Managing price margins

Price margins allow Vetocare to automatically calculate selling prices based on the purchase price. You manage them via Settings → Products → Manage price margins and link them to individual products or entire product groups, so you can apply or change prices all at once. Set the fixed surcharge separately; VAT is added to the price only after the margin has been applied.

Creating a price margin

A price margin consists of a name, a minimum price, a rounding method, and one or more margin rules. The margin rules are based on the purchase price.

1. Go to Settings → Products → Manage price margins.

2. Click Add; you will then be taken to Add price margin.

3. Enter the Name.

4. Add margin rules using Add margin rule. For each rule, enter From, To, Factor, and Fixed increase.

5. Optionally set a Minimum price.

6. Under Rounding, select an option (see below).

7. Click Save.

The factor acts as a multiplier of the purchase price: a factor of 1.25 means 25% above the purchase price. The first rule starts at 0.00, and the last rule has no upper limit; a dash is shown under To. New rules inherit the Factor and Fixed increase from the previous rule.

Fixed surcharge and fixed increase

You set the fixed increase and the factor separately for each margin rule. Each price range (From/To) can therefore have its own Factor and Fixed increase.

In addition, each product has its own Fixed surcharge field on the Price information tab: a fixed amount that is added during the price calculation. See Adding a product.

VAT and rounding

The margin is calculated on the price excluding VAT; VAT is added afterwards. The calculation is performed in the following order:

1. the cost price per unit;

2. the Factor of the applicable margin rule;

3. the Fixed increase;

4. the set Minimum price;

5. VAT;

6. rounding the price including VAT, after which the price excluding VAT is recalculated from it.

You configure Rounding on the price margin itself, not per product or centrally. The options are:

• None — the price is not rounded.

• Incremental — the price including VAT is rounded up to a multiple of 5, 10, 25, or 50 cents.

• Round up to — the price including VAT is rounded up so that it ends in .90, .95, or .99.

Linking a price margin to a product or product group

On the product form (the Price information tab), under Pricing method, choose between Set price manually and Using a price margin. If you choose Using a price margin, select one of your price margins and the selling price fields become read-only. The Manage price margins link appears next to the field.

The same Pricing method field is also available on the product group form (see Managing product groups). If you assign a product to a product group with a price margin, the product inherits the group's margin; in the product form, that margin is then marked with (Inherited from group).

Applying or changing price margins all at once

If you change the Pricing method of an existing product group, the Change pricing method window appears, asking whether you also want to apply the change to all products in that group. Choose Apply to apply the new pricing method to all products in the group, or Do not apply to avoid applying the change to the products.

Managing prices with a margin

In Price management, you can see the Product, Purchase price, Cost price per unit, Pricing method, Selling price excl., Selling price incl., and VAT rate columns for each product.

If a product has a price margin, only the Purchase price is editable; the cost price per unit and selling prices are read-only. As soon as you change the purchase price, pricing method, or VAT rate, Vetocare recalculates the selling price immediately. The change only becomes final after you click Save; the message Changes saved. then appears.

For imported supplier prices, choose per product between Apply the supplier's current price and Ignore the supplier's price. Then save the change by clicking Save.

You manage the VAT rate assigned to a product in the settings; see Managing VAT rates.