Managing NetSuite Pricing – Quantity Pricing Schedules

In previous blogs, we’ve seen how native Netsuite functionality can be leveraged to support your pricing process. Pricing scenarios such as customer specific pricing and group pricing allow us to implement robust and logical pricing structures to ensure we charge customers the right price. We extend those concepts in this blog by reviewing quantity based pricing. In Netsuite, quantity based pricing can be set up using standard functionality to help us offer discounts based on quantity sold.

In addition, we can use quantity pricing schedules to help us determine how these discounts are calculated for a group of items with the same pricing schedule. 

The Process

At a high level, quantity based pricing is set up as follows.  

1. 1. 1. We enable the Quantity Pricing feature, if not already enabled.  
      2. We create our price schedules.  
      3. We update our items and assign the price schedule.  
      4. We test our set up by entering sales orders.  

Enabling Features

First, let’s enable the Quantity Pricing feature and set up some preferences.  

1. 1. 1. Navigate to Setup > Company > Setup Tasks > Enable Features.  
      2. In the Transactions subtab, check the Quantity Pricing box.  
      3. Click Save.  
      4. Now, Navigate to Setup > Accounting > Accounting Preferences.  
      5. In the Items/Transactions tab, look for the Maximum # of Quantity-Based Price Levels field located under Sales & Pricing.  
      6. Set the maximum number of quantity breaks you plan to use. You can always change this later. 
      7. Optionally, check the Allow Quantity Discounts Per Price Level on Schedules Box.   
         1. • This box allows you to enter a different discount per quantity break.  
      8. Click Save.  

Creating Pricing Schedules 

With the feature enabled and our preferences set, let’s now set up a pricing schedule.  

1. 1. 1. Navigate to Lists > Accounting > Quantity Pricing Schedules > New.  
      2. Enter a Name for this pricing schedule.  
      3. If you are multiple units of measure, set the Units Type field.  
      4. Optionally, check the Use Marginal Rates box.  
         • • Marginal rates allow you to apply quantity discounts to each pricing bracket separately. In other words, let’s say you offer a 5% discount once a customer purchases a quantity over 20. With marginal rates enabled, they only receive the 5% discount for the quantities purchased over 20 rather than the entire purchase amount.  
      5. Set the Calculate Quantity Discounts option.  
         • • This option allows you to check how a discount is applied. You have a few options here including by line quantity, overall item quantity, overall parent quantity, and overall schedule quantity.  
      6. Next, set the Quantity and Discount fields.  
         1. • If you enabled the Allow Quantity Discounts Per Price Level on Schedules preference, you will have the option to set this by price level.  
            • You can also leave these fields blank and populate these directly on the item record.  
      7. Click Save.  

Assigning Pricing Schedules – Items

We’ll now assign the pricing schedule to our items. 

1. 1. 1. Navigate to Lists > Accounting > Items.  
      2. Open an existing item by clicking Edit.  
      3. Under the Sales / Pricing tab, scroll down and look for the Quantity Pricing Schedule field.  
      4. From the drop down, select the quantity pricing schedule you would like to associate with this item.  
         1. • Note how the pricing schedule sets certain fields on the item record such as whether the Use Marginal Rates box is checked, the Calculate Quantity Discounts field, and the quantity breaks and discounts on the pricing subtab itself. The quantity pricing schedule acts as a template in this sense.  
      5. Click Save.  

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Our goal is to help businesses of all sizes maximize their investment in NetSuite by providing expert NetSuite cost optimization and implementation strategies. With years of experience as a NetSuite partner, our NetSuite administrators and NetSuite consultants are well equipped to help businesses of all sizes with their NetSuite consulting needs.  

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