Calculating CTO Price—Exercises

Basic Data Setup

Customer

Purpose: The purpose of this exercise is to set up the basic data required for creating a customer order, which will be used in CTO price calculations.

Windows:
Customer

1. Open the Customer window, and search for customer 1000.
2. Right-click, then click Copy Customer to create your new customer, XX3333.
3. Click the Address/Order Address Info tab, and enter a ship via code 30 in the ship via field.
4. Right-click and then click Supply Chain Matrix for Customer. In the From Supply Site tab add a line valid for your site. Use ship via 30, and external transport lead time one day. Save the record.
5. Click the Customer/Invoice tab. Verify that invoice data is copied. If not, click New to enter valid data for this external customer.
6. Click the Order/Misc Customer Info tab. Enter NO in the order type field.
7. Click the Customer/Address/Delivery Tax Information tab. Verify that the tax code data is copied. If not, click the Company field and click New to enter 10 in the company field. Also verify that the tax code is copied. If not, create a new line and enter AZST in the tax code field.
8. Save the record.

General exercise for Customer
General exercise for Setting Up Site-to-Customer Supply Chain Parameters for Trade

Purchase/Inventory/Sales Part

Purpose: The purpose of this exercise is to create part data entries to be used when performing the CTO flow in distribution.

Windows:
Inventory Part
Purchase Part
Supplier for Purchase Part
Calculate Purchase Leadtime
Sales Part

1. Open the Inventory Part window.
2. Click New, enter 10 in the Inventory Part field, and your site. Save. This will copy the Easyflex garage door to your site.
3. Enter yourself as planner in the planner field.
4. Click the Inventory Part/General tab. Verify that Part Type is Purchased.
5. Click the Inventory Part/Costs tab, and enter 1000 in the Estimated Material Cost field.
6. Click the Inventory Part/Default Locations tab. Open a new line and enter one arrival location, and one picking location as default locations.
7. Save the record.
8. Right click, then click Purchase Part.
9. Right click, then click Supplier for Part.
10. Connect part 10 to supplier 5000.
11. Add 1000 in the price field.
12. Click the Supplier for Purchase Part/Inspection Info tab, and select Receive into Inventory.
13. Save the record.
14. Open the Sales Part window, and click New.
15. Enter Sales Part Number 10, and your site.
16. Enter Sales Price Group EF.
17. Enter Sales Group 10.
18. Enter Price 1500.
19. Change to Use order supply - transit in the Purchase Order field.
20. Save the record.

General exercise for Purchased Inventory Part
General exercise for Supplier for Purchase Part
General exercise for Stored Sales Part

Required Data

Pricing the Configuration

Purpose: The purpose of this exercise is to set up basic data to be used when performing the CTO flow in distribution.

Windows:
Sales Part/Configuration Base Pricing
Sales Part/General

Prices on Sales Part

1. Open the Part Configuration Revision window. Search for Sales Part 10 and enter information below.

2. Open the Sales Part window and search for sales part 10.
3. Click the Sales Part/Configuration Base Price tab.
4. Enter data shown in tabs below.
5. Save the record.

Options GDFINISH

Options GDLOCK

Prices on Sales Price List

1. Open the Sales Price Lists window and enter data shown in tab below. Don't forget to connect the price list to your site.

Data on Price List

2. Mark sales part 10 in Part Based tab, and open Configuration Price List via right mouse click. Enter data displayed below.

Data on Configuration Price List

Option for GDLOCK

Do NOT connect the price list to a customer yet!

General exercise for Pricing Setup for Configured Parts

Main Exercise

Price Calculations on Customer Order

Purpose: The purpose of this exercise is to demonstrate how pricing for configured parts works.

Windows:
Customer Order

Customer XX3333 wants to buy our new customized garage door EasyFlex (Sales Part 10). The door should be of aluminum, have one handle and an Assa lock. Price for the lock should be fixed. The door should be delivered with two IR remote controls.

1. In the Customer Order window, create a customer order header and save the entered data.
2. Create the first customer order line. Select the order line, right-click, point to Configuration and then click Create. Enter the valid characteristics and save.
3. Right-click and then click Pricing Info to review the values displayed. How is the price calculated? GDREMOTE is not included in the characteristics. Why not?
4. As mentioned, price for the lock should be fixed. Select the Price Freeze check box for GDLOCK.
5. XX3333 also orders two remote controls. Enter the valid characteristics and save.
6. Review the values displayed for GDREMOTE? How is the Char. Price calculated?
7. Note Configuration ID and confirm the configuration by clicking OK. Save the entered customer order line.
8. Customer XX3333 calls back and would like to increase number of remote controls to four. They also want to change lock from Assa to Abloy. Open the entered configuration on the order line by right-clicking, pointing to Configuration and then clicking Edit. View the Configuration ID field on the two customer order lines. What is stated? Why do they differ?
9. Change the characteristic value on GDLOCK from Assa to Abloy. Also change the Qty. characteristics from 2 to 4 on GDREMOTE. Click Apply.
10. What prices are shown for GDLOCK and GDREMOTE? Have they changed? How are they calculated?
11. In the Pricing Info dialog box, increase the fixed amount for GDLOCK by entering 70 in the Char. Price field and save. Does it change? Clear the Price Freeze check box and try again. Review the values again. What has been changed? Why?
12. Click OK to close the window.
13. Return to the customer order line and review the price fields. Do they differ from the fields displayed in the Create Configuration window?
14. Release the order.

Price Calculations on Customer Order using Price List

Purpose: The purpose of this exercise is to demonstrate how the price on a configured part can be retrieved

Windows:
Sales Part Base Prices
Sales Price List
Sales Basic Data/Sales Price Groups
Customer

1. Open the Customer/Order/Pricelist per Price Group tab and search for XX3333.
2. Connect price list XXC1 created above to customer XX3333.

XX3333 wants to buy a second EasyFlex door. Since last order XX3333 has negotiated a special price for all locks, which is entered in the newly created EF price list. As on last order the door should be of aluminum, have one handle, but this time with an Abloy lock. No remote controls are needed this time.

3. Create a customer order header and the first order line.
4. Select the order line, right-click, point to Configuration and then click Create. Enter the valid characteristics and save.
5. Right-click and then click Pricing Info and review the fields. What is displayed? What price originated from the sales part and what price originate from the price list? Note especially Char. Price Source and Option Price Source for GDLOCK.
6. Click OK to confirm the entered characteristic values.

Due to constant price changes for locks, we would like to negotiate price for GDLOCK with XX3333 at each ordering occasion. Therefore we only enter a basic price of 40 USD for the characteristic and no addition depending on type of lock. Remove options for GDLOCK from the EF Configuration Price List.

7. Enter the second order line, select the order line, right-click, point to Configuration and then click Create. Enter the valid characteristics and save.
8. Right-click and then click Pricing Info to review the values displayed. What is displayed? What price originated from the sales part and what price originate from the price list? What is the difference from the first customer order line? Why is the price for GDLOCK calculated the way it is?
9. The price was not what we expected. Click Cancel to return to the order line.
10. Enter a configuration price list and select the Stop Search check box.
11. Return to the order line, right-click, point to Configuration and then click Create. Choose Abloy lock and save.
12. Right-click and then click Pricing Info and review the fields. What is displayed? What price originated from the sales part and what price originate from the price list? What effect did the Stop Search check box have on the pricing of GDLOCK?
13. Release the order.