characters such as slashes, dashes, periods, spaces, etc.. The item code is 18-characters alpha/numeric.

DEFAULT-ITEM#

The DEFAULT-ITEM# is only used when the operator is in the ADD MODE ONLY. It allows the operator to "point" to an item that resides in the inventory file and to copy all information from the item into the item being created.

DESCRIPTION

The description of the item as it is to appear on invoices, pick tickets, purchase orders, etc. The description can be up to 30 characters containing letters and numbers. It is recommended that the description start with the actual manufacture's catalog number including spaces, slashes, dashes, etc., followed by additional descriptive information.

TY

Designation as to the type of item. Values are:

S = Stock

N = Model for Non-Stock & TS Models

T = Temporary

P = Pass-back from the TS-Database

K = Kit Item

A = Alternate Item.


Header Line:

Line 01


ALPHA

The alpha field is used as one method to search for an item during Sales Order Entry, and other applications.

TS #

Trade Service Number which is used to match on during a Trade Service PFMS update. It is an 11-digit numerical field that is formed by combining the 6-digit Trade Service Vendor number and the 5-digit Trade Service Catalog number. It is also known as the NAED number and UPC code number.

ZONE

Geographic Zone designation for Price Updates.

TSO

Trade Service Price Update Option. This field entry will determine if this item is to updated or not during a Trade Service PFMS price update. Values are:

0 = No price or product updating will occur for this item. The only "change" that will occur is if a new TS# is assigned then the old TS# is replaced with the new number.

1 = TS Col 1 Price is moved to Base, and will compute the CALC-COST by using the DISC% value as a percentage off the BASE. The TS-COST field is updated but cannot be used to determine the cost of the item.

2 = TS Col 2 Price is moved to Base, and will compute the CALC-COST by using the DISC% value as a percentage off the BASE. The TS-COST field is updated but cannot be used to determine the cost of the item.

3 = TS Col 3 Price is moved to Base, and will compute the CALC-COST by using the DISC% value as a percentage off BASE. The TS-COST field is updated but cannot be used to determine the cost of the item.

4 = TS List Price is moved to Base, and will compute the CALC-COST by using the DISC% value as a percentage off the BASE. The TS-COST is updated but cannot be used to determine the cost of the item.

5 = TS Cost is moved to Base, and will compute the CALC-COST by using the DISC% as a percentage off the BASE. The TS-COST is updated but cannot be used to determine the cost of the item.

6 = TS Col 3 Price is moved to BASE, and the CALC-COST will be manually entered. The "fixed" cost, which is entered, will calculate the DISC%, which will be re-calculated each time the TS Col 3 price changes. The TS-COST is updated but cannot be used to determine the cost of the item.

7 = TS Col 3 is moved to Base and the TS-Cost is moved to the TS-COST field. The CALC-COST can be the same as the TS-COST or computed by using the DISC-%-2 as either a percentage off or a multiplier on the TS-COST.

8 = TS LIST is move to BASE and the TS-COST is move to the TS-COST field. The CALC-COST can be the same as the TS-COST or computed by using the DISC-%-2 as either a percentage off or a multiplier on the TS-COST.


9 = TS LIST is move to BASE, and the CALC-COST will be manually entered. The "fixed" cost that is entered, will calculate the DISC%, which will be re-calculated each time the TS-LIST price changes.

TS-COST

Trade Service published cost, as found in the Trade Service PFMS file and the Price Books. This is typically the "Gold Sheet" pricing that the vendor supplies.

SUBSTITUTE #

The item code of an item, which resides in the distributor's inventory that is an equivalent substitute. As an item code the SUBSTITUTE# can be up to 18-characters.

U/M

The items Unit of Measure for stocking or selling. The system recognizes values of C if priced per hundred and M if priced per thousand. Any other value will treat the U/M as per each. The U/M will print on Pick Tickets, Purchase Orders, Invoices, Price Books and various reports. The U/M is a 3-character field.

TAX

The TAX field identifies whether the item is taxable or non-taxable on an invoice. Values are T for taxable and E for exempt from tax.

SEC-TAX

The SEC-TAX field is used when a second level of tax is required. This is primarily reserved for distributors in Canada where taxes are levied at the Government and Provincial level. A value of T is taxable and a value of E is exempt from tax.

BASE The BASE is the items base price from which the resale calculation is made from. BASE can be derived from the TS-OPT or manually entered. The resale price is determined by applying a discount percentage off the BASE and/or a multiplier against the BASE. The BASE is also used to determine the CALC-COST of the item.

DISC% The DISC% is represented as either a discount percentage off the BASE or a multiplier on the BASE to calculate the items CALC-COST. The DISC% is represented as 1-position to the left of the decimal and 6-positions to the right of the decimal. (X.XXXXXX). As a percentage off, the value is entered as the overall percentage off the BASE. If the cost is equal to 45% off the BASE then the entry would be .45 and NOT .55

DISC%-2

The DISC%-2 is used to calculate the CALC-COST field if the items cost is based on a percentage off or a multiplier on the TS-COST. The DISC%-2 will only be applied if the item has a TS-OPT equal to a 7 or 8.

CALC-COST

The CALC-COST is typically used to compute the gross margin or cost of goods sold on an invoice to the customer, the purchase price on a purchase order, and to value inventory. The CALC-COST may or may not be the actual

Line 02


cost of the item. As a calculated field it is not stored by the system and is always computed by applying the DISC% against the BASE.

D-GRP The Discount Group Number is a 4-digit numerical value assigned to a group of common items for establishing customer pricing exceptions or "deals".

PROD

The Product Line Number is used to group like items for management level sales reporting. It is a 4-digit numerical field.

PRICING-ITEM The PRICING-ITEM determines which pricing matrix the item is "pointed" to for calculating the resale price on orders and invoices.

P-REC

The P-REC is used in conjunction with the PRICING-ITEM to determine which matrix the item is "pointed" to for calculating the resale price on orders and invoices. Typically, the value placed in this field is a value of 00. Values other than 00 should be reserved for warehouse resale pricing exceptions. Valid entries can range from 00 to 99.

LIST-1

The primary LIST/LINE BUY, which this item is grouped in for reporting, purchasing and various maintenance, functions. In an electronic filing system, the LIST/LINE BUY can be thought of as the label of a file cabinet in which all items for a particular vendor are stored. The LIST/LINE BUY entry can be up to 4-characters alpha/numeric and are typically an abbreviation of the vendor's name or prefix code.

LIST-2-5

The secondary LIST/LINEBUY which this item is grouped in for reporting, purchasing, and various maintenance functions. The secondary LIST/LINE BUY codes can be used to further define an electronic filing system into "drawers and folders"

ASSORT

The ASSORT code allows groups of items which have common price break quantities to have the order quantities combined during order entry to determine the appropriate price break level. The ASSORT code can be a 4-character alpha/numeric field entry.

LY-COST

Last year-end cost optionally stored by MBS170 (XXXXX.XXX).

LIFO-COST

LIFO Cost optionally stored by MBS170 (XXXXX.XXX).

LIFO-POOL

A 2-digit LIFO Pool Number groups items for inventory reporting.

Y/E-COST

Year end cost optionally stored by MBS170 (XXXXX.XXX).

Line 03

Line 04


MISC-COST

Special cost optionally stored by MBS170 (XXXXX.XXX).

FLG The Purchase Cost Flag is used to determine how the optional PUR-PRICE is to be calculated. The PUR-PRICE if used will determine the price to be used for Purchase Order production and does not affect the CALC-COST. Valid entries are:

Y = The PUR-PRICE is manually entered and "locked" as a fixed purchase price. Price updating will not affect the "locked in" price. The PUR-DIS% will automatically be re-calculated and stored during a price change.

N = The PUR-PRICE will be calculated automatically by using the PUR-DIS% as a percentage off the CALC-COST.

PUR-PRICE

The PUR-PRICE is an optional entry and is determined by the setting in the FLG field. The fixed or computed PUR-PRICE will be the price which will appear on the purchase order.

PUR-DIS%

The PUR-DIS% is an optional percentage, which can be manually entered or calculated, based on the setting contained in the FLG field. The values used can be percentage or multiplier on the CALC-COST to compute the purchase order price. (X.XXXXXX)

SGNF

Significant Item switch which is optional. Values may be:

S = TSP designates as requiring safety data sheet

P = Magnet wire item type - Purchased

C = Magnet wire item type - Consigned.

R = Cut Wire and Reel item type

PUM Purchase Unit of Measure is used when the unit of measure to appear on a purchase order is different from the stocking/selling unit of measure.

SWH

Supplying Warehouse designation, which identifies that, this item supplies other branches from a central warehouse location. If left blank then this item is supplied form the vendor.

PKG-QTY Standard package quantity of the item, which can be used for quantity break pricing and to round to a nearest package quantity during the calculation of the Economic Order Quantity.

SELL*CODE

Sell Code indicator which can control the selling in even package quantities or the transfer of items to branch locations. Values are:

0 = No package break controls.

Line 05


1 = The order quantity must be an even multiple of the package quantity.

2 = Transfers to a branch location must be in even multiples of the package quantity.

CODE*QTY

Sell or transfer quantity which an order or transfer of the item is to be an even multiple of. Used in conjunction with the SELL*CODE.

SEAS Seasonal Item indicator to determine how the monthly average usage is to be calculated for generating the Order Point and Economic Order Quantity. Values are:

Y = Seasonal - use future months from LY to calculate usage

N = Normal - use last X months history to calculate usage.

MCV Manual Control Value that is displayed on various purchasing requirements reports as notations and to allow sorting of reports.

OBS Obsolete Item Flag indicator. Values are:

N = Item is not obsolete.

Y = Item is obsolete. Line Buy 1 will be changed to ****. Purchasing will not be allowed to order this item.

D = Item is obsolete. Line Buy 1 remains the same. MBS302 will change line buy 1 to ****.

NOTE: For item to be deleted in MBS302, item must have Y or D in obsolete field, have no WHSE records, AND have **** as Line Buy 1. Using this logic, if you put a Y in the OBS field, the item without a warehouse record will be deleted on the current month run. If you set flag to a D, MBS302 will set the Line Buy 1 to **** on the current month run, THEN if it remains with OBS=D, Line Buy 1 of ****, without warehouse records, the item will be deleted the NEXT time MBS302 runs.

CT An indicator that this item is maintained on contract. The indicator is automatically set to a value of Y if the item in on a contract. A value of N indicates that the item does not appear on a contract.

PS An indicator that this item is maintained on a Price Sheet. The indicator is automatically set to a value of Y is the item is on a Price Sheet. A value of N indicates that the item does not appear on a Price Sheet.

PRICE-DT

Date of the last price change whether the price was changed as a result of a PFMS update or a manual price change.

HAZ Hazard Item Flag. Maintained by the Trade Service PFMS update to indicate a hazardous item with an exclamation point (!).


NOTE: When used in a Trade Service Model Item the value of P, S, or T would determine the items type code when "passed back" from the Trade Service Database.

