Microsoft Dynamics GP offers both Standard Pricing and Extended Pricing methods. The difference between the two are as follows
1. Extended Pricing allows for pricing options to be focused around the customer.
- Allows you to setup pricing for customers or groups of customers
- There are a number of pricing calculation methods such as date ranges, discounts based on order value (dollar or quantity) which will automatically be applied to sales orders as the orders are being entered in GP.
- You can create a price sheet of items, assign the items to a price book and then assign the price book to a customer so that you do not have to add a price level for each differing item price. With Extended Pricing, you can have the same item listed at 100 different prices for each customer.
2. Standard Pricing allows for pricing options to be focused around the item.
- Price Levels organize your customers, then offer all customers in that Price Level an item at that same Price
- Gold Price Level: Item #ABC-123 sells for $29.99
- Silver Price Level: Item #ABC-123 sells for $39.99
- Bronze Price Level: Item #ABC-123 sells for $49.99
The basis for Extended Pricing is at the Price Sheet level. The Price Sheet can include both Items and Price Groups. Price Groups are a collection of Items that are the same price.
Flowchart of system setup:
For clients that are customer-focused setting up Extended Pricing may be the best way to meet your business needs.
This article was written by Andrea Stenquist, Dynamics GP Application Consultant for Tridea Partners. Tridea is a leading Microsoft Dynamics provider.