Managing Item Rates Across the Sales Cycle

Managing Item Rates Across the Sales Cycle

Overview

This article shows how to set up iVendNext to apply different rates for the same item across Sales Orders, Delivery Notes, and Invoices.



Why Manage Item Rates Across the Sales Cycle?

In many businesses, the rate of an item may change due to various factors, such as market fluctuations, supplier pricing changes, or negotiated discounts. By default, some systems enforce a fixed rate throughout the sales cycle, which can lead to inefficiencies or inaccuracies in billing. iVendNext, however, allows you to override item rates at different stages of the sales cycle, providing the flexibility needed to reflect real-world pricing scenarios.


Key Benefits of Managing Item Rates:

  1. Flexibility: Adjust item rates as needed to reflect changes in market conditions or negotiated deals.

  2. Accuracy: Ensure that invoices reflect the most up-to-date pricing, reducing disputes with customers.

  3. Efficiency: Streamline the sales process by allowing rate changes without requiring manual adjustments or rework.

  4. Customer Satisfaction: Provide accurate and timely invoices, improving customer trust and satisfaction.



Configuring iVendNext for Rate Flexibility

To enable rate changes across the sales cycle, you need to configure specific settings in iVendNext. Follow these steps to set up your system for flexible rate management:


Step 1: Disable the "Maintain Same Rate Throughout Sales Cycle" Setting

  1. Navigate to Selling Settings in iVendNext.

  2. Locate the "Maintain Same Rate Throughout Sales Cycle" checkbox.

  3. Uncheck this option to allow different rates for the same item across various sales transactions (e.g., Sales Order, Delivery Note, Sales Invoice).



By disabling this setting, you can now enter different rates for the same item at different stages of the sales cycle.



Step 2: Set the Over Billing Allowance

  1. Go to Accounts Settings in iVendNext.

  2. Locate the Over Billing Allowance (%) field.

  3. Enter the maximum percentage by which the invoice amount can exceed the Sales Order amount. For example, if you set this to 10%, the system will allow the invoice amount to be up to 10% higher than the original Sales Order amount.



This setting ensures that any rate changes do not exceed a predefined limit, preventing billing errors or discrepancies.



How Rate Changes Work in Practice

Let’s walk through an example to illustrate how rate changes are managed across the sales cycle in iVendNext.


Scenario:

  • A Sales Order is created for 100 units of Product A at a rate of $10 per unit.

  • Before the Delivery Note is issued, the supplier increases the rate to $11 per unit.

  • The Sales Invoice is then generated at the new rate of $11 per unit.


Steps:

  1. Sales Order: The Sales Order is created with the initial rate of $10 per unit.

  2. Delivery Note: When the Delivery Note is prepared, the rate is updated to $11 per unit to reflect the supplier’s price increase.

  3. Sales Invoice: The Sales Invoice is generated at the updated rate of $11 per unit.


Outcome:

  • The system allows the rate to change from $10 to $11 across the sales cycle.

  • The Over Billing Allowance ensures that the total invoice amount does not exceed the predefined limit (e.g., 10% over the original Sales Order amount).



Common Use Cases for Rate Flexibility

  1. Supplier Price Increases: If a supplier increases the price of an item after a Sales Order is created, you can update the rate in the Delivery Note or Sales Invoice.

  2. Customer Discounts: If a customer negotiates a discount after the Sales Order is issued, you can apply the discounted rate in the Sales Invoice.

  3. Market Fluctuations: If market conditions cause item rates to fluctuate, you can adjust the rates accordingly to reflect current pricing.



    • Related Articles

    • Managing Currency and Exchange Rates

      Overview iVendNext offers powerful tools to manage foreign currencies and exchange rates, helping ensure accurate reporting and smooth international operations. This article explains how to use these features effectively. 1. Introduction to Currency ...

    • Creating and Managing Sales Partners

      Overview This article will guide you through the process of creating and managing sales partners in iVendNext. 1. Introduction to Sales Partners in iVendNext Sales partners are individuals or organizations that help you generate business by promoting ...

    • Creating and Managing Sales Orders

      Overview This article provides a step-by-step guide to creating, managing, and tracking Sales Orders in iVendNext, along with tips for effective order management. 1. What is a Sales Order? A Sales Order (SO) is a confirmation of an order from your ...

    • Creating and Managing Item Prices

      Overview This article will guide you through the process of creating and managing Item Prices, linking them to Price Lists, and applying them to specific customers, suppliers, or batches. What are Item Prices? Item Prices in iVendNext are records ...

    • Managing Taxes

      Overview Tax Management in iVendNext makes handling Sales Tax, Purchase Tax, and GST easy and accurate. It helps businesses stay compliant, manage complex tax setups, and file returns on time. This article covers how iVendNext supports tax setup, ...