VELOC

The Velocity Code often matches that of the manufacturers discount schedule name or code which can be used to group items which receive the special discounts to arrive at the distributor's replacement cost. An example could be for "A" discount scheduled items for a specific vendor, the velocity code would also be equal to an "A".

NOTE: The velocity code is supplied in the Electrical database and is not present in the PLUMBING/HVAC database.

SER Serial Number Indicator. Used to indicate whether serial numbers assigned by the manufacturer are used to track individual units:

Space = not a serial number item (Default).

C = Serial number item, Consigned inventory.

P = Serial number item, Purchased inventory.

WAR-M

The number of months the item is on warranty. Used in conjunction with Serial Number tracking. The upper limit of number of months is 99.

COMP-LIST

Complementary Item List Name. The COMP-LIST field contains a "pointer" to a file containing a list of complementary items that can/could be sold with the item. An example would be a particular fixture may be sold with specific mounting hardware, lamp, trim and lens. The list of complementary items would be displayed when the fixture was entered on an order allowing the operator to select additional items during order placement.

WGT Weight per unit of measure (XXXXX.XXX).

VENDOR The Purchasing Vendor code designating the vendor that this item is typically purchased from. In instances whereby the vendor varies from purchase order to purchase order (generic commodities) the VENDOR field should be left blank.

MISC-SORT

The MISC-SORT field is a 6-digit field used as a sort field used to re-organize selected item level reports. Computerized sort sequences when using fractional equivalent can be out of sequence on price books, etc, and the MISC-SORT can be used to put them in a logical sequence.

Line 06


CDE A 1-digit code that identifies how an ALTERNATE item was generated. Values are:

0 = None

1 = Manually entered alternate item

2 = Resulted from Item Number change

3 = Customer Item # entered on a contract

4 = Vendor Item Code.

ALTERNATE-ITEM Alternate item based on the reason explained by the alternate item CDE.

CNV-FACT

The CNV-FACT is a purchasing conversion factor that can be applied when the stocking/selling U/M is different from how an item is ordered. An example is that master wire reels often come in 2500 ft lengths and are stocked and sold per foot, however the purchase order quantity should be placed as a quantity of 1 reel. By placing a value of 2500 in the CNV-FACT, when a quantity of 1 is received the system will pass through the CNV-FACT and make 2500 ft available. (XXXX.XXXX)

OE-CD Order-Entry Comment Code. This is a 3-digit numerical code that will reference an OE-CD table of descriptions maintained in MBS133. The table of codes and descriptions are user defined, and if an item has an OE-CD the description corresponding to the OE-CD will be displayed in reverse video on the order entry screen when the item is accessed.

TERMS Terms Discount Percentage for this item offered by the vendor (2.0 = 2%) or entered by the distributor. Resale terms to the customer for prompt payment cash discount computations may use the terms percentage contained in the individual item to compute the customers cash discount. PROMOTION Promotion pricing can be established with separate starting and ending dates, special promotional resale price and/or promotional cost. The actual resale price in dollars/cents is entered, and the cost may be optionally entered if the cost is to be other than the value contained in the CALC-COST. Promotional pricing maintained in the item master record will be applied for all branch locations. A separate promotional pricing control record is available at the warehouse level.

EXTENDED-DESCRIPTION

If required an item can have three (3) additional extended description lines, each containing up to 30-characters alpha/numeric. If the extended description lines are used, the description lines will print on pick tickets, invoices, purchase orders, etc..

Line 07


ADD-DATE

Date item was created.

SLSM Inside salesman code of salesman who first placed the item on an order.

BILL-M

A value of Y means this item is part of a Bill of Materials or Kit.

Display Only Fields

Prophet 21 Array User's Guide Warehouse Item Record • 7-1

Warehouse Item Record

Overview The Warehouse Item File Maintenance program MBS102 is used to add, modify, inquiry and delete records to the Distributor's personal warehouse file. Information contained in each warehouse record can be tailored to meet the Distributor's resale and costing calculations, as well as reporting and file management criteria based on a given warehouse locations unique needs.

Not all of the data elements contained in the Warehouse Item record affect pricing and or costing controls. General information about the product can be applied during report generation, etc. Typically, the "driving force" is the cost calculations between branches.

None

Warehouse Item Record

Prerequisites

Chapter Topics


Warehouse Item Record NOTE: Prior to modification of branch level pricing and/or costing controls, the Distributor should contact a Prophet 21 Array Industry Consultant to review warehouse pricing exceptions.

The Warehouse Item record is linked to an Inventory Master Record, and is linked further to additional warehouse records that track item movement and history by individual warehouse location.

Figure 3 Warehouse Item Display - MBS102

The data elements contained in the Warehouse Item Record and the explanation of each field is as follows:

ITEM #

(18 A/N) Item number.

WHSE (2 digit) Warehouse number.

DESCRIPTION (30 A/N) Description from Item Master Record.

TYPE Item Type from the Master Record.

PROMOTION Start and End Date and Special Price and/or Cost for the length of the promotion for this warehouse only.

Warehouse Item Display

Header Line

Line 01


STK-CD

Stock Code:

S = Stock item (will appear on line buys...)

N = Non-Stock item

P = Purchase to order (will only appear on line buys if there is demand for the item.)

BIN-LOC (8 A/N) Bin Location # for pick tickets, receiving, etc.

MB

Multiple Bin-Location indicator:

Y = Multiple Bin Locations are used

N = Not using multiple bin locations

OBS Obsolete Whse Record

D = Delete when activity fields = 0.

Y = Yes, this item is obsolete and you can no longer use it.

N (or Blank) = No, this item is not obsolete.

SEAS

Seasonal Indicator

Y = Calculate usage based upon the upcoming X months from last year for this warehouse.

SPLY-WHSE

Branch number that supplies this item to this warehouse. If blank, defaults to item record.

EXC-MTH

Excess Months:

1 = Exclude this item in this branch from excess inventory reporting.

2 = Total Quantity Available is considered excess.

3-12 = Number of Months x Average Usage. Available quantity greater than this amount is considered excess.

50-59 = Excess is Available Quantity greater than Order Point plus 1-9 EOQ's.

MCV (3 A/N) Manual Control Value (User Defined) – Prints on selected inventory reports.

OE-CODE (3 digit) Code for Stored Order Entry Comments from MBS133 for this warehouse.

U/M (3 A/N) Unit of Measure Ea, C, M (Space and other entries are treated as Each).

Line 02


D-GRP Discount Group number. Defaults to Item Record DG#.

TAX Overrides the taxable field in the item record.

T = Taxable item

E = Tax exempt item

USE-RANK-HITS

Ranking for item developed by running OP/EOQ Calculation or by running a Distribution Analysis Report. A, B, or C based upon Usage Value and/or Hits (# of times Ordered). Limits are user-defined.

PKG-QTY

Package Quantity - Updated from TS PFMS - EOQ's can be rounded to the nearest package.

CD*SELL*QTY

(1 digit) Sell Code:

0 = Not used.

1 = Sell item in multiples of the sell quantity.

2 = Interbranch transfer in multiples of the sell quantity.

SELL QUANTITY

Quantity to sell in multiples.

CD*OP*QTY

(1 A/N) Order Point Code:

SPACE = Order Point is system-calculated using formula.

P = Order Point is a minimum of 1 Package Quantity.

F = Order Point is fixed by the client

ORDER POINT

Quantity at or below which you should place an order.

Formula = Avg Monthly Usage x (Lead Time + Cycle Days + Safe Days) /30.

CD*EOQ*QTY

(1 A/N) EOQ Code:

SPACE = EOQ is calculated by the system

F = EOQ is fixed by client

P = EOQ (if calculated) is a minimum of 1 Package Quantity and multiples of Package Quantity

EOQ QUANTITY

Quantity to order when you reach the Order Point.

Line 03


Formula = Square Root of (24 x Setup Cost x Avg Monthly Usage) / K Factor x Unit Cost.

OP/EOQ*METHODS*AMU

(1 digit) Methods:

OP/EOQ Field 0 = Default. The OP/EOQ from the system is used. 1 = Min/Max method if used.

AMU Field 0 = Default. No overrides. 1 = Calc. Aver. Monthly Usage, screen out high month. 2 = Don't screen out any usage. 3 = Use usage smoothing formula. 4 = Screen and include leading zero months usage. 5 = Don't screen but include leading zero months.

AVG-LT

Average Lead Times from Receipt Processing

MTHD*SAFETY*STK

Safety Stock Method:

0 or 1 = User defines safety days by A, B, or C class for all items in a warehouse (global)

2 = Safety Days based on ABC rank in Warehouse Record.

3 = VanDeMark Method Quantity = calculated by above for use in Order Point formula.

FLG (Y/N) Purchase Cost Flag. Used to lock in Purchase Net Cost.

Y = Yes, lock purchase price and only recalculate PO-Percent-Off if calculated cost changes due to price updates or file maintenance.

N = No, do not lock purchase price and recalculate when any changes to calculated cost occurs.

PURCH-PRICE

Purchase Net Cost. Maintained by the system and will be used on all purchasing applications.

DISC%

Purchasing percent off of cost. Defaults to Item Rec.

MAX-LT

Highest Lead Time in Days from any prior receipt. AVG-COST

Average Cost Formula:

Line 04

Line 05


Formula = (OHB before Receipt x WAC + Receipt Quantity x Receipt Cost) / Total OHB after Receipt.

PREV-COST

Previous Average Cost prior to this receipt.

MISC-COST

Special cost optionally stored by MBS170.

LIFO-BASE

LIFO Base Cost, can be updated by MBS170 at year-end.

TY-COST

Most recent year-end cost updated by MBS170.

LY-COST

Previous year-end cost updated by running MBS170.

MIN Min days supply - replaces Order Point (not implemented).

MAX Max days supply to order - stored in EOQ (not implemented).

EOQ-DTE

EOQ Date - last time OP & EOQ's were updated by MBS093.

BASE Base Price/Cost for this whse, Blank defaults to Item Rec.

DISCOUNT%

Discount percent used with Base Price to calculate cost. Defaults to Item Record.

DISC-%-2

Percentage difference between TS-Cost and your actual cost

CALC-COST

Calculate Warehouse cost. Defaults to Item Record cost.

TS-COST

Trade Service published cost, as found on the TS PFMS file and the TS Price Books.

TSZ TS-Zone for PFMS updates. Used if this Warehouse is in a different zone.

TSO Overrides Item record TS Option if different for this branch. When Price Update runs, it will put BASE in this warehouse record, not the item.

NOTE: See MBS101 TS-Opt for description of valid options.

Line 06


PRICING-ITEM

Pricing item for this whse. Defaults to item record.

REC Pricing Record in Pricing Item from which to extract pricing information. LAST-RECEIPT-QTY

Quantity of last receipt.

LAST-RECEIPT-DATE

Date of last receipt.

LAST-COST

Cost from last P/O - updated through receipts processing or optionally from P/O Cost Check processing.

PREV-COST

Cost from the previous P/O.

LAST-3-LEAD

Lead Times associated with the last three receipts.

RECPT TY

Receipts this year indicator:

N = No receipts for this item made this year.

Y = Receipts were made against this item this year.

RECPT LY

Receipts last year indicator:

N = No receipts for this item made last year.

Y = Receipts were made against this item last year.

VENDOR Vendor # for purchasing purposes. Defaults to Item Record.

DS FLAG

Direct Shipment item flag:

N = Option not used. Item can be used for all order types.

Y = Item is used for Direct Shipment orders only.

LAB FLAG

Bar-coded stock labels indicator:

N =Option not used. No labels printed.

P =Pack & Hold labels

S =Stock labels will be generated based on receipt quantity.

B =Produce both Stock Labels and Pack & Hold labels.

TYPE

Line 07

Line 08


Item Type displays from the Item Master Record.

MLB1 Primary Line Buy number from the Item Master File.

MUM Unit of Measure from the Item Master File.

BASIC-LIST

Base Price/Cost from the Item Master File.

BASIC-OFF

Cost Discounted from the Item Master File.

B-DISC-%-2

DICS-%-2 from the Item Master File.

BASIC-COST

Calculated Cost from the Item Master File.

SUBSTITUTE-ALTER

First Substitute/Alternate Item for the whse.

Prophet 21 Array User's Guide Pricing Item Record • 8-1

Pricing Item Record

Overview The Pricing Item record contains resale calculation values that can be represented as multipliers or discounts off. The structure of the record consists of a Price Method Code, List name, Description, and a matrix design.

None

Pricing Item Record

Prerequisites

Chapter Topics


Pricing Item Record The matrix is comprised of nine (9) horizontal ROWS and six (6) vertical COLUMNS. In addition, a column is designated for quantity break entries if needed.

The combination of the rows and columns forms BOXES, which can contain the resale calculation multipliers and or discount percentages. A total of 54 Boxes are available.

Figure 4 Pricing Item Display - MBS186

The Pricing Item COLUMNS should be thought of as headings for major markets served by the Distributor during the implementation of the pricing project. An example of this concept would be that if the Distributor served walk-in/retail customer, small contractors, large contractors, and industrial accounts, then the column heading would reflect these markets consistently for all products.

BOXES are identified by the ROW and COLUMN intersection. A box label of 54 would correlate to ROW 5/COLUMN 4. Boxes may be incorporated when additional resale calculations are required to set up additional markets if more than six(6) are needed, and to store resale calculations based on "special pricing" for customer deals.

The fields contained in the PRICING ITEM are as follows:

PRICING ITEM

Up to 18-characters alpha/numeric may be used as an identification code. The PRICING ITEM is a background record and is not accessible except during MBS186 maintenance functions, and cannot be placed on an order etc.

P-REC

Pricing Item Display

Pricing Item File Field Descriptions


Pricing record designation. The field length is 2-digits numerical. It is recommended that P-REC assignment be assigned a value of "00" as the company level pricing record. Should there be a need for unique warehouse resale calculations, then the P-REC should contain the branch number requiring the special override.

DESCRIPTION A brief description of the code used as the PRICING ITEM.

PRICE METHOD CODE The Price Method Code (PMC) determines how the resale price of an item is to be calculated. The system defaults to a value of three (3), which allows the use of multipliers and/or discount percentages off the BASE in the item record. A value of two (2) allows the use of multipliers greater than 1.0 only, and is applied against the CALC-COST in the item record. The use of Price Method Code of 2 is strongly discouraged.

QUANTITY Quantity break pricing is allowed for calculating resale prices based on quantities ordered. If quantity breaks are used, the last price break level must end with a value of 999999. If no quantity breaks are used then the first level must contain a value of 999999.

ROWS Nine (9) horizontal rows are provided in the matrix design. The rows can be used for price break levels, or for unique selling situations or markets.

COLUMNS Vertical columns are assigned as major market segments served by the distributor. Not all columns need to be utilized.

Prophet 21 Array User's Guide Customer Master Record • 9-1

Customer Master Record

Overview The Customer Master record contains all information about a particular customer including special pricing, budgets, contracts, last month sales history, and customer sales history. In addition, all pertinent information needed for credit management.

None

Customer Master Record

Prerequisites

Chapter Topics


Customer Master Record Not all of the data elements contained in the Customer Master record affect pricing and or costing controls. General information about the customer can be applied during report generation, etc.

The Customer Master display is as follows:

Figure 5 Customer File Maintenance - MBS100

The definitions for each of the data elements contained in the Customer Master record are as follows:

CUSTNO

(6 digit) Customer number.

SHIP

(4 digit) 1 - 9999 Ship-To Rec. #, if needed, otherwise skip. This field is also used to establish job account numbers for a customer if job accounts are used.

DEFAULT (6 digit) Customer record to copy when creating this one, if none, skip.

SHIP

Ship-To record default cust record to copy, if none, skip.

NAME/ADDRESS 01

(30 A/N) Customer name.

PHONE Phone number - can search by phone number.

Customer Master Display

Heading Line

Line 01


ALPHA (6 A/N) For Alpha Look-up (Default = first six characters of Customer name field).

SHIP-INSTR

(20 A/N) Shipping instructions to print on the pick ticket and Invoice.

NAME/ADDRESS 02

(30 A/N) Bill-To Address line 1.

FAX #

(10 A/N) Fax Number for Customer. For informational purposes or, for faxing quotes (with Fax-Link).

D&B CODE

(4 A/N) Dun & Bradstreet credit rating code.

SIC (4 A/N) Standard Industry Code. A reference field used to identify your Customer's primary business area, i.e. retail, agriculture, etc. The Customer Sales Summary (MBS072) can be sorted using this field. NAME/ADDRESS 03

(30 A/N) Bill-To Address line 2.

OE-COMMENT (25 A/N) Comment that displays on the screen for quotes and orders. NAME/ADDRESS 04

City (19 A/N);State (2 A/N);CNTRY (3 A/N),and ZIP code(9 digit). If the CNTRY code is CAN, the Canadian Postal code may be entered as an alpha/numeric value.

COUNTY (20 A/N) Name of Customer's county NAME/ADDRESS 05 (30 A/N) Optional Attention-To line. DIV Division Number for A/R and Sales reporting.

TRM Terms code to be used in billing from Table MBS103.

C-TAX Exempt Code and Tax Authority.

Line 02

Line 03

Line 04

Line 05

Line 06


C (Y/N) Exempt Code, determines whether customer is taxable or non-taxable. (Y = Yes, customer is taxable). Used in conjunction with order entry user parameters (MBS161) field name YES-TAX-NO.

TAX Tax Authority to be used in billing from table MBS104, if no order entry user defaults used.

TAX-EXEMPT-ID (15 A/N) Indicates the tax exempt certificate ID number.

WHS Warehouse number default to be used for this customer.

TYPE (2 digit) Type of Cust # for Sales Reporting (MBS158).

UPS (1 digit) UPS Zone code. (Entry not required if feature is not used).

OW1 (2 digit) Outside Warehouse related to the Outside Salesman #1.

OSM1 (4 A/N) Outside Salesman assigned to this customer.

OW2 (2 digit) Second outside whse related to outside slmn 2. Used if a customer buys from more than one whse.

OSM2 (4 A/N) Outside salesman assigned to the customer. Used with OW2 field.

OW3 (2 digit) Third outside whse related to outside slmn 3. Used if a customer buys from more than two warehouses.

OSM3 (4 A/N) Outside salesman assigned to this customer. Used with OW3 field.

PT Indicates if prices are required to print on Pick Tickets.

STMT Statement

0 = Produce statement and create a service charge invoice.

1 = Produce statement but DO NOT create a service charge invoice.

2 = No statement and No service charge invoice.

3 = No statement but create a service charge invoice.

Line 07


SVC Service Charge

0 = Do not charge service charge.

1 = Charge on Over 30 - Disputed - all credits

2 = Charge on Over 60 - Disputed -Current and Age 30

3 = Charge on Over 30 - Disputed

4 = Charge on Over 60 - Disputed.

SVC-%

(5 digit) Overrides the System's default Service Charge %. 1.0 = 1% (XXX.XX).

D-DAYS (3 digit) Number of days from Invoice Date that customer is considered delinquent.

CR-LIMIT

(7 digit) (Credit Limit - A/R - Orders - Back Orders) = Avail credit in whole dollars. A value of blank in the CR-LIMIT field will assume unlimited credit.

CD Options are:

Space = Perform normal credit check routine.

H = Hold regardless.

X Y = Do Report Dun and Bradstreet information and update tape.

SHP Y = indicates customer wants orders shipped complete.

BUDGET (7 digit) Annual Sales Forecast for this customer.

IW1 Whse number associated with assigned Inside Slmn #.

ISM1 Normal Inside Slmn number assigned to this account.

IW2 Second inside warehouse related to inside salesman 2.

ISM2 Inside salesman assigned to this customer. Used with inside warehouse 2 field.

JOB Options are:

0 = Using Ship To's Only, not using Job Accts.

1 = Using Job Accounts with their own credit limit


2 = Using Job Accounts which use the Masters Credit Limit.

REQ Options are:

N = No Job Account number required at order entry.

Y = Must enter a Job Account number during order entry. The master account can not be used.

UPI 1 = include this customer on "Unpaid Invoice Report".

P-COL

Customer's normal Price Column:

1-6 = Price Column

7 = Customer priced at a percent over cost in the DISC% field

11-96 = Box number, rather than column, to get price.

DG-CUST

A pointer value containing another CUSTNO or account number that will be referenced to link one customer's deal table to another.

DISC% (5 digit) Discount percent off Base Price or, if the P-COL = 7, it is a percent over CALC-COST (XX.XXX) 10% = 10.00. Or if the P-COL = 8 it is a percentage over the TS-COST.

CONTR# First of 5 Contract numbers from which the system will get special pricing. (Function Key 7 displays all). This field is display only. You must use the contract function key to update contract numbers.

B/O*REQ*P/O Customer requirements:

B/O 1= Backorders not allowed.

B/O 2= No partial backorders allowed.

P/O 1= Customer P/O number required on all orders.

INV Invoice Print Codes:

0 = Normal Daily printing

1 = Hold for weekly printing

2 = Hold for biweekly printing

3 = Hold for monthly printing

4 = Hold for on-request printing

9 = Do not print invoices

Running MBS099 prints invoices held for printing.

Line 08


PRT-D Determines whether or not Discount % prints on Customer's invoice.

Y = Print Discount % on invoice.

N = Do not print Discount % on invoice.

FRT% (5 digit) Freight percent of Sales for system to calculate freight charge automatically (XX.XXX).=1% (Entry not required if feature not used).

FRT-LB (4 digit) Freight dollars per pound for system to calculate automatically (XX.XX). (Entry not required if feature is not used).

MIN-C Options for MIN: (2 digit) Minimum Billing or Fixed charge amount (Entry not required if feature is not used)

Options for C:

M = indicates MIN amount is for a minimum billing amount.

F = indicates MIN amount is for a fixed charge.

SP Special Customer Data Option.

Y = Using special customer form, i.e. Boeing inv.

N = Not using a special customer form or data.

W = Workorder Data is required for this customer when entering orders.(Work Ord #, Control#, Man #, and Bldg #.)

E = Employee Data is required for this customer when entering orders.(Employee Name & No., Supervisor Name, M.D. No, and Unit Name)

MGR (3 char.) Credit Manager Assignment. Identifies credit manager this customer is assigned to. This field can also be Mass Maintenanced, and several A/R reports can be selected by Credit Mgr. Code must be set up in MBS220-Credit Mgr Maintenance.

A/D/I Customer status indicator

A = Active Customer D = Delete at Month Start I = Inactive Customer

HIST History

0 = Do Not save History for Special Sales Report (MBS217)

1 = Store Sales History but don't report it

2 = Store Sales History and print it

Line 09


3 = Save item level Sales History for this customer.

MISC (6 A/N) Misc. Field to Select and Sort various reports.

DUNS (Y/N) Determines if customer will receive dunning letters.

LST-LTR

(1 digit) Dunning Letters Indicator. Identifies which dunning letter was last used for this customer. Valid values = 1-5. Updated by system.

DUNS-DATE

MM/DD/YYYY. Date last dunning letter was generated for this customer. System generated.

A/R-CREDIT-MESSAGE (30 A/N) Credit message to show on ATB report.

SEC-CD-TAX

(Y/N)Determines whether or not customer pays a secondary tax. Used mainly for international accounts. (i.e. Canadian GST and PST tax reporting).

Y = Customer must pay secondary taxes

N = Customer is exempt from secondary taxes

SEC-TAX-ID

(15 chars.) Indicates Secondary Tax identification number for customer.

DUP-PO

Allows for the control of duplicate customer Purchase Order numbers to be used for this customer.

Y = Allow duplicate PO numbers for this customer.

N = Do not allow duplicate PO numbers.

BLANKET-PO (20 chars.) This field can be used to enter a blanket PO number for customer. Entry will be brought in at SOE, and may be overridden at that time.

PTK-SEQ

(1 digit) This option determines in what sequence pick tickets will print. If this option is used, it will override the Whse sequence option.

0 = Default to Whse Sequence Option for printing of pick tickets

1 = Print pick tickets in Bin Location sequence.

2 = Print pick tickets in Entered sequence.

COPY Number of copies of an invoice for this customer.

CR-DAY

Line 10


Hold Orders if Customer has an invoice older than X days. (Entry not required if feature is not used).

EDI (Y/N) Determines whether or not you can send customer EDI invoices

Y = Yes, send customer EDI invoices

N = No, don't send customer EDI invoices SHIP-CODE (6 A/N) Shipping method preferred by customer. Code must be set up in MBS507 (Shipping Table Maintenance). Also used in conjunction with The Paperless Warehouse (TPW).

CUST DUNS#

A 9 digit field to store the Dun & Bradstreet number used primarily for CQCS reporting.

PRC-OVR

Allows the ability to establish whether this customer price calculations may be overridden at order entry.

Y = Allow price overrides.

N = Do not allow price overrides.

WIN Field used for a specific Custom Program. Should only be used under advice from Prophet 21 Array. Custom Programming Request

Line 11

Prophet 21 Array User's Guide Product Pricing • 10-1

Product Pricing

Overview This chapter will address the basic components of establishing a computerized pricing and costing system, while presenting the options that can be incorporated to insure that the primary objectives of Automatic Pricing are attained.

None

Factors to be Considered

Pricing and Costing Summary

Trade Service Database Usage

Independent Item Files


Prerequisites

Chapter Topics


Factors to be Considered: Whenever a Distributor is faced with the challenges of implementing a computerized pricing and costing system, it is best to identify the key components of the overall project. In the simplest form there are two major components; Products and Customers. The four key components are:

1. Identify "What Products" need to be addressed as stocking items, as well as non-stock item availability. This can be facilitated using the Trade Service Database and the Distributor's current inventory.

2. Identify the markets served on a recurring basis, and determine how products are sold within each market. An example would be, the identification of a repricing strategy for retail/walk-in trade, small contractors, large contractors, industrial, etc., markets.

3. Identify all active customers. For most active customers, once the resale strategies are established, the customer can be "pointed" to their respective market price and be sold product accordingly. These customers typically are not the most "visible or active".

4. Identify customer "pricing exceptions" that are needed to retain key accounts. Exception pricing can come in several forms. They can be based on buying patterns based on frequent purchases, special bid opportunities, set contracts, and historical information.

To summarize, the major components of any automatic pricing and costing system can be identified as pictured on the following page.


Pricing and Costing Summary Diagram

Identificationof Products tobe Priced and

Costed.Stock and

Non-Stockingitem

parameters.


Costed.Stock and

Non-Stockingitem

parameters.


Costed.Stock and

Non-Stockingitem

parameters.


Costed.Stock and

Non-Stockingitem

parameters.

MarketDefiniton andGeneral Rules



Identificationof all activeCustomers

Identificationof all activeCustomers

CustomerPricing

Exceptions

PRODUCT CUSTOMER


Trade Service Database Usage The Trade Service Database (TSDB) can be utilized by the distributor to construct the Inventory Master File by using "Pass Back" programs. The key benefits of utilizing the TSDB is to assist the Distributor in the construction of the Inventory Master File is to apply industry standard information consistently. The major benefits are:

• Insure that the latest UPC code numbers are utilized for price updating and future applications such as EDI transmission of invoices and purchase orders.

• Apply a consistent item coding standard for all products.

• Apply a consistent item description standard for all products.

• Insure that correct Unit of Measure is maintained for each item.

• Insure that correct package quantity is maintained for each item.

• Allow the usage of the supplied Velocity Codes for matching vendor discount schedules to the distributor's resale and cost calculations.

• Allow the automatic updating of standard Trade Price and Published Cost.


Independent Item Files Diagram

GlossaryData contained in the TS-Database:

DCI-NumberCatalog Number (TSS Generated)DescriptionCommodity CodeUnit of MeasureStandard Package QuantityCash Discount %Velocity CodeWeightChange SymbolLIST PriceCOL-1COL-2COL-3COST** Cost is controlled for selected vendors

Trade Service Database Distributor’s Inventory MasterDatabase

NOTE: The COST provided by Trade Service Corporation is protected for selected vendors. Vendors that the cost is controlled will be verified by Trade Service Corporation. Verification is through contact with the vendor by TSC. If approved then the standard published cost will be provided


Inventory Master Record For each item maintained in the Distributor's Inventory file an Inventory Master record is required. The above slide represents key elements of the Inventory Master as they relate to establishing various resale/cost controls, reporting and file organization. Refer to the Item Master File section the Master Files chapter for a detailed list of data elements contained in the master record.

The Inventory Master record contains fields, which control various functions within Array. Items within a line or a common grouping of items, may contain the same information that is used to group items together for reporting, file maintenance functions, and codes that allow for customer pricing exceptions. Of these, the D-GRP (Discount Group Number), PROD (Product Line Number), and LIST# (List or Line Buy) control file organization codes, etc.

PROD

Product Line Number, is a 4-digit numerical value that controls the generation of management level reporting. In many instances, the Distributor may elect to utilize the Trade Service Commodity code number for this assignment. This facilitates the grouping of item types in a structured manner. Product Line reporting should be designated for an entire classification by product type and not necessarily by vendor. An example would be all hand tools reported in a summary report, regardless of the vendor lines carried. The Daily or Monthly Sales Recap report by Product Line would note all hand tool sales on a single line with monthly totals.

D-GPR

Discount Group Number is used to allow for grouping of common items for the allowance of providing special customer pricing exceptions when the customer buys within the group of items. It is recommended that the Distributor use many different codes and NOT the Trade Service Commodity code numbers. An example of the use of Discount Group Numbers would be that a small contractor receives unique pricing for competitive lamps, but receives the normal small contractor price for all other lamps. This is addressed further in the customer pricing section of this manual.

LIST#

Line-Buy is used to facilitate the organization of items for report generation and certain file maintenance functions. The LIST# can be up to 4-characters alpha/numeric in length, and at a minimum every item must have a LIST1 assignment. Lists 2, 3, 4, and 5 are optional. As a data organization tool, the use of list numbers can be thought of as establishing a filing system. As a method of establishing a filing system, LIST1 could be thought of as a filing cabinet label, LIST2 as a drawer in the filing cabinet, List3, 4, 5 as folders within a drawer. Examples of folder usage would be establishing a folder containing only NET priced items for a line, items that are to be cycle counted together, or a breakdown of items within a line for purchasing.

FLG, PURCH-DISC% and PURCH PRICE

These fields allow the Distributor to either set a fixed Purchase Price for the item that is different than the value contained in the CALC-COST, or as a percentage off the CALC-COST. Entries will determine the purchase price placed on a Purchase Order when the cost is different that the invoice cost to the customer. If the Purchase Price fields are utilized, the fixed or computed


Purchase Price is not used in the gross margin calculation. These fields are OPTIONAL.

PROMOTION

This pricing is available by establishing a starting date and ending date for item resale promotion. The PRICE in the promotion is the actual resale price and not entered as a discount or multiplier. If the promotion cost is different than the CALC-COST then the promotion cost may be entered. The Promotion COST is not used for purchasing and will only affect the gross margin calculation on the customer invoice.

Inventory Master Record Diagram



ITEM CODE DESCRIPTION TS# TS-OPT TS-COSTSYLF40CW F40CW 48-IN RS/PH FLUOR 04613524426 7 152.75

SUBST# U/M BASE DISC% DISC-%-2 CALC-COST D-GRP TERMSGEF40CW C 235.00 .415021 .1000 137.47 0115 2.0

PROD PRICING-ITEM P-REC FLG PURCH-DISC% PURCH-PRICE VENDOR 7110 SYL7110 00 Y .05 130.59 SYL

-------------------PROMOTION---------------------- STARTING ENDING PRICE COST ___/___/___ ___/___/___ _________ _________

LIST 1 LIST 2 LIST 3 LIST 4 LIST 5

Prophet 21 Array User's Guide Base & Cost Relationships • 11-1

Base & Cost Relationships

Overview The relationships between the BASE, DISC%, CALC-COST, DISC-%-2 and the TS-COST are dependent on which Trade Service Update Option is used. None Base/Cost Relationships

Prerequisites

Chapter Topics


Base/Cost Relationship Diagram

INVENTORY MASTER ITEM CODE DESCRIPTION TS# TS-OPT TS-COST SYLF40CW F40CW 48-IN RS/PH FLUOR 04613524426 7 152.75 SUBST# U/M BASE DISC% DISC-%-2 CALC-COST D-GRP TERMS GEF40CW C 235.00 .415021 .1000 137.47 0115 2.0 PROD PRICING-ITEM P-REC FLG PURCH-DISC% PURCH-PRICE VENDOR 7110 SYL7110 00 Y .05 130.59 SYL -------------------PROMOTION---------------------- STARTING ENDING PRICE COST ___/___/___ ___/___/___ _________ _________ LIST 1 LIST 2 LIST 3 LIST 4 LIST 5 SYL 6135

BASE: Base is the starting point to recalculate the resale price. May apply a discount off or a multiplier against BASE.

DISC%: Overall percentage OFFthe BASE to arrive at the computedCALC-COST.

CALC-COST: Used for gross margin calculation, cost of good sold on customer invoices. May or may not be actual cost.

TS-COST: Published distributor cost provided by the Trade Service PFMS update service

DISC-%-2: An optionalpercentage OFF the TS-COST torecalculate the CALC-COST.Valid with TS-OPT "7" or "8"only.


Base/Cost Relationships • The BASE is the key factor in the relationship to the other fields. The

BASE is typically used to calculate the end-user resale price, by applying either a discount percentage OFF the value in BASE or by applying a multiplier against the value in BASE. BASE can be any value determined by the user.

• The DISC% is always represented as a percentage OFF the BASE to be applied in the computation of the CALC-COST. Depending on the TS-OPT used, the DISC% field may be calculated automatically by the software during PFMS updates. In other cases, the user may determine the percentage OFF the BASE and "lock in" the values for future price changes, etc.

• The CALC-COST is a computed field that is NOT stored by the system and always recalculated and displayed based on the relationship between the BASE and DISC%. The CALC-COST is typically the current replacement cost of the item and is used for the computation of the cost of good sold and gross margin on customer invoices. It may or may not be the true cost, depending on other factors determined by senior management.

• The DISC-%-2 is an optional usage field. It is used only with the TS-OPT values of "7" or "8", and allows the user to take a percentage OFF the TS-COST and recalculate the CALC-COST. In cases whereby the CALC-COST needs to be greater than the TS-COST, a multiplier maybe applied.

• The TS-COST is provided by Trade Service's PFMS update for all TS-OPT values except zero (0). In addition, the cost is protected for selected vendors, based on the validation of distributor authorized status with the vendor.

Prophet 21 Array User's Guide Trade Service PFMS Updating • 12-1

Trade Service PFMS Updating

Overview For each item maintained in the Distributor's database, the price and product information needs to be up-to-date and accurate. The Array software allows for the integration of the TSC PFMS update service to electronically keep price and product information current, thereby reducing the manual tasks of maintaining pricing for thousands of items. The key elements of the PFMS updating are the presence and accuracy of the TS#, and the TS-OPT selected. None

Using the Trade Service Corporation PFMS Update Service

The PFMS Update Options

Establishing Market Classifications

PRICING ITEM

Prerequisites

Chapter Topics


Using the Trade Service Corporation PFMS Update Service

ITEM CODE DESCRIPTION TS# TS-OPT TS-COSTSYLF40CW F40CW 48-IN RS/PH FLUOR 04613524426 7 152.75

SUBST# U/M BASE DISC% DISC-%-2 CALC-COST D-GRP TERMSGEF40CW C 235.00 .415021 .1000 137.47 0115 2.0

PROD PRICING-ITEM P-REC FLG PURCH-DISC% PURCH-PRICE VENDOR 7110 SYL7110 00 Y .05 130.59 SYL

-------------------PROMOTION---------------------- STARTING ENDING PRICE COST ___/___/___ ___/___/___ _________ _________

LIST 1 LIST 2 LIST 3 LIST 4 LIST 5 SYL 6135

INVENTORY MASTER

1. Do I want Trade Service to maintain pricing for this line or group of products? If the answer is NO, then the TS-OPT to use is zero (0). Do Not Update.

2. If YES, What Trade Service value should be placed into BASE? Is it COL 3, is it LIST, etc.?

3. What is the COST of the items? Is it the TS-COST? Is it determined by taking a percentage off what is in BASE? Is it a fixed NET price supplied by the vendor?

The PFMS updating can be controlled for a full vendor's line or down to the individual item level. To determine which TS-OPT is to be used, the following questions need to applied to the vendors line, a common grouping of items, or specific line items.

Inventory Master Record Highlighting PFMS Fields


The PFMS Update Options:

TS-OPT BASE DISC% CALC-COST DISC-%-2 TS-COST

0 NO PRICE OR PRODUCT UPDATING WILL OCCUR

1 TS-COL 1 MANUAL COMPUTED NOT USED UPDATEDLOADED INPUT NOT USED



4 TS-LIST MANUAL COMPUTED NOT USED UPDATEDLOADED INPUT NOT USED

5 TS-COST MANUAL COMPUTED NOT USED UPDATEDLOADED INPUT NOT USED

6 TS-COL 3 COMPUTED MANUAL NOT USED UPDATEDLOADED INPUT NOT USED

7 TS- COL 3 COMPUTED TS-COST or OPTIONAL % UPDATEDLOADED COMPUTED OFF TS-COST OPT.USAGE

8 TS-LIST COMPUTED TS-COST or OPTIONAL % UPDATEDLOADED COMPUTED OFF TS-COST OPT.USAGE

9 TS-LIST COMPUTED MANUAL NOT USED UPDATEDLOADED INPUT NOT USED


• The most common usage of the Trade Service Update options is a value of "7". This option will allow the TS-COL 3 price to placed in the BASE , and the published cost to be placed in the TS-COST field within the item being updated. As an option, the DISC-%-2 can be utilized when the Distributor receives an additional discount off the published cost to arrive at the current replacement cost of the item.

• The Trade Service Update option of zero (0) is typically used for items that receive a special NET price from the vendor which does not correlate to any prices contained or maintained by the PFMS update. In addition, generic commodity items are typically manually maintained and use the TS-OPT = 0.

• For lines that the Distributor receives a special discount off a published LIST price, the Trade Service Update option of four (4) is used. In this scenario, the published LIST would be placed into BASE and the Distributor would enter the DISC% OFF the LIST to compute the CALC-COST. This method is typically used for distribution equipment lines.

• The Trade Service Update option of nine (9) would allow the new LIST to be written to BASE, and the Distributor manually manage the NET cost of the item. With some decorative fixture lines, builder grade items may fall into this scenario.

• The use of the Trade Service Update option of three (3) may be used in cases where the Distributor buys non-stock items from another supply house, and the line items being purchased have the TS-COST protected. In this scenario the Distributor may elect to load TS-COL 3 into BASE and take a discount off COL 3 to arrive at the cost to purchase the item from the other supply house.

• The use of Trade Service Update options of "1" and "2" are very rare.

Establishing Market Classifications The basis for establishing resale calculations should be determined by determining the markets consistently served by the Distributor. With the Array software this can be accomplished by grouping like customer types together for resale price calculations in a matrix design.

If the Distributor's markets consist of up to six (6) defined groups, then the matrix can be thought of as vertical in nature in up to six (6) columns. However, if more than six (6) groupings are required to identify markets, then a combination of vertical columns and horizontal rows may be employed. In cases were more than six defined markets are required, the criteria is usually based on multiple branch environments, or a large number of "special price" arrangements are needed. Up to 54 market definitions can be established if required.

The PRICING ITEM contains the six vertical columns and nine horizontal rows. The intersection of a row and a column forms BOXES (54 total boxes) which may be activated to handle special price categories or additional markets.

Examples of TS-OPT Usages:


Pricing Item:

Figure 6 – Pricing Item File Maintenance – MBS186

In addition to the row and column structure, quantity break pricing can be achieved to handle situations whereby the Distributor wants to reprice items based on broken packages, multiple case quantities, etc. The Array software also allows for a "quick set-up" of simple quantity breaks for broken and full case and above pricing. This method automatically checks the individual item package quantity to determine if the order quantity is less than the standard package quantity and assumes a broken package price.

When the order quantity is entered during Sales Order Entry, the software will find the appropriate break level established, then according to the customer's pricing indicator, move to the appropriate column. If a value in not entered in a price break row, then the system will move up the column until a value is encountered, and applies the value to determine the resale price.

Values used to compute the resale price that are placed into the columns and/or boxes are:

1. To apply a multiplier against the contents of the item BASE (markup) a value greater than 1.000 should be used.

2. To apply a discount OFF the contents of the item BASE, a value less than 1.000 is entered. To give a 10% discount the entry is made as .1000. It is important to remember that the discount off is not entered as .90, if the intent is to give 10% off.

3. To allow for COST-PLUS pricing, where the cost is not contained in BASE, but rather the CALC-COST or TS-COST, then unique values are reserved to accommodate this feature. • Any multiplier value that begins with 7.xxxx will automatically

develop the resale price as a markup percentage on CALC-COST and not the BASE. An example would be a markup of 7.3333 equals a 1.3333 times the CALC-COST.

Pricing Item File Maintenance Screen


• Any multiplier value that begins with 8.xxxx will automatically develop the resale prices as a markup percentage on TS-COST and not the BASE. An example would be a markup of 8.2500 equals a 1.2500 times the TS-COST.

NOTE: If no value is present in a column that a customer is "pointed to", the software will automatically default to column 6 to determine the customer's resale price.

Prophet 21 Array User's Guide Relationship Between the Pricing Item and Inventory Master Records • 13-1

Relationship Between the Pricing Item and Inventory Master Records

Overview The Pricing Item contains the resale formulas to be applied against the Inventory Master records for either all items within a line, a common group of items with a product category, or if needed individual item resale parameters. The Inventory Master record contains the individual item's BASE and CALC-COST and is unique only to the individual item. None

Relationship Between the Pricing Item and Inventory Master Records

Prerequisites

Chapter Topics

Prophet 21 Array User's Guide Relationship Between the Pricing Item and Inventory Master Records • 13-2

Relationship Between the Pricing Item and Inventory Master Records Within each individual inventory master, a "pointer" determines which resale Pricing Item is to be applied. When developing the resale strategy, the Distributor will need to identify how products are priced based on the various markets sold to. In addition, the relationship between the acquisition cost and the resale for gross margin calculations, will necessitate that some manufacturers lines have multiple resale schedules. At a minimum, each commodity type and each manufacturer should have at least one resale PRICING ITEM established for all stocking lines.

For manufacturers that have multiple product types and multiple discount schedules, the Distributor should consider establishing a PRICING ITEM for each condition. An example would be with distribution equipment lines where multiple discount schedules, and net prices are provided to the Distributor.

Competitive market conditions may require that unique pricing controls be established for items that need to be isolated. Some Distributors may isolate 1/2" through 1" conduit from the other sizes to remain competitive, and reprice the larger sizes slightly higher to gain more gross margin.

When the Distributor has access to the Trade Service Database, considerations need to be further defined to calculate the resale of non-stocking items that are contained in the TSDB. In some instances, a "global" strategy may be established which will reprice every item in a vendor's line with one PRICING ITEM. These general or "global" guidelines should be established as a best case scenario, particularly when the acquisition cost is unknown.

Prophet 21 Array User's Guide Customer Pricing • 14-1

Customer Pricing

Overview Each active customer requires pricing controls based on prior historical sales information, the type of market the customer can be associated with, and specific item pricing or contract pricing. The minimum customer pricing designation is the assignment to a market category. None

Customer Pricing Controls

Controls

Customer Pricing Exceptions using the D-GRP

The Customer Pricing at a Glance

Discount Group Number Override Values

Discount Group Customer Number

Prerequisites

Chapter Topics


Customer Pricing Controls Customers should be categorized in primary markets, and activity within a market. The match between the product resale structures and the customer base should be made with the following considerations in mind:

• By applying the 80/20 rule, whereby 80% of the active customers contribute to only 20% of the sales, then the resale structures established for products should accurately price the major of customers.

• The last remaining 20% of the active customer contribute to 80% of the sales. For these active customers, exceptions to the product resale structures, is not uncommon. These exceptions can be in the form of negotiated contracts or "deals" when the customer purchases competitive items.

• Repetitive patterns of customer pricing should be investigated and where possible, modify the product pricing strategies to accommodate as many of these recurring situations as possible.

P-COL: Assignment tothe pricing item columnor box that this customershould be priced from.

DG-CUST: DiscountGroup CustomerNumber.

CONTR#: ID of thecontract in placeeffective for thiscustomer.

Figure 7 – Customer File Maintenance MBS100

The primary pricing controls contained in the customer record are:

• P-COL - A designation of the PRICING ITEM column or box that this customer's resale price is to be developed. Entries should contain either the primary column number that the customer is to be priced from, or the 2-digit box number.

• DISC% - The DISC% is primarily used for COST PLUS customer pricing. The DISC% is then used as a multiplier when the P-COL is a value of "7" or "8". The value to achieve a 25% gross margin is entered as "33.33" and not "1.3333. The software will reposition the decimal place and create the 1.3333 multiplier.

• DG-CUST - The Discount Group Customer Number that the customer would be "pointed to" when the customer receives the same pricing

The Customer Master Record

Primary Pricing Controls


exceptions by Discount Group Number as the customer number entered into the DG-CUST field.

• CONTR# - The name of the contract that this customer is assigned to for contract level pricing.

Controls

At a minimum each customer record must contain the P-COL designation. The P-COL designation will automatically determine that the customer is to be "priced" from that column number or box number in every PRICING ITEM.

When a customer record contains a value in the P-COL that would point either to a specific column or box, and that column or box is empty, the software will automatically default to Column 6 in the PRICING ITEM.

Customer Pricing Exceptions using the D-GRP The majority of the active customers will require the P-COL assignment only, however, there will be customers that will require unique pricing or "deals" when they purchase items within a common group of items. An example would be if, a small customer typically receives a given P-COL price for all material except highly competitive lamps, then those lamps could be assigned a common D-GRP number. In the specific customer's record, a table can be established to identify the D-GRP number and the override to the P-COL. Entries in the customer's deal table include the D-GRP and a value to be applied as the override. (See Figure 8)

DiscountGroup

Number

Override Value

Figure 8 –Customer File Maintenance MBS100

Default Pricing:

Customer File Maintenance


The Customer Pricing at a Glance:

MBS101, Item File Maintenance

MBS186, Pricing Item File Maintenance

ItemPricingandMasterRecordrelationshis.


Discount Group Number Override Values

• .000X will point to another price column. Valid entries are .0001, .0002, .0003, .0004, .0005, and .0006. The last digit represents the column number to be pointed to.

• .00XX will point to a specific BOX in the PRICING ITEM. A BOX is identified by the ROW and COLUMN number (Box 43 = Row 4/Col 3). Quantity break pricing is ignored.

• .XXXXXX will provide a unique discount off the BASE of the item. Quantity break pricing is ignored.

• X.XXXXXX will provide a unique multiplier on the BASE of the item. Quantity break pricing is ignored.

• 7.XXXXXX COST PLUS: A unique multiplier is applied to the CALC-COST of the item. Quantity break pricing is ignored. A value of 7.25 equals a multiplier of 1.25 X CALC-COST.

• 8.XXXXXX COST PLUS: A unique multiplier against the TS-COST. Quantity break pricing is ignored. A value of 8.25 equals a multiplier of 1.25 X TS-COST.

NOTE: The TS-COST may not be present in all items due to cost protection, or if the item is not being updated by the Trade Service PFMS option 0.

Discount Group Customer Number: The usage of the DG-CUST allows one customer to receive the same D-GPR (Discount Group number exceptions) as another existing customer, by "pointing to the established customer by entering in that customer's account number in the DG-CUST field. This allows for like customers to be grouped further for pricing exception handling

In some instances, a master deal table can be established that multiple customers could be "pointed to". When a master deal table is established, it can be based on a given salesman's pricing philosophy for his/her assigned accounts, or by market segment. When establishing a market segment "deal table", the exceptions being established should provide pricing exceptions for the better customers within the market. An example would be a master table for all better small contractors, whereby the PRICING ITEM column would accommodate all others.

Prophet 21 Array User's Guide Warehouse Pricing • 15-1

Warehouse Pricing

Overview When multiple branch locations having differing resale and or costing controls, the Array software can allow these factors to be established by location. None

Warehouse Pricing Controls

Prerequisites

Chapter Topics

Prophet 21 Array User's Guide Warehouse Pricing • 15-2

Warehouse Pricing Controls For every item in the Distributor's inventory master file that has had movement, i.e., sales, receipts, placed on order, transferred to a branch, a warehouse record will be created. The Warehouse Record is linked to its Inventory Master Record, and initially utilizes all control information carried in the Inventory Master record, unless otherwise overridden at the warehouse level.

Different BASE,DISC%, DISC-%-2,CAL-COST

DifferentPRICING ITEMand P-REC

DifferentTS-OPT

Promotion Pricing

Figure 9 - Warehouse File Maintenance MBS102

When establishing warehouse pricing controls, the factors to be considered are:

• When unique Promotion Pricing is established at the warehouse level, then the pricing is for that location only.

• The Unit of Measure is NOT different that than of the Inventory Master record.

• If a different TS-OPT (options 0, 6, or 9) is used for managing fixed COST items, then the maintenance must be performed at the branch level.

• Caution should be exercised when establishing unique PRICING ITEM records for a given branch, particularly where customers can buy from multiple locations. Customer pricing would lose consistency.

• For non-stock pricing when, items are "passed back" during Sales Order Entry or Purchasing, the use of TS-Model items at the branch level must be implemented.

NOTE: Prior to modification of branch level pricing and/or costing controls, the Distributor should contact a Prophet 21 Array Industry Consultant to review warehouse pricing exceptions.

Warehouse File Maintenance Screen

Prophet 21 Array User's Guide Pricing Priorities • 16-1

Pricing Priorities

Overview To achieve pricing consistency, the Array software will determine the customer's resale price in the following priority order. None

Priority Order

Prerequisites

Chapter Topics

Prophet 21 Array User's Guide Pricing Priorities • 16-2

Priority Order Manual Override If the operator enters either a manually derived resale price or cost for the item during Sales Order processing, then the system will price the line item accordingly. As an option the Distributor may elect to have a Daily Price/Cost Override report generated in the Daily Jobstream.

Contract Pricing If the entered item is on an active contract for the customer, the software will apply the contract pricing to the order line.

Price Sheet Pricing If the entered item is on an active Price Sheet for the customer, the software will apply the Price Sheet pricing on the order line.

Promotion Pricing If the entered item is on Promotion, the software will apply the promotion price on the order line.

Discount Group Pricing If this customer has an established "deal" using the D-GRP assigned to the item, the software will apply the value associated to the D-GRP on the order line.

PRICING ITEM Pricing Based on the customer's assigned P-COL, the line item will calculate the resale using the value established in the pricing column or box in the matrix.

Default Pricing If the P-COL in the customer record "points" to a column or box that does not contain any value, then the system will default to the value contained in column 6 of the PRICING ITEM.

NOTE: The Array software does contain a "best price" feature that is controlled by the CUSTOMER TYPE field in the customer record and the CUSTOMER TYPE control file. If the field is set to allow the customer to always receive the "best price", then the system will compare Contract 1 price to promotion price and pick the lowest of the two.

Prophet 21 Array User's Guide Trade Service Model Items • 17-1

Trade Service Model Items

Overview

The Trade Service Model Items are used only during creation of new items being added during a PFMS update, or during the "pass-back" of items from the TSDB to the Distributor's Inventory file. None

TS-Model

Fields used in the TS-Model Item

TS-Model Item Coding

Prerequisites

Chapter Topics


TS-Model The use of TS-Model Items allows the Distributor to preset control information for groups of items that would be applicable to all items being created or transferred to the Distributor's inventory file. The TS-Model items are contained in the Inventory Master File and contain unique codes that do not allow them to be placed on orders, etc.

During a PFMS update, any new items, which are being generated, will be required to have a master TS-Model item for that category of item within a vendor. As such, the procedure for performing the weekly PFMS update would contain the review of any items that do not have an existing TS-Model Item. The review for missing models is produced on hardcopy report.

Fields used in the TS-Model Item

Within the TS-Model Item, certain fields control the assignment of values to be placed in every item being passed through the model.

The fields that are used by the TS-Model Item are:

ITEM#

The coding of the TS-Model item determines which levels of items will pass through the model. Coding of the TS-Model Item codes is covered in the next section.

TY

The type code of the item. For all TS-Model Items the TY should be entered as a value of "N".

TS-OPT

The value of the Trade Service Update option to be applied for items passing through the model. This will affect how the item will be passed back to the Distributor's inventory file and subsequent weekly PFMS updates.

SUBSTITUTE#

Any value placed in the SUBSTITUTE field will be used to assign the Vendor Prefix to all newly generated items.

TAX

Entry of a value of "Y" will indicate that the item is taxable, while an entry of "N" denotes a non-taxable item. This is typically entered with a value of "Y"

SEC-TAX

Designed for Canadian distributor's to facilitate the break between the federal good and services tax and provincial sales tax. For USA distributors a value of "N" should be entered.

D-GRP


Discount Group Number assignment for all items which will be passed through the TS-Model.

PROD

The Product Line assignment for all items which will be passed through the TS-Model.

PRICING ITEM

The PRICING ITEM assignment for all items that will pass through the TS-Model.

P-REC

The Pricing Record assignment for all items which will pass through the TS-Model.

LIST#

The LIST assignments for all items which will pass through the TS-Model. At a minimum LIST1 should contain a value.

HAZ

Hazardous Switch setting. In the TS-Model ONLY this will indicate whether the item is to be classified as a stock item, permanent item, or a temporary item. It is recommended that all stock items being transferred from the TSDB contain a value of "S" and non-stock items contain a value of "P".

VENDOR

The purchasing vendor code assigned to this vendor for purchase order production.

TERMS

The terms percentage that is to be carried for calculating the customer's cash discount if Item Terms are provided.

TS-Model Item Coding The TS-Model item is maintained in the Distributor's Inventory master file. They are however, coded uniquely compared to normal inventory items. The Item code assignment for TS-Models begins with the TS-Vendor Number then followed by either the TS-Commodity code and or Velocity Code.

Model coding can be accomplished at four (4) levels. Each level used determines what items are to be controlled. The control can be for every item within a vendor's line, selected commodity codes within a vendor's line, selected velocity codes within a selected group of items, and by commodity/velocity code within the vendor.

• VVVVVV0000 - Coding containing the TS-Vendor number and four zeros (0000) will allow the control of all items within the vendor to be

Model Coding


passed back without regard to commodity code and velocity code assignment.

• VVVVVVcccc - Coding containing the TS-Vendor number and a specific Commodity Code will allow the control of specific items containing the specified Commodity Code to be passed back.

• VVVVVV0000vvvvv - Coding containing the TS_Vendor number, followed by four zeros (0000) and a specific Velocity code will allow only those items with the specified Velocity code to be passed back, regardless of the Commodity code assignment.

• VVVVVVccccvvvvv - Coding containing the TS-Vendor, a specific Commodity code and Velocity code will allow only items meeting all three criteria to be passed back.

Prophet 21 Array User's Guide Work Sheet Procedures • 18-1

Work Sheet Procedures

Overview Establishing the product pricing controls, requires multiple factors to be addressed. Prophet 21 Array has developed a worksheet for use in establishing the criteria needed during the development of the pricing and costing strategy.

None

Worksheet Instructions

Worksheet Field Descriptions

Prerequisites

Chapter Topics


Worksheet Instructions Prior to implementing a specific strategy for pricing and costing a particular line of product, the Distributor needs to determine how the line of products will be updated and reported. To facilitate this preview process, a master worksheet has been developed to assist the Distributor in establishing the various controls needed for accurate pricing and reporting controls.

The worksheet design allows the Distributor to select a specific vendor from the TSDB, when transferring items from the TSDB to the Distributor's inventory file. In addition, if the distributor requires a further selection by commodity code and or velocity code, then space has been allotted to allow for this level of selection.

The identification of the Discount Group Number (D-GRP), Product Line number, LIST id's, TS-OPTION assignment, and the PRICING ITEM composition is contained on the work sheet.

The following page contains a sample of the work sheet.


ITEM MASTER MODEL RECORD (MBS101) TSC VENDOR NUMBER COMMODITY VELOCITY DISC-GRP PROD TRADE SERVICE OPTIONS 0 No Price or product updating

1 TS-COL 1 loaded to BASE. CALC-COST LIST -1 LIST- 2 LIST- 3 PURCHASE VENDOR # computed as a % off BASE.

2 TS-CO 2 loaded to BASE. CALC-COST computed as a % off BASE. 3 TS-COL 3 loaded to BASE. CALC-COST BASE PRICE USED CALC-COST DISC-%-2 (OPT 7 or 8) computed as % off BASE. NET PRICE NET PRICE 4 TS-LIST loaded to BASE. CALC-COST computed as % off BASE. TS-COL 1 TS-COST 5 TS-COST loaded to BASE. CALC-COST computed as % off BASE. TS-COL 2 TS-COST + OR - DISC%-2 DISC -% 6 TS-COL 3 loaded to BASE. The CALC- COST is manually entered TS-COL 3 SPECIAL DISC OFF BASE 7 TS-COL 3 loaded to BASE. CALC-COST can be TS-COST or computed using the TS-COST DISC-%-2. 8 TS-LIST loaded to BASE. CALC-COST TS-LIST PURCH-DISC-% can be TS-COST or computed using the DISC-%-2. 9 TS-LIST loaded to BASE. CALC-COST is manually entered to “lock-in” the DISC%

PRICING ITEM RECORD (MBS186) PRICE METHOD CODE PRICING ITEM CODE P-REC 2= CALC-COST PLUS

3= MULT/DISC X BASE DESCRIPTION

QUANTITY COLUMN 6 COLUMN 5 COLUMN 4 COLUMN 3 COLUMN 2 COLUMN 1

1 2 3 4 5 6 7 8 9


Worksheet Field Descriptions Each section of the work sheet affects how products will be managed by the software.

An explanation of what each section of the work sheet is as follows:

TSC VENDOR NUMBER

This field entry should contain the six (6) digit vendor number assigned by TSC for the vendor that is to be added or modified. If the work sheet is being filled out for a vendor that is NOT Trade Service supported then this field is left blank.

COMMODITY

This field entry should contain the four (4) digit commodity code assigned by TSC. If the work sheet is being filled out for a vendor that is NOT Trade Service supported, then this field is left blank.

VELOCITY

This field entry is needed to control a series of items within a vendor where a vendor discount schedule code matches the velocity code supplied by TSC. When used, the Distributor may select only items on a particular discount schedule to contain the specific controls being established. If the work sheet is being filled out for a vendor that is NOT Trade Service supported, then this field is left blank.

DISC-GRP

This field entry will contain a unique four (4) digit code used to separate the items that the work sheet is being developed for the purposes of allowing customer pricing exceptions when the customer purchases items within this group. This is a mandatory entry.

PROD

This field entry will contain a four (4) digit code used to group like product types together for the production of management level reports, without regard to vendor. An example could be all hand tools regardless of vendor would be reported in summary form as hand tool sales, etc. It is recommended that the TSC Commodity Codes be referenced for consistent grouping. This is a mandatory entry.

TRADE SERVICE OPTIONS

The option selection is based on how or if the Distributor wants to have all items that this work sheet relates to updated during the weekly PFMS price update. LIST1

This field entry will contain the primary list or Line Buy designation for all items that this work sheet relates to. The entry may contain up to four (4) characters. Typically, this will be the same as the item prefix used for all items within a vendor’s line. LIST2, 3

The field entry is optional for these two. Should sub-lists be needed to isolate all items related to this work sheet the entry should contain a four (4) character code.


PURCHASE VENDOR #

The entry should contain the code for the vendor used to purchase material. In the case of commodity type items whereby the products maybe purchased from multiple sources the field should be left blank.

BASE PRICE USED The designation is in the form of a check in the appropriate box. If all the items on this work sheet are not TSC supported, then the selection is based on the vendor's net or list prices.

CALC-COST

The designation is in the form of a check in the appropriate box. If the CALC-COST is not a NET price or the published TS-COST then and entry in the DISC% block is also required.

DISC-%-2

The box entry is only applicable to items being supported by TSC that the published cost is supplied. If the items related to this work sheet are NOT Trade Service supported then this field is left blank. NOTE: Only TS-Options of 7 or 8 are valid.

DISC%

The box entry will take the same discount percentage OFF the BASE for all items related to the work sheet. A multiplier can be applied to raise the CALC-COST above the BASE.

PURCH-DISC-%

Entry is needed ONLY if the purchase cost is different than the CALC-COST. The computation would take the entered percentage OFF the CALC-COST and price purchase orders accordingly. The cost of goods sold on customer invoices would not reflect the PURCH-DISC-%. This is OPTIONAL.

PRICING ITEM CODE

Entry will identify the PRICING ITEM that all items related to the work sheet will be referenced to calculate the customer resale prices. Coding of the Pricing Item is limited to 18-characters, and can be made up of the vendor's prefix followed by the product commodity code or any method that describes the group. The Pricing Item is a background record that cannot be accessed through Sales Order Entry, allowing for the coding convention to utilize special characters and spaces if needed.

P=REC The entry should contain a value of "00" for all work sheets unless the work sheet is being used to provide specific resale controls for a specific branch location. If the work sheet is being created to solve a specific branch requirement, then the P-REC should contain the branch number associated with the work sheet.

PRICE METHOD CODE This entry should contain a check in the value of "3" box. It is strongly recommended that PMC = 2 not be used unless instructed to do so by a Prophet 21 Array Industry Consultant.


DESCRIPTION The entry should describe the PRICING ITEM code in general terms in up to 25 characters. Since the description is also a background record, accuracy is not a critical factor, as long as it is easily understood.

QUANTITY

Entries control the resale calculation based on quantity breaks such as broken box price, etc. If quantity breaks are a factor then the first entry is entered as a quantity of one less the full package, for a broken package, then what ever other break levels are required. Example: If lamps come packaged "30" to a case, the first break level entry would be "29". The last price break quantity must be entered as a value of "999999", denoting that there is no further price breaks. If quantity break pricing is not a factor, then the first break quantity entry should be “999999”. The Array software has a feature that allows the first quantity break level to be left blank and the second level entered with a value of "999999". Under this scheme, the software would accept the order line quantity entered, then match the package quantity of the item to determine if the package is broken or a full package quantity or above to determine which price break level to reprice the item.

COLUMN

Entries are entered as multipliers and/or discount percentages OFF the BASE for each market assignment. If COST Plus pricing is to be utilized the entries may contain value of "7.xxxxxx" to compute the resale using the CALC-COST, or "8.xxxxxx" to compute the resale using the TS-COST.

BOX

The entries may be entered by assigning a box-id based on the horizontal ROW and the vertical COLUMN. It is important to note that if separate boxes are utilized that entries are made in the assigned boxes on every work sheet.

NOTE: It is recommended that a minimum of one (1) work sheet be created for each commodity type and vendor. In many cases, there will be a requirement to have multiple work sheets per vendor or commodity type to accommodate varying discount schedules, net price schedules, etc.

Prophet 21 Array User's Guide Frequently Asked Questions • 19-1

Frequently Asked Questions

Overview Establishing Automatic Pricing and Costing controls is a significant task for each Distributor. The following section provides answers to the most typically asked questions.

None

Questions and Answers

Prerequisites

Chapter Topics


Frequently Asked Questions • Do I need to create a work sheet for each item in my

inventory file? No. The work sheet may accommodate any number of items that are costed and sold the same within a vendor's line.

• How do I manage items within a vendor's line that have a net cost, when all other items in the line are based on the Trade Service supplied published cost? For the majority of the line that the published cost is supplied, as separate work sheet should be developed to accommodate this condition. For those items within the vendor's line that are supplied as a net cost, a separate work sheet or work sheets are required to isolate these item from the rest of the line.

• The vendor's price sheets contain break downs of products that receive different discounts for establishing my in to stock cost. How do I break each group out? A separate work sheet should be developed to accommodate each discount schedule supplied by the vendor to insure that the cost basis is being accurately calculated, and that resale calculation is providing sufficient gross margin. In some instances, the vendor's discount schedule may match the Trade Service supplied Velocity code, thereby allowing items to be grouped accordingly.

• Do I need to complete a work sheet for items that are not maintained by the Trade Service PFMS? Yes. Every item needs to be addressed with a resale Pricing Item.

• Can I combine like products, such as all hand tools, together on one work sheet? It is recommended that each vendor's line be isolated verses combining lines under one set of conditions.

• How should non-stock items that are purchased from other supply houses, that we don't receive the TS-COST be setup? When items are purchased locally that the TS-COST is not supplied, the setup may be accomplished by using the TS-COL3 or TS-LIST values as the BASE and taking a discount off to arrive at the cost.

• We received the full Trade Service Database, do all vendors need to be priced? As a general rule, yes. Items that are maintained in inventory require very specific price and cost controls. Non-stock lines or items within a stocking line that are not normally carried, should be setup to allow for increased gross margin for special non-stock sales. In some instances, a single work sheet may be established for an entire line.

• We sell a vendor's line using the Trade Service Column 3 price, but our cost is based on a discount or multiplier against the vendor's published list price. How do we sell from Col 3 and still arrive at our in to stock cost based on the published list? In most instances, the vendor's list price should be placed into the BASE, and a discount OFF the BASE entered to arrive at the in to stock cost. The resale calculation would need to be made against the BASE as a percentage off to arrive at a TS-COL3 equivalent. This can be accomplished using the TS-OPT 4.

• We receive a special in to stock net price for certain items in a line, but want to sell the items using TS-COL3. How do we


set these items up? The TS-OPT 6 allows the BASE to be established as TS-COL3 for the resale calculation, and the net cost entered into the CALC-COST. Maintenance for these items to enter in the net cost will be performed on an item by item basis where needed.

• We don't want to use Trade Service pricing for our commodity items. How do we manage price changes? Whenever the TS-OPT 0 is used to manually manage item price updates, the Distributor is responsible for all pricing updates.

• Our vendor supplies us with a list price that is not the same as Trade Service, and our in to stock cost is based on a discount off the list. For these items we control our cost by changing a discount off, and sell the product at cost plus. Should I use Price Method Code of 2 to recalculate my resale using a multiplier? No. The best solution is to continue using the Price Method Code of a 3, and within the PRICING ITEM use values of "7.xxxxx" to markup from the CALC-COST.

• Within a vendor's line, we have many special net priced items. Is there a way that we can keep the net price items separate only for performing price changes? Yes. The most common method of separating net priced items form the remaining line for performing price changes, etc., is to assign a unique LIST# to all the net priced items. By doing so, price changes can be performed by "pulling up" all the items identified on the separate list. An example would be all net priced lamps within Sylvania could be assigned SYLN in LIST3.

Prophet 21 Array User's Guide Glossary of Terms • G-1

Glossary of Terms

The distributor’s cost sheets from the manufacturer.

The Array program that permits “passing” items from the TSDB into Array files.

“A” item type that points to a valid file item.

The Aged Trial Balance Report.

The base or “starting” price from the Item/Warehouse record.

The location in the warehouse, where specific items are stored.

Calculated cost from the Item/Warehouse record.

Conversion Factor.

Commodity code from the TSDB record.

Contract number.

Discount Group Customers.

Cost discount percent #1.

Cost Discount percent #2.

"Gold Sheet" Pricing

"Pass Back" Programs

Alternate Item

ATB Report

BASE

Bin

CALC-COST

CNV-FACT

Commodity Code

CONTR#

DG-CUST

DISC%

DISC-%-2


EOQ from the warehouse record. The system calculated purchase quantity.

Goods and Services Tax. A Canadian tax.

Hazardous material flag from the TSDB.

“K” type items that contain a structure record.

The amount of time it takes to place an order and receive it into inventory.

LIFO Cost. Last In First Out.

Manual control value from the warehouse record.

The row and column structure used for pricing items.

The Array program called Customer Sales Summary With Budget.

The Array program called OP/EOQ Update.

The Array program called Contract Invoice Recap Report.

The Array program called Item Master Record Maintenance.

The Array program called Warehouse Record Maintenance.

The Array program called A/R Terms Maintenance.

The Array program called A/R Tax Maintenance.

The Array program called Order Entry Message Maintenance.

The Array program called Customer Type Maintenance.

The Array program called Order Entry User Parameter.

Economic Order Quantity GST

HAZ switch

Kit Item

Lead Time

LIFO

Manual Control Value

Matrix

MBS072

MBS093

MBS099

MBS101

MBS102

MBS103

MBS104

MBS133

MBS158

MBS161


The Array program called Transfer Cost.

The Array program called Item Pricing Record Maintenance.

The Array program called Warehouse/Salesman Sales Summary.

The Array program called Credit Manager Maintenance.

The Array program called Ship Via Table.

Manual control value from the warehouse record.

The DCI number.

On hand balance.

Stock level to trigger purchasing action.

Array feature used to “exchange” records from TSDB to the Item file.

Primary pricing column.

Price file maintenance via TSC.


Price method code.


Also known as PMC.

These are the main fields that are contained in the customer record. The fields that are considered the primary controls are: P-COL, DISC%, DG-CUST and CONTR#.

Provincial Sales Tax. A Canadian tax.

MBS170

MBS186

MBS217

MBS220

MBS507

MCV

NAED Number

OHB

Order Point

Passback

P-COL

PFMS

PFMS Update Service

PMC

Price File Maintenance Service Price Method Code

Primary Pricing Controls

PST


SNGF field from the Item record.

SNGF field from the Item record.

Optional Array subsystem. Also known as TPW.

Optional Array subsystem. Also known as The Paperless Warehouse.

A file containing general product and price information for over 700,000 unique items, provided by Trade Service Corporation. Also known as TSDB.

Item records used in conjunction with the TSDB.

Trade Service Corporation. The company in San Diego, CA that provides the pricing updates.

Trade Service cost published by TSC.

A file containing general product and price information for over 700,000 unique items, provided by Trade Service Corporation. Also known as Trade Service Database.

Trade Service list price, published by TSC.

Universal Product Code.

A safety stock method.

Velocity code from the TSDB record.

Warehouse average cost.

Significant Item

SNGF Switch

The Paperless Warehouse TPW

Trade Service Database

Trade Service Model Items TSC

TS-COST

TSDB

TS-LIST

UPC Code

VanDeMark Method Quantity Velocity Code

WAC

Prophet 21 Array User's Guide Index • I-1

Index

A Advanced TSDB Usage 1, 4 Automatic Pricing

Goals 1–2

B Base/Cost Relationships 11:1, 11:3

C CALC-COST 6–9, 12, 6, 3, 6,

10:9–10:10, 11:1, 11:3, 12:5–12:6, 13:1, 14:5, 18:1, 18:6–18:7, 19:3

Catalog Number 2, 5 Change Symbol 3 Column 1 3, 18:1 Column 2 3, 18:1 Column 3 3, 18:1, 19:2 Commodity Code 3, 10:9, 17:3–

17:4, 18:2, 18:5–18:6 Customer Master Record 1–2, 14:2 Customer Pricing at a Glance 14:1,

14:4 Customer Pricing Controls 14:1–

14:2 Primary 14:2

Customer Pricing Exceptions using the D-GRP 14:1, 14:3

D Default Pricing 14:3, 16:2 DG-CUST 6, 14:2, 14:5 Discount Group Customer Number

14:1, 14:2, 14:5 Discount Group Number Override

Values 14:1, 14:5

7.XXXXXX 14:5, 18:7 8.XXXXXX 14:5, 18:7 X.XXXXXX 7, 9, 14:5

F FAQ 18:1–19:2 Fields used in the TS-Model Item

17:1–17:2 Figures

Figure 1 Trade Service Database Inquiry Display 2

Figure 2 Inventory Master Record 5

Figure 3 Warehouse Item Display 2

Figure 4 Pricing Item Display 2 Figure 5 Customer File

Maintenance 2 Figure 6 - Pricing Item File

Maintenance 12:6 Figure 7 - Customer File

Maintenance 14:2 Figure 8 - Customer File

Maintenance 14:3 Independent Item Files Diagram

10:7 Inventory Master Record

Highlighting PFMS Fields 12:2

Pricing and Costing Summary Diagram 10:3

Frequently Asked Questions 18:1–19:2

G Goals of Automatic Pricing 1–2

I Inventory

Relationship to Pricing Item 12:1–13:2

Inventory Master Record 1, 4, 2, 10:1, 10:9–10:10, 12:2, 13:1, 15:2

Item Description 2, 10:5 Item Master Record 1, 4, 2, 10:1,

10:9–10:10, 12:2, 13:1, 15:2

L List 2:1, 3–4, 6, 8, 11, 8–1, 10:9,

12:2, 12:5, 17:3, 18:2–18:1, 18:5–18:6, 19:2–19:3

Prophet 21 Array User's Guide Index • I-2

M Market Classifications 12:1, 12:5 Matrix 3, 8, 1–3, 12:5, 16:2 MBS072 3 MBS093 6 MBS099 6 MBS101 4, 6, 18:1 MBS102 1–2, 15:2 MBS103 3 MBS104 4 MBS133 12, 3 MBS158 4 MBS161 4 MBS170 8, 6 MBS186 2, 12:6, 18:1 MBS217 7 MBS220 7 MBS507 9

N Net Profit

Increasing 1, 3

P Passback 4 P-COL 6, 14:2–14:3, 16:2 PFMS 3:1, 1, 2, 6–7, 10, 4, 6, 11:3,

11:1–12:3, 12:5, 14:5, 17:1–17:2, 18:5, 19:2

PFMS Update Service Using 12:1–12:2

Price File Maintenance Service 3:1, 1, 2

Pricing Factors to Consider 10:1–10:2,

15:2 Goals 1–2 Priority 16:1–16:2

Pricing Controls Warehouse 15:1–15:2

Pricing Item Relationship to Inventory 12:1–

13:2 PRICING ITEM 1, 7, 1–2, 12:1,

12:5–12:6, 12:1–13:2, 14:2–14:3, 14:5, 15:2, 16:2, 17:3, 18:2–18:1, 18:6–18:7, 19:2–19:3

Pricing Item Record 1–2, 18:1 Pricing Matrix 3, 8, 1–3, 12:5, 16:2 Primary Pricing Controls 14:2 Priority Order 16:1–16:2 Product Pricing

Factors to be Considered 10:1–10:2, 15:2

Stock vs. Non-Stock 1–2 Profit

Increasing 1, 3

R Relationship between the Pricing

Item and Inventory Master Records 12:1–13:2

S Standard Package Quantity 3, 9,

12:6

T Trade Service Cost 3 Trade Service Database 3:1, 1–2,

11, 10:1–10:2, 10:5, 13:2, 19:2

Usage 1, 4, 10:5 Trade Service Database Usage 10:5 Trade Service Number 2, 6 TSDB 1–4, 10:5, 13:2, 17:1, 17:3,

18:2 Usage 1, 4, 10:5

TS-Model 3:1, 4, 15:2, 17:1–17:3 Fields 17:1–17:2 Item Coding 17:1, 17:3

TS-Model Item Coding 17:1, 17:3 TURNS VS CUSTOMER SIZE 5

U Unit of Measure 2, 7, 9, 11, 3, 8,

10:5, 15:2

V Velocity Code 3–4, 11, 17:3–17:4,

18:2, 18:5, 19:2

W Warehouse Item Record 1–2 Warehouse Pricing Controls 15:1–

15:2 Weight 3, 11 Worksheet Field Descriptions 18:1,

18:5 Worksheet Instructions 18:1–18:2

